Republicans vow to replace dollar with global currency

[DetlefK]

Imagine, that the debt ceiling won't be raised.

The message would be "We don't put enough money aside to pay our debts. On purpose."

Around the world, confidence in US bonds, debt obligations and finally the dollar itself will tumble.

After that second recession, other countries will move their money out of US-investments.

The dollar will loose in value, deepening the economic problems as the USA is an importing nation.

The other nations will seek a replacement for the dollar in terms of international trade. An artificial currency will be set up, backed by a fund of US-dollars, euros, british pound, chinese yuan, indian rupees and brazil real. And remember: the euro's predecessor was such an artificial currency: the ECU.

Congratulations republicans. You ended the international reign of the dollar. By playing politics.

Beck and Bachmann got 50% right on that one.

[dkf]

1. Isn't it the threat of inflating the dollar that pushes them towards other currencies anyway?

I would argue it IS the debt that does this.