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Yes

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Yes, and there are already.
But make no mistake, it is for no altruist reasons.

China, Japan, South Korea and the many nations that traded with USA, had over the past years bought US bonds, loaned money to USA so that she can continue to consume cheap goods and services from these countries and help fuel their economic growth and at the detriment, first of the jobs and then the economic growth of USA.

Now that the property bubble that financed the additional consumer consumption frenzy has finally gone home to roost, the international value of the US currency is about to collapse.

The US Dollar, love it or hate it, is still the dominant currency of international trade.

It is used to denote monetary value, buying and selling and the settling of debts and payments, as well as the store of savings, assets and monetary wealth.

What are the ramifications of the collapse of the confidence in the US currency?

Scary.

It will be the end of International Commerce and Trade!

Yes, people may jump on to the Euro, but the Euro will be the next casualty as the value of the Euro is based on the same valuation process as the US Dollar(USD).

People demand the USD and the Euro for the same set of reasons, because unlike commodities, currencies are not worn, eaten or consumed physically, they are commodities to facilitate the exchange process between sellers and buyers in the proxy barter trade system.

The root problem of the US credit crisis is the loss of people's confidence in not wanting to be last person at the end of the musical chair, caught carrying the baby.

Currency, money and credit only has its value for so long as people trust its value and wants it.

The moment everybody throws it away like a hot potato, the currency shall see doom.

What if the US currency collapses?

Outside of USA, disaster, within US? Life continues.

So, I say, USA ought not be too worried, like the American International Group (AIG), USA is too big and too entangled with its tentacles with other nations in the world to let the US currency, banking or economic system collapse in front of them.

Interests are just too vested in the USA by other countries, that they who depend on a viable USA, would have no choice but to support USA to the hilt.

Yes, other countries ought to, and they will bail out USA by bailing out the banks, but where will the money be coming from?

From all the surpluses from trading with USA, domestic borrowings or simply printing more of their own money at their own peril?

Tough questions and even tougher answers, but the Sun will continue to shine, the Earth will continue spinning and orbiting round the Sun and the Globe will continue to get warmer and life goes on towards the end as destined by the law of life and eventual death.

Learn more about this author, Alex Kee.
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