Signs are popping up in New York City which now say "Euros accepted"
some shops in New York City have begun accepting euros and other foreign currency as payment for merchandise.If "money is money" - perhaps they would also take actual gold and silver backed Liberty dollars?? (I know I'd rather have those - and in fact I do own some)
"We had decided that money is money and we'll take it and just do the exchange whenever we can with our bank," Robert Chu, owner of East Village Wines, told Reuters television.
The increasingly weak U.S. dollar, once considered the king among currencies, has brought waves of European tourists to New York with money to burn and looking to take advantage of hugely favorable exchange rates.....
While shops in many U.S. towns on the Canadian border have long accepted Canadian currency and some stores on the Texas-Mexico border take pesos, the acceptance of foreign money in Manhattan was unheard of until recently.
When the dollar, which is fiat money and backed by nothing, becomes as worthless as the paper it is printed on we will probably see the emergence of the Amero (although that will be no different). People in the U.S. are going to be hit hard. Whoever is at the helm of this country will argue that we have to form a North American Union to compete with the Euro.
In truth this is what will happen when the dollar collapses.
Many things, most of them bad. When foreign investors and central banks stop demanding dollars, U.S. bond prices will fall, which is another way of saying that U.S. interest rates will rise. Mortgage and credit card rates will soar, bursting the housing bubble. Home prices in hot markets like California and New York will fall by 50% or more in a matter of months, bankrupting millions of over-extended homeowners. The U.S. government will respond by opening the monetary floodgates, printing as many paper dollars as necessary to keep the economy from collapsing. This surge in supply will send the value of the dollar through the floor. Prices for most things will skyrocket, and people whose life savings are in cash, bank CDs or dollar-denominated bonds, will be wiped out. Most U.S. consumer finance companies will be ruined, along with their stockholders.It's a good time to buy gold bullion, or at least to pay off your loans and try to protect some of your assets. Fear mongering? Doom and Gloom? Some might say yes...but it looks to me like we would do well to take some precautions because the signs are around us.
THEN the Dollar Disease will go global. The only reason Japan or Europe have been able to generate their current meager rates of growth is the willingness of U.S. consumers to buy their Hondas and BMWs. As the dollar plunges, Asian and European goods, priced in suddenly-appreciating currencies, will become prohibitively expensive for U.S. consumers, who will respond by buying U.S.-made alternatives or nothing at all. Correctly interpreting this change in buying patterns as a threat to their vital export sectors, European and Asian leaders will respond with the only weapon they have left: monetary inflation. They’ll cut interest rates and buy dollars with their currencies, flooding the world with euros and yen the way the U.S. now floods the world with dollars. The result of these “competitive devaluations” will be a death spiral for all major fiat currencies, in which European and Japanese bonds will, eventually, fare as badly as their U.S. cousins.
The predictions are that dozens of large banks will fail by 2010 as losses from soured loans mount and regulators crack down on lenders that take too much risk, especially in real estate and construction, an analyst said. "The initial round of failures will come from smaller banks with limited access to capital and overexposure to commercial real estate".
The destruction of the dollar is what Osama Bin Laden and his cohorts have been waiting for. He knows war is expensive. Why did they choose the World Trade Center to attack? Because it was our financial center... it was symbolic of what was really to come.
That "kook" Ron Paul knows too. Pity no one has been listening to him and his prescription for monetary recovery. (and yes - he is STILL a Republican running for president despite the media saying that McCain has no competition).