What the demise of the dollar means for you
For several months you have read the warnings issued by economists and columnists, including this writer, concerning the devaluing of the dollar and its ultimate demise. But what, exactly, does this mean for you, the citizen?
It would be too easy for readers to dismiss such talk as the musings of those who get their jollies from engaging in economic lingo, while missing the enormous consequences that the demise of the dollar will have on our everyday lives.
We are speaking here of a cataclysmic, seismological blow to our way of life as Americans.
One of the primary reasons Americans enjoy an affluent way of life when compared to much of the rest of the world is the primacy of the dollar as a world currency. Oil, for example, is bought and sold using the dollar. Thus, dollars are being pumped into various economies around the world for one reason alone--it is in great demand. This helps the American consumer by keeping the value of our currency up, keeping inflation down, and keeping our goods and services affordable to the masses.
But what happens when the dollar is devalued? Or worse still, what happens when global entities, such as the oil barons, stop using the dollar as their currency?
Here is where you and I come into the picture.
We are going to see a major change in our way of life. What does this mean for you? Here it is in as simple of terms as I can possibly make it:
1. Inflation will skyrocket. If you are in the market for new clothing, expect the price for common, ordinary garments to quadruple overnight. Food, even the basic staples, will become so expensive that the largest percentage of what we spend out of our paychecks will be used just to stay alive. The poorest among us will have trouble merely surviving.
2. Paper money will be basically worthless. That means those dollars we use to purchase goods and services will have absolutely no real value any longer. The dollar, at that point, will have been so thoroughly devalued that it will be worth only the paper its printed on. Unless you have invested heavily in gold and other precious medals, you will be big trouble.
3. Gold and precious medals, which have intrinsic value of their own, will become vastly important. At present, the price of gold has skyrocketed to over $1000 per ounce. This means that a gold coin that at one time carried a value of $20 will now be worth over $1000. Those who have bought these gold coins and bricks as a hedge against inflation will be in a good position to weather the coming storm. Those who have not will be at the mercy of the coming economic storm where goods and services will quadruple in costs and where their paper money will be basically worthless.
4. Starvation will become common. Homelessness will overwhelm American society. Businesses will go under. Joblessness will sweep over the nation, setting us on a course to either match or outmatch the unemployment numbers of the Great Depression.
Continued..
http://www.examiner.com/x-3704-Columbia-Conservative-Examine...
Everytime the dollar goes down, it means gold lose value...
That is my concern..not that I care about the dollar...
/Mike
Front Fell Off
http://www.youtube.com/watch?v=WcU4t6zRAKg
/Mike
Front Fell Off
http://www.youtube.com/watch?v=WcU4t6zRAKg
This may or may not be true.
This may or may not be true. What could happen is that dollars are spent internationally as long as they have value and then traded to the IMF for SDRs, this will remove U.S. dollars as the international currency and make them even scarcer here at home. Meanwhile SDRs become the new international currency and the dollars held by the IMF simply get destroyed.
grant
I am excited because I
I am excited because I should be able to see a few gold coins for 300K Federal Reserve Notes and pay off my house......then I'm debt free!!
The demise of the dollar is not near. It will not collapse in
value.
It is not being inflated, it is not being devalued, it will not lose reserve status (because it has none).
However, the FeRN or Federal Reserve Note is losing value, is being inflated, and is losing its status as the world's reserve currency.
The solution is to return to using dollars and to stop using FeRNs and along with it abolish the banking cartel that issues them - the Federal Reserve. (which is no more a part of government than Federal Express, and has no reserves)
Paper money will not become worthless. Paper is not and cannot be money. It use as a currency will however wane. It is not going to "become" worthless, it already IS worthless, by DEFINITION. In fact, our particular form of paper currency is actually evidence of DEBT, the antithesis of value.
