Is the Collapse of the Dollar Inevitable? [W:98]

[Onion Eater]

The socialists and the Austrians are at opposite ends of the spectrum of views on inevitability. Socialists believe that the government can turn on a dime, veering away from economic collapse towards a socialistic paradise simply by giving the right person the authority to print money. And how would the Benevolent One accomplish this feat? According to the Debt Virus Theory, it is as simple as printing money and spending it directly into the economy, rather than buying Treasury Bills.

On the other hand, the Austrians believe that a “distortion-reversion process” is inevitable. Credit expansion is unsustainable and this, apparently, is true no matter how benevolent the chairman of central bank may be and no matter what he spends newly created money on, whether on social programs or in the discount of good bills, at not more than sixty days’ date.

Is hyperinflation the inevitable result of inflation? This is the question I address.

Is the Collapse of the Dollar Inevitable?

 

[Risky Thicket]

Re: Is the Collapse of the Dollar Inevitable?

The socialists and the Austrians are at opposite ends of the spectrum of views on inevitability. Socialists believe that the government can turn on a dime, veering away from economic collapse towards a socialistic paradise simply by giving the right person the authority to print money. And how would the Benevolent One accomplish this feat? According to the Debt Virus Theory, it is as simple as printing money and spending it directly into the economy, rather than buying Treasury Bills.

On the other hand, the Austrians believe that a “distortion-reversion process” is inevitable. Credit expansion is unsustainable and this, apparently, is true no matter how benevolent the chairman of central bank may be and no matter what he spends newly created money on, whether on social programs or in the discount of good bills, at not more than sixty days’ date.

Is hyperinflation the inevitable result of inflation? This is the question I address.

Is the Collapse of the Dollar Inevitable?

Not being a socialist I can't say for certain, but do have that many socialists in the U.S. that this is a big concern?

 

[Matt Foley]

Re: Is the Collapse of the Dollar Inevitable?

The collapse of the dollar is inevitable, only because of Free Trade.

 

[Lakryte]

Re: Is the Collapse of the Dollar Inevitable?

The collapse of the dollar is inevitable, only because of Free Trade.

All currency exists to serve as a medium for trade. To suggest free trade causes the collapse of a currency is counterintuitive.

 

[Cardinal Fang]

Re: Is the Collapse of the Dollar Inevitable?

All currency exists to serve as a medium for trade.

Exactly. All national currency and all national debt are backed by, and are simply markers for, the supply of real goods and services produced by the economy that issued them. The US dollar and US Treasury securities will collapse into worthlessness when US GDP collapses to zero. Right now, we produce about 22% of all the real goods and services that are produced anywhere in the world, so we have quite a ways to go before we reach zero.

This by the way is what actually happened in Zimbabwe. Printing a lot of money had all but nothing to do with it. Through wars, genocides, rioting, looting, incompetence, and persistent emigration resulting from all of those, their GDP fell to next to nothing. Who would want to hold coupons (currency) good only in a store that would have nothing on the shelves when you got there, even assuming that you could avoid being killed on the way there?

 

[ARealConservative]

Re: Is the Collapse of the Dollar Inevitable?

For all practical purposes, the dollar as a currency crashed in 1971. it was destroyed completely. We thumbed or noses at those that recongized the bankrupty of our currency and dared them to try to do something about it.

when it happens again, I don't expect the international community to go along in the same manner.

 

[Cardinal Fang]

Re: Is the Collapse of the Dollar Inevitable?

Not being a socialist I can't say for certain, but do have that many socialists in the U.S. that this is a big concern?

LOL! Socialists may often be goofy, but they are not typically as goofy as Austrians.

 

[Cardinal Fang]

Re: Is the Collapse of the Dollar Inevitable?

For all practical purposes, the dollar as a currency crashed in 1971. it was destroyed completely. We thumbed or noses at those that recongized the bankrupty of our currency and dared them to try to do something about it. when it happens again, I don't expect the international community to go along in the same manner.

The Nixon Shock again??? Come on, you should LOVE driving your shiny new FIAT! Everybody else does.

 

[ARealConservative]

Re: Is the Collapse of the Dollar Inevitable?

The Nixon Shock again??? Come on, you should LOVE driving your shiny new FIAT! Everybody else does.

I'm sure it's a bitter pill to swallow that some of us actually remember our recent history.

 

[Cardinal Fang]

Re: Is the Collapse of the Dollar Inevitable?

I'm sure it's a bitter pill to swallow that some of us actually remember our recent history.

Old dogs still stuck on old tricks. It's not so much bitter as pathetic, actually.

