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Thread: What happens if the US dollar loses its status as worlds reserve currency?

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    Default What happens if the US dollar loses its status as worlds reserve currency?

    What would be the sequence of events that follow?

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    All countries that dropped the dollah would be found to be harboring terrorists and promptly bombed.

    Seriously though they would all have to do it at once so a few coulden't be picked out and liberated, freed or introduced to womens rights and democracy.
    Treasure Hunting Gold Hoor ~

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    this isn't practice

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by Irons View Post
    All countries that dropped the dollah would be found to be harboring terrorists and promptly bombed.
    Bombing countries like Iraq and Yemen are one thing. Russia and/or China is another.

    Seriously though they would all have to do it at once so a few coulden't be picked out and liberated, freed or introduced to womens rights and democracy.
    Right.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by Irons View Post
    All countries that dropped the dollah would be found to be harboring terrorists and promptly bombed.

    Seriously though ...

    I thought you were being serious!

    Iraq, Libya and now Iran are excellent examples.

    Yes, China and Russia are big and bad, but IMO, the banksters who run the fed, and thus control the political/military of the U.S. will be more than willing to send more of our sons and daughters into the meat grinder.

    Never underestimate the reactive power of a desperate, cornered beast!
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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    USD is already NOT the reserve currency according to the BRICS nations.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    What do you mean "if"? This event is already in play. Bx3

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    In seriousness, the U.S. military can't take on every country that is "defecting" from the U.S. dollar monopoly. We're already stretched thin as it is, nor does the military perceive that its core mission is to enforce a monopoly. If that purpose becomes evident, I figure most of our military is going to balk.

    What would happen (I think) is that we in the U.S. would begin to experience inflation in earnest. U.S. dollars, no longer required to conduct trade, nor required for holding in reserve, would be flooding back to the U.S. in exchange for whatever good with any perceived value could be bought. What do we sell now? Gasoline products, entertainment, food, weapons system.

    Cheap imported goods would become more difficult for the U.S. to acquire, driving up prices and creating shortages. The prices on everything from food and energy to non-durable goods and commodities would go up as the inflation proceeded. However, income will not rise to keep pace. We don't produce much in the way of product to sell to other countries to generate income.

    It's late tonight--I'll try to ponder more in the morning, plus there'll be more posts from GIMers to compare and hash out what we think will be the most likely scenarios.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    gold dose not buy everything....a coup on the financiers / bankers vs nuke war ? hummmm
    IF YA CANT DAZZLE THEM WITH BRILLIANCE BAFFLE THEM WITH BULLsh!t.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Those cheap plastic shoes at kmart that pass for leather?

    Will cost about 1,700 of our new non-reserve Zimbabwee Dollar Bills.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    "What happens if the US dollar loses its status as worlds reserve currency?"

    Av, I am surprised you even request an answer/. After all, you are clued up enough to realize what happens when TSHTF with your pts nok, third party and other s/o's??????????????

    Anger and Denial;

    Until that is, when one attempts evolving through the stages of the Kubler-Ross model of grief.

    It will be at such a time, when yet another imposter will win the hearts and minds of the American people, whom will further entrap that loyal dependency, only to enslave the good, and integral people of a once great nation.


    JMHO.

    SH

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    What happens if the US dollar loses its status as worlds reserve currency?
    Starvation and death. U.S. population drops 60% in a generation.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    everything's just fine .... this has been a test of the emergency sh!t hit da fan system....had this been an actual event we would all be toast. that is all.
    IF YA CANT DAZZLE THEM WITH BRILLIANCE BAFFLE THEM WITH BULLsh!t.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by smilershouse View Post
    "What happens if the US dollar loses its status as worlds reserve currency?"

    Av, I am surprised you even request an answer/. After all, you are clued up enough to realize what happens when TSHTF with your pts nok, third party and other s/o's??????????????

    Anger and Denial;

    Until that is, when one attempts evolving through the stages of the Kubler-Ross model of grief.

    It will be at such a time, when yet another imposter will win the hearts and minds of the American people, whom will further entrap that loyal dependency, only to enslave the good, and integral people of a once great nation.


    JMHO.

