Very fragile economic state.

Every one is aware of the fragile state of the US economy. After seeing the devastating effect that 9/11 had on our economy, would another attack, especially a nuclear one, on US soil ruin the economy to the point of no recovery.
Could the Asian nations who own so much of our debt, in coordination with a terrorist attack, dump the dollars and completely bankrupt the US?

If that happened the entire world economy would collapse. It's not even funny how much every single country in the world relies on the United States economically.

This is one of the reasons the US has so much gold reserves and huge cash reserves just lying around.

I have $57.96 in an envelope under my bed, just in case of emergancies like this. So everybody relax, I got it covered

[edit on 15-12-2004 by skippytjc]

This is one of the reasons the US has so much gold reserves and huge cash reserves just lying around.

I'm certainly not an expert on the subject, however I am under the impression from recent news, that the Gold reserves don't even come close to what is needed to back up the dollar.
Cash Reserves, without gold to back it up, it is nothing more than paper with pictures on it.

I have $57.96 in an envelope under my bed, just in case of emergancies like this. So everybody relax, I got it covered

Thank you there skippy, I needed the laugh. To lighten the load, I'll match your $57.96 and raise it by 5 bucks!

Gold reserves don't even come close to what is needed to back up the dollar.

Bretton Woods system was abandoned a long time ago. These bundle of cash lying about are to kickstart the economy not defend and undefendable dollar.

Quote: "Gold Reserves don't even come close to what is needed to back up the Dollar."

OK SuperDude what about the U.S. OIL Reserves?! The Dollar is backed - I have even heard the Word "PetroDollar" used a couple of times! Come on dude - Our OIL Baron In-Chief has it Covered!

On the other hand the Trade Deficit is pretty Tremendous - the Euro is whipping the Dollars Rear-end right now!

Originally posted by superdude
Every one is aware of the fragile state of the US economy.

No superdude most of us are aware just how strong the US economy is. The simple fact is if something similar to a 9/11 had happened in any other country it would have been far more disasterous. The US weathered it amazingly well.
The myth that the US economy is fragile is just that a myth

No superdude most of us are aware just how strong the US economy is. The simple fact is if something similar to a 9/11 had happened in any other country it would have been far more disasterous. The US weathered it amazingly well.

Well I'll take your word on that. I mentioned that I am no expert on the subject, but what you had said is contrary to everything I've heard. I hope that you're right. IMHO I feel that it took years to try and get back to where we were pre-9/11. Isn't it primarily real estate which has kept this country going? If and when the bubble bursts on real estate won't the country be in trouble?

9/11 didn't cause the market crash it just compounded it. The economy was already in contraction at the time it happened as well.
Now we had the worst ever terrorist attack at a time when a major market correction had just happened, at the same time the economic cycle was already in the contraction phase, added to that the choice of targets (the WTC had a higher concentration of experienced financial professionals, deal makers and power brokers than any location in the world) and the true strength of the US economy becomes clear.
Had the same type of attack occured to any other country when those economic factors were present it would have led to a total economic meltdown.
Had the same set of circumstances been in place and the same type of attack happened to france germany the uk etc. those countries would have suffered more than they did in the 30's.
As it was, the effects were surprisingly minimal as a direct result of the size and strength of the US economy.

Do not underestimate the ability of the average American citizen to react and respond under good leadership to resolve whatever crisis comes along. We simply have not been called upon yet to sacrifice for our own cause yet.