What Will Happen to You When the Dollar Collapses?

[nbruno322]

"Historically, when a nation’s debt exceeds its ability to repay even the interest, it can be assumed that the currency will collapse."

http://www.internationalman.com/articles/what-will-happen-to-you-when-the-dollar-collapses

[oyarde]

Nothing will happen to me.I would not have to go to work anymore and would just spend all of that time working at the home place .There would be very little of anything I would need and that I could just barter/buy with physical items .

[Danke]

Pitching a tent in Oyarde's yard.

[jllundqu]

In B4 Zippy says, "What dollar collapse?" lol :D

[Peace&Freedom]

The dollar already has collapsed. The results of the collapse have merely been held back, up to this point. Nations around the world are withdrawing from it as a reserve currency, the housing, stock, derivatives and student debt bubbles are about to burst, and 4 trillion dollars has been built up covering this up through quantitative easing (AKA, printing up tons of more dollars). Banks are hoarding all the excess cash by setting artificially low or zero interest rates, because flooding the markets with the cash would result in hyperinflation. Once that happens, everyone will feel the collapse that already is a fact.

[thoughtomator]

stealing Danke's tent

[NoOneButPaul]

First off the dollar is at 99 right now - up 10% since the Euro started to collapse after the Swiss de-peg in January. My point being that the Yen and the Euro will have to collapse first before the dollar stops surging. Where do you think all of these European and Japanese investors will run to first? The dollar. The surging USD over the past 6 months is proof of that. So every other major currency has to fall first before the dollar goes.

The dollar collapse is far off because of this simple fact but if you're still posting here in 2015 I think it's safe to say we'll all be more than prepared once it finally happens. Although it's more likely it's just severely devalued like the pound was multiple times over the 20th century because most people across the globe have been conditioned to accept the dollar the same way they had been conditioned to accept the pound. Unless the BRICS are serious about introducing a gold-backed currency no one is going to run to the RMB (which is still pegged to the Dollar) and no one is going to run to any other BRICS nation's currency.

[PRB]

The dollar already has collapsed.

Better answer then people who keep crying like chicken little and then never tell us WHEN it'll actually happen. If Al Gore is a liar because global warming isn't true and as bad every year, when can we call hyperinflationists liars, opportunists, scam artists an alarmists?

[brushfire]

My guess is that a big government solution will be proposed, and then rammed down the throats of everyone.

Known dissenters will be silenced by jail or death.

There will be only one path of compliance, and it will be enforced by weapons.

The few voices of liberty that remain will perpetually argue about whether God really exists, if organics really make a difference, whether vaccines are safe, where life begins, and whether Sarah Palin will run in the next election.


http://www.rankopedia.com/CandidatePix/126610.gif


And we will all live happily ever after, in our cages...

[Bossobass]

The dollar is said to be surging against the euro, but it still takes a buck six to buy a euro.

Looks to me like they're bringing the currencies in the basket slowly to unity.

That would make sense to make it easier to introduce a single currency to replace them all.

I'd rather have real estate, silver & gold to exchange for the new paper vs having only the old paper to exchange for the new paper.

[NorthCarolinaLiberty]

...when can we call hyperinflationists liars, opportunists, scam artists an alarmists?

Some of those labels apply to you right now because of your presence on this board.

[Natural Citizen]

It'd be nice to see a reliable measure of consumption. Particularly American exports given the so called rise of the buck.

Where is Zip when you really need a good graph? Heh.

[PRB]

It'd be nice to see a reliable measure of consumption. Particularly American exports given the so called rise of the buck.

Where is Zip when you really need a good graph? Heh.
Why do you want context? Don't you know that ruins a good conspiracy theory?

[NorthCarolinaLiberty]

Why do you want context? Don't you know that ruins a good conspiracy theory?

Don't you know that conspiracies that are actually proven will ruin an anti-conspiracy theorist's cable TV show?

[Zippyjuan]

"Historically, when a nation’s debt exceeds its ability to repay even the interest, it can be assumed that the currency will collapse."

http://www.internationalman.com/articles/what-will-happen-to-you-when-the-dollar-collapses

Interest on the US debt for last year was $430 billion. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Tax revenues were over over $3 trillion. http://www.forbes.com/fdc/welcome_mjx.shtml By that measure, we still have a ways to go.

[Acala]

Interest on the US debt for last year was $430 billion. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Tax revenues were over over $3 trillion. http://www.forbes.com/fdc/welcome_mjx.shtml By that measure, we still have a ways to go.

