Dollar Collapse, would it be that bad? Maybe it's what we need.

So I am looking for those with a better understanding of the dollar than I. I see things this way. The dollar collapses (inevitable to me since looking at long term moving averages and those figures being swayed by the fact that now the dollar has nothing to back it) which devalues our currency and buying power around the world. Stopping us from buying items from factories overseas we shipped our jobs to do to the expense. U.S. based companies no longer have a cheap work force overseas and their own survival will depend on Americans doing the jobs and spending their paychecks at home. Mind you awhile after the collapse in the U.S., the dollar will rebound at home(If it is our only form of currency).
The Result, Like a steam engine American production plants start to fire back up selling american products to American people. The citizens are once again employed, and what do employed people do? They get paychecks, They buy goods (American made goods), They buy homes and land, They grow their own produce, They produce their own supplies (Crude oil) and when we produce more than we need what do we do? Sell it to other countries for a profit bringing us back from the depths we are in now.
Is that not the moment when we prosper again? It's time to circle the wagons and get back to the fundamentals. We can't do this without pain and strife IMO. But it would be the best for all Americans.
I do really want to know where i am misguided on this thought.

Also i apolagize for grammatical errors.

American prosperity was based on printing money, and waging wars of plunder against third world countries.

The money printing no longer works.
The wars no longer work either.

Too bad.

When the dollar reaches a point where it is cheaper to hire Americans than Mexicans, Indians, Chinese, Indonesians, Malasians and so forth to produce goods then the American companies that have exported all of our jobs might actually start producing in the states again.

They will fight it tooth and nail though.

No it will cause chaos then martial law then NWO its the nail in the coffin to kill the ecomony so they can save us with thier chip, its going to happen sooner than later with 10 years tops maybe even days who knows but its going to happen.

Stock up now before its to late

Bad ? Nightmare more like ! There just seems to be too many people
who couldn't handle the change. At least from were I can see ! My greatest
worry about the dollars collapse is the reaction from the uninformed ! and they are all around us ! Their lack of forethought and preparedness could start an elevated chaos !

reply to post by Silver Shadow

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Would you care to clarify your accusation that our prosperity was built on plundering third world countries? We were pulled into WWI and WWII. Korea was fought with the support of the UN, although the United States carried most of the weight, as usual. Vietnam was fought by several nations, with the United States carrying most of the burden. However, there was no UN mandate.
The Gulf War was a UN mandate to stop Saddam from invading Kuwait. Once again, the US carried most of the burden, although there were Canadians, British, and French, with a few Aussies thrown in, just in case a head butt or two was needed.
After 911, we invaded Afghanistan, but only after we had politely asked the Taliban to hand over bin Laden. We are still there, and although I don't agree with the length of the war, I agree with it's purpose. Plunder? Tell me what in the hell is worth "plundering" in Afghanistan. It is a country of tribes living in seventh century.
Iraq. This is where it hits the fan. We had intelligence from various sources that Saddam had weapons of mass destruction, and he was planning on using them(Much like that idiot in Iran whose name I can't spell). We didn't find WMDs. When we didn't find them, we started nation building. In my opinion, that's the only country we "plundered."

Sorry this is off topic.


[edit on 23-10-2009 by kettlebellysmith]

reply to post by Silver Shadow

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Not true, at one point the dollar was based on the gold standard.

And i hope you are not trying to turn this into an anti US thread as their are numerous other threads you can spread that. But A for you being so quick to bash.

reply to post by slipknotrules2009

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I don't think their is anyway the dollar (as known now) last ten years.

reply to post by badgerprints

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Back to the original question though, would it be a bad thing or would it force us to build our country back up?

reply to post by anotherdad

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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.

Food Shortages. 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.

Housing collapse. Given the higher rates, mortgage rates sky rocket also. Coupled with plummeting unemployment, the housing market further collapses with people unable to afford loans.

Credit collapse. 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.

Civil Unrest. 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.

reply to post by kettlebellysmith

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What is worth plundering in Afghanistan ?

Ever hear about Opium Poppies, and the international heroin trade ?

Ever hear about the oil pipeline George W Bush and his Texas oil friends wanted to build through Afghanistan so America could access (steal) the vast newly discovered oil field under the Caspian Sea ?

As far as Iraq goes, nobody ever believer Saddam had weapons of mass destruction, and none were ever found. That was all a lie.

What Gulf War Two was all about was Saddam changing the terms of the oil for food deal to sell his oil for Euros instead of US dollars.

