Deficits, Debt and Dollar Demise?

David Gentile / October 07, 2009

As unemployment and debt both spiral up, the US economy should brace itself to avoid what could be a real knockout punch. Even before the financial market collapse a year ago, several key countries have voiced their growing concern over the role of the US dollar as the reserve currency in world trade, and many have suggested a new world currency take its place. The world mandate to Obama and Congress is that they are spending too much money and the rest of the world does not want to be stuck with the bill. It’s time for our government to start listening to these serious and dire rumblings.

China, India, Russia and France have all expressed concern that a growing US deficit and debt have the potential to make their $6.5 Trillion in currency reserves worthless. (more…)