For anyone holding Dollars–let the pain begin

[*Lotus]

I know that they (paper notes) will continue until they fail. I also know that every now and again we get obliterated by meteorites or ice ages. What’s a human being to do? Live, in my humble opinion.

My question is what will the reaction to 6-8% treasuries be? What chance does the Euro have at becoming the worlds reserve currency? Will we be buying our gallo pinto with gold ingots?

http://en.wikipedia.org/wiki/Banknote

When interest rates begin to rise (and they will), gold will get taken out, stocks will fall, the US dollar will strengthen. That’s about all I will commit to at the moment, predicting the end of the world? I’ll leave that to Sprite and the Mayans:)

.

[sprite]

Sprite doesn’t predict world’s end..just the end of paper currency which is not backed by precious metal…including the Euro. Perhaps the Yuan or a new One World Currency or even a basket of currencies will replace the dollar in the meantime. But the dollar is no longer to be the world’s currency. There is no debate as to what that means for anyone holding dollars.
It is highly unlikely, almost unimaginable now that the dollar can be saved from a crash and hyperinflation.

[sueandchris]

[quote=”*Lotus”]I know that they (paper notes) will continue until they fail. I also know that every now and again we get obliterated by meteorites or ice ages. What’s a human being to do? Live, in my humble opinion.

My question is what will the reaction to 6-8% treasuries be? What chance does the Euro have at becoming the worlds reserve currency? Will we be buying our gallo pinto with gold ingots?

http://en.wikipedia.org/wiki/Banknote

When interest rates begin to rise (and they will), gold will get taken out, stocks will fall, the US dollar will strengthen. That’s about all I will commit to at the moment, predicting the end of the world? I’ll leave that to Sprite and the Mayans:)

Well spoken, Lotus.

.[/quote]

[sprite]

[quote=”sueandchris”][quote=”*Lotus”]I know that they (paper notes) will continue until they fail. I also know that every now and again we get obliterated by meteorites or ice ages. What’s a human being to do? Live, in my humble opinion.

My question is what will the reaction to 6-8% treasuries be? What chance does the Euro have at becoming the worlds reserve currency? Will we be buying our gallo pinto with gold ingots?

http://en.wikipedia.org/wiki/Banknote

When interest rates begin to rise (and they will), gold will get taken out, stocks will fall, the US dollar will strengthen. That’s about all I will commit to at the moment, predicting the end of the world? I’ll leave that to Sprite and the Mayans:)

Well spoken, Lotus.

Lotus, what would make interest rates rise? Treasury Bonds are being shorted and dumped. Japan will need to dump its dollars to finance rebuilding the post tsunami economy. China has been buying massive amounts of gold and the Saudis have already decided to drop the dollar as an oil currency and has been in talks with China, Russia and even Pakistan for new treaties. And trillions of new dollars have been pulled of thin air by the FED to keep the ponzi scheme going a bit longer. You must be able to see where this is going.

.[/quote][/quote]

[Bill55]

Relax. Once the USA goes broke they just start over. Besides the Donald says he’ll fix these little issues if you guys vote for him.

[sprite]

[quote=”Bill55″]Relax. Once the USA goes broke they just start over. Besides the Donald says he’ll fix these little issues if you guys vote for him.[/quote]

I hope you’re right. But think of the complications of starting over. There are two ways of starting over. One way is to scrap the current monetary system completely. That is not going happen.

The other way of starting over literally means debt cancellation across the board. This is called bankruptcy. Nobody owes a penny..all mortgages are cancelled, all credit card debt, car loans…everything is cancelled…including your bank account until the new replacement currency or the new valuation of the dollar is implemented. There would be measurable unfairness across the board…those who saved and never borrowed would be impoverished. Those who hold commodities (homes, cars, etc) via loans would be enriched.

But this was done before about 80 years ago. Since then we have technically been in bankruptcy as a nation. This is why our legal tender currency is made up of debit notes (dollars) and not real money such as gold or silver backed money. In bankruptcy, all debts are settled with notes and not with real money. Can you declare bankruptcy while you are still in bankruptcy?

[clayton]

Worth a watch.

[Andrew]

“…the relentless loss of dollar purchasing power, shown below on a log scale. ”

Taken from:

Presenting The Fed’s Slogan: “Making It Harder To Feed Your Family For 98 Years And Counting” which you can see at:

[ http://www.zerohedge.com/article/presenting-feds-logo-making-it-harder-feed-your-family-98-years-and-counting ]

[sprite]

Any ideas as to what other options the Fed has to extend the trajectory to a worthless currency beyond this decade? Maybe I am looking at too many negative articles but the consensus seems to be that very soon, perhaps within a few years, the dollar will be no more.

[Author]

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