    SH
    I’m really not sure how it will go down.. There seems to be a huge effort to hide the truth from the US population so I am wondering how it will play out. With the level of denial from people and the Government I’m wondering if it will be a slow burn or like the crash of 08 where you wake up and the country is in dangerous peril.
    Will it will be sudden and abrupt even though it’s been going on a long time.
    I’m just wondering specifically how it will unfold. Will the Goverment try to tell people its not hapening while its going on or use panic to promote some agenda.

    I know the US likes to do the boiling frog tactic but in this case I’m thinking

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    I guess nobody can "know" the answer to that question but I really don't think it will be the doomsday that some people think. Maybe what you are seeing right now with gas prices is what you could expect. Like others have said there will be less need for dollars in international trade so more of an incentive to purchase US produced goods internationally. Yes this means inflation but no it does not mean a Zimbabwe style inflation. Consumers here in the US may find that they can't afford the lifestyle that they once did but it may also mean an end or a reversal of the trend to move labor off shore.

    I don't see how our population would drop by 60% - we still produce a large surplus of food and agricultural products domestically.

    Heck maybe it will be a good thing - kind of like a fat man going on a diet - the transition is painful but the end result is a healthier man.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by Tecumseh View Post
    I don't see how our population would drop by 60% - we still produce a large surplus of food and agricultural products domestically.

    Heck maybe it will be a good thing - kind of like a fat man going on a diet - the transition is painful but the end result is a healthier man.
    I'm more of Tecumseh's mindset. I see a painful adjustment for many people, but not necessarily a cataclysm.

    Why would 60% of the population die off? The only scenario that would cause this is a total collapse of communications and transportation and the loss of clean water. We *are* heavily dependent on oil products for our agriculture, but we also export much of our grain. If the U.S. large-scale agriculture were busted from lack of fuel we wouldn't be the only ones dying off.

    My view is a more hopeful one--of the majority of people finally returning to a more realistic mindset and getting back to the basics of how to live. Modern America is somewhat of an abomination to me--millions of people who don't know a stitch about how to grow a plant, yet they can rattle off all the names and jersey numbers of their favorite athletes, or other fundamentally useless information.

    Or even worse--LIBERALS--who haven't a clue either about how to grow a plant, but think whatever completely impractical but "green" idea that comes to their empty heads is going to REVOLUTIONIZE the world of energy, housing, whatever and bring about their liberal nirvana.

    They've become a different species. A good hard kick in the head from reality is the only antidote that can possibly return them to this plane of existence.

    So I am hopeful that an event like this would help us get back to the basic spirit of this country--the ingenuity and gritty determination that made us great.

    We are not too far removed from those generations.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    As the price of foreign goods goes up we would have to start making stuff here again.
    The American consumer will have to change their mindset about the cheap throw away crap they're currently buying.
    Congress will have to start looking at entitlements and actually balance national spending with income.
    Some people, currently on the public dole, might have to get a job.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    OK, Here's the truth:

    All the chess pieces are in place for the Global Crisis. We have a floundering global economy, escalating military tensions based on religion and ideology. We have draconian laws being passed to steal freedoms and due process. The infrastructure for population control now exists such as the tens of thousands of CCTV's in Britain or the thousands of drones that will be flying over the USA shortly. FEMA camps have the capacity to house 15 million dissidents.
    So the collapse will start after Lord Barry Soetero is re-elected. Possibly before if he is viewed as a lame duck president. This will be a strong military stance in the Middle East. Next we will have a Black Swan event such as a possible dirty nuke in a US city. The radio isotopes will be consistent with what Iran is using in it's energy program. This will prompt a joint US/Israeli military strike.
    The result is a descent into more financial collapse in global markets and a polarizing of US Dollar/Alternate reserve currency commerce. In a move to ensure global protectionism, the US(global reserve currency)/Israel (jewish puppet masters)/British (london bullion & stock market) and SWIFT Banking system in Belgium (EU Headquarters) will ALL join forces to construct a new global financial system.
    The salesman for this World Order will be a dynamic and charismatic character, viewed as neutral and fair. His goal is to restore commerce and prosperity at the expense of "old relic cash currencies". A new barcode system will be implemented.
    CLICK HERE FOR DETAILS! Ironically, your bible will tell you why the 18 digit barcode is significant, and why this barcode tracks the item for it's lifetime.
    The USD will be phased out initially by pegging it to the new GLOBO currency and then at a decreasing ration decided by financial headquarters in Belgium. As the ratio of USD to GLOBO decreases, populations still using the USD will exchange their USD into GLOBO instead of watching it devaluate into nothing. The move will create a cashless society with minor modifications to millions of existing barcode scanners. The intrinsic value of gold will decrease steadily during this process.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by ralleia View Post
    Why would 60% of the population die off? The only scenario that would cause this is a total collapse of communications and transportation and the loss of clean water. We *are* heavily dependent on oil products for our agriculture, but we also export much of our grain. If the U.S. large-scale agriculture were busted from lack of fuel we wouldn't be the only ones dying off.
    A simple solar EMP a la the Carrington Event that knocks out the grid would do it.

