Does anyone also forsee this collapsing in the next 10 years? I've bee noticing a lot of voices calling for another world reserve currency, we have the ongoing debt crisis and growing numbers of foreign countries are signing huge trade agreements with china and others totally cir venting the USD. I know saddam and gaddafi had both tried to take gold as payment for oil before we killed them off, but we know this isn't a permanent solution and not something we can do indefinitely to save the currency.
1) do you think the dollar will collapse
2) when do you think it will happen
3) and what possible implications do you feel will come of it if so?
Post your thoughts here and why.
1) do you think the dollar will collapse. If you mean will there be dollar revulsion, I say no. We are the largest most transparent economy in the world. That's not going to change any time soon.
2) when do you think it will happen. Why would any sovereign currency peg its value to gold? Totally unnecessary.
3) and what possible implications do you feel will come of it if so? Fear is a powerful selling emotion. I'm convinced all doomsday sayers have a hidden agenda.
Last edited by 2centsworth; 08-05-2013 at 07:09 PM.
Selling gold at inflated prices hasn't really been a hidden thing.
To the op, the dollar isn't going to collapse so there's really nothing to discuss.
I do feel that a collapse is imminent. Right now as it stands, the dollar is the world reserve currency. Virtually all trade in the world goes through the USD, this is the way it has always been since Bretton Woods. This also means we get a scrape off of all world commerce since there is such a huge artificial demand for our currency in order for anyone to do business. OPEC sells oil strictly denominated in US dollars in exchange for protection of their oilfields. Any time anyone purchases oil, the driving force of world economy, they are propping up the USD.
For many years this has been a huge compe ive advantage for us and allowed the US to avert financial hardship after even 30 years of bad decision making, sort of like our life vest. Our dollars are worth more in the international market because of this advantage, thus making imports cheaper. While enjoying this unfair advantage for so long, some countries feel that we are starting to abuse this privilege by rapidly expanding our monetary supply as some call it a pass to "print money" and borrowing way too much. historically whenever national debt approaches between 100-150% of gdp, currencies collapse. we're currently about at 100%. other countries are taking note and signing trade agreements with eachother, no longer seeing doing trade in dollars as something that is necessary. this lowers the demand for dollars in the international market to buy goods and lowers the value of the dollar. if congress doesn't get their act together and put together a real financial plan for solvency, everyone could "jump ship" all at once and go to say the yuan as a new global currency. there has been talk of this for years now.
i see this happening when the US enters another major war with either Iran or Syria. Iran isn't Iraq in the sense that as costly as Iraq was, Iran would be 10 times worse. nothing but mountainous terrain made for defense and a much stronger military than the one we dismantled in weeks in 2001. such a crisis could set off an international panic and dumping of the dollar as our military would get exposed as it is spread too thin and weaker than people realize.
not sure what you're talking about with the gold part, i never said anything about a country pegging its currency to gold. i mentioned countries accepting gold as payment for oil, its the act of agreeing to do commerce in anything other than the US dollar that caused us to intervene. all world commerce must go through the USD in order for it to maintain its strength.
your su ion is right in this case, although it's not fear that drives me, it's opportunity. i forsee people seeing this as an opportunity to rid themselves of the oppressive US govt and a white nationalist movement sweeping across the south. as our military defense are weakened and spread too thin around the world, the homeland is more vulnerable than most realize. patriot groups are rising up across the south buying up guns and ammunition at record levels not seen since the years leading up to the civil war. this government has lost all legitimacy both at home and abroad, and without the massive amount of funding it requires to fund the world police machine, they would be brought to their knees in weeks. police and military have to be paid in order to fight, something that in the event of an economic collapse would be hard to do. millions of police and military would be laid off or defect. even sheep turn into wolves without food, tv, and entertainment. the tea party movement that we are seeing in many ways closely resembles the nazi parties beginnings in their rise to power. disenfranchised whites by the millions will see this as an opportunity to take back the country built on the sweat of their ancestors, being awoken to the myths and lies told by our government and fables about multiculturalism and "democracy." i forsee a return of the Confederacy and a strong white nationalistic southern state with a strong economy and limited immigration as our economy is taken back from the control of zionist nwo bankers and rightfully restored.