True. But I see no indication of any trend moving in the opposite direction. So as of now, it is not a question of will we reach that point, but when.

[Acala]

Just for yucks, here is the CBO's projection of interest on the debt:
3911

A return to historical interest rates rather quickly leads to tragedy.

[Carson]

"What Will Happen to You When the Dollar Collapses?"

This.

What we've all seen taking place for the last fifty years. Crash and burn.

[Danke]

Interest on the US debt for last year was $430 billion. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Tax revenues were over over $3 trillion. http://www.forbes.com/fdc/welcome_mjx.shtml By that measure, we still have a ways to go.. And that 3 trillion number includes FICA tax.

And let's not forget Social Security, Medicaid and Medicare, etc. income from FICA, around one trillion. However, expenditures are around 1.7 trillion.

[TheTexan]

So... what you're saying is, if we are to spend all our money on hookers & coke, we should do it now?

[ctiger2]

Interest on the US debt for last year was $430 billion. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Tax revenues were over over $3 trillion. http://www.forbes.com/fdc/welcome_mjx.shtml By that measure, we still have a ways to go.

What if we move interest rates to say 6%. lol kaboom!

[The Gold Standard]

Interest rates will probably never be 6% again. As soon as they break 3-4% either the Fed will buy more of them to bring the rates down or they will quickly jump to 25% or more.

[helmuth_hubener]

Lose a lot of money in bonds.

Make a lot of money in gold.

Probably suffer some bad consequences as the US economy in general suffers in the extreme.

[fr33]

I would probably realize that 60 miles away from a city is not far enough away.

Then I would probably start butchering calves and trading meat for bullets and beer. Not that I have a shortage of bullets but there's no such thing as too many bullets.

[oyarde]

Interest on the US debt for last year was $430 billion. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Tax revenues were over over $3 trillion. http://www.forbes.com/fdc/welcome_mjx.shtml By that measure, we still have a ways to go. I imagine they will use it all too .

[oyarde]

I would probably realize that 60 miles away from a city is not far enough away.

Then I would probably start butchering calves and trading meat for bullets and beer. Not that I have a shortage of bullets but there's no such thing as too many bullets.
You could just eat the calves , trade the soup bones and some jerky for silver , use the silver to buy liquor.

[fr33]

You could just eat the calves , trade the soup bones and some jerky for silver , use the silver to buy liquor.

I've got thousands of calves. ;) I'd like to get something out of them before the thieves start stealing them.

[fr33]

I've got thousands of calves. ;) I'd like to get something out of them before the thieves start stealing them.

I reckon they won't care about vaccines and hormones in such a scenario.

[oyarde]

I've got thousands of calves. ;) I'd like to get something out of them before the thieves start stealing them.

Well , have Danke swing down there and bring me about four on his way to pitch his tepee up the hill with my wild turkeys and deer.I'll give him some silver to pay with.LOL

[oyarde]

Pitching a tent in Oyarde's yard.

Time to get on with the currency collapse, I am tired of going to work anyway . This will be much more fun.

[Working Poor]

Time to get on with the currency collapse, I am tired of going to work anyway . This will be much more fun.

That's what I am talking about.

[luctor-et-emergo]

Time to get on with the currency collapse, I am tired of going to work anyway . This will be much more fun.

Time to shuffle things up.. The world could use some re-arranging. I'm not sure if it is going to be a lot of fun but where there is a collapse there are also major opportunities. Only for those that look towards the world with a gaze of enthusiasm and a spirit for entrepreneurship. For the rest of the people it's just going to be a crisis. Good opportunities though for those that find themselves cornered by how the world operates right now and more specific how the economic system is structured. Heck, I'm moderately optimistic about it.

[osan]

So... what you're saying is, if we are to spend all our money on hookers & coke, we should do it now?

Finally someone makes some sense.

[oyarde]

Pitching a tent in Oyarde's yard.

I had the Mrs clean up the fire pit for you .

[Tod]

If I recall correctly, Warren Pollock was recently saying that we are likely to slowly become poorer and poorer until we are indistinguishable from any third-world country, with a wealthy class, and oodles of poor people who are left with no means of digging ourselves out of our hole because we've been there so long we no longer know how.