    Tons of food in silos does not help hungry people thousands of miles away if nothing moves because every computer chip is fried.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by Oldmansmith View Post
    A simple solar EMP a la the Carrington Event that knocks out the grid would do it.

    Tons of food in silos does not help hungry people thousands of miles away if nothing moves because every computer chip is fried.
    Hence the reason my post says "The only scenario that would cause this is a total collapse of communications and transportation and the loss of clean water."

    I read "One Second After" by Bill Forstchen a few years back. Even had the delight of spending hours of quality time with him over the course of two days when he traveled to Omaha for a conference that was hosted here.

    If you aren't familiar with the book, it's about an EMP attack that knocks out the grid (destroying transformers and connected equipment, to include connected generators) and plunges the U.S. into essentially pre-industrial disarray. Millions of people, dependent on just-in-time delivery of food or dependent on medications get wiped out.

    By the way, the huge transformers (image below) that step up or step down the voltages so that power may be transmitted across long distances take on the order of 750 days to manufacture and install (often 3 years) and cost several million dollars. Nor is the manufacturing capacity there to support a massive demand for replacements.
    Click image for larger version. 

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    If the grid is seriously damaged, most of us will be without electricity for the better part of a decade, and that is assuming that things stay reasonably orderly.

    Read The Transformer Problem. It just may be our Achilles heel.
    Last edited by ralleia; 03-31-2012 at 10:20 AM. Reason: link to Transformer Problem article

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Oh, and should mention that an EMP attack isn't the only avenue for destroying the grid.

    A severe solar storm akin to the 1859 event has the potential to have the same effect.

    I still haven't forgiven Scientific American for publishing an article suggesting that heirloom tomatoes were inferior, but this article on solar threat is pretty decent.

    http://www.scientificamerican.com/ar...-grids-2010-04

    Apologies to Avalon for taking this thread in a different direction, but we'll get back to the originally-scheduled programming soon!

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Suicide will become the most common cause of death...

    SC
    "You shall know the truth and the truth shall set you free." But first it will make you miserable.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Avalon the first thing you need to do is use your head, I know youre a smart gal, and stop listening to the sort of doom and gloom hyperbole you see on this thread.

    What you are proposing is not going to happen. Sure, there will always be a few renegade countries that try and drop the Dollar, but they are and will continue to be brought quickly back in to the fold. Not that I agree with that but it is the reality of the situation and most of those countries that have tried to drop the dollar did so with the help and encouragement of western spooks so as to create the illusion of a need for more US military buildup in the region as if you have not noticed the US is building military bases all around the globe, basically surrounding China should China ever try and do the above. But China will not because China is a mess economically as well and they DEPEND on US consumers buying their cheap **** to keep their own boat afloat. Think about it, if you owned a store and had a very good and loyal customer who came in and bought all your **** at great profit would you someday meet him or her at the door and tell them you no longer want their business?

    China and the rest of the world will continue to use the dollar and every effort will be made to continue to prop the dollar up and this will continue for at least a few more decades until a global currency can be created at which time most of us probably wont be here anyway.


    Dont get me wrong, the global economy is in dire straights, the dollar is worthless blah, blah, blah, nobody in their right mind will argue those points but TPTB have too much invested to let it all go to hell, why would they? They get their cake and they get to eat it too and nobody does a ****ing thing about it, plus, they own the printing presses, enough said.

    Those suggesting mass die offs and imminent collapse with people locked up in FEMA camps are not rational and are in need of psychotropic medication to balance out their brain chemical discrepancies.


