what would happen if the US looses their spot as the worlds reserve currency?
US dollars are accepted all around the world.... would oil prices go up because if the US dollars are not accepted we have to buy other currencies making it more expecive in trade.
- Anonymous8 years agoFavorite Answer
Hyperinflation, and the collapse of a currency.
The only reason why we haven't entered hyperinflation is because of that fact. When the world drops the dollar in favor of a more stable currency, the dollar is finished.
Washington and the Federal Reserve have destroyed the dollar, it's merely hanging on by a thread of life right now.
- Abraham LincolnLv 78 years ago
Huge volumes of unwanted dollars will flood the world market, the value will drop to nothing. $100 for a loaf of bread.... That is NOT out of this world. look what happened to pre-Hitler germany when they had gobs of their money flood the system http://www.time.com/time/photogallery/0,29307,1879...
There is a known 16 trillion the feds generated on their computer and gave away to US and foreign banks and business. All without congressional knowledge/approval. the debt should stand at 30.5 trillion. http://www.unelected.org/audit-of-the-federal-rese...
That 16 trillion was just the floater they found on top. It was only a superficial audit. No telling what secrets are hidden from the 98 years the fed reserve has been around.
- Smoking JoeLv 78 years ago
If the US "loses" their spot as the world currency, it may not have much effect at all, except we would be more motivated to follow sound fiscal policy with responsible reserves, as we should have all along.
FYI, they were talking about doing this back when Bush was President - the value of the dollar crashed by nearly FIFTY PERCENT before Dems got the speaker chair in 2007. Nearly every problem we have now is blowback from this tragic and easily avoidable event.
- TheOnlyBeldinLv 78 years ago
Look up Weimar.
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- Francie SLv 68 years ago
we would finally become what the Republicans have been trying to get us to for a while now -- a 3rd world country.
- Crede Sed ProbaLv 78 years ago
we would have to pay a little extra.
- Anonymous8 years ago
"Let lose the dogs of war"Source(s): Mis-spelled Shakespeare
- Anonymous8 years ago
they have already