Could economic collapse cause a monitary collapse?

[glocknut]

Say hypotheticly there is a meltdown of the economy for real... not like this supposed meltdown last fall but one where there is 50% unemployment, people are rioting, most corporations go belly up and who knows what all else... I know that money is affected by inflation and that inflation can run crazy and devalue the dollar...that i understand. But what if the government goes into some kind of default and starts missing payments to those who it owes money to and i don't mean entitlements...i mean like China or others who have loaned the US government money. Could the US dollar actually be cancelled as a form of currency? I don't mean just devalued....but become outright worthless with zero value whatsoever due to government turmoil?

Thoughts anyone?

[Pistolenschutze]

Theoretically, it is indeed possible for any currency to fall to zero value, Mike. It has happened before. Remember, money is not valuable in and of itself. It is merely a symbol of value that everyone has agreed to accept for the actual value it represents. If faith in that currency disappears, i.e., no one is willing to accept it in lieu of actual goods and services, then it becomes just so much wastepaper. That's pretty much what happened to the German Deutschmark after World War I.

[Maximilian II]

I seem to remember some little country where people were weaving bags out of the local paper currency because it was cheaper than actually purchasing a similar bag...

[Bobitis]

All Hail Mad Max.

I think I'd discover religion.
Amish.

Actually, I'd just pack up and head to the mountains and leave the madness behind.

[358 winchester]

Could economic collapse cause a monitary collapse?

YOU DANG SKIPPY IT COULD!!

Hungry people will do things that they would other wise never even think about.

When / If

there is 50% unemployment, people are rioting, most corporations go belly up and who knows what all else

It will snowball into several fronts many in the same MEGA CITIES

But what if the government goes into some kind of default and starts missing payments to those who it owes money to and I don't mean entitlements...i mean like China or others who have loaned the US government money.

Well I believe that at that time we the people will already be in a civil war and that is what China and others are hoping for so that they can just invade and mop up. Once that is finished they will then divide the United States of America up into smaller parts something along the lines of what Russia did to Europe at the end of WWII.
Now that is just my dimes worth and every one says;
I JUST AIN'T RIGHT

[jacksonco]

Originally Posted by 358 winchester

YOU DANG SKIPPY IT COULD!!

Hungry people will do things that they would other wise never even think about.

When / If

It will snowball into several fronts many in the same MEGA CITIES



Well I believe that at that time we the people will already be in a civil war and that is what China and others are hoping for so that they can just invade and mop up. Once that is finished they will then divide the United States of America up into smaller parts something along the lines of what Russia did to Europe at the end of WWII.
Now that is just my dimes worth and every one says;
I JUST AIN'T RIGHT

The illeagal immagrants are already dividing up the country. Mexicans get the South West, Asians the Pacific North West, Russians will get the North East, and the Vietnamise get the gulf coast. What is left of the country will go to whomever can hold on to it.

[Urban_Black_Redneck]

Then people here can make their own currency and the USA will have a free market.

[Maximilian II]

I'm not mad, I'm just disgruntled!
Okay, and I'm related to Aussies by marriage.

[TranterUK]

Two comments, first I have been there. I was in a South American country some thirty years ago and the currency was collapsing. I remember paying for a hotel room with such a huge wad of notes, I took a photo of it! It's very unpleasant for the people. To be avoided.

Second, and make of this what you will, I had a conversation with a European financial big wig recently who said the west's financial problems will get much worse in about five months. He suggested we have not seen the worse of it yet. Now I have no financial training or experience, and no wish to pretend otherwise, I can only repeat what I was told. He was a senior person with a large European Bank.

[Prizefighter]

I don't know, and I don't see much use in worrying about it, either. It's like the weather. 5 weathermen will give you 5 different reports. The only way to know for sure is to see whether you get wet or sunburnt when you go outside.

That said, the current condition of the U.S. is a far cry from what Germany was like in the days between the world wars. I'm not saying it couldn't happen, just that I'd expect to see a number of other countries go down first, and not any time this year.

I'd go so far as to say that we'd be facing a somewhat different problem, anyway. I'm no expert, but it seems the problem isn't prices being too high. Seems like they've gone down in general lately. It's just that so many people still can't afford to pay.

We aren't facing problems like scarcity or destroyed infrastructure or political turmoil (despite what some of our peers here at TFF might claim ). It seems pretty artificial in nature, with the problem and the solution laying with financial institutions.

[Tony22-250]

Well you know in an extrema case like that i would rather have bullets than money . They would get you farther! I can tell you right now if something like that happens im starting a militia anybody care to join if that happens? HAHAHA

[45nut]

Originally Posted by TranterUK

a European financial big wig recently who said the west's financial problems will get much worse in about five months. He suggested we have not seen the worse of it yet.

Well thanks a lot Tranter for the good news.

Yeah, anyone with good horse sense knows that when the inflation finally hits & unemployment spikes, the inner cities will begin to burn, both literally and figuratively.

