What is the dollar's actual breaking point?

Hello ATSers!

A question for those who are economically enlightened:

What will be "the straw that breaks the camel's back" when it comes to the U.S. Dollar?

Nobody knows for sure, but I'd like to hear some educated guesses as to how ( and when ) this will go down.

Not so much interested in the aftermath theories, just the anatomy of this currency's collapse.

a reply to: AgarthaSeed


Lack of Confidence

a reply to: AgarthaSeed

I use to think USD demise was imminent but had to change my perspective. Its clearly not the worse horse in the soap factory so could surprise much longer than expected. Europe, Japan and china could falter sooner than US, keeping wealth in USD.

a reply to: visitedbythem

one of the few things keeping it together.

that, spit and glue, heh.

a reply to: AgarthaSeed

Countries holding the dollar as an investment would sell it off at the same time, flooding the market which would lower its value to mere cents.

But what Nation/State would want that..? What would replace it as the Reserve Currency..?

People need to wise-up to reality...yes, something is going to give, let's hope it's the right disaster.

what a pertinent thread.....I'm an expert....I promise you somehow.............they have enough computing power to do magic.

the number one item.....we went 100% off the gold standard in the 80's.....Nixons deal, hail, he said that was temporary....that was just 98% off the standard

then computers saved the world as we should have busted in the 90's, but get this....Greenspan oh nevermind his rise....computers made the derivatives market possible. but the big day........they have magic in tech or just computing power.....magic I tell ya ( they could go on for a hundred years ) but credit is the new cash.....cash has to go for the paradigm of evil ( powers that be ) to take the step we wisper of. buy pork bellys, sell Gold he.....he

originally posted by: BestinShow
a reply to: AgarthaSeed

Countries holding the dollar as an investment would sell it off at the same time, flooding the market which would lower its value to mere cents.

But what Nation/State would want that..? What would replace it as the Reserve Currency..?

People need to wise-up to reality...yes, something is going to give, let's hope it's the right disaster.

What's the U.S. reserve currency?

the dollar is so artificial its not funny.
it will be kept alive for so long as it is profitable to do so.

a reply to: AgarthaSeed

Technically, it's the currency used by a country to do bizz with another country...i was trying to point out that it would be a major pain point for the rest of the world to come up with a legitimate replacement.

My bad...

a reply to: BestinShow

There is a reason countrys like russia and china' gold intake has soared to record breaking levels.

America bullied its currency in as the reserve and started wars to defend it. They won't let countrys leave the Dollar standard, they will incite WW3 under some more flase flag pretences. Better the common people fight and die for their wealth than they just give it up.

a reply to: AgarthaSeed

The U.S. Dollar's anatomy? Like many have already stated, it has no anatomy. However, it does have the appearance of an anatomy.

The U.S. Dollar is no longer simply currency. It is the premium grade $&!? that flows through the system, better than anyone else's $&!?. Some say gold or SDRs will replace it, but there is no need, although SDRs give the IMF crazy leverage over emerging and hemorrhaging economies. Yet, the U.S. Dollar will continue to serve as the primary, until most all economies fail, then currency will become obsolete. Labor for staples, shelter, and protection will rise again.

The U.S. Dollar is invincible so long as it's suppliers deem currency necessary. When the time is right, they'll push for all sorts of chaos, temporarily breaking the market and flow of goods, services, commodities, etc., then when everyone is willing to work, slave away for food, shelter, safety, etc., that's when currency will no longer be necessary. Instead, knowledge and skill sets will be the only value. This is the utopia they have planned for us, our Socialist Utopia.

originally posted by: BestinShow
a reply to: AgarthaSeed

Technically, it's the currency used by a country to do bizz with another country...i was trying to point out that it would be a major pain point for the rest of the world to come up with a legitimate replacement.

My bad...

Actually there are already several reserve currencies.
wiki

There are several major problems with our economic structure right now. One is that its a Tom, Dick and Harry debt circle - a ponzi scheme.

