this is no joke, and really could affect us all in a big way. our debt level is simply unsustainable, and the housing market continues to drag the US economy down, not to mention the war we cant afford to pay for. a collapsing dollar will have worldwide impacts, one of which will be the rise of the power of the euro, AND the rise of Russia as an economic superpower. dont believe me about russia? they just finished paying off their foreign debt - ahead of schedule, and they control huge amounts of natural gas and oil deposits.
US debt could trigger dollar collapse, UN warns
Submitted by Desha Priya on Thu, 2007-05-31 16:47.Global
The United States dollar is facing imminent collapse in the face of an unsustainable debt, the United Nations warned today.
United States debt, which had now deepened to well over $3 trillion, might turn out to be unsustainable in the rest of 2007 or next, putting further downward pressure on the United States dollar, Rob Vos, the Director of the Development Policy and Analysis Division of the Department of Economic and Social Affairs (DESA), told correspondents at a Headquarters press conference.
He pointed out that since its peak in 2002, the dollar had depreciated vis-à-vis the major currencies by some 35 per cent and by 25 per cent against a broader range of other currencies.
Vos made these comments at the launch of the 2007 World Economic Situation and Prospects report midyear update.
With that increased debt the risk of a sharp depreciation of the dollar continued, he warned. If countries willing to invest in United States dollar assets expected further depreciation, they might be less willing to hold dollar assets, triggering a much sharper fall in the United States dollar. The risk of disorderly adjustment and the steep fall of the dollar existed. The policy challenge was how to prevent a hard landing of the United States dollar and forge a benign adjustment of the global imbalance.