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Hyperinflation and US Dollar Collapse coming within the next 10 years

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  • Hyperinflation and US Dollar Collapse coming within the next 10 years

    This is such a massive issue, yet it receives near zero mainstream media coverage or real attention from average Americans (or at the very least, Bush or Obama get all the credit for ruining the country)

    [media]http://www.youtube.com/watch?v=eZA0qNsf4m0[/media]

    Essentially, the dollar is now a worthless currency with nothing of intrinsic value backing it anymore, and is going to reset its value to zero. The Fed is artificially propping it up by keeping interest rates at 0%, and buying up exploding government debt so they can try to keep our imaginary prosperity alive a little longer, which is going to make the day of reckoning even harsher.

    Buy up your silver and gold now while its relatively "cheap".
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  • #2
    Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

    Unfortunately it is all true... :(



    When the power of love overcomes the love of power, the world will know peace. ~ Jimi Hendrix

    And isn't it a bad thing to be deceived about the truth, and a good thing to know what the truth is? For I assume that by knowing the truth you mean knowing things as they really are. ~ Plato

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    • #3
      Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

      The reason its not covered mainstream is the simple fact that no one cares. People arent concered about things that actually matter anymore. They only want the latest scandal, celeb death, or American Idol. Its sad but its true. People these days have become so centered on all the BS that wont effect them in any way that they have forgot to worry about things that have the potential to collapse our entire infrastructure.

      [unit][squadl][command2]

      KnyghtMare ~You could always tell the person holding the gun to your head you would like to play on a different server...

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      • #4
        Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

        All money has a value subject to what people give it, just like the commodities and services it is exchanged for. Gold is only valuable because we give it value. Diamonds are a great example of this: Although there are many, many more diamonds available than are sold, the diamond's 'rarity' is the supposed reason for it's value which is adjusted by other characteristics like clarity. Although we can now make diamonds at will, natural diamonds are still given arbitrary value even though diamonds themselves are no longer rare.

        But yes, the economic 'fixes' to keep that arbitrary value higher than it is perceived by the public is going to run us into another financial crisis in the near future. After the stock market crash prior to the Depression everyone thought the economy was going to recover and then it fell through. I think with our economy being primarily service and investment based the crash will be much worse the next time around because there will be a lot of non-essential jobs that can be lost, which will decrease economic activity even worse.
        |TG-6th|Snooggums

        Just because everyone does something does not mean that it is right to do.

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        • #5
          Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

          Originally posted by snooggums View Post
          All money has a value subject to what people give it, just like the commodities and services it is exchanged for. Gold is only valuable because we give it value. Diamonds are a great example of this: Although there are many, many more diamonds available than are sold, the diamond's 'rarity' is the supposed reason for it's value which is adjusted by other characteristics like clarity. Although we can now make diamonds at will, natural diamonds are still given arbitrary value even though diamonds themselves are no longer rare.

          But yes, the economic 'fixes' to keep that arbitrary value higher than it is perceived by the public is going to run us into another financial crisis in the near future. After the stock market crash prior to the Depression everyone thought the economy was going to recover and then it fell through. I think with our economy being primarily service and investment based the crash will be much worse the next time around because there will be a lot of non-essential jobs that can be lost, which will decrease economic activity even worse.
          This.

          And:

          No matter what happens, the United States, as a nation, not necessarily the gov't itself, is a wealthy, powerful nation. If worse comes to worst, we can always tell the rest of the world that we've declared bankruptcy and are starting over with no debts. What are they going to do? Not trade with us? Invade us in an attempt to seize what is theirs? What?

          Sure, things might get ugly, but I'm confident that there will always be a place in our economy for me to earn a living for my family.
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          • #6
            Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

            R.I.P. Greenback

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            • #7
              Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

              Originally posted by CingularDuality View Post
              Sure, things might get ugly, but I'm confident that there will always be a place in our economy for me to earn a living for my family.
              But how ugly are they going to let things get before they decide to finally do something about it? Thats what worries me. They will deny anything is wrong until hell freezes over and then deny it some more, until they themselves are personally affected. How bad is bad enough to need to fix it?

              [unit][squadl][command2]

              KnyghtMare ~You could always tell the person holding the gun to your head you would like to play on a different server...

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              • #8
                Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

                I'm no economist by any means, but I don't need a degree in economics to assume that an economy based on consumption and debt as opposed to production and savings will fall eventually and fall hard. There are few things that deeply disturb me about our economic situation:

                1)The Global economy -and I'm not saying I have any real solutions- is destroying the middle class in America, and therefore the country itself. Where are people supposed to work and make a decent living when almost all our manufacturing jobs have been moved ourseas.

                2)Astronomical debt both public and private is the most it's ever been. Not only is the Federal goverment's spending out of control and way behond its means, but the general public have mimicked this practice as well. Mostly due to believing the lie that they could have those same luxury indulgences that the corrupt bankers and corporate thieves have by borrowing to get it.