This is way oversimplified, but it makes the point:

Tom owes Dick $100. Dick owes Harry $100. Harry owes Tom $100. In real life they would just call it a wash and leave it alone. In economics however, Tom pays Dick. Dick pays Harry. Harry pays Tom. Now all three can show a $100 profit on paper which they can use as collateral to borrow against while writing off the debt they owed as an expense. Instead of $100 changing hands three times, now there are three people with $100 in debt, and government subsidy, and only one person that actually has $100. All three lose when the interest kicks in.

You cant solve a credit problem with more credit. Period. Credit can not lead to solvency unless your profit out paces your interest. Using one credit card to pay off another only pushes back the day of reckoning. Sooner or later, probably sooner, the debt will out pace the ability to borrow. That is insolvency. Creating money out of thin air makes small rectangular pieces of paper change hands but does nothing good to the economy. The paper becomes less and less valuable = Inflation. It reaches a point when it must be replaced by a new currency. That new currency, whatever it is called, must be backed by something. Either tangible value, as in precious metals. Or, it must be globally recognized as having equivalent value. In other words, your money is no good if no one will accept it as payment for something. Its like writing a check for a bizzillion dollars. Yes, you have a check in your hands. Try cashing it...

originally posted by: visitedbythem
Lack of Confidence

That would be an ultimate example. As I enjoy being able to say cynically, when it fits, "if you beLIEve it I beLIEve it".



a reply to: AgarthaSeed

Good question!

I recall a 10 years ago, in America: Freedom to Fascism, Aaron Russo explained that since the founding of the Federal Reserve, the value of the dollar had been stripped down to being worth $0.04. I've never seen that claim contested.

That was before the housing collapse. That was when the national debt was about half of what it is now.

originally posted by: BestinShow
a reply to: AgarthaSeed

Technically, it's the currency used by a country to do bizz with another country...i was trying to point out that it would be a major pain point for the rest of the world to come up with a legitimate replacement.

My bad...

Do not be so sure, I have extended family in Shipping and many of the workers now in South East Asian want paying in their national currency, things are changing..

I would say the Petro-Doller is the key to it all, it has been a main reason for many recent conflicts that the US has been involved in. How long will it last?, as long as the US have bullets and they have grunts willing to fire them..


RA

a reply to: slider1982

This movie explains a lot. One of my favorites.

I don't know, but I suspect if it ever does it's because it was planned.

a reply to: AgarthaSeed

Hungry people......when they reach the precispus, they will decide the $$$ worth

a reply to: AgarthaSeed
Stopping the occupant economy model will demolish USA

The fractional reserve lending model will fail, but when is tricky.

The end game was to own everything. Home ownership is down to something like 60% of the population now, but only 3% of the population actually *owns* that land. The rest of us are just paying the banksters.

Having said that, the owership of the entire countries wealth is more or less in the hands of 3% of the population. The end game is more or less here, they own everything.

Having said that, they don't need this system anymore. It's still limping along, but negative interest rates are around the corner- it doesn't work without people getting into more debt.

The breaking point is lack of faith. What causes that point has yet to be seen- but a large grid outage could do it. Just long enough for people to realize that their plastic cards aren't cash, and are worthless... would be enough for many people to also see that their cash is worthless.
In a disaster, the value of cash is an interesting thing. Ten grand might not buy you dinner if the person selling the food doesn't value cash.

At some point, people will start to realize how screwed they are. Most of them don't have any other choice but to go down with the ship.

I'd like to think that it would only take an organized force of media to say "hey look at fractional reserve lending and how it has stolen everything from everyone" to wake people up, but after watching a certain criminal go up on tv and have their lies exposed for all the world to see, and then watching them get away without even a slap on the wrist... I just don't know anymore.

Maybe the banks will get away with replacing cash with credit, and we'll allow them to ride us all to death.