Inflation has already skyrocketed. Inflation is NOT an increase in prices. That is merely an effect of inflation. Inflation is an increase in the supply of money or currency. (the supply grows or inflates) We have already witnessed a massive growth in the supply of credit and currency based on that credit. Since such currency is used in the place of money, we will eventually see the effect of this inflation in the form of increased prices we pay for goods and services.
The price of gold is not $1000 per ounce. And a double eagle is still worth $20. (an ounce being worth $20.67) Gold is not priced in dollars, but rather Federal Reserve Notes or FeRNs. The price in dollars has not changed.
To be sure, the other practical effects the original post mention are entirely possible. But that is only if we refuse to implement the obvious solution. Our problems stem from abandoning our monetary system, the abandoning of the Dollar over a period of time and in stages, beginning in 1873 and culminating in 1968. The solution then is obvious, restore our monetary system as originally laid out by the Coinage Act of 1792. If it be proven that current ratios of silver/gold are more appropriate, then implement them accordingly as was done in the 1985 Gold Bullion Coinage Act. Abolish the Federal Reserve since with constitutional monetary system we have no use for a central bank, or a fractional reserve banking system.
bimetallism
Establishing a ratio of value between gold and silver by government force is a bad idea. Price fixing always causes problems.
inflation is the least of your worries...
http://theautomaticearth.blogspot.com/2009/07/july-6-2009-in...
plus-
when someone refers to precious metals and precious medals... i tend to question how accurate their message can be......
in response to all . . .
it's hard to be awake; it's easier to dream--
of the 'posts' so far:
Original poster--
Isn't this what Gerald Celente and Peter Schiff have been saying, basically?
It's a matter of conjecture at this point, but food prices are going up, and people are losing homes and jobs; what better explanation?
poster #2--
it's one thing to speak of 'theory', using *we* as the collective for citizens, etc.--for "consumers"; it's another thing to speak of reality--
when someone has lost a job or is losing a home . . . clothing and food become more diffiicult to buy, so what is the point of being told that the dollar isn't losing value? In reality, in practicality, the dollar loses value when people earn fewer of them or have to pay higher prices for commodities, even for bare necessities--
poster #3 (Paul Revere?)--
it may be the least of our worries, but if we are facing dollar shortage because of increasing costs--we like to know why; how else does the low income person explain this to him/herself? And make provisions, if that is possible, even if it means cutting out eating meat or . . . putting in a garden or taking a second job (if one can be found)--
It's good to read theory, but in practice things are becoming more difficult for many people--
*I* am not aware that I use federal reserve notes, and, frankly, though I have an enormous garden, etc.--I haven't got enough extra money to buy even an ounce of gold--
I remember months ago reading a post on here by someone who is homeless and wanted to epxress his/her passion for liberty, and there were respondents who made comments to the effect of: "you've put yourself where you are; how can we trust you?"--
It may be hard for wealthier people on this forum to believe that there are some of us "out here" who put ourselves through college, have worked hard and long, have saved our money and still find ourselves in the lower income bracket due to . . . economic circumstances beyond our control--such as job loss--
I speak to that; I raise my hand--
*raising my hand*
It's nice for the wealthy on here to discuss gold and federal reserve notes--
as if something can be done--
but for those of us who can't turn our heat on and who can't buy groceries (but who garden extensively)--and who hope we can continue to pay mortgages on very modest homes--
it's another matter altogether--
Thank you, original poster, for the practical tips; it's honestly nice to know we're not alone--
it's hard to be awake; it's easier to dream--
how to build a lifeboat...
we will not have any inflation until we destroy all of that money created by bad credit... the amount that was added to money supply via this credit creation is so large, that the feds could never print money fast enough to keep pace with its destruction...
if you want to prepare--- prepare for deflation by getting out of debt and taking the suggestions here:
http://theautomaticearth.blogspot.com/2008/11/debt-rattle-no...
when the deflation runs its course-- then you will get your inflation---
it would be wise to conclude that deflation is here and is only beginning to take hold,,, otherwise you might lose all that you have,...