Dumping the dollar: Iran joins Pakistan, China & Russia to limit use of US currency

This post is in response to the video below:

Personally I’ve said time and time again that I’m not against Fiat Currencies as long as I can use Fiat currency to make purchases for things like Gold, Silver and anything else for that matter. However with that said a fiat monetary system requires certain fundamentals that don’t exist to a large extent in Europe. Most of Europe as well as the rest of the world is for the most part protectionist. The protect everything, they don’t allow foreign nations to enter their markets and dictate anything without it first being controlled by the government. This is for the most part why a lot of consumption is not possible in many parts of the world.

Although Americans, living in America complain a lot about over regulation and bigger government, the truth is most of the larger nations in Europe as well as the middle east and Asian already have big governments meddling in all aspects of their lives. One of the main reasons Americans tend to poke their noses into foreign affairs is because of economic instability in most regions. Now if you’re asking me if I agree with Americans meddling in foreign affairs I’d tell you no, but if you say to me that it’s completely unwarranted I’d have to disagree with that. Because when American’s don’t meddle in regions, with histories of wars, those warmongers tend to spread and being that many nations around the world don’t have much incentive to protect their borders and rely on outside entities to protect them, you learn quickly how America gets trapped in all these countries.

So if what’s happening today are countries moving towards using the Euro over the dollar, what I will say to Europe is there’s a good chance the Euro will crash as this will only incentivise the protections in Europe already in place. What I mean by that is the European welfare state will only grow, with more money passing through it and being that Europe hasn’t exactly been the hotbed for innovation this money is going to have a hard time circulating into the areas that need it most, what this equates too in my view is stagnation.

If on the other hand an economic crash or devaluation of the dollar occurs, America is one country and can rebound, probably for the better and during this transition process the Euro will actually be the hardest hit by the U.S correction as everybody seeks a safe heaven which like I said before is protectionist. As long as China is communistic it has no hopes in leading the free world. So I personally don’t worry to much about Yuan. America on the other hand people have been waiting for that economy to correct for years so if these countries stop using the U.S dollar and the U.S economy crashes, well if they think the Euro will be in a good position also I beg to differ.