                We can keep propping up a dead corpse and saying it's still alive and vibrant, I'm speaking about the economy, but it's simply not true. The glory days are over, the US is now a debtor nation that has no real chance at ever regaining its economic prowess, it's over. Politicians can go about things as usual -and the public too for that matter- like there isn't a HUGE much bigger crash coming, but it's coming. There is no stimulus package that can create jobs, start new industries, or whatever promises that the politicians in Washington tell you that can fix this mess. Especially when the stimulus or investment packages are derived from creating more debt. How could you possibly invest into something and expect it to succeed when the investment comes from borrowed money, therefore ceating more debt. The bailouts and stimulus packages were a waist of time, sure the collapse would have been much more severe and drastic without them, but your only prolonging the inevitable much bigger collapse that will happen eventually anyway.
                |TG-X| mp40x



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                • #9
                  Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

                  Originally posted by aeroripper View Post

                  Essentially, the dollar is now a worthless currency with nothing of intrinsic value backing it anymore, and is going to reset its value to zero.
                  Very few currencies have ever been back by anything. Ever.

                  Gold standard? Who cares? Gold itself have very little value. Most of it's value is imposed upon it.

                  The only value currencies have is the value humans give them. If people believe it has value then it will. If people don't believe it has value then it won't.

                  It is all about belief.
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                  • #10
                    Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

                    I think the modern economy can be summed up fairly simply:

                    Some points:
                    Money represents the ability to trade goods or services at a later date.
                    High amounts of trade of goods and services between persons sets the economic value (in GDP)
                    If people trade a lot of goods and services then the GDP goes up, and there is more value for each dollar that is exchanged.
                    Sales and income taxes are based on the exchange of goods and services.
                    If people trade less, the dollar's value is less and less taxes are collected.
                    The stock market, investments, banking, etc are all based on speculation about how the economy (or a specific part of it) will do in the future and is used by rich people to increase the proportion of wealth into their hands.
                    Saving money removes it from the exchange of goods and services.

                    When people spend money it goes through several companies which helps pay taxes and the people that work for those companies. So each dollar a person spends can account for several dollars worth of GDP. When people don't spend money then the effect rolls downhill and hurts the economy because it doesn't come back around.

                    The problem with the stock market and investments is that they are generally speculation about speculation. The stock market is based on what the companies expect to make in the future, so the value is all based on what might happen in the future. The problem with this is that the time frames are reduced in the ability to trade that expected value instead of actually sticking with it to find out what it will be worth. People generally make money on the stock market by buying stock in a company that looks like it will do good and then selling before it doesn't. So if stock is high in the morning and low in the afternoon, someone can make money off of the difference in opinion of several years worth of future business between several hours.

                    Since stocks are used to fund future business, this kind of system is guaranteed to crash whenever people catch on that they have 'overvalued' their investments and start to panic. Gold doesn't really solve this, it just makes the variations smaller due to international trade options for gold holders.
                    |TG-6th|Snooggums

                    Just because everyone does something does not mean that it is right to do.

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                    • #11
                      Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

                      http://en.wikipedia.org/wiki/Bretton_Woods_system and http://en.wikipedia.org/wiki/Interna..._Monetary_Fund are a very good explanations of the current global economic system we are supposed to be using. (read them in the order posted) I say supposed to because some select countries have decided to eschew true "floating currency values" and use what is essentially more of a "fixed rate system" to ensure there is always a steady flow of "extra capital" into these particular countries based solely off exchange rates. (China and to a lesser extent India and Japan do this)

                      It also helps to explain why these same suspect countries are investing heavily into gold reserves, thus sending it's value skyrocketing upwards. They foresee a time in the near future where the global economy goes back to some alternative method of the original Bretton-Woods system where gold reserves matter once again in relation to the value of one's currency.

                      A few other notes:

                      -As long as the special drawing rights of the IMF are denoted in US dollars, our economy is "to big to fail", here is an interesting quote from that article...
                      The intent of the SDR system was to prevent nations from buying pegged gold and selling it at the higher free market price, and give nations a reason to hold dollars by crediting interest, at the same time setting a clear limit to the amount of dollars that could be held. The essential conflict was that the American role as military defender of the capitalist world's economic system was recognized, but not given a specific monetary value. In effect, other nations "purchased" American defense policy by taking a loss in holding dollars. They were only willing to do this as long as they supported U.S. military policy. Because of the Vietnam War and other unpopular actions, the pro-U.S. consensus began to evaporate. The SDR agreement, in effect, monetized the value of this relationship, but did not create a market for it.
                      Is it possible China has found a way to manipulate the capitalistic system to allow for communism to "win"? Saddam found out quickly that it was a bad idea to move away from the dollar when he decided to sell his oil in Euro's when we conquered his country in a weekend. Iran has recently done the same thing, wonder how that is going to turn out in the long run? Anyone who was wondering where all the talk of Iran and what are we going to do about them came from in the last 9 months or so, this is it.

