reply to post by anotherdad
Sorry you are very wrong on this one and short sighted. The US doesn't have the infrastructure to manufacture these goods anymore if we wanted to.
Before factories have been built, equipped and people are hired and trained, here is what happens:
Tremendous inflation immediately.
This is since we import most of the good we use to live on, and it takes more dollars to buy them, prices
immediately sky rocket at home.
Huge lay offs and unemployment.
Given the inflation and higher cost to consumers and also businesses, people and business buy even less and are
forced to lay people off to cut costs.
Given the new high price of food, high unemployment and that many of our trading partners won't want US dollars, there will
be food shortages and food riots.
Huge increase in interest rates across the board.
Rates will sky rocket as the US govt and banks have to give higher interest rates on their
issued debt to get people to lend money to them.
Given the higher rates, mortgage rates sky rocket also. Coupled with plummeting unemployment, the housing market further
collapses with people unable to afford loans.
With the high rates, increasing unemployment, high inflation, credit collapses as people either refuse to pay their debt or
refuse to take on new debt. This credit collapse will make the current credit collapse look minor.
As people across the country are furious over the inflation, being laid off, sky rocketing costs, raising interest rates, food
shortages, value of homes plummeting...... they riot and target govt and the rich. Both are forced to fight back resulting in military in the
streets, huge amounts of people in jail, possible martial law, etc.
There are additional possible things, but you can chew on these for a while. A collapse of the dollar would collapse the US society as well. You may
have to understand macro-economics to get this. The US doesn't have the ability to be self-sufficient any longer. It has to borrow a huge portion
of the money it spends, has to import the majority of its food and energy needs, and has to import most of the good we live on daily. A collapse of
the dollar would be so ugly, we should all pray it doesn't happen.