Will the US really crash if the Dollar collapse?

if gold goes skyrocket, the US gold reserves value will skyrocket too. Being the United State the biggest gold owner in the world (I'm not talking about if the US owe it all or not), having 8x more gold than China, with the crash of the dollar and the re-establishment of the gold based system, I think the US will benefit too.

I bet the US has more gold than audited and that Fort Knox is just a dummy.

I think the world economy will crash based on the US "out of thin air dollar", but when the time comes, we will see how much Gold the US bought since the 70's with paper that worthed nothing, adding that, to the US companies owing a big part of the world natural resources, the US will become again the world biggest economy of the planet.

the FED and the US have shown time and time again, that they are not as stupid as we think they are.

reply to post by metalpr

The health of a nation's economy is not determined by how much gold the state has in its treasury. That is mercantilism, a theory which Adam Smith exploded in the 18th century.

reply to post by NewlyAwakened

The health of a nation's economy is not determined by how much gold the state has in its treasury. That is mercantilism, a theory which Adam Smith exploded in the 18th century.

Got it in one.

This is the reason the USA is bankrupt:

The largest American employer is, by far, the United States federal government with over four million employees worldwide.
#2 Wal-Mart - - Retail - - 1,800,000
#3 Kelly Services - Staffing/Temporary Help - 750,000
#4 McDonald's - - Fast Food - 465,000
jobs.lovetoknow.com...

I am amazed that the US government, in the midst of the worst financial crises ever, is content for short-selling to drive down the asset prices that the government is trying to support....The bald fact is that the combination of ignorance, negligence, and ideology that permitted the crisis to happen still prevails and is blocking any remedy. Either the people in power in Washington and the financial community are total dimwits or they are manipulating an opportunity to redistribute wealth from taxpayers, equity owners and pension funds to the financial sector. Paul Craig Roberts was Assistant Secretary of the Treasury www.countercurrents.org...

Stewart Dougherty, a specialist in inferential analysis, agrees. It is now "statistically impossible for the United States to pay its obligations". www.silverbearcafe.com...

Whether you blame the leveraged buyout feeding frenzies of the 80's or the World Trade Organization “Free Trade” agreement of the 90's the result is the same America has been quietly sold off piece by piece. This is a sampling of the industries with over 50% foreign ownership, according to Source Watch

www.sourcewatch.org...

* Sound recording industries - 97%
* Commodity contracts dealing and brokerage - 79%
* Motion picture and sound recording industries - 75%
* Metal ore mining - 65%
* Wineries and distilleries - 64%
* Database, directory, Book and other publishers - 63%
* Cement, concrete, lime, and gypsum product - 62%
* Engine, turbine and power transmission equipment - 57%
* Rubber product - 53%
* Nonmetallic mineral product manufacturing - 53%
* Plastics and rubber products manufacturing - 52%
* Other insurance related activities - 51%
* Boiler, tank, and shipping container - 50%
* Glass and glass product - 48%
* Coal mining – 48%

A real eye opener isn't it. But it gets worse. The Department of Homeland Security says 80% of our ports are operated by Foreigners and they are buying and running US bridges and toll roads. www.alabamaeagle.org...

Statistics (courtesy of Bridgewater) showed in 1990,before WTO was ratified, Foreign ownership of U.S. assets amounted to 33% of U.S. GDP. By 2002 this had increased to over 70% of U.S. GDP. www.fame.org...

But the real reason is the same as last time

LEVERAGED BUYOUTS: AMERICAN PAYS THE PRICE

...These days, corporations seem to exist for the investment bankers.... In fact, investment banks are replacing the publicly held industrial corporations as the largest and most powerful economic institutions in America.... THERE ARE SIGNS THAT A VICIOUS spiral has begun, as each corporate player seeks to improve its standard of living at the expense of another's. Corporate raiders transfer to themselves, and other shareholders, part of the income of employees by forcing the latter to agree to lower wages. January 29, 1989

When the dollar crashes, it would mean good news to americans. American exports would be cheaper and demand for such goods would rise in tandem with employment and pay rises, and a general circulation of wealth will ensue, profiting anyone who works, regardless of collar types, manufacturing or services.