 

[ARealConservative]

Re: Is the Collapse of the Dollar Inevitable?

Old dogs still stuck on old tricks. It's not so much bitter as pathetic, actually.

the pathetic thing is ignoring recent history and pretending the dollar could never lose support in the international community.

 

[Helix]

Re: Is the Collapse of the Dollar Inevitable?

the collapse of everything is inevitable, given enough time.

 

[Cardinal Fang]

Re: Is the Collapse of the Dollar Inevitable?

the pathetic thing is ignoring recent history and pretending the dollar could never lose support in the international community.

It's not a popularity contest, you know. The dollar derives its value from the massive pile of real goods and services that the economy issuing it provides. That's about 22% of everything that is produced anywhere in the world. The currency of any country with that sort of economic power behind it will be a key global currency. If the dollar is to go away, all those goods and services will have to go away first.

 

[ARealConservative]

Re: Is the Collapse of the Dollar Inevitable?

It's not a popularity contest, you know. The dollar derives its value from the massive pile of real goods and services that the economy issuing it provides. That's about 22% of everything that is produced anywhere in the world. The currency of any country with that sort of economic power behind it will be a key global currency. If the dollar is to go away, all those goods and services will have to go away first.

It can and does happen

 

[imagep]

Re: Is the Collapse of the Dollar Inevitable?

For all practical purposes, the dollar as a currency crashed in 1971. it was destroyed completely. We thumbed or noses at those that recongized the bankrupty of our currency and dared them to try to do something about it.

when it happens again, I don't expect the international community to go along in the same manner.

If you have any worthless dollars that you are wondering how you will get rid of them, I will gladly take them off your hands. Just send them in a box via UPS.

 

[Cardinal Fang]

Re: Is the Collapse of the Dollar Inevitable?

the collapse of everything is inevitable, given enough time.

Just as everywhere is within walking distance if you have enough time.
[Stephen Wright]

 

[imagep]

Re: Is the Collapse of the Dollar Inevitable?

the pathetic thing is ignoring recent history and pretending the dollar could never lose support in the international community.

Oh, it could loose international support, and it could loose value within the US. But it's not likely anytime soon.

 

[imagep]

Re: Is the Collapse of the Dollar Inevitable?

the collapse of everything is inevitable, given enough time.

Sure. Even the Earth will be eventually swallowed up by the Sun, I know because I saw that on the Dicovery Channel, but that may be hundreds of millions of years, or maybe it was billions of years off.

 

[ARealConservative]

Re: Is the Collapse of the Dollar Inevitable?

Oh, it could loose international support, and it could loose value within the US. But it's not likely anytime soon.

because our political system is so stable right now?

like a credit default isn't out of the question

 

[Cardinal Fang]

Re: Is the Collapse of the Dollar Inevitable?

It can and does happen.

Was the Weimar Republic producing 22% of world GDP at the time? No? What about Zimbabwe or Argentina, or any of the other totally worthless and not at all comparable cases that people of a certain persuasion like to bring up? No for any of them either? Wow...

 

[imagep]

Re: Is the Collapse of the Dollar Inevitable?

It can and does happen

Well if we ever get invaded by France and Belgium because we didn't pay our war reparations, and our manufacturing stops because of the invasion, and our government keeps paying our workers after they have stopped producing, then I will get concerned about it.

 

[imagep]

Re: Is the Collapse of the Dollar Inevitable?

because our political system is so stable right now?

like a credit default isn't out of the question

Can you name a more stable political system? What about in Europe? Maybe it is in the middle east? Africa? Come on now, surely you can name one. Oh ya, I know, it must be the antartic.

 

[Cardinal Fang]

Re: Is the Collapse of the Dollar Inevitable?

because our political system is so stable right now?

As one post after another at DP might suggest, there are a number oif unstable people on the loose, but the political system is actually just fine.

like a credit default isn't out of the question

What's your best case scenario for that actually happening?

 

[Cardinal Fang]

Re: Is the Collapse of the Dollar Inevitable?

Well if we ever get invaded by France and Belgium because we didn't pay our war reparations, and our manufacturing stops because of the invasion, and our government keeps paying our workers after they have stopped producing, then I will get concerned about it.

Psst! It's Canada and Mexico that will invade. They will pour in over that dreadful NAFTA Superhighway. They will take over, seize all our dollars, and make us use Ameros instead.

 

[imagep]

Re: Is the Collapse of the Dollar Inevitable?

Psst! It's Canada and Mexico that will invade. They will pour in over that dreadful NAFTA Superhighway. They will take over, seize all our dollars, and make us use Ameros instead.