    Gold and silver are good and paper is bad, but dont kid yourself, those in power have way too much invested to let it all go to hell, the dog and pony show that is the US/Global economy and dollar hegemony will continue as we know it for many more years to come. The rest of the world depends on US consumers to keep their own fed, fat and happy and they will not risk anything that will interrupt that market and its cash flow.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by SilverCity View Post
    Suicide will become the most common cause of death...

    SC
    Its always been near the top. That is nothing new.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by Avalon View Post
    There seems to be a huge effort to hide the truth from the US population

    1 Create the problem.

    2. Blame someone else for #1.

    3. Provide the solution to #1.




    Any questions?
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    commodities, or linked to specific events such as changes in interest rates or the weather.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by gonzo View Post
    Gold and silver are good and paper is bad, but dont kid yourself, those in power have way too much invested to let it all go to hell, the dog and pony show that is the US/Global economy and dollar hegemony will continue as we know it for many more years to come. The rest of the world depends on US consumers to keep their own fed, fat and happy and they will not risk anything that will interrupt that market and its cash flow.
    We (the U.S. consumers) are being passed by with the emergence of the Chinese and Indian consumers. I fail to see what motivation TPTB will have to continue to prop up a flagging dollar when there are billions of alternative consumers to be fleeced, now converting from savers to spenders. The U.S. is already leveraged to the hilt, and global investors have learned that the U.S. stock market is not a sure win!

    I don't agree with those who are talking about mass die-offs (barring an extreme event that collapses the supply distribution system), but I don't agree with your view that it's going to be business as usual, either.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    It's happenning in Greece and this is how they are dealing with it..........

    "As Greece’s economy and the euro continue to struggle, regular Greeks are increasingly taking matters into their own hands, creating informal underground barter markets and even alternative currencies. And the government is actually encouraging it.

    Over a dozen non-euro trading networks are already believed to be operating in communities throughout the embattled nation, with more on the way. But one effort in particular — called Local Alternative Units, or “TEMs” in Greek — has attracted a great deal of international attention."

    more at link.....http://www.thenewamerican.com/world-...onomy-implodes
    Slow is smooth.....smooth is fast...

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    This was posted by Avalon in the BRICS thread, but it is very relevant here.

    The subject matter is the abandonment of the USD by global investors, new reserve currencies (backed by gold), and GOLD.


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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by gonzo View Post
    Its always been near the top. That is nothing new.
    Barely makes number 10.

    SC
    "You shall know the truth and the truth shall set you free." But first it will make you miserable.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Fiat currencies eventually fail. A failed currency is worthless.

    EOM

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Are transformers really that vulnerable to an EMP? While I can imagine a modern transformer (like the one pictured) has lots of fancy electronics to monitor things. I'm assuming the core of a transformer is more or less impervious to an EMP.

    Quote Originally Posted by ralleia View Post
    By the way, the huge transformers (image below) that step up or step down the voltages so that power may be transmitted across long distances take on the order of 750 days to manufacture and install (often 3 years) and cost several million dollars. Nor is the manufacturing capacity there to support a massive demand for replacements.
    Click image for larger version. 

Name:	rudd transformer 001.jpg 
Views:	172 
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    If the grid is seriously damaged, most of us will be without electricity for the better part of a decade, and that is assuming that things stay reasonably orderly.

    Read The Transformer Problem. It just may be our Achilles heel.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by NewBob View Post
    Are transformers really that vulnerable to an EMP? While I can imagine a modern transformer (like the one pictured) has lots of fancy electronics to monitor things. I'm assuming the core of a transformer is more or less impervious to an EMP.
    They are vulnerable, but precisely *how* vulnerable isn't something that any of us here are likely to be able to determine due to lack of data and the sensitive nature of the data that do exist.

    I found this discussion that at least states that EMP is less of a threat to the transformers than solar storm is (due to duration):

    Dr. Rabinowitz does make an excellent point in the latter paper about transformers being much less likely to fail as a result of EMP vs. a solar storm due to the duration of each event (since solar storms last far longer, giving the transformers more time to overheat to destruction). That is not a reason to continue with the high level of risks that is being taken with the North American power grid due to the use of very old transformers, without replacements on hand, and with no manufacturing capability for these very large transformers on the North American continent.
    The full discussion is at: http://www.futurescience.com/emp/emp-notes.html

    Another discussion:

    Most people who have some knowledge in this subject, and who have given some serious thought to the problem, consider the probability of an EMP attack on the United States during the next ten years at somewhere between 20 and 70 percent. The probability of a solar storm large enough to destroy hundreds of the largest transformers in the United States power grid sometime during this century is widely considered to be more than 50 percent. (My own guess is that the probability of a long-term loss of much of the world's power grid from a solar superstorm is probably much larger than the chance of a nuclear EMP attack on the United States.)