[Peace&Freedom]

One Last Look At The Real Economy Before It Implodes - Part 3

In the previous installments of this series, we discussed the hidden and often unspoken crisis brewing within the employment market, as well as in personal debt. The primary consequence being a collapse in overall consumer demand, something which we are at this very moment witnessing in the macro-picture of the fiscal situation around the world. Lack of real production and lack of sustainable employment options result in a lack of savings, an over-dependency on debt and welfare, the destruction of grass-roots entrepreneurship, a conflated and disingenuous representation of gross domestic product, and ultimately an economic system devoid of structural integrity — a hollow shell of a system, vulnerable to even the slightest shocks.

This lack of structural integrity and stability is hidden from the general public quite deliberately by way of central bank money creation that enables government debt spending, which is counted toward GDP despite the fact that it is NOT true production (debt creation is a negation of true production and historically results in a degradation of the overall economy as well as monetary buying power, rather than progress). Government debt spending also disguises the real state of poverty within a system through welfare and entitlements. The U.S. poverty level is at record highs, hitting previous records set 50 years ago during Lyndon Johnson’s administration. The record-breaking rise in poverty has also occurred despite 50 years of the so called “war on poverty,” a shift toward American socialism that was a continuation of the policies launched by Franklin D. Roosevelt’s 'New Deal'....

http://alt-market.com/articles/2539-one-last-look-at-the-real-economy-before-it-implodes-part-3

[Zippyjuan]

If I recall correctly, Warren Pollock was recently saying that we are likely to slowly become poorer and poorer until we are indistinguishable from any third-world country, with a wealthy class, and oodles of poor people who are left with no means of digging ourselves out of our hole because we've been there so long we no longer know how.

If there is completely free global trade- with free migration of both labor and goods, then wages in high wage countries like the US and Europe should over time become closer and eventually the same as low wage countries. That can be due to higher wages there and/ or lower wages here. If our labor costs more than someplace else, that job will be moved to the lower priced location (or lower priced workers brought here). In exchange, goods can be produced more cheaply and should cost less to buy (though not all savings is passed along to the consumer or the worker).

Some have suggested (and data seems to support it) that our booming middle class following WW2 was a historical anomaly. Historically there hasn't been much middle class anywhere in the world.

[Zippyjuan]

To offer another theory, others suggest that it isn't necessarily that the middle class is doing poorly, it is that the other classes are doing better relative to them- they have been improving at a faster rate. Poor today is not as bad as poor was a century ago.

[Acala]

If there is completely free global trade- with free migration of both labor and goods, then wages in high wage countries like the US and Europe should over time become closer and eventually the same as low wage countries. That can be due to higher wages there and/ or lower wages here. If our labor costs more than someplace else, that job will be moved to the lower priced location (or lower priced workers brought here). In exchange, goods can be produced more cheaply and should cost less to buy (though not all savings is passed along to the consumer or the worker).



True too an extent, except that it is not a zero-sum game. Eliminating barriers to the free movement of resources doesn't simply equalize existing levels of prosperity, it raises EVERYONE'S prosperity. All of the millions of transactions that were blocked by trade restrictions, but are free to occur with those restrictions removed, add to the aggregate wealth of the world. More efficient distribution of resources increases prosperity for everyone. And since trade restrictions tend to favor those who are already in a position to buy protection for THEIR interests, the new wealth that is produced by the elimination of those restrictions is likely to benefit a wider range of economic classes than current international trade.

[osan]

If there is completely free global trade- with free migration of both labor and goods, then wages in high wage countries like the US and Europe should over time become closer and eventually the same as low wage countries. That can be due to higher wages there and/ or lower wages here. If our labor costs more than someplace else, that job will be moved to the lower priced location (or lower priced workers brought here). In exchange, goods can be produced more cheaply and should cost less to buy (though not all savings is passed along to the consumer or the worker).

This presupposes conditions that would not necessarily prevail. Much, most, or possibly all of the decision to be made in such regards would be based on NPV analysis. Wage costs would certainly be factored into a net present value calculation, but would not necessarily be the overriding element of consideration. Other factors might include the overall corporate strategy which might favor other choices than those suggested by NPV.

WRT wages and all else equal, the gap between the higher- and lower-wage areas would be critical in deciding whether to move. If wages are 20% lower in China than the USA, it would likely not be profitable to incur all the fixed costs of moving and establishing a new facility in a foreign land, especially when considering the costs of possibly shipping raw materials to China and the finished products, say, back to the USA. That is all terribly resource inefficient. I find it interesting to note how all these ingorant, whining sissy-men who go on about issues such as global warming and all that rot, say nothing about the relative material inefficiencies of shipping stuff all over the world and back to America for the sake of saving labor costs. But that's another discussion.