As unstable as the dollar may seem I'll take it any day over the Yuan. The collapse of the US dollar likely means worldwide economic collapse and global anarchy, which I see occurring in the next 150 years. Well either be extinct, or the human population will be a fraction of what it is today 150 years from now.
Japan is the only country prepared for long term stability with a population that's shrinking every year while GDP also shrinks but GDP per capita remains stable. Economies that live and die by growth aren't gonna last very long past the year 2100, and that's a conservative estimate imo.
That's right goys! purchase more US bonds.
chris brings up another interesting point, something i could potentially see coming out of this as well if the white revolution were to fail. in fact, this may be part of the plan to crash the dollar so that they can bring in the Amero as the "solution" to the problem that they themselves created. wouldn't shock me in the least, but they'll go through first if they're go succeed. you're talking about the bloodiest, most hate filled conflict maybe we've ever seen. the political divide is wider now in this country as it's ever been, northers hate southerners and vice versa. i'll be the first to admit that i don't like them yankees and they aren't my fellow countrymen. they'll have to kill me before i give up sovereignty to have open boarders and one currency.
1) No
2) see 1)
3) Inflation, currency value liquidation, increase in compe iveness
It's safe to say most countries nowadays would rather keep their wealth in the form of Euros rather than USD but I don't think the USD will "collapse" anytime soon. Countries are so closely tied to this currency that they won't be able to allow it to fail. Countries are all financially bonded and the hypothetical collapse of USD wouldn't do nary good to any country. Instead, it would be a financial disaster not only to US but also the rest of the whole world imho. No egg will survive under a nest wrecked
Collapse? Highly unlikely. Too much of it used all over the world.
Devalued? Already been happening. Other currencies (like the yuan) will rise to compete.
Thing is most countries are also trying to devalue their currency. No one can tell the future.
You buy physical precious metals as a hedge against uncertainty, not as a speculative trade.
US has never defaulted on a loan
No reason to when you can print money. That's why we are printing almost a trillion dollars a year right now.
"No reason to when you can print money. That's why we are printing almost a trillion dollars a year right now."
and QE is going to the financial sector to finance their gambling, not into the Real Economy.
even with less income tax receipts due to high unemployed and low wages, federal deficit is decreasing.
"dollar collapse", "hyper inflation", "deficits matter (tell head)" are nothing but right wing fear mongering, conning you assholes into their destructive austerity strategy.
Last edited by boutons_deux; 08-06-2013 at 06:54 AM.
Federal Deficit for 2012 Falls to $1.1 Trillion
http://www.nytimes.com/2012/10/13/bu...-trillion.html
the deficit is due almost completely to REPUG policies and actions.
Only in Bouton's demented mind can debt rising by 1.1 Trillion be a decreasing deficit.
The federal budget deficit is decreasing and has been since 2009. The fact that there still is a budget deficit means that the federal debt is increasing.
It's decreasing only because TARP and QE have decreased. The trend is already established.
the annual deficit is decreasing, or is the NY Times report lying?
the deficit is due almost completely to REPUG policies and actions.
The tax cuts "for the rich" were repealed, right?
So how are they such a huge portion of the excessive deficit? Also, how many times does Obama have to sign a tax cut before it becomes (at least partially) his?
I think we should call them the Kennedy tax cuts.
Also, we're out of Iraq, and leaving Afghanistan...I think your chart might be biased.
??? WTF
the corps are paying the smallest %age of tax revenues going back many decades
dubya's estate tax cuts alone cost well over $1T so far. the shadow banking system, unregulated, increased hugely in the 2000s with so much cash floating around.
we aren't out of Iraq and Afghanistan, yet, and the costs of veteran health care/disabilitiy/benefits, re-equipping costs, etc go on for many decades.
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