U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 12-22-2008, 11:52 AM
 
Location: Murphy, TX
606 posts, read 1,484,392 times
Reputation: 363

Advertisements

For awhile now I have been hearing claims from many places about the impending doom of the US Dollar. Some people seem to be claiming the dollar will become completely worthless! They keep saying to buy Physical gold, since supposedly 'paper' gold is actually worthless too. All of this seems to me quite far fetched. Just how likely is that USD will become completely worthless, IE worth less than the paper it is printed it on???

There a lot things that make me doubt all these claims about the USD becoming worthless. One thing I have noticed is the price of gold seems to have actually gone DOWN! If it really was near end of the Dollar, I would except the Gold prices to go up like crazy. Next, I am pretty sure no one in world would really want the US economy to collapse complete. The US is top economy in world if it goes it will affect everyone (China, EU, Middle East, etc). I am sure they will do everything possible to keep USD from becoming worthless and causing US to collapse.

I am skeptical that there is high chance of USD become worthless. What do you guys think?
Reply With Quote Quick reply to this message

 
Old 12-22-2008, 11:54 AM
 
11,770 posts, read 18,373,546 times
Reputation: 2673
I think its worthless already.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 11:56 AM
 
Location: Murphy, TX
606 posts, read 1,484,392 times
Reputation: 363
Quote:
Originally Posted by Barkingowl View Post
I think its worthless already.
In what way? You still buy food and other things you need with the USD. If it worthless, I would except it to be impossible buy food or anything else with USD. Wonder if my definition of worthless is a bit too extreme compared to other people's??
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 11:57 AM
 
43,177 posts, read 47,049,205 times
Reputation: 13668
Little to none IMO.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 12:17 PM
 
Location: Fort Myers Fl
2,294 posts, read 1,746,851 times
Reputation: 888
It will become useless if you are a member of the doom and gloom club.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 12:48 PM
 
16,623 posts, read 14,353,196 times
Reputation: 11492
"Worthless", no.

"Worth less", quite possibly, yes. There are intelligent people out there predicting sudden hyperinflation, once we get deflation under control.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 12:49 PM
 
Location: Backwoods of Maine
2,512 posts, read 2,885,110 times
Reputation: 4536
This is a very good question, and deserves more than just an off-the-cuff remark.

Since the Federal Reserve was chartered in 1913, the US dollar has lost 96% of its 1913 value. Stated another way, what was worth a "dollar" in 1913 is now worth 4 cents. Anyone over the age of 30 or so must have some idea of the way everything seems to cost more today than it did when you were a kid. The older you are, the more you have seen prices rise.

There have been experiments throughout history with paper fiat currencies that are un-backed with anything tangible. They have all failed. All of them. Now, we have a situation where every currency in the world is un-backed fiat paper. Never has this been done before. So, we are in uncharted waters, and if anyone tells you "it can't happen" - it CAN.

I'm not trying to be a doomer. I don't think it will happen anytime very soon. But recognizing that Federal Reserve Notes are not "dollars" is a good first step. The US Constitution defines a "dollar" as 371 grains of silver. It doesn't say anything about paper. So at the very least, our currency is unconstitutional. You can draw your own conclusions from there.

Human beings also have very short memories. This is psychological fact. Don't expect anyone to remember those other failed experiments with paper money. It was too long ago. But it was also true that it happened. Never say never.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 01:02 PM
 
Location: Murphy, TX
606 posts, read 1,484,392 times
Reputation: 363
Quote:
Originally Posted by Nor'Eastah View Post
Now, we have a situation where every currency in the world is un-backed fiat paper. Never has this been done before. So, we are in uncharted waters, and if anyone tells you "it can't happen" - it CAN.
It seem to me if the USD collapse so would all the currencies in the world. Since they all seem to backed by each other. I think chance of this happening seem to be small too.


Quote:
Originally Posted by Nor'Eastah View Post
The US Constitution defines a "dollar" as 371 grains of silver. It doesn't say anything about paper.
I never heard of this before. I looked up couple of full text of the US Constitution and I haven't seen that any place where dollar is linked to 371 grains of silver. There are only 2 mentions of the "dollar" in Constitution, Article I, section 9 and Amendment 7. Where did you exactly get this information?
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 03:28 PM
 
Location: San Diego California
6,188 posts, read 3,402,510 times
Reputation: 4470
The one thing no one takes into consideration is the reason why the Dollar is gaining value despite worsening fundamentals. It is because of the strength of the US military. When things really get desperate worldwide, it will be military force that will decide who is left standing, and who gets their butts kicked and their lunch eaten.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 03:48 PM
 
372 posts, read 569,825 times
Reputation: 121
Wasn't it the US Coinage Act... Somewhere in the late 1700's?

I believe the dollar at the time was tied to so many grams of Silver (27?). The eagle, which is ten dollars, was set to 270 grams, etc.

Once we left the silver standard, this all went out the window. In the early 1900's we went to the gold standard and ditched that in the 70's.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

© 2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top