Subject: Re: Falling USD - pros and cons
"But if real money – actual USDs, physical gold and silver -- as opposed to asset prices that are buoyed by a flood of debt –- continue to signal a breakdown of confidence in the USD there could be a Macroeconomic trend shift all over the world"
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I am the furthest thing from a monetary-policy expert.

The US$ has been considered a safe haven, possibly due to the rule of law practiced in the USA. It was considered a sure thing that anybody could invest in US Markets and not have their assets seized, and not have any contract unlawfully terminated. If not a sure thing, then an extremely low risk.

The US benefited greatly from being the de facto "world's safe haven" currency. US taxpayers collectively pay only a fraction of the tax dollars spent by the government, the rest is borrowed, and rolled over into new borrowings, year after year after year. IMO, the rest of the world would be insane to not demand more US$'s for any goods or services they sell to us.

Couple that with the current administration breaking trade agreements on a whim, and the rest of the world really has no logical reason to not look elsewhere for trade partners. It seems like the rest of the world could figure out a way to not feel that they have to buy US Treasuries. And for all of the Country's we are alienating, that could be a good strategy to severely weaken the USA. If interest rates on US T's have to rise to attract buyers, that burden could/would cause a chain of events that none of us really want to experience.