China Pushes to Drop Dollar as World Currency

[Cephyr13]

Looks like economic collapse is coming quickly. The Chinese president is pushing for the dollar to be dropped as the world currency and the Chinese yuan to replace it, or a multi-currency system. When this happens, the dollar will drop drastically in value (hyper-inflation), and we will no longer be the country who first gets our oil supplies met. Instead, China and India's oil supplies will be met and we will be on the back-burner, meaning oil prices here will skyrocket and our daily supply will be less than we need. This will cause a complete breakdown of the system. When oil hits $120 a barrel, our economy tanked in the past. Oil is nearly at $100 a barrel now. Best to start stocking up on food and maybe some gasoline with some stabilizer to make it last a good year and some other survival items. Economic collapse is not pretty.

http://www.moneynews.com/StreetTalk/ChinasPresidentDumpDollarforYuanasGlobalCurrency/2011/01/18/id/383097?s=al&promo_code=B7C0-1

[Peter]

Hey Cephyr good to hear from you. How about I move this to the politics section? OK?

Interest on our Federal debt last fiscal year (ended Sept 30 1010) was $413,954,825,362.17
http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
The third largest amount of annual debt interest paid by Treasury in our nation's history.

This even though for some years now, interest rates have been at 65 year lows. Last year T-bills paid around 1/5 of 1% interest or less. At times over the last couple of years interest rates actually went negative. That is, you had pay the government for the privilege of loaning it money.

Here's the kicker. Over 1/2 of the Federal debt is held in instruments that mature in 1 year or less.
So what will happen to the Federal interest payments with just a little up in rates? It's obvious that a very impossible situation will rear it's ugly head almost immediately.

[Cephyr13]

Sure, feel free to move the topic. I wasn't sure where to post it exactly.