Will the Dollar Collapse Soon?

chocolatemonkey said:

And this mindset right here is why America is screwed. College econ is the FARTHEST thing from real world economics. If your "theory" was true, there wouldn't have been a Weimer Republic Hyperinflation.

If College Econ professors were so good at economics, why aren't they making a killing in the markets?

Because they don't go by the markets. They go by the textbook.

Having an econ professor teach you about real world economics is like having a morbidly obese individual teach you how to work out and eat right.

Simply because its not visually apparent, people don't see this obvious flaw with pseudo-intellectuals.

If your "theory" is correct, would silver have gone from $35 to $48 in one month? And $17 to $48 in year?

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My macro prof doesn't teach from a textbook and he has made alot of money from the markets. He does briefings each week on what is going on in the markets/world and then teachs on those topics. He then predicts what will happen next, and how the governments will react. He is right with his predictions 99% of the time. When the Japanese disaster happenned we had multiple classes on the effects of this. He predicted their currency would be bought by tons of people and the exchange rate would sky rocket. He was correct. He predicted that the govs (jap, usa, can, etc.) would flood the market with more currency to stabilize the exchange rate. Once again.. Correct.

Talking about silver and gold is not relevant. Macro economies are not built around these metals and have not been for a LONG time. These are now consumer products or "investments" as some people would call them. They go up because there is such massive marketing around them. They have no actual value besides the value that people give them.

In reference to the german depression, this was 80+ years ago man. Economists have come a LONG way by then. My theory is also in moderation. Obviously the germans "printed" WAY too much money which devalued their currency beyond repair. They had no idea what they were doing back then and it is a perfect example of what should not be done now.

Everything in moderation my friend

crsk8andsno56 said:

In reference to the german depression, this was 80+ years ago man. Economists have come a LONG way by then. My theory is also in moderation.

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That's what econ professors in Weimar Germany said about Rome. And Greece.

No Fiat currency has ever survived. They don't teach you that in econ, believe that.

No one showed up to the Treasury Auction this past week. China is not buying our bonds. Japan is not buying our bonds. Europe is in deep shit and isn't going to buy our bonds much longer.

No one showing up to the auctions = monetizing the debt = high inflation or hyperinflation.

Back to your point about consumer confidence... consumers won't be "confident" once they find out that no one showed up to buy our bonds.

Doesn't get any simpler than that.

And regarding your point about silver and gold be "irrelevant"

Haha!

If that was the case, silver wouldn't be up almost 300% in less than a year.

Must be pretty irrelevant - I mean people must be buying silver and gold en masse because they're confident in the dollar right?


History repeats itself. Its just a different stage.

are you kidding? I refuse to pay my property taxes anymore, what a waste, really.

crsk8andsno56 said:

Economy is going up. I think it will balance out soon.
I'm an Econ major studying macro-economics and ALOT of the "theories" in this thread are complete BS.

Currency is only a number in a computer somewhere. The government can and is "printing" money (idk who said that the US gov can't but they do...). This boosts the economy by devaluing the currency. By devaluing the currency it stimulates exports b/c it's cheaper for other economies to buy from us. Eventually this will boost the economy enough that the dollar will regain power. It's going to happen..

The dollar is NOT backed by gold/silver. This is the same for almost every other major currency out there since the 50's. The only thing the dollar is backed by is consumer confidence. If confidence in it goes down, then the exchange rate for it goes down. This thread is just bringing the confidence down more and therefor making you guys lose more money

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are you kidding? I refuse to pay my property taxes anymore, what a waste, really.

I cant post links but im taking an economics class and someone did a presentation on this exact topic tonight. He shared this link that was pretty interesting.

usdebtclock org

What ever happened to the "Amero"? I heard alot about it a few years back now its damn near silent.

sumohax0r said:

What ever happened to the "Amero"? I heard alot about it a few years back now its damn near silent.

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Even if they make a "New" dollar it wont save the old one

sumohax0r said:

What ever happened to the "Amero"? I heard alot about it a few years back now its damn near silent.

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Why do you think the US is devaluing their currency so badly? Here comes the North American Union. It's The End Of America?.

Recently even the IMF suggested moving towards the Bancor as the world reserve currency.

it is diving now... http://data.cnbc.com/quotes/.DXY/tab/2

$ will not tank anytime soon. It is widely recognised that although the biggest economy in the world, with the huge deficit it would be tanked already were it not the reserve currency of the world.

The Euro is more likely to tank in the next few years. That would be great for you!

You can sleep well at night.

PowerToTHePeople said:

it is diving now... http://data.cnbc.com/quotes/.DXY/tab/2

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Says it all really. Ugh.. Makes me want to vomit.

