AMERICAN economy

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#1 Sun, Jul 3, 2011 - 6:56am
Wolf Creek, OR
Joined: Jul 3, 2011

AMERICAN economy

I'd like to hear a discussion of what life would be like if our currency is rejected outside our borders.

Some of the differences would include:

No Walmart. No Foreign Oil. No Imported Vegetables, Fruit or other foods. No Imported Cars.

Edited by: Piledriver on Nov 8, 2014 - 5:06am
Sun, Jul 3, 2011 - 11:56pm
Eternal Student
Joined: Jun 14, 2011

No food, period. At least not

No food, period. At least not for a while.

Back in November of 2008, credit was collapsing. This hit the international dry goods shipping particularly hard; which you can see if you take a look at the Baltic Dry Index. The reason being is that such shipping only happens because of credit. The exporter doesn't want to send his goods without payment, and the importer would really like to know that the goods are shipped, before paying. Hence the Bankers come in with credit to facilitate the transaction. This style of business has its roots back in ancient Roman times, at least.

Since the shipping stopped, the containers also stopped flowing. This messed things up considerably here in the U.S.. In particular, with farmers who were trying to ship their wheat to market.

There was a newspaper story back in the mid-west around that time, about the problem. It also highlighted one farmer who drove 200 miles on a rumor that there were shipping containers to be found.

Another way of looking at this is that our just-in-time supply chain was starting to break down. Expect to see a repeat of this the next time credit collapses like it did.