    The time that it would take to recover from a nuclear EMP attack has generally been estimated to be anywhere from two months to ten years. There would almost certainly be a time of great economic hardship. Whether this time of economic hardship is of short or long duration will depend upon the reaction of the American people after the event, and whether any preparation has been made in advance of the event. (So far, such advance preparation has been almost totally absent.) A very large factor in the recovery time would also be whether most of the damage was due to the E1 or the E3 components.
    http://www.futurescience.com/emp.html

    The subject is not at all straightforward and the results depend on many different variables--altitude of the burst, the components of the pulse (E1, E2, and E3), timing and number of events, etc. It is something that I have only perused and not mastered.

    More:

    According to a study by the Metatech Corporation, commissioned under Executive Order 13407 for assessment of vulnerability to geomagnetic storms, manufacturers presently have a backlog of nearly three years for all extra high-voltage transformers (230 kilovolts and above). Only one plant exists in the U.S.A. capable of manufacturing a transformer up to 345 kV. There is no manufacturing capability in the U.S.A. for 500 kV and 765 kV transformers, which represent the largest group of at-risk transformers in the U.S. power grid. The 500 and 765 kV transformers are the backbone of the grid that extends into regions that contain nearly 80 percent of the U.S. population, according to John Kappenman of Storm Analysis Consultants and Metatech Corp.
    June 13, 2011 http://larouchepac.com/node/18439

    Whether due to electromagnetic storm or EMP, I believe that the vulnerabilities of the grid are something that each of us should give some consideration.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Without specifics, I still find it hard to believe that something designed to convert 15 bazillion volts into 12 trillion volts is going to be susceptible to heat generated by a solar storm. Like I said, I don't doubt there are some fancy electronics inside, but the guts....

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    The Federal Reserve will be the only buyer of U.S. debt (it's almost there now).
    The inflation we've exported to other nations will come home to roost. We won't like it. We will throw a hissy fit.
    When the Fed raises interest rates to combat inflation, the national debt will soar even faster than Obama could dream.
    The national debt will be the the mother of all bubbles. When she bursts, you will know it.
    National bankruptcy, then things start over.

    If America is smart enough to elect Ron Paul to lead this nation in November, it will be painful as we address our debt and liabilities.
    If America is dumb enough to elect anyone other than Ron Paul, the can will be kicked down the road even further and the day of reckoning will be even more painful.

    Great pain now or massive pain later? No wonder they keep kicking the can down the road. The bastards are hoping they will escape it. God have mercy on those who don't escape it.

    Also, it's not "if" the US dollar loses world reserve currency status, it's WHEN. It is inevitable.

    Ron Paul 2012 or else we are REALLY screwed.
    "I am convinced that there are more threats to American liberty within the 10 mile radius of my office on Capitol Hill than there are on the rest of the globe." -- Ron Paul

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    1st thing is that New York city will become Detroit very quickly.
    "We all know what to do, we just don't know how to get re-elected after we have done it." - Jean-Claude Juncker

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Price of gold and silver will fall 60%.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by NewBob View Post
    Without specifics, I still find it hard to believe that something designed to convert 15 bazillion volts into 12 trillion volts is going to be susceptible to heat generated by a solar storm. Like I said, I don't doubt there are some fancy electronics inside, but the guts....
    The "guts" of the transformer that appear so impervious to you are simply coiled wire. The voltage is stepped up or stepped down by the two coils having different numbers of windings around a ferro-magnetic core. The windings of one coil "induce" a magnetic flux in the core. That magnetic flux travels to the other coil and induces a current at a different voltage. Voila! You've stepped up (or stepped down, depending on the direction of flow) a voltage.