**Deleted because it's depressing****

[cycloneman]

Originally Posted by glocknut

Thoughts anyone?

Learn how farm, raise animals. War would certainly be on the horizon.

[Just One Shot]

Originally Posted by glocknut

But what if the government goes into some kind of default and starts missing payments to those who it owes money to and i don't mean entitlements...i mean like China or others who have loaned the US government money. Could the US dollar actually be cancelled as a form of currency? Thoughts anyone?

Most definitely!

This is a real possibility especially with China threatening to dump all the US currency they have in reserve if the US doesn't stop printing so much money. It's been estimated that number is around 1 Trillion dollars. That's just in reserve mind you.

Also Chevez has been trying to convince the OPEC nations to drop the US dollar as the standard of currency for purchasing oil.

If either of these situations occur then our economy will go belly up and we will have to take on some other form of currency (the Euro?) to be able to play in the global marketplace.

America isn't specifically represented in the book of Revelation so it's my opinion that this country will be subjected to some other world power during that time.

I believe we are too strong militarily for another country to over take us but, we are weak and becoming weaker economically. It is my opinion that we will be over come on an economic level.

If we have to use someone else's standard of currency then we as a nation will have to play by their rules.

A "One World Order" is quickly becoming a reality!

[Pistolenschutze]

Originally Posted by TranterUK

Second, and make of this what you will, I had a conversation with a European financial big wig recently who said the west's financial problems will get much worse in about five months. He suggested we have not seen the worse of it yet. Now I have no financial training or experience, and no wish to pretend otherwise, I can only repeat what I was told. He was a senior person with a large European Bank.

I strongly suspect your banker acquaintance is quite correct, Tranter. The United States has just committed to a massive program of deficit spending, and no matter what "spin" Obama tries to put on it, it is simply the spending of huge amounts of money the US does not, and will not, have. He's now trying to commit the US to an additional 1.6 TRILLION dollar socialist health care program, a program his Democratic minions in Congress will doubtless pass. Despite all his slick rhetoric, he has been unable to define how that is actually to be paid for. He hasn't because we can't pay for it. Obama is building a house of cards. If it takes as much as five months for that ramshackle structure to collapse, it will surprise me.

[TranterUK]

Originally Posted by 45nut

Well thanks a lot Tranter for the good news.

As a rule I dont like scuttlebutt, but in this case some may be better prepared for being aware.

Didn't someone write 'hope for the best, prepare for the worst'.

[45nut]

Originally Posted by TranterUK

As a rule I dont like scuttlebutt, but in this case some may be better prepared for being aware.

Didn't someone write 'hope for the best, prepare for the worst'.

Why the hell do you think I'm stockpiling foodstuffs and other necessities?

[TranterUK]

Originally Posted by 45nut

Why the hell do you think I'm stockpiling foodstuffs and other necessities?

I havent gone too far with the stockpiling, but have decided over the past months to only buy items that are useful. So, a new TV is out, where as extra batteries are in.

[kutaho]

Originally Posted by TranterUK

As a rule I dont like scuttlebutt, but in this case some may be better prepared for being aware.

Didn't someone write 'hope for the best, prepare for the worst'.

a wise man also once said
Head for the hills!

[TranterUK]

I just had a good laugh, I wrote I am only buying things that are useful, which explains the Harpoon Head I picked up at the weekend!

[45nut]

Originally Posted by TranterUK

I just had a good laugh, I wrote I am only buying things that are useful, which explains the Harpoon Head I picked up at the weekend!

Yeah, we'll need that when we can't buy anymore crude oil from Mohammad.

[USMC-03]

Originally Posted by TranterUK

I just had a good laugh, I wrote I am only buying things that are useful, which explains the Harpoon Head I picked up at the weekend!

Why wouldn't it be useful for hunting squirrels?

[TranterUK]

Originally Posted by USMC-03

Why wouldn't it be useful for hunting squirrels?

OK it needs some fine tuning, but I am on the right track..

Talk about thread drift.

[fmacsin1]

I believe that China is ready and setting itself up as the "savior" when the US economy fails. We already owe so much money to China, we will never pay it off and the Chinese gov't does not forgive. They have already issued a statement saying that their currency should be the world's currency and not the US's. Because of their patience all they have to do is wait, keep on letting us "borrow" more and more and be there to "split" up the spoils. Either that, or they'll let N. Korea start WWIII and still "split" up what's left.

[USMC-03]

Originally Posted by TranterUK

Talk about thread drift.

"Thread Drifts-R-Us"

To the point of economic/monetary collapse, I really think they go hand in hand. The Chinese and Russians are just waiting in the wings for the status quo to change. Another thing I've noticed is that as the U.S. moves ever closer to socialism, Europe moves away from it. They have to; with a U.S. unable to meet its own needs, much less prop up other countries, they are being forced to have their own houses in order.