US Dollar About to Collapse?

Well it appears Project Camelot has a person they respect saying.....

I'll call you. Things are really coming. The meeting today on the government assisting the sale of Lehman to Barclays fell through... the dollar is close to collapse. - George Green

US Dollar is about to Collapse say's George Green

OK, so let's say the US dollar takes a complete dump and is worth nothing. Your 401k history, stocks zero, pension plans gone, medical insurances bye-bye.

All those year of hard work and time worth nothing.

Now what? Chaos? Anarchy? or maybe a rebirth of individual faith?

Maybe people will start to care again.


[edit on 15-9-2008 by Realtruth]

Isn't America going to make a new currency called Amero, joining Canada and Mexico together? Maybe that is the plan it seems, to what end who knows? Maybe the Euro might help out and join America and we can have one big currency all together.

Collapse with respect to Euro?

Look, I don't plan on using my 401k money in Europe, why should I care?

Originally posted by buddhasystem
Collapse with respect to Euro?

Look, I don't plan on using my 401k money in Europe, why should I care?

Maybe because the value of your money is dropping, and thus the things you buy will keep getting more and more expensive? I just explained this in the news thread, but I'll do it again here.

Lets say you have a total of $100 in the economy. Lets says there are a total of 10 apples you can buy. Supply and demand states that each apple has a value of $10 each. If you own $10 of the $100 total in the economy, then you own 10% of the entire wealth. You can buy 1 apple with your wealth.

Now then, add in the federal reserve. They come in and create another $100 out of thin air and give it to the corporations they loan the money too. Now there is $200 in the economy, but still only 10 apples. Supply and demand states that each apple is now worth $20 each. Your $10 has changed from 10% of the wealth, to only 5% of the wealth. You can now only buy 1/2 an apple.

That is inflation. What happened is you just had half your wealth STOLEN from you. Yeah, you still have $10, and if you are dumb you will say - what are you talking about, I still have my $10, nobody stole anything from me. But when you look at your purchasing power, you've lost half your wealth.

Those stock prices are just doing the same thing the apple prices do in this inflation.

And this is not even mentioning the fact that we have to pay that $100 the fed created back(national debt) + interest. Interest which they do not print the money up for. So they end up getting the $100 back, plus part of the original $100.

This is the transfer of wealth in this country. Looking at the stock market prices, rather than the value is going to give you a false understanding of what is happening.

As long as they keep adding money into the system(more inflation) people will be able to use the newly created money to keep up. This however lowers the value of the dollar(increasing the prices) and eventually it has to stop. Then comes deflation. And when deflation sets in, then it's a mad scramble to pay that interest and money back, except there is never enough money in the system to actually do that(because the interest money is never created). And that is when the bankruptcies/recession start to kick in.

The people who took out the loans are then dealing with increasing costs at the same time, and they can't afford to pay it back. So they themselves go bankrupt and then whoever is left with cash comes in and buys things up for cheap. Just like they did after the great depression. Then the economy picks up again after, and these same people then resell them at full price + interest.

This is a very simplistic example, but hopefully it gets the point across.

I think that is a pretty good reason to care.

reply to post by Realtruth


I am no expert on the economy, and chances are, very few of us are. It still fathoms me how people play the markets so well.

OK, so let's say the US dollar takes a complete dump and is worth nothing. Your 401k history, stocks zero, pension plans gone, medical insurances bye-bye.

I am quite sure that if this happens, there would be some chaos, and surly there would be a long depressions, but were in the 21st century. The U. S. Treasury and the Feds would need to re-create everything. They and Banks keep records of everything. They would have to artificially re-create the markets to avoid a longer Great Depression. I don't see Bill Gates letting his 70 Billion Dollar foutune go to waste without a fight. Would you?

People worldwide can bs themselves all they want, but this has everything to do with the world economy, if the US dollar collapses so will the rest of the worlds currency's.

The federal reserves, IMF, US treasury, most of the banks in Europe and worldwide are all controlled by the same group.

The collapse is by design it has nothing to do with economics, IMO.

That's what is so scary about this whole deal.

Originally posted by truth_seeker3
I don't see Bill Gates letting his 70 Billion Dollar foutune go to waste without a fight. Would you?

Bill gates won't care one way or the other he is positioned in many other investments than dollars.

Economic survival depends on knowledge, remaining calm, and working with others in the same mindset.

It's all about knowledge and not financial power as we will soon see.

Money can be manipulated, but true knowledge and people that believe in each other working together bartering will prevail.