While no one with the right frame of mind will presume american goods can be cheaper than China's, the fact remains that quality is still a priority to consumers. The Chinese masses themselves know they cannot live on $100 wages a month, do their best, and neither can any human, so too will Americans be.

Chinese products are never worth the resources used, but american quality had been known for quality for decades, and while their quality of products, the vital attention to details and questioning without fear and favour is paramount, may be slightly higher than china's, it will be well worth the price than to suffer inferior and assured fail products from China.

Furthermore, a crash will help the current and new generations to value their money more carefully, than to spend it away as our generation had stupidly misled to do so.

All in all, a crash is welcomed, and may those who had grown rich off the backs of american workers as well as those seeking the lowest denominator in labour costs to profit immensely (globalised corporations) know finally which side of the bread is buttered - american consumers whom seek, work and lead in ensuring a better life.

reply to post by SeekerofTruth101
In reality it would be a good thing,but most people no longer remember how to take care of themselves.

People have become too accustomed to seeing stores full of anything they need,and don't remember where the food comes from,let alone how to grow it.

Not everyone,but most people.

Originally posted by chiponbothshoulders
reply to post by SeekerofTruth101

 

In reality it would be a good thing,but most people no longer remember how to take care of themselves.

People have become too accustomed to seeing stores full of anything they need,and don't remember where the food comes from,let alone how to grow it.

Yah.... This just oozes of Brave New World... we all know where food comes from - the super market! How can anyone eat something that doesn't come wrapped in plastic?! Food from the dirt?! DISGUSTING!

Even if gold has substantially more value, the US would still risk collapse because so few people actually own physical gold. What's the government going to do, melt and coin all their gold reserves to protect the wealth of the average citizen ? People who can't afford anything can't purchase anything can't resurrect the economy.

So either we will have the ultimate nanny state, or people will get pissed off and the stuff will hit the fan. I'm starting to think there's a third scenario where half the population of the US accidentally starves to death during a two-week long Dancing With the Stars marathon.

Collapse might be a bit of an understatement, more like violently implode. Without a functional currency most stores will no longer be selling goods, and many employers that don't produce a useful or viable good (most of the Tech field for example) will have no way of compensating employees for doing their job thus nothing gets done. Needless to say the window to save the country should the currency fail will be so terrifyingly small that I doubt the government could move fast enough to prevent a full scale explosion of violence and death with people suddenly without work, food, power or anything else they have come to rely on in their day to day lives.

reply to post by metalpr


Currencies come, and currencies go.. the US has had several currencies in the past 200+years.. another one dieing would not be significant to the point the country would cease to exist. Or even any hiccup except a typical recession perhaps.

Originally posted by NewlyAwakened
reply to post by metalpr

 

The health of a nation's economy is not determined by how much gold the state has in its treasury. That is mercantilism, a theory which Adam Smith exploded in the 18th century.

If The health of a nation's economy is not determined by how much gold the state has in its treasury then why to save it?

Gold and natural resources (from precious metals to water and food) are the only thing that matters when an entire economy collapses, take Argentina for example.

When the dollar collapse, a new currency will emerge and if this new currency is backed by gold, the new currency will become as powerful as the dollar was...and every nation will want to trade in the new dollar, making the US currency.

Originally posted by NewlyAwakened
reply to post by metalpr

 

The health of a nation's economy is not determined by how much gold the state has in its treasury. That is mercantilism, a theory which Adam Smith exploded in the 18th century.

If The health of a nation's economy is not determined by how much gold the state has in its treasury then why to save it?

Gold and natural resources (from precious metals to water and food) are the only thing that matters when an entire economy collapses, take Argentina for example.

When the dollar collapse, a new currency will emerge and if this new currency is backed by gold, the new currency will become as powerful as the dollar was...and every nation will want to trade in the new dollar, making the US currency the most powerful again.