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

[spencer60]

Problem with that plan is that other people have that plan too. And they might be better shots than you...

Yup. That's why you also need a good plate carrier...

 

[JamesG]

Yup. That's why you also need a good plate carrier...

LOL. no. But thank you for the Xbox answer.

 

[500mag]

Article by Ron Paul posted on Zero Hedge:

One of the great ironies of American politics is that most politicians who talk about helping the middle class support policies that, by expanding the welfare-warfare state, are harmful to middle-class Americans. Eliminating the welfare-warfare state would benefit middle-class Americans by freeing them from exorbitant federal taxes, including the Federal Reserve’s inflation tax.

Politicians serious about helping middle-class Americans should allow individuals to opt out of Social Security and Medicare by not having to pay payroll taxes if they agree to never accept federal retirement or health care benefits. Individuals are quite capable of meeting their own unique retirement and health care needs if the government stops forcing them into one-size-fits-all plans.

Middle-class families with college-age children would benefit if government got out of the student loan business. Government involvement in higher education is the main reason tuition is skyrocketing and so many Americans are graduating with huge student loan debts. College graduates entering the job market would certainly benefit if Congress stopped imposing destructive regulations and taxes on the economy.

Politicians who support an interventionist foreign policy are obviously not concerned with the harm inflicted on the middle-class populations of countries targeted for regime change. These politicians also disregard the harm US foreign policy inflicts on Americans. Middle- and working-class Americans, and their families, who join the military certainly suffer when they are maimed or killed fighting in unjust and unconstitutional wars. Our interventionist foreign policy also contributes to the high tax burden imposed on middle-class Americans.

Middle-class Americans also suffer from intrusions on their liberty and privacy, such as not being able to board an airplane unless they submit to invasive and humiliating searches. Even children and the physically disabled are not safe from the Transposition Security Administration. These assaults are justified by the threat of terrorism, a direct result of our interventionist foreign policy that fosters hatred and resentment of Americans.

Some “military Keynesians” claim that middle-class workers benefit from jobs in the military-industrial complex. Military Keynesians seem to think that the resources spent on militarism would disappear if the Pentagon’s budget were cut. The truth is, if we reduced spending on militarism, those currently employed by the military-industrial complex would be able to find new jobs producing goods desired by consumers. Even those currently employed as lobbyists for the military-industrial complex may be able to find useful work.

Few things would benefit the middle class more than ending the Federal Reserve. The Federal Reserve’s inflationary policies erode middle-class families’ standards of living while benefiting the financial and political elites. Middle-class Americans may gain some temporary benefits from Federal Reserve created booms, but they also suffer from the inevitable busts.

As I write this, the dollar still reigns as the world’s reserve currency. However, there are signs that other economies are moving away from using the dollar as the reserve currency, and this trend will accelerate as the Federal Reserve continues to pump more fiat currency into the economy and as resentment toward our foreign policy grows. Eventually, international investors will lose confidence in the US economy, the dollar will lose its reserve currency status, and the dollar bubble will burst.

These events will cause a major economic downturn that may even be worse than the Great Depression. The main victims of this crisis will be average Americans. The only way to avoid this calamity is for the American people to force Congress to free them from the burdens of the warfare state, the welfare state, taxation, and fiat currency.

 

[biker_bill]

Shoot other people and take their goods.

They'll be shooting back unless you go to NY or NJ or something....

 

[RamRoddoc]

Good point, but it could also be as simple as them not being ready themselves to survive the collapse....yet.

I think your on to something there.

I'd expect China would want to replace the dollar as the worlds currency. How they would go about that should be fairly obvious.

China is renown for thinking in decades in advance.

 

[Bear44]

I think your on to something there.

I'd expect China would want to replace the dollar as the worlds currency. How they would go about that should be fairly obvious.

China is renown for thinking in decades in advance.

Yep. They aren't thinking 10 years down the road. They are thinking 100 years down the road. Now add to that the fact they couldn't care less if their people suffer and it becomes a volatile mix. If they could crash the world economy, survive as a nation and emerge 50 years down the road as the dominant world government, they would do it in a heartbeat.

 

[spencer60]

LOL. no. But thank you for the Xbox answer.

Seemed to fit... although I'm a PC person when it comes to games..

Seriously though, if we're talking total collapse again, body armour of some sort will be a much better investment than gold. There will definitely be plenty of people with guns but no food, and even a stray round through the window of your 'castle' could put you in a really bad situation.

 

[RamRoddoc]

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.

Hah, yep the healthiest leper on a globe of lepers is not a bad place to be I suppose.

And since 1973 we accepted fiat currency our dollar (federal reserve note) is slowly becoming worth less and less through rising inflation.

 

[IMaDad]

holy old thread revival batman

 

[moosensquirrel]

So what typically occurs with fiat money collapse? How can it be prevented or better what does it take for it to occur?


http://www.zerohedge.com/news/2015-04-25/what-will-happen-you-when-dollar-collapses

What Will Happen To You When The Dollar Collapses?
Submitted by Tyler Durden on 04/25/2015 20:25 -0400

Submitted by Jeff Thomas via Doug Casey's International Man blog,
?Historically, when a nation’s debt exceeds its ability to repay even the interest, it can be assumed that the currency will collapse. Typically, governments exacerbate the situation by printing large amounts of currency notes in an effort to inflate the problem away, or at least postpone it.

