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A recent speech by Ron Paul before the House of Representatives is making its way around the Web that might be a harbinger of things to come. (Either of the two links should work.)

As is the case with most observers of the US economy, he isn't saying that the dollar will necessarily collapse, or that it will do so immediately. He merely lays out a case against its continuance as the world's reserve currency.

Should that happen, and US dollars be replaced by Euros, as they are being done by increasing number of countries (Syria currently; Iran perhaps as soon as March, etc.) or backed away from (as is already being done by China and other exporting countries and can be tracked in the Net Foreign Security Purchase reports), then the long-standing ability of the US to extort real goods (chiefly oil) in exchange for worthless paper (backed only by the threat of invading that country if the dollars are refused) will come to its rightful end.

The implications for fixed-income investors seeem to be this: A return to the interest rates of the late '70's wouldn't be surprising.
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