A United Nations committee in 2010 recommended a change in world reserve currency policies, and others such as China have made similar suggestions. They are beginning to doubt the stability of America’s financial infrastructure.
Our continued fiscal irresponsibility not only threatens the financial well-being of the next generation of Americans, but it also increasingly jeopardizes U.S. security. Our international influence is weakened, as our borrower status makes us vulnerable to threats from Putin and others. Perhaps worst of all, if our status as the world’s reserve currency issuer changes, there could be a dramatic decline in our standard of living.
If this occurs, the Occupy Wall Street movement will seem like a walk in the park compared with the civil unrest that will result. It does not require a great imagination to envision some of the freedom-limiting responses that might then occur. Many say this is simply paranoia and fear-mongering, which is what the so-called elites traditionally say before a catastrophic collapse.
The good news is we can do better.