Originally posted by smkngnz
If I print off money that doesn't exist, it is called fraud and I go to jail. If the government prints off money that doesn't exist, it is called
quantitative easing and it is legal. What a load of bs... when the world finally says we won't accept the US monopoly money, the US citizens will
experience a depression much worse the the Great Depression, and now one will import goods into a country that has no real currency. For me, that is a
scary thought and I fear for the American people if such an event would pass.
If that's true, then basically all international trade will cease. There are very few nations on Earth who are not using fiat currency. Those who are
using hard commodity for transactions are such small economies as to not matter in the grand scheme of things.
Further, if the US Dollar collapses, all other currencies of the world will follow suit. It's far more likely that the USD would be one of the last
2-3 currencies standing anyhow, but nevertheless. Also, should all currencies collapse, while there would be chaos for a time, all currencies really
are is a measure of value. New currency would simply be issued. People would get paid for their work, for selling things, etc and would pay for
others' labor, and for buying things. Sure, one day we may call them dollars, and another "Republic Credits", and in the distant future, even
"beepbeepbeep's." it makes no difference.
Our debt to GDP ratio was far higher during WW2 than it is today. Yes, we have fiat currency, but so does all of Europe, every major nation of Asia,
Africa, South America, Russia, etc. Why people panic about this, I don't know. And yes, it's true that, as they say, every fiat currency has failed,
as long as you ignore the vast majority of fiat currencies (which have not failed.)
Mark my words, just as assuredly as gold never hit the $5,000 mark threatened since Bush"s stimulus rolled into Obama's stimulus, it will be back
under $1,200/oz before 2016. People have been making bad investments based on their irrational fears for four years now, and all the while, the people
who understand the realities are making fistfuls of dollars.