Some food for thought - another angle into the iTulip concept of there already being enough dollars abroad:

1) US part of world trade is under 20%: 12.3% export and 18.9% import in 2002

2) US dollars comprise 68% of world CB reserves

http://www.atimes.com/global-econ/DD11Dj01.html

Of which these reserves totaled $1.5T in 2002 and $3.75T in 2008

http://ustreas.gov/offices/internati...pendix%201.pdf

Total world trade in 2006: $14.47T of which $11.76T is in merchandise

http://www.wto.org/english/news_e/pres07_e/pr472_e.htm

So there's $12T in trade, $3.5T in world dollar reserves, and somewhere around $1.5T to $2T in US trade.

The extra has been the free ride America has enjoyed - and continues to enjoy.

Should the trade amount in dollar change - i.e. if 3/4s of world trade is in dollars and this number goes to 20% - then something like $6T would have to find a home.

Should the CB reserves decline in relation to trade, similarly $2T or more would have to find a home.

What does this mean?

http://www.federalreserve.gov/releases/h6/current/

M1 presently is $1.6T.

M2 presently is $8.2T.

Even without the actual hundreds of billions/trillions which has been printed already, there are more than enough dollars available from shifts in world trade and/or currency reserves to double dollars in effective circulation in the US itself.

Comments?