If the US dollar collapses what ?

[Arabian]

do you feel they will use as a marker other than gold.. Do you think oil, commodities or some other entity . This could get interesting if an unstable country such as Russia wanted to use there supposely 18 billion in Iron ore reserves to oversee the Euro.lololllol

ps.. If you remember Ford motor company lost 11 billion in cash in 1998 speculating with Russia on iron ore....

 

[Arabian]

ArmyVet has me rolling tonight

 

[mrplunkey]

If the US dollar completely collapsed, it would have a domino effect throughout the world since anything owned in USD's would be worthless. Virtually no economy could handle that.

 

[redsamurai]

alot of people want to go back to gold. Our economy would definitely have to down turn for awhile to readjust. Market prices would have to adjust wildly to compensate.

 

[hog#head#cheese]

Than i guess i wont be broke alone

 

[Razorguns]

going back to gold prevents countries from donig tomfoolery with currency like the us does.

so no.

and forcing arab countries and others to use strictly us dollars to trade commodities prevents it's collapse. even if we have to let a few terrorist attacks slide by once in awhile. its worth it.

r

 

[mrplunkey]

I'll have to remember my econ (Army Vet is probably our guy here), but I think if you tie your currency to any commodity (or to another currency, for that matter) you lose control of your money supply. I vaguely remember something from grad school about being able to either control your interest rate or your exchange rate -- but never both at the same time.

 

[Arabian]

I'll have to remember my econ (Army Vet is probably our guy here), but I think if you tie your currency to anycommodity (or to another currency, for that matter) you lose control of your money supply. I vaguely remember something from grad school about being able to either control your interest rate or your exchange rate -- but never both at the same time.

I think you are right ... I was just trying to see what you thought they would use to back trillions of dollars being printed.. Army Vet will know the answer to this probably..

 

[needtogetarmy]

If the US dollar completely collapsed, it would have a domino effect throughout the world since anything owned in USD's would be worthless. Virtually no economy could handle that.

We would have a global depression if it were to happen today.

I think the collapse will start slowly (IMO it has already started), but once people recognize the dollar is going to be worthless they will dump it en masse, then move to the EURO and other currencies.

China could conquer the USA today without firing a shot. All they would need to do is to dump all of their US debt on the market all at once.

 

[mrplunkey]

We would have a global depression if it were to happen today.

I think the collapse will start slowly (IMO it has already started), but once people recognize the dollar is going to be worthless they will dump it en masse, then move to the EURO and other currencies.

China could conquer the USA today without firing a shot. All they would need to do is to dump all of their US debt on the market all at once.

This is very true.

 

[Razorguns]

China, SA, Russia, India and Venezuela could destroy us overnight without firing a single shot.

Which is why we do everything they tell us to. To other countries we act like bullies, cuz you know - we are an insecure nation that still needs to act tough.

Though our years of 'acting tough' are slowly dwindling down. This is not 1960 anymore.

r

 

[AAP]

Seriously now... if we went back to gold... could you imagine what would happen?

Wasps and soccer moms loading up the minivan 8 deep and cruising KFC to jump out and kidnap customers when they were leaving. Take them to an isolated location and... pull... their.... teef.

 

[needtogetarmy]

Seriously now... if we went back to gold... could you imagine what would happen?

Wasps and soccer moms loading up the minivan 8 deep and cruising KFC to jump out and kidnap customers when they were leaving. Take them to an isolated location and... pull... their.... teef.

I would pay money to see that.

Imagine what the real thugs would do.

 

[walliwalibus]

The USD has been slowly but surely going down, with a bounce up every two weeks or month even. Anyone ever watch the Forex? It really tells a story also.

 

[stosstruppe]

Fresh water eventually.

 

[Razorguns]

Weak dollar helps banks.

Guess who the USG is bailing out. Bank debt becomes very attractive to foreigners when the dollar is low.

2 and 2 kids. Banks have your money. Banks own you.

r

 

[AAP]

I would pay money to see that.

Imagine what the real thugs would do.

Real thugs ain't got shit on old fat white men when it comes to getting money.

Look at Iraq. Dude, thugs just want to own da block. Whiteys want to own da whole fucking world.

 

[jerseyrugger76]

Weak dollar helps banks.

Guess who the USG is bailing out. Bank debt becomes very attractive to foreigners when the dollar is low.

2 and 2 kids. Banks have your money. Banks own you.

r

You've forgetting something fundamental about what banks do: they lend money. If the bank lent you $1,000,000 in 2000 and the loan is expected to be paid back in 2010, the dollars the bank is receiving in interest payments are worth less than they were when the bank initially underwrote the loan. All else equal, lenders want their currency to STRENGTHEN, while the debtors want the currency in which they borrowed to depreciate. This is Finance 101.

Also, when you say "bank debt becomes more attractive" what data are you basing this on? My clients are the largest private equity and hedge funds in the world and they underwrite "bank debt" (i.e. 1st Lien, 2nd Lien, TL A, TL B) in addition to sub-debt and mezzanine. Deal flow into the market for bank debt SUCKS right now. The 2nd lien market COMPLETELY evaporated and what deals are getting done are going to the guys in mezzanine and high yield (this ain't "bank debt"). There's been no influx of capital into this market, foreign or otherwise, beyond people like my clients cleaning up the balance sheets of Citigroup, Merrill, Lehman, etc. and a lot of that was cash sitting on the sidelines, not fresh money.