Brother, can you spare a Yuan?

I’ve seen this argument a lot lately. We’re in a pretty bad spot when even the apologists for debt and the security of the dollar are basing their case on the technicality of, "well, people need the dollar because people use the dollar.” Or worse, “in a world of bad alternatives, the dollar is the best one." It really doesn't take a lot for that to change.

This is like a scenario I’ve seen countless times in business cycles. Over time, you realize the job you are in is significantly crappier then it was a couple years ago. It has been getting significantly crappier over the last several years and it isn’t really competitive with most others in your field. However, you can't leave your crappy job because the economy sucks and you don’t have the resources to do move. You’ve been bled slowly and have to stay put until the overall economy picks up. You can't afford even a dime to move for the better jobs. You cling to the security of that crappy job.

In fact, others start clamoring for that crappy job you have, making it relatively more valuable in the short-term. That short term down-cycle of the economy and short term scarcity of jobs makes your crappy job seem much more appealing than it fundamentally is. 

As soon as things start to turn around? POOF! You send out your resume and head for the exits as fast as your feet can carry you.

I don’t find it reassuring that China and other BRICS nations are sending out their resumes, as regards the dollar.