What Will Happen To You (if) The Dollar Collapses?

[sniper22]

Nothing here. My family didn't know there was a depression until they read about it in the history books...

 

[strider12]

Ya'lls tin-foil hats are on to tight tonight. The USD is both world reserve currency and is controlled by the world banking cartel. If it were going to collapse, it well would have already. But it can't because it is used as the medium of global trade/exchange and demand for it remains strong (ie: healthiest leper in the colony). So while yes the US domestic economy and fiscal spending is highly dysfunctional, it is still small relative to the total balance of currency in existence. Its not going to collapse because all of the bankers are like poker players at a table that sharing the same pot of money to play with. A collapse isn't in the cards. If it does happen, it will be a "Black Swan", an unforseen event that occurs.

But its unlikely. Most likely what you are going to see is a slow steady decline in the USD's strength commiserate with the US's (and Europe) overall economic, social, and political decline. Most people will just get poorer so slowly that they don't even notice.




But both have the fatal weakness of being fixed land assets and can thus be taxed and confiscated by governments or even unruly mobs when ever they feel like it. And remember we are well past the point where the voting takers outnumber the productive landowner voters.

You accused others of having tin foil hats and then you mentioned "banking cartel".

While I agree with you, you must recognize the humor in that.

 

[RamRoddoc]

The only reason the dollar has not already collapsed is because it is the IMF reserve currency. However, there are players that are starting to question the wisdom of that, notably China. If the IMF was to change the reserve currency to something other than the dollar, and there's no reason they can't, we would see almost instant triple digit inflation and the economy would collapse practically overnight. If China ever decides it would be worth the hit they would take to there economy to destroy us, all they would need to do is call in the debt.

Asian Infrastructure Investment Bank (AIIB), the beginning of new order....?

http://http://www.goldmoney.com/rese...gmrefcode=gata

China and Russia have taken the lead in establishing the Asian Infrastructure Investment Bank (AIIB), seen as a rival organisation to the World Bank and the Asian Development Bank, which are dominated by the United States with Europe and Japan.


These banks do business at the behest of the old Bretton Woods order. The AIIB will dance to China and Russia's tune instead.

The geopolitical importance was immediately evident from the US's negative reaction to the UK's announcement this week that it would join the AIIB. And very shortly afterwards France, Germany and Italy also defied the US and announced they might join. In the Pacific region, one of America's closest allies, Australia, says she is considering joining too along with New Zealand. The list of US allies seeking to join is growing. From a geopolitical point of view China and Russia have completely outmanoeuvred the US, splitting both NATO and America's Pacific alliances right down the middle.
This is much more important than political commentators generally realise. We must appreciate that anything China does is planned well in advance. Here is the relevant sequence of events:


• In 2002 China and Russia formally adopted the founding charter for the Shanghai Cooperation Organisation, an economic bloc that today contains about 35% of the world's population, which will become more than 50% when India, Pakistan, Iran, Afghanistan and Mongolia join, which is their stated intention. Russia has the resources and China the manufacturing power to develop the largest internal market ever seen.


• In October 2013 George Osborne was effectively summoned to Beijing because China wanted London to be the base to develop renminbi-denominated financial instruments. London has served China well, with the UK Government even issuing the first renminbi-denominated foreign (to China) government bond. The renminbi is now on the way to being a fully-fledged international currency.
• The establishment of an infrastructure bank, the AIIB, will ensure the lead funding is available for the rapid development of road, rail, electric and electronic communications throughout the SCO, ensuring equally rapid economic development of the whole of the Asian continent. It could amount to the equivalent of several trillion dollars over time.


The countries that are applying to join the AIIB realise that they have to be members to access what will eventually become the largest single market in the world. America is being frozen out, the consequence of her belligerence over Ukraine and the exercise of her hegemonic power through the dollar. America's allies in South East Asia are going with or will go with the new AIIB, and in Europe commercial interests are driving America's NATO partners away from her, turning the Ukraine from a common cause into a festering liability.


