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**Put it this way - the individuals who believe in Keynesian economics, who got us into this mess we're already in, and who are still pushing for more and more stimulus because now the first two stimuli 'weren't big enough,' those are the same people who deny that the dollar is currently on a direct path with destruction and who say that the economy is no longer in recession and is recovering.
Why the US looks to those who got us into this mess for advice on how to get out of the recession is far beyond anything I can grasp. The proponents of Keynesianism literally expect to solve the problem of inflation with more inflation. The Federal Reserve and government get us into these messes because they borrow too much, spend to much, print too much and over-regulate the economy. Then, Congress turns to them for solutions on how to correct the malinvestment, and they're told to borrow more money to fund new, additional spending, to print more money, and implement more regulatory measures as the 'fix.'
. . . Talk about the definition of insanity!
The truth is the individuals who are running the Fed and are in charge of monetary policy, including the president's working group on financial markets, have no idea how to get us out of this mess. All they know to do is to attempt measures that re-inflate the bubble; basically, this country needs major surgery and all we get are band-aids to cover our wounds. Yes, the dollar is collapsing. The Austrian free-market economists who predicted the current collapse and recession over five years prior to its 2008 onset, ans with great detail, have been talking about the collapse of the dollar since the crisis began. The Austrian thinkers can't tell us when a collapse will occur (exact dates and times), but they do give us many warning signs to watch which indicate that the dollar is not doing well. Watching the price of commodities, for example, and how they have continually been gaining value in comparison to the falling dollar is one factor to watch.
From my understanding, the actual collapse of the dollar is said to come when the current bubble in the bond market bursts. Once the bond bubble deflates, the dollar collapse is next. For the dollar to collapse, people must lose confidence in it. For some reason there's still a part of the population that believes paper with no backup reserves in gold has monetary value. However, the people are catching on.
A default on the debt is unlikely, as the dollar is the world reserve. A default on the debt would more likely come afterthe collapse of the dollar.
Do not listen to the government or any Keynesian economists - follow the Austrian school! Visit http://mises.org daily ;)
While an event of default by the US government is unlikely, in 2010, it would cause a global financial catastrophe, including a massive depreciation in the value of the US Dollar.
Not to take away from anything that Andrew has said, I will add some more.
If your dollar is a silver dollar you are OK. If it is a paper dollar you are screwed.
Take a look at a paper dollar. It used to say will pay in silver to the bearer on demand. Will they really pay you in silver? No. They will not. They have defaulted on the obligation to pay you, the bearer.
Next take a look at a United States Note. I have one right here for two dollars. It says the United States of America will pay to the bearer on demand Two Dollars.
A note is a debt instrument. Will they really pay you your two dollars. Obviously the two dollar bill is not the actual two dollars or they would not have to pay you.
Next take a look at a Federal Reserve note. Remember a note is a debt instrument.
The old ones used to say will pay in lawful money. If they must pay in lawful money obviously the note is not lawful money itself. Now look at a present day Federal Reserve Note. They don't even pretend that are going to pay you anything. Lets face it. You have been ripped off.
OK. What is your paper dollar really worth. It must be worth something or people would not take them. Today a silver 1964 dime would cost you about $1.67 based on its metal content. Based on that your paper dollar is worth about 6 cents today. Now for the big question. What will it be worth next year. 5 cents? 4 cents?
Do you think that the paper dollar will be going up in value? I don't.
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When will the US dollar collapse?
It does not tell when the US dollar will collapse. A dollar collapse is when the dollar goes down really quick.
When was the most notable collapse of the US dollar?
Although other currencies previously used in the US have undergone collapse, the Continental dollar being the most notable example, the US dollar has not collapsed yet. Many economists predict an imminent collapse, and some say it has already begun.
What currency would improve the most if us dollar collapse?
$2
When the US defaults on its debt does China own your house?
no, but if you're in a different country like Egypt or some other country then yes
Is a financial collapse about to hit America?
Many experts agree the current GDP to national debt ratio is unsustainable. Combine this with a world wide lack of confidence in the us dollar (because of QE1, QE2 and soon QE3) and a desire for oil producing nations to sell oil in gold instead of dollars will cause the value of the us dollar to decline further. When the rest of the world refuses to accept the dollar as a reserve currency the us will be in financial collapse. That is my attempt at answering this question, I am still a student of world economics.
Will the US collapse?
It does not tell when the US dollar will collapse. A dollar collapse is when the dollar goes down really quick.
What resulted in the printing of large amounts of paper currency?
The US will show u soon that it will lead to the collapse of the us dollar. And one world government
Is a house mortgage a secured debt?
Secured debt is debt backed or secured by collateral to reduce the risk associated with lending, such as a mortgage. If the borrower defaults on repayment, the bank seizes the house, sells it and uses the proceeds to pay back the debt. Assets backing debt or a debt instrument are considered security, which is why unsecured debt is considered a riskier investment find more about PMI services in Florida United Financial Counselors contact with us.
Did the US sign over US Public lands for collateral to China?
No. What China buys US debt in exchange for both US Bonds and US Dollar currency. They use the latter to create a fixed RMB to USD peg and the former is the debt that they continue to hold.
What country in the world has the most national debt in relationship to their gross national product?
Most likely the United States with our multi-trillion dollar national debt.
Why did the US keep using force in latin America under dollar diplomacy?
They thought this would keep them out of debt.
What was the us's debt in 1776?
us federal debt in 1850
