Rich & famous weigh in on dollar's fall

[Atash Hagmahani]

http://www.moneynews.com/Headline/Sam-Zell-End-Dollar/2011/03/03/id/388209?s=al&promo_code=BCB2-1

Billionaire real-estate magnate Sam Zell warns that Americans should brace for a "disastrous" 25 percent decline in the standard of living if the U.S. dollar’s reign as the global reserve currency ever ends.

He says that there are signs in the market that it could eventually happen. As it is now, a Korean manufacturer who wants to sell to Brazil must first buy dollars to complete the deal. If countries decide to bypass the dollar, the effect would be a disaster, Zell says.

“Frankly, I think we’re at a tipping point. What’s my biggest single financial concern is the loss of the dollar as the reserve currency,” he told CNBC in an interview. “I can’t imagine anything being more disastrous to our country than if the dollar lost its reserve-currency status.”

IF?! Did he think the status quo would last forever and ever?

A 25% drop in our standard of living would be surprisingly tolerable for most of us IF most of us would make prudent changes to our lifestyle. For example:

* elimination of consumer borrowing (ie, credit cards)
* no discretionary driving
* mend clothing that is still wearable
* no luxury foods
* no exotic vacations

etc

[Dame]

Even the list you have given without the etc. would, I think, reduce it more than 25%.  Reducing professional sports, arts, and other spectator events would perhaps do it on their own.

[Eddie]

My style is to keep expenses low and pay off debt. I then reward myself ocassionaly with an exotic vacation.

That reminds me I have to pay the balance of my credit card off, a whole $67 for my new bucket filter. I hope I never need it.