"Reserve currency doesn't mean what you think it means. Most of the world decoupled their money from the U.S. dollar more than 30 years ago. Now the value of each nation's money is set by the market. Some governments, like China, use the power of their central bank to manipulate the exchange rate of their money, but that only works to a limited degree."
What do you think that I think that it means? or better yet, what do you think that it means? I am sure by your answer, that it is you who does not know what it means.
"If the U.S. unilaterally devalued the dollar by nearly 900% most nations that trade with us would eventually have to follow, but not until they used their gold reserves to by U.S. property and goods at fire sale prices."
The US would NOT devalue the dollar by backing it with gold. To think so is folly. Think about what you just said. You really believe that a dollar backed by nothing is more valuable than a dollar backed by gold???? As far as buying things (anywhere in the world - - not just in the US) at firesale prices - - - - this is one of the points I made in my last post. This is why people are buying precious metals! The value of the dollar would decrease as compared with the value of precious metals, not other currencies.
Last edited by SodFarmer; 02/20/12.