The greater the level of debt, the more dramatic the inflation must be to counter it. The more dramatic the inflation, the greater the danger that hyperinflation will take place. No government has ever been able to control hyperinflation. If it occurs, it does so quickly and always ends with a crash.

Although there are observers (myself included) who frequently discuss what a reserve-currency crash would mean to the world, there is little or no discussion as to how this would impact people on the street level, and perhaps that discussion should begin.

When currencies crash, the state often tries to float a new currency. Sometimes, it’s accepted, sometimes not. Generally, the people of the country (and those trading within the country) move immediately to “the next best thing.” In 2009, when the Zimbabwe dollar crashed, several currencies were used, but the US dollar was the clear favourite, as it was the world’s reserve currency and therefore the most “spendable” currency.

Not surprisingly, the Zimbabwean government fought the use of the dollar, as they wanted to retain control of the economy and the people. People were therefore penalised for using the US dollar and other currencies.

And that’s what most governments do, but here’s where that idea usually falls down: First, the “black-market” currency is so desired by the now-jaded citizens that they do all they can to avoid the new official currency. Soon, most transactions, although illegal, are undertaken in the black-market currency. Second, since no one really wants the new currency, even the political leaders are soon using the black-market currency.

Ultimately, the black-market currency is legalised (since it’s the only truly workable solution), and it often becomes the unofficial currency, if not actually the official one.




First, the Euro Crash

It’s safe to say that the EU, the US, and quite a few other jurisdictions are nearing currency crashes, and in all likelihood, the euro will go before the dollar. So, unless the EU has already prearranged a new euro, the US dollar might well be chosen as an immediate solution to the problem, as the US dollar is presently recognised and traded throughout Europe. Therefore, a relatively painless transfer could be made.
Then, the Dollar Crash

However, the dollar, which is presently praised as being a sound currency, is really only sound in relation to the euro (and some other lesser currencies). Once its less stable brother, the euro, collapses, the dollar will be exposed.
As the US dollar is a fiat currency and is on the ropes, the US (and any other country that is using the dollar as its primary currency when the time comes) will experience a currency emergency at the street level that will be unprecedented.
The big question that is generally not being discussed is: The day after the crash (and thereafter), what will be the currency that is used to buy a bag of groceries, a tank of petrol, a meal at a restaurant? Certainly, the need will be immediate and will be on a national level in each impacted country, affecting everyone.
And Then…

I have discussed for some time that the US will be prepared ahead of time with a new, electronic currency. This will serve three purposes:

1. It will allow the US government to blame paper currencies for the crash, in order to distract the public from recognising that the government itself is the culprit.

1. It will allow the US government to create a currency system that disallows the holding of tradable currency by the population—that is, a debit card would be created by banks through which all transactions must pass, assuring that all transactions are processed by (and thereby subject to the control of) a bank.

1. It will allow the US government to have knowledge of every penny earned and spent by any individual or organization, allowing for direct-debit income taxation.

If the US does institute such a system, US citizens will then become the most economically controlled people in the world, overnight.
It’s likely that a black-market system would spontaneously be created by US citizens in order to bypass the new government system. A portion of daily trade would occur under the table. It would unquestionably be made illegal, and we can only speculate as to how prevalent it would become: 10% of all transactions? 30%? Anyone’s guess. Certainly, the government would crack down, and penalties might become severe.
Elsewhere in the world, there would be greater freedom, but what would their currencies be? There are many countries that presently use the US dollar as one of their official currencies. After a crash, the greater the link to the US dollar, the greater the loss of economic freedom, although, in most such countries, the government is likely to be less efficient than in the US, which would work in favour of the individual.
Such countries would also have the option of switching from the dollar to another dominant currency. With the euro and dollar gone, that currency might be the Chinese yuan. The difficulty with this possibility is that, presently, the yuan is not in common use on the street.
Adoption of a currency such as the yuan would require a sudden switch in monetary policy, complete with teething problems. However, recent developments amongst the BRICS and others indicate that many countries are already seeing the writing on the wall and are readying themselves for the use of the yuan as an alternate.
A Return to Precious Metals as Currency?

A further possibility is taking place in Mexico today. Mexico is remonetising silver. A one-ounce pure silver Libertad coin will function in parallel to (and be interchangeable with) the existing paper peso. Banks will value the Libertad daily, based upon the silver price. Thus, Mexico will create a legal way for its citizens to protect themselves against devaluation of the peso, whilst creating an internal protection against currency crashes in other countries.
If the Mexican government remains consistent in its plan, it will do more than simply help stabilise Mexico economically; it will serve as an example to other countries that when the Goliaths of the euro and US dollar fall, there is a very sound alternative.
Further, the more countries that follow this policy, the more silver (and for that matter, gold) would become an international currency. It would matter little to a petrol station owner in Canada, Australia, or Chile whether his till was filled with coins marked, “Mexico,” or whether they said “Iceland,” “New Zealand,” or “South Africa.” After all, an ounce of silver is an ounce of silver, no matter what the issuing country is.
As the Great Unravelling proceeds, we would be wise to monitor what happens with the Libertad in Mexico and watch for a similar return to precious metals in other jurisdictions. As this development progresses, we might wish to consider that, whatever jurisdictions are the most forceful in demanding the continued use of doomed paper currencies (or, worse, transferring into electronic currencies), we may choose to store our wealth, no matter how great or small, in a safer jurisdiction. Further, we may choose to reside in a jurisdiction where a currency crisis will be less likely to occur; to live under a government that does not seek to monitor and tax our every economic transaction.

What do you mean "if" it collapses.