The more one thinks about it, the creation of the AIIB is a masterstroke of tactical genius. The outstanding issue now is China and Russia will need to come up with a credible plan to make their currencies a slam-dunk replacement for the dollar. We know that gold may be involved because the SCO members have been accumulating bullion; but before we get there China must manage a deliberate deflation of her credit bubble, which will be a delicate and dangerous task.


Unlike the welfare-driven economies in the west, China has sufficient political authority and internal control to survive a rapid deflation of bank credit. When this inevitably happens the economic consequences for the west will be very serious. Japan and the Eurozone are already facing economic dislocation, and despite over-optimistic employment numbers, the US economy is faltering as well. The last thing America and the dollar needs is a deflationary shock from China.
The silver lining for us all is a peace dividend: it is becoming less likely that America will persist with a call to arms, because support from her allies is melting away leaving her on her own.

It should be noted despite the United States' initial aversion and protest, after most of Europe-England included decided to join, the U.S. has decided it may join as well......

Can't beat them.....

 

[NY63]

14,000,000,000,000 stacked $1 bills.

 

[chucklenut]

Here's a disturbing thought. What's the real difference between paper money and precious metals? Other than the fact that some precious metals have real world use in industry, the only real difference is the "Oooh...Shiny!" effect and the fact it's harder to carry around. Both paper and gold are nothing other than a representation of value.

The fact that the world economy is still based on precious metals is a sign of how in touch we still are with our primitive ancestors. Gold and silver have little more real value than paper money and no one wants to admit it. A farm has more real value than a gold mine.

Gold and silver are used in a bunch of production, they have value

Also they have scarcity, unlike dollars which can be burned and the value isnt affected

Also, while a farm may be valuable, try pocketing the farm and buying something with it lol

It might be primitive but so long as people exist, gold and silver will have some value

 

[gober13]

I'll still be broke

Aint that the freggin truth. Lol

 

[chucklenut]

The only reason the dollar has not already collapsed is because it is the IMF reserve currency. However, there are players that are starting to question the wisdom of that, notably China. If the IMF was to change the reserve currency to something other than the dollar, and there's no reason they can't, we would see almost instant triple digit inflation and the economy would collapse practically overnight. If China ever decides it would be worth the hit they would take to there economy to destroy us, all they would need to do is call in the debt.

the dollar is used to trade petrol, thats why it hasnt collapsed

And despite what peopke think china only holds a little over a trillion in debt, the biggest holders of debt are domestic (gov owes itself)

Thats way more dangerous than china, who is set to be and remain number 2...... what would they have to gain by shredding our economy?

 

[karlvv30]

the dollar is used to trade petrol, thats why it hasnt collapsed

And despite what peopke think china only holds a little over a trillion in debt, the biggest holders of debt are domestic (gov owes itself)

Thats way more dangerous than china, who is set to be and remain number 2...... what would they have to gain by shredding our economy?

You are right on. That's why when Gaddafi and Saddam said they would sell their oil for other than USD, they ended up dead. If Saudi wanted to, they could collapse the dollar. It will collapse and would have already if we hadn't made a deal with OPEC in the 70's.

 

[obiwan]

Here's a disturbing thought. What's the real difference between paper money and precious metals? Other than the fact that some precious metals have real world use in industry, the only real difference is the "Oooh...Shiny!" effect and the fact it's harder to carry around. Both paper and gold are nothing other than a representation of value.

The fact that the world economy is still based on precious metals is a sign of how in touch we still are with our primitive ancestors. Gold and silver have little more real value than paper money and no one wants to admit it. A farm has more real value than a gold mine.

You're forgetting one major difference - you can't print precious metal. That is why every nation in the world is stockpiling the yellow stuff. It is the only medium of exchange where its true value can't be manipulated. Sure, gold price have been suppressed by the fiat gods via paper gold (etf), but all nations see that the end game is near.

I agree that farmland is just as valuable, but it cannot be used as a medium of exchange.

 

[NY63]