Large business decisions such as this are never as simple as your words would suggest. I've done work like this for clients and I can tell you that it is a really big deal in terms of the complexities. Labor cost alone is not a simple matter of how much you pay your people per hour. There are all manner of political considerations including taxation and many others. Then there are the questions of quality of the labor. It profits me nothing to send my work to China if the Chinese laborer turns out shit for which I much then refund customer cash or otherwise make them whole when my dog-pile products fail.

But for a while, assuming freedom in all markets and no slave-labor nations like China to be tolerated, there would be gross disparities between labor markets in terms of cost. Those gaps would close in time, assuming a leveling of global standards of living.... which is a really big assumption. But if is be the case, then there is the further issue of rising global demand for a given product or class thereof. Then you get into questions that make the marxists happy - those relating to the carrying capacity of the planet. Were tomorrow everyone endowed with the economic legs of the average American or European, we might see prices of everything surge through the roof, at least for a sizable period as all those "other people" began the drive to acquire like boss-Americans.

We've never had this sort of circumstance before - not in the way we now have it. Nobody really knows what would happen.



Some have suggested (and data seems to support it) that our booming middle class following WW2 was a historical anomaly. Historically there hasn't been much middle class anywhere in the world.

"Anomaly" - what a wishy-washy, say nothing, utter bullshit term. It may never have happened before because the tyrants of yore would never have allowed it. To have a so-called "middle class" would have diminished Theire power and that would not be tolerated. So to say that there has not been a middle class is a big whoopdee-doo moment just as when she sees me in "the suit" and says "Oh my GOD... is that thing REAL??" Yes, and the sky is blue, water is wet, the sun is hot... blabity blah.

But to call it an "anomaly" is true shyte. Rather than "anomaly", perhaps it was rather the result of the market freedoms available to us in those days, long long past.

And who are these "some", anyway? Put them before me and I will put the smack of truth across their faces so that as they one day find themselves upon their deathbeds, watching satans little wingèd things circling above in wait, rather than dreading what is short to come, they will be hearkening back to that day I did my do in response to this utter and viciously befouling nonsense about the relative merits of freedom v. constriction. Whoever they are, may God strike them sterile that their stoopid-genes not be passed to yet another generation.

This shit ain't rocket surgery. If an idiot like myself can see what is clearly apparent, so should anyone else. They don't because they refuse it.

[TheTexan]

Everyone in this thread makes great points, but these kind of things only happen to shitty third world countries like Zimbabwe, Weimar Republic, and other countries noone has ever heard of.

[DamianTV]

When the dollar collapses, I think what remains of society will collapse as well, and I am pretty well fucked.

[DFF]

The fiat dollar may collapse but the US has a viable alternative: gold.

Were the dollar to go into free fall, the US could use it's gold reserves (which are massive, assuming all the gold hasn't been leased out) to restore confidence.

However, the debts owed to primarily financial institutions would still remain.

So the endgame is either the dollar getting obliterated or the TBTF banks getting obliterated.

[LibForestPaul]

All the currencies will fall together. As soon as the banking families work out the deals, and not before then. Probably it is the Russian, Japanese and Chinese that are forcing the stall. Deals are better than war.

[osan]

Deals are better than war.

Except when deals become the cause of war.

[squarepusher]

stealing Danke's tent

trading thoughtomator for Danke's stolen tent

[oyarde]

Everyone in this thread makes great points, but these kind of things only happen to shitty third world countries like Zimbabwe, Weimar Republic, and other countries noone has ever heard of.

What great points ? Rhodesia was not always a shithole , even though it is a little landlocked , has 13 million people and 16 languages, :) , the hunting in the dry season was excellent .LOL

[PRB]

Don't you know that conspiracies that are actually proven will ruin an anti-conspiracy theorist's cable TV show?

Yes. i do, facts will ruin liars.

[PRB]

Interest rates will probably never be 6% again. As soon as they break 3-4% either the Fed will buy more of them to bring the rates down or they will quickly jump to 25% or more.

25% or more LOLOLOLOL.

[oyarde]

Pitching a tent in Oyarde's yard.

Last winter , the Mrs made a tent for some guy who hunts with birds of prey. I think she did that job at a price too low .

[Ronin Truth]

I'll probably relocate to Canada until the dust settles and the blood in the streets gets cleaned up here.

"In individuals, insanity is rare, but in groups, parties, nations and epochs it is the rule." -- (Nietzsche, 'Beyond Good and Evil')