    What you imagine to be so invulnerable about the "core" of coiled wires I cannot fathom--unless you are simply didn't realize what the core of a transformers really is. I know that those huge transformers look very impressive from the outside (and it IS very impressive what they can do), but the innards are quite sensitive to unintentional induced currents. The innards are also extremely sensitive to electrical faults (electricity traveling where the design didn't intend it to).

    Electrical engineering was not my favorite class, but I shall endeavor to trudge through this.

    The transformers produce AC current, which alternates at 60 hertz (60 cycles a minute). That's what the transformers produce, and that is what they handle.

    Cue the solar storm.

    A solar storm is an electro-magnetic event (remember the coils and the ferrous core, and the induced magnetic flux and induced current at the "core" of every transformer, big or small?)

    The BIG kicker is that the electro-magnetic solar storm induces current in ALL the electrical power distribution lines that it hits. The even BIGGER kicker is that this current is DC (direct current). It is not AC of course, and it isn't alternating at 60 herrz in lockstep with the AC that is being transmitted along those lines.

    The induced direct current from the magnetic storm causes the transmission lines and everything that the current is flowing through (including the coils around the cores of the transformers). Too long and too hot and transformers explode in quite an incredible display. Even the big ones.

    The following is a document describing the events of the 1989 solar flare that took down the Hydro-Quebec power distribution network in Canada. The document is a scanned image, so I cannot copy and paste the interesting parts here. It starts to get interesting on page 6, where it describes the sequence of events. Human intervention at first managed to contain some of the damage, but once the storm got strong, systems started automatically tripping in seconds, far faster than anyone could respond. The post-mortem and damage to equipment is described on page 7, and they include two large grid transformers.

    http://www.nerc.com/files/1989-Quebec-Disturbance.pdf

    Here's some photos of the "invincible" guts of a modern transformer after that innocuous solar flare.
    The first two include an image a security cameras after the big transformer exploded. You can see that some of the lines are still on fire. On the left of each image is the "before" photo. I haven't been able to find the actual video of the explosion real-time yet, but if I do, I'll post that, too.

    Click image for larger version. 

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    This is an itty bitty transformer exploding. You can imagine the fireworks that the big ones gave off.

    Click image for larger version. 

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    The large transformer ARE vulnerable to the currents induced by a severe magnetic storm. Fortunately, we are getting a little better at seeing these storms when they come our way. The 1989 one that caused havoc in Canada took 18 hours to get from the sun to the earth. I hope that if a big one is coming our way, that we disconnect them ahead of time and lose power only for a day, rather than risk destroying many millions of dollars worth of equipment and setting us back years.

    Incidentally, taking the transformers off-line won't protect the circuitry in your house, nor any connected equipment there.

    Great video from the History Channel about solar flares. http://www.flixxy.com/solar-storm-1859.htm
    Last edited by ralleia; 04-01-2012 at 11:19 AM. Reason: Forgot links

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by earplugs View Post
    Price of gold and silver will fall 60%.
    how do you figure that? I may be wrong but it seems to me gold and silver would skyrocket since the dollar losing reserve currency would certainly mean a plummet in the US dollar index correct? Large drops in the US dollar index are always followed by big gains in gold and silver....

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    That was exactly my point: the guts are simply big wire (I do understand how a transformer works). Most things that I think of being affected by an EMP include "delicate electronics" susceptible to a spike in voltage (like semi conductors). People often talk about cars here that are EMP proof (ie ones without electronics--obviously they still have wires and things). My reasoning is big meaty wires can handle a spike in voltage and are built to handle like I said a bazillion volts on one side and while I didn't work out the currents, I'd assume fairly hefty currents. Again my statement was I wasn't inclined to believe vague claims about this because it doesn't make sense from what I know about transformers (lots of what is claimed on this forum is doom and gloom without scientific backing). I'll look at the links and try to digest this.

    Quote Originally Posted by ralleia View Post
    The "guts" of the transformer that appear so impervious to you are simply coiled wire. The voltage is stepped up or stepped down by the two coils having different numbers of windings around a ferro-magnetic core. The windings of one coil "induce" a magnetic flux in the core. That magnetic flux travels to the other coil and induces a current at a different voltage. Voila! You've stepped up (or stepped down, depending on the direction of flow) a voltage.

