From comments: Nuke some petrodollars?

From the comments a paranoid scenario submitted by PCLeddy. The name of the game is: selectively reimburse US debt.

Imagine: The FED creates a "new dollar". It pays its debt only on new dollars not the old dollars one. The new dollar is bought with old dollars. The price you will see depends on who you are. The government will not honor its debt with selective targets, I don't know, say Chavez could be left out for example. Something tells me this is how we all make good with Russia, which itself defaulted on its bonds in 1907. Here the us honors its debts selectively.

It is an interesting scenario. A few things come to mind.

This will be done only if China is aligned. There is a symbiotic relationship as China produces and US shops.
Only if the US energy needs on the inside are met. US economy is gas guzzling. We consume the most by a lot. The international community can turn off the spigot.
Oil below $90 nukes Chavez anyway.
Let's say the payments with Russia are kept in old dollars and redeemed for new dollars with variable pay as you go basis. This is a way to make sure the bear doesn't misbehave too much. He also has nuclear weapons, remember MAD.
This would trigger FFWW (First Financial World War).
It is very very paranoid

Comments

Anonymous said…
Why not just accuse the Saudi's of state-sponsored terrorism and freeze their treasury assets? That's 20% (or more?) of the debt anyways.
Anonymous said…
And in other news, Saudi Arabia signed a long term contract with China to buy all of its exports of oil.

Got an electric street car in your neighborhood?!? (I guess you do - the T). Plug-in Prius or Chevy Volt in the driveway? A good bicycle?!? ;-) ...
adt43wt342 said…
The Saudi's are giving us way too much oil. We cannot function without them.
adt43wt342 said…
Army Nova,

What are you talking about? The Saudis are buying the exports of oil from China? I thought China was a net importer? no?
jcdeep said…
The new dollar could be the AMERO...(replacing CAN$, USD and Mexican Pesos...)arriving around 2010...Canadian election winner Harper is in favor of it...Striving to a North American Euro? Your scenario is highly probable...
jcdeep said…
here is the anticipation explained...in french sorry...
http://www.europe2020.org/spip.php?article564&lang=fr

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