Currency crisis, part II

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G-Max

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When are we going to discover the cunning plan that lays behind these 3 innocent looking questions?

Since the last thread got locked before I had a chance to answer this question, I'm creating a new one.

When other countries stop accepting dollars for their exports, those dollars get thrown back into circulation. This devalues the currency. When the dollar devalues quickly enough, other countries get nervous and also stop accepting dollars. This process accelerates, creating hyperinflation - and when the government tries all sorts of stupid tricks to curb inflation, and those tricks backfire, you get a currency crisis. Because countries are starting to dump the dollar, professional economists are predicting that the US will suffer a currency crisis within the year. This could be easily prevented if we just stopped printing paper money, or at least printed less of it, thus preserving the value of the dollar and encouraging other countries to keep accepting it.

Bottom line: America as we know it will probably cease to exist within the year all because Ron Paul was not elected President in 2008 and won't be elected in 2012. Congratulations.

Moderator Action: Starting a duplicate of a locked thread/PDMA.
Please read the forum rules: http://forums.civfanatics.com/showthread.php?t=422889
 
Counries have survived without having the reserve currency and with much higher inflation than the US experiences now.
Currency is one of your least problems and hyperinflation is about as likely as a Chinese land invasion of America.
 
Bottom line: America as we know it will probably cease to exist within the year all because Ron Paul was not elected President in 2008 and won't be elected in 2012. Congratulations.

Hyperbole much? The irony with this statement is that if Ron Paul was elected and his policies enacted, then what you described would have happened.
 
Considering the extreme amount of fiat currency that is being created all the time it is amazing that we don't already have mass inflation. The only thing stopping it is the deflation in the financial markets. Basically we have a collapsed financial market that is held on its feet by constantly creating tonnes of paper money. Creating paper money to pay interest on national debt never works long term.
 
Bottom line: America as we know it will probably cease to exist within the year all because Ron Paul was not elected President in 2008 and won't be elected in 2012. Congratulations.
Yes. That was the plan all along.

Also, weren't you asked to promote Paul's greatness in his dedicated thread?
 
Currency is one of your least problems and hyperinflation is about as likely as a Chinese land invasion of America.

Professional economists disagree. Who should I trust?

The irony with this statement is that if Ron Paul was elected and his policies enacted, then what you described would have happened.

We'd have become a third-world craphole? I don't think so.

Also, weren't you asked to promote Paul's greatness in his dedicated thread?

This isn't a Paul thread. This is a currency crisis thread.

Indian and China start buying oil with gold

This is huge. Not only are they leaving the dollar as the oil trade currency but also fiat money. If 500 000 barrels are sold a day for 0,05 ounces each (gold at over 2000 dollars) that is 25 000 ounces of physical gold per day. The modern day banking system can not handle that.

Hmmm... if Iran begins stockpiling gold, will that increase the value of my own gold?
 
GoodSamaritan, Ziggy, and Al haven't mentioned him at all.
 
List of assumed conditions made in the OP which are in need of serious backing up. Also, OP uses "when" instead of "if" to create a chain of events based on those assumptions.

1. When other countries stop accepting dollars for their exports, those dollars get thrown back into circulation.
2. When the dollar devalues quickly enough, other countries get nervous and also stop accepting dollars.
3. This process accelerates, creating hyperinflation - and when the government tries all sorts of stupid tricks to curb inflation, and those tricks backfire, you get a currency crisis.
4. Because countries are starting to dump the dollar, professional economists are predicting that the US will suffer a currency crisis within the year.

1. You will need to show that "other countries" are likely to stop accepting dollars for their exports.
2. You will need to quantify "quickly enough". Also the same reservations as 1. apply.
3. Very vague. Also lots of if-when conditions which are derived out of thin air.
4. I would very much like to see some sourced quotes from those professional economists claiming that this is not just a theoretical possibility but that it's a realistic probability. Starting with the assumption that countries are likely to dump the dollar.

Make it so.
 
Could you explain why?

Because the silver and gold market are heavily manipulated and levraged. Most of the investment gold that is sold is not actual gold but a piece of paper saying this is a piece of gold. The problem is that there is a lot more paper than actual gold. There is just a few percent as much gold as there is "gold". Would roughly 2% of all people who have gold in the bank want there gold and use it to buy oil than the banks would run out of gold. This would create chaos since then the banks would have to buy gold to give to the next guy who wants gold. This would create massive upwards pressure and they banks would have huge debts of gold that they can't pay.


Link to video.
 
GoodSamaritan, Ziggy, and Al haven't mentioned him at all.
You started this thread to continue one that was closed and implicitly set out to "prove" Paul's right with his monetary gibberwocky.
 
List of assumed conditions made in the OP which are in need of serious backing up. Also, OP uses "when" instead of "if" to create a chain of events based on those assumptions.

1. When other countries stop accepting dollars for their exports, those dollars get thrown back into circulation.
2. When the dollar devalues quickly enough, other countries get nervous and also stop accepting dollars.
3. This process accelerates, creating hyperinflation - and when the government tries all sorts of stupid tricks to curb inflation, and those tricks backfire, you get a currency crisis.
4. Because countries are starting to dump the dollar, professional economists are predicting that the US will suffer a currency crisis within the year.

1. You will need to show that "other countries" are likely to stop accepting dollars for their exports.
2. You will need to quantify "quickly enough". Also the same reservations as 1. apply.
3. Very vague. Also lots of if-when conditions which are derived out of thin air.
4. I would very much like to see some sourced quotes from those professional economists claiming that this is not just a theoretical possibility but that it's a realistic probability. Starting with the assumption that countries are likely to dump the dollar.

Make it so.

http://seekingalpha.com/article/227136-6-reasons-why-a-dollar-crisis-is-imminent

http://www.financialsense.com/contr...cial-crisis-in-2012-is-inevitable-here-is-why

Oh hey, even Peter Schiff is getting in on the action: http://www.ronpaulrally.org/2011/07/peter-schiff-were-in-depression-dollar-crisis-coming/
 
Counries have survived without having the reserve currency and with much higher inflation than the US experiences now.
Currency is one of your least problems and hyperinflation is about as likely as a Chinese land invasion of America.
The likelihood of hyperinflation is actually far higher than that of a Chinese invasion. And currency certainly is a major problem for the US. US global dominance is built on the USD as the only currency that is ultimately accepted everywhere, up to the point where transactions between countries that aren't even in the Dollar zone make transactions between themselves in USD*, and the US military. If one of those pillars falls, implications for US power are going to be huge. Their advantage is that there isn't a viable competitor for the USD around, at least for the moment.


* Some profound changes seem to be going on in Asia that may have huge consequences.
 
Well, the alternative was either a LMGTFY link or an unsourced quote. Which would you prefer?
 
Well, the alternative was either a LMGTFY link or an unsourced quote. Which would you prefer?
Lets start with these.
1. You will need to show that "other countries" are likely to stop accepting dollars for their exports.
2. You will need to quantify "quickly enough". Also the same reservations as 1. apply.

They are very specific questions. Seeing as how you wrote the OP, and I assume you comprehend the mechanics behind it, I prefer you explain these to me.
 
1. China and Russia already have.
2. When the dollar loses value more rapidly than competing currencies like the Euro

I'm not going to hand-hold you through the rest. Just click on the links and do some reading.
 
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