    What you imagine to be so invulnerable about the "core" of coiled wires I cannot fathom--unless you are simply didn't realize what the core of a transformers really is. I know that those huge transformers look very impressive from the outside (and it IS very impressive what they can do), but the innards are quite sensitive to unintentional induced currents. The innards are also extremely sensitive to electrical faults (electricity traveling where the design didn't intend it to).

    Electrical engineering was not my favorite class, but I shall endeavor to trudge through this...

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by NewBob View Post
    it doesn't make sense from what I know about transformers (lots of what is claimed on this forum is doom and gloom without scientific backing). I'll look at the links and try to digest this.
    I'm not a doom and gloomer--can't really stand unsubstantiated pessimism, either.

    My husband actually works in this area, so I asked him about it and he was able to provide some more detail about why the transformers are vulnerable.

    Apparently, the "cores" are quite tough, and would be able to withstand the current.

    The problem lies in the oil-filled tanks which surround the coils to cool the coils. The added heat from the induced currents turn them into unintentional flammable pressure-cookers.

    For more details about this failure mechanism, a search on "Prevention of Oil-Filled Transformer Explosions" provides some good reading material.

    As I'd indicated, electrical engineering and electrical systems weren't my favorite classes.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    The statements weren't really directed at you, more as general statements. In general, one should believe nothing until it's proven to them.

    Your statement on the core sounds consistent with my general feelings on the transformer wire being tough, etc. I will be reading the info sometime hopefully soon when I have some time. Seems like interesting stuff...

    Quote Originally Posted by ralleia View Post
    I'm not a doom and gloomer--can't really stand unsubstantiated pessimism, either.

    My husband actually works in this area, so I asked him about it and he was able to provide some more detail about why the transformers are vulnerable.

    Apparently, the "cores" are quite tough, and would be able to withstand the current.

    The problem lies in the oil-filled tanks which surround the coils to cool the coils. The added heat from the induced currents turn them into unintentional flammable pressure-cookers.

    For more details about this failure mechanism, a search on "Prevention of Oil-Filled Transformer Explosions" provides some good reading material.

    As I'd indicated, electrical engineering and electrical systems weren't my favorite classes.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    I have mentioned this before...

    I have a friend who worked 14 years for the DOD in nuclear weaponry. He says their number one fear is EMP taking down the power grid and frying sensitive electronic circuitry. Various govt labs have been working for YEARS trying to EMP-harden jets, rockets, tanks, etc.

    Y'all take care now.

    SC
    "You shall know the truth and the truth shall set you free." But first it will make you miserable.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    NewBob,

    Ralleia explained it well. Mebbe I can put my old EE hat on for a minnit and give a tad more:

    Yowza, it is just coiled wire in there. LOTSA coiled wire. What is key is that it is INSULATED coiled wire.

    The insulation is designed for a specified voltage level, plus a nice, big safety margin.

    Now here comes an enormunousity of a current/voltage spike from every fargin direction. The insulation has limits. Solar flares go way the hell over those limits (it is not practical to make insulation so thick that it can stand EMP/Solar storms... the dang efficiency would take a prohibitively huge dump.)

    Sooo... ZAP! Goes the insulation. Now, instead of a coil, you have a large chunk of very hot spot-welded metal. Metal that ain't susposed to be able to short-circuit.

    That energy looks around and sez: "I gotta go somewhere, and right now it looks like I can go thisaway -- so instead of creating this nice field, I'll just take a shortcut and blow this thing all to hell."

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by SilverCity View Post
    I have mentioned this before...

    I have a friend who worked 14 years for the DOD in nuclear weaponry. He says their number one fear is EMP taking down the power grid and frying sensitive electronic circuitry. Various govt labs have been working for YEARS trying to EMP-harden jets, rockets, tanks, etc.

    Y'all take care now.

    SC
    It is called, "TEMPEST". (EMP hardening)

    Our entire civilian infrastructure is absolutely vulnerable to EMP. Not just discomfort or annoyance level, but wipeout/no fix/all done level.

    Your guns would still work. That is about it. Oh. And shovels.

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    Default Re: What happens if the US dollar loses its status as worlds reserve currency?

    Quote Originally Posted by SilverCity View Post
    Suicide will become the most common cause of death...

    SC
    Hell just knock out the cell phone towers and that will happen. Not a bad thing IMO.
    Treasure Hunting Gold Hoor ~

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