Again America had to dominate the world oil trade by military force.to keep the US dollar strong.
Saddam broke that US oil monopoly, and THAT is what has led directly to the death of the US dollar.


[edit on 23/10/2009 by Silver Shadow]

The whole US -- govt, companies, and individuals -- needs to go on a kind of "12-step" program for debt. Like a serious alcoholic, it needs to be weened off its bad habits in a controlled manner. Severe alcoholics can even die if they stop drinking suddenly, and most have relapses unless they make a serious, long-term committment to a different lifestyle.

Unfortunately, rather than an alcoholic who is ready to admit his problem and get help, the US right now is more akin to a drunk lying blearily in the gutter at 8:00 AM, shaking and quivvering as he scrambles for spare change.

What the US needs to do is trade fairly with other nations, and not threaten or interfere with other countries doing the same thing.

Why should all international trade be forced to use US dollars, under threat of military strike ?

Yes, our prosperity was based on plundering third world countries, just as England's prosperity had been based. We robbed these countries of their various resources - spices, foods (sugar, coffee, other non-essentials), eventually labor. Much of our domestic prosperity was based on very cheap labor of oppressed minorities. As long as we had minorities to oppress, we had no serious illegal immigration problem. Once we stopped oppressing our own minorities, illegal immigrants from other countries began to move in to take those crummy, poor-paying jobs.

I don't think it's going to matter much if the dollar collapses, as long as we're able to steal enough oil to keep ourselves going, and sell to other countries. We've already got Iraq, and Iran's on our short list. We may be able to get a few more oil-producing countries before Russia and China start to object. Who knows? Petroleum can become the new "gold", so to speak.

Something tells me we're not done oppressing third world countries. We're just having to be a little bit sneakier about it.

reply to post by johnny2127

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First off, no need to apolagize for disagreeing. I'm a big boy and for it. I do however want to bring up that my question was not short sighted you interpreted it that way( I think). I am asking whether or not in the long term it would be better. I agree with all/most of your points short term.

Inflation: because we produce so much off shores: Yes short term would be a huge issue but long term when forced to buy locally would it benefit us?

Layoofs/unemployment: We are almost there now with no solution to the problem.

Food shortages: Yes initially, but see #1.

Int rates rise: If nobody is borrowing and nobody wants to borring and nobody is lending what is the issue. I see short term it stagnates growth but, the question again is long term. To me Borrowing got us into this mess so a reprieve from that would help get us out.

Housing collapse: It will and is going to further collapse. Without jobs people cant pay their mortgage nor can they buy new homes. Don't let the recent spike fool you.

Credit collapse: See above, it's happening. OBTW new employers are also starting to look at credits reports to choose between applicants.

Civil unrest: I agree but hopefully it is issolated to those places who take instead of give. I still believe in the people as a whole to come together and help one another.

And with your last comments, I believe their is a very large population of the U.S. who does not (Have) to have money to be happy they would just alter their spending behavior and shift there priorities. I also have a "knowledge" of macro-economics and i disagree we do have the people, factories, and willingness to work along with the natural supplies to be self sufficent. The fact that we import (to me) is not because we can't provide for ourselfs it's that we try and provide so much to others. If America had to stand on it's own it could and has!

And you are right it would be ugly........................short term.

And this is precisely why I hate capitalism.

Everythng is based around the employer, rather than the employee. It is based on greed and exploitation, the world over. Then we have the president talking tough on immigration as though it matters....what baloney!

reply to post by Silver Shadow

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This thread has nothing to do with drugs or oil! But since you mentioned what U.S. oil monopoly? I would like one, will you let us drill?

Sounds like us fat americans would last longer than the skinny one with no food ,food for thought

reply to post by Silver Shadow

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Because it would collapse us as mentioned above and they would want to stop that. Can you answer the original question?

reply to post by anotherdad

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If the dollar collapses it would be very bad! Not only for our impeccable reputation but more importantly people would have a very difficult time surving on bare essentials.

If you have to spend half your paycheck on food and gas then how will you pay your mortgage, send your kids to college, pay your credit card dues, go on a small vacation, eat out, watch a movie, pay your internet bills, give christmas presents, pay gigantic insurance premiums, god forbid bury your dead parents/relatives, buy a boat, go fishing/hunting, etc.....etc....absolutely terrible!

To get a taste of what that means go live in a 3rd world country for a year or so!