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If you want a historical precedent, look to the Weimar Republic collapse in Germany. The currency became worthless. The banks failed. It became a barter economy. If you're a survivalist, you've spent your life preparing for that possibility. You can go off the grid 100% self sufficient and defend your property.
The thing is, if the US got to that point, it would take the rest of the world down with it. I don't see how it could happen. Everybody would prop it up with bubble gum, paper clips, and duct tape rather than have the total calamity.
It could happen if we were defeated and destroyed in a world war, our productive resources either destroyed or confiscated. While we were force to make huge reparation payments in a currency we are not sovereign.
There 100's of books written over the past 40 years about the what the governments do when they are insolvent. They print more money!!!!!!
Now that we are printing money we rationalize that printing money is just another economic tool. It's working so great that we can't stop doing it, over and over and over.
No, but the point was valid. There's no reason why there couldn't be a 1-time fiat tax to grab 10% of the national wealth to zero out the national debt. We live in a representative democracy. If Congress votes to pass that bill and the President signs it, it happens.
Who are all the owners of all these assets, and do they have the money on hand to pay these taxes?
And then why pay off the approximate half of national debt that we the people and our govt's own for good reasons?
Then, how do we pay off the $2.5T in debt owned by the Fed? I'm asking as I don't know how that would happen.
Negotiate with the criminals responsible for the Federal Reserve.
Grant amnesty for their crimes in return for erasing the 'debt'.
Then tell China to f*** straight off.
The Federal Reserve and the National Debt are very separate entities and issues. China and and USD based debt that they hold has nothing to do with the Fed.
No, it wasn't. That wealth was PAID for with said fiat money, but it was CREATED with the work invested in EARNING the money that paid for it. This wealth DOES NOT belong to the government.
Yeah it does:
As long as the fiat currency has 'Federal Reserve Note' printed on it, and
Anyone that lives in the US is subject to the legal confiscation of wealth through taxation.
Then by default, the 'money' and other forms of wealth that exist belong to the government. The fact that the government lets people act like it is theirs for a while & it has not been confiscated completely is just a minor detail that could change on the whim of the third party that has an exclusive legal monopoly on the use of force and power to tax. . . . . .Which is, the government.
Actually, I've been kinda wondering the same thing the OP was inquiring about. What would it look like for an everyday citizen if/when the U.S. dollar no longer has any value? Not that it actually does now since it's all fiat, but what if/when the world starts dealing in the Chinese renminbi as the reserve currency instead of the US dollar and nobody wants US dollars anymore?
We see it happen with visiting tourists. When their monetary unit is stronger than our monetary unit, then the tourists buy loads of stuff and haul it away. When our money is stronger than theirs, they don't buy much. Right now the Canadians are visiting and not buying much since everything they buy costs a Canadian $1.50 for a US $1.
But what happens when the US can't print enough worthless US dollars to pay folks for their equivalent in renminbi? First off, I'd expect that WalMart won't be stocking their shelves with cheap imports anymore. Does this bring manufacturing back to the US?
Actually, I've been kinda wondering the same thing the OP was inquiring about. What would it look like for an everyday citizen if/when the U.S. dollar no longer has any value? Not that it actually does now since it's all fiat, but what if/when the world starts dealing in the Chinese renminbi as the reserve currency instead of the US dollar and nobody wants US dollars anymore?
If your dollars are worthless and no one you know wants them you can give them to me as I will take all of them you are willing to give
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We see it happen with visiting tourists. When their monetary unit is stronger than our monetary unit, then the tourists buy loads of stuff and haul it away. When our money is stronger than theirs, they don't buy much. Right now the Canadians are visiting and not buying much since everything they buy costs a Canadian $1.50 for a US $1.
But what happens when the US can't print enough worthless US dollars to pay folks for their equivalent in renminbi? First off, I'd expect that WalMart won't be stocking their shelves with cheap imports anymore. Does this bring manufacturing back to the US?
The U.S. debt is denominated in U.S. dollars so the value of other currencies means nothing to that end.
Of course it's ridiculous. The Feds have the printing press for one. But let's say the goofballs in Congress decided to default. The value of the dollar would plummet and it would hurt the countries that sell to us. Furthermore the government might pay less than the principle amount. Actually, don't some countries already pay negative interest?
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