I remember days of 2 Dollars to the GB Pound and 13%+ interest rates. What's happening
now is nothing that hasn't happened in the past before.
The economy will right it self and then go in the other direction and then back here again
it's just the way it goes nothing to worry about but something to take advantage of.

crsk8andsno56 said:

Talking about silver and gold is not relevant. Macro economies are not built around these metals and have not been for a LONG time. These are now consumer products or "investments" as some people would call them. They go up because there is such massive marketing around them. They have no actual value besides the value that people give them.

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I find it funny that you say this about gold and silver, because if anything, the reason the dollar is not worth less than toilet paper is simply because of the value that people give it, i.e. the faith in the currency.

Precious metals cannot be printed at will, they come from supernovae, relatively rare occurrences, the explosion when a star dies. You have to wait billions of years for this to happen. That's why humans can't just 'manufacture' more gold or silver - the energy required to do so is colossal. Hence, when it runs out, it runs out. We would have to search for near earth asteroids to mine it, or perhaps if it exists in quantity on the moon, mine it from there. Costs would be astronomical to do this, but it would be necessary, since precious metals have many vital functions in industry, particularly platinum in the auto industry and increasingly silver with all the mobile phone / solar panel etc technology that is newly emerging.

Buy gold & silver.

crsk8andsno56 said:

Economy is going up. I think it will balance out soon.
I'm an Econ major studying macro-economics and ALOT of the "theories" in this thread are complete BS.

Currency is only a number in a computer somewhere. The government can and is "printing" money (idk who said that the US gov can't but they do...). This boosts the economy by devaluing the currency. By devaluing the currency it stimulates exports b/c it's cheaper for other economies to buy from us. Eventually this will boost the economy enough that the dollar will regain power. It's going to happen..

The dollar is NOT backed by gold/silver. This is the same for almost every other major currency out there since the 50's. The only thing the dollar is backed by is consumer confidence. If confidence in it goes down, then the exchange rate for it goes down. This thread is just bringing the confidence down more and therefor making you guys lose more money

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Sorry man, but frankly, its types like you that got us into this mess with keynesian theory. Save that school shit for someone else. The U.S. manufacturing sector has been packed up and set up in china. There is nothing to export anymore except inflation and debt via treasury bonds. And those factories ain't coming back. Better burn your econ texts while it has some value.


The true world economy is bankrupt and unless it keeps the debt dance going, it will all crash. The total U.S. debt is 100 trillion which is unpayable by any means, even devaluing the currency into oblivion. On top of that, the world debt is several multiples of that and there is a multi trillion dollar shadow banking sector (read: derivatives) that is going to crash eventually.

There is only 2 solutions, repudiate all the world's debts and restart under some fiscally sane scenario or watch the economy implode.

And all these people holding paper dollars are going to get whats coming to them. Trust me, get out of cash and buy anything that has value, real value, a tangible asset that can at least hold its value against inflation. Land, precious metals, real comomodities - cash in the bank loses value everyday due to inflation.

We are all doomed.

I'm not backing this video, but the events that could happen aren't necessarily farfetched.

http://www.youtube.com/watch?v=2N8gJSMoOJc&feature=pyv&ad=6050032234&kw=dollar

Yeah, $100 trillion, you ask yourself, how could anyone owe so much money to someone else, and to whom does the USA owe it? Most other countries are either poor, and the ones that aren't poor have their own debt and certainly can't lend anything in any capacity. Those oil rich nations which could possibly lend are able to lend money, but $100 trillion? It would never cross your mind that the entire country actually owes the "FEDERAL" Reserve that much money, which is in turn owned by PRIVATE banks. I have to admit the word "federal" in there fooled me as it does most people - you think it's owned by the government when it's actually a (massively) FOR-PROFIT entity.

Inflating this debt into nothing would require hyperinflation and a 21st century Weimar Republic.

What needs to happen is tygrus' suggestion. Laws need to be passed which stop this neverending cycle of debt. No more federal reserve, or at least the reserve as we know it. Abolishing exotic derivatives, limiting the size and influence of private banks. After the crisis of 2008 we had all these promises that there was action going to be taken to stop this unsustainable system, but it turns out nothing has really changed as greed is too tempting I guess.

Quoted from a YouTube comment I found earlier:

In the 1950's you could buy a designer suit for one ounce of gold or 30 dollars. Today you can buy a designer mens suit for one ounce of gold, or 1,200 dollars. The value of gold has not changed relative to goods, only the value of the paper money we have used has changed. If your grandfather could have left you 30 dollars in his day or an ounce of gold, which would you chose?

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Just food for thought.

Yeah maybe it will collapse soon but I can't foresee the future. Until it does, I will be making money, acquiring assets, and livin' it up.