                      -Stock value has always been a joke, Snoggums wrote,
                      Since stocks are used to fund future business
                      But that is rarely ever true. The only time stocks fund future business are during an IPO (Initial Public Offering) or during a SMO (Secondary Market Offering be it either dilutive and/or non-dilutive offerings). Many of the stocks you purchase are from large investment companies who purchase large swaths of these instruments speculating someone will come along and pay them a higher price to acquire the instrument then they purchased it for. On top of that people often confuse common stock with preferred stocks. Common stocks usually are as worthless as a used piece of toilet paper unless you either invested in a great company that always pays dividends to it's common stockholders or find some sucker to pay you more then you initially paid for the instrument. Preferred stocks on the other hand are really fixed income securities which places them only marginally below bonds in the debt instrument "food chain", where common stocks are low man on the totem pole so to speak. Remember the tranches everyone was talking about a year or so ago from the whole mortgage backed securities fiasco? Bondholders are the top tranche that get their money first. Preferred stock is essentially the middle tranche that gets their money after the bondholders, and common stock is the bottom tranche that gets whatever, if anything is left. Dividends are paid from profits based on that companies equity to that preferred tranche first, then if anything is left, it's divided up between the common stock holders at the boards discretion. Anytime you purchase a share of common stock in a company that has a history of not paying dividends to it's common stockholders, you are in essence purchasing a worthless piece of paper that you hope to sell to some sucker for more then you paid for it.

                      -Mp40x said
                      The Global economy -and I'm not saying I have any real solutions- is destroying the middle class in America, and therefore the country itself. Where are people supposed to work and make a decent living when almost all our manufacturing jobs have been moved ourseas.
                      The theory behind this is free trade and floating currency and problems arise when those things aren't happening. If on Monday the Renminbi (Chinese currency) traded at a 1:1 ratio with the dollar, by Wednesday China would be in worse economic straights then we are. Their entire industry was built around taking advantage of a favorable exchange rate, without that favorable rate, they simply cannot compete and US industry would once again roar back to life.

                      As I said in another post, inflation and the falling value of the US dollar simply have to happen, it's as much of a certain thing as the sun rising in the east tomorrow due to the events of the last 15-20 years. It's what we do after that that will decide if we come out of this better or worse off. These bailouts and so forth are simply their method to buy time until they figure out how to come out of this, and I have no faith in the politicians on either side of the political fence in this country right now to get those incredibly important decisions right.

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                      • #12
                        Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

                        Originally posted by Morganan View Post
                        , But that is rarely ever true. The only time stocks fund future business are during an IPO (Initial Public Offering) or during a SMO (Secondary Market Offering be it either dilutive and/or non-dilutive offerings). Many of the stocks you purchase are from large investment companies who purchase large swaths of these instruments speculating someone will come along and pay them a higher price to acquire the instrument then they purchased it for.
                        That was my point, you clarified it a bit better. As I said, most people buy stock in a company that looks like it will do well, then sell it when it doesn't. I'll see if I can clarify in my own words.

                        The company sells stock to make money. The stock market itself is a trading ground for people's investments, allowing the initial investor to pass their initial speculation on to someone else. But most of the money that is 'made' through this system is simply a difference in opinion.

                        Let's say Bob's Toys sell 100 stock at 100 dollars a share to raise $10,000, no dividends on any stocks. That is all Bob's Toys will get out of the investment.

                        When Fred buys and sells stock in the same day, the amount he pays and the amount he gets is based on whether he thinks Bob's Toys will do stuff that increases or decreases the stock's value. This involvement does nothing for the economy. Nothing is created, no service is offered and received. All that happened was some people traded money because of speculation. The stock market as it functions now is a parasite on the economy.

                        If 'investors' were required to keep their money in a stock for 1 year (or some other reasonable time frame) before selling to avoid the situations of panic and euphoria that cause the market to go up and down the stock market could still serve the purpose of shifting investments around without the bi-polar nature of the current system. Sure, there could be swings when large amounts of shares became available, but that wouldn't be as bad as the current system in my opinion.
                        |TG-6th|Snooggums

                        Just because everyone does something does not mean that it is right to do.

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                        • #13
                          Re: Hyperinflation and US Dollar Collapse coming within the next 10 years

                          Originally posted by snooggums View Post

                          When Fred buys and sells stock in the same day, the amount he pays and the amount he gets is based on whether he thinks Bob's Toys will do stuff that increases or decreases the stock's value. This involvement does nothing for the economy. Nothing is created, no service is offered and received. All that happened was some people traded money because of speculation. The stock market as it functions now is a parasite on the economy.
                          Well, technically it generates tax revenues and employs people to analyze trends to help others promulgate the "lie" so to speak and find "good" and "bad" investments, but I don't disagree with your general premise. I also don't think the problem is in the system itself, but the general perception of how the system works. In general "playing the stock market" is essentially gambling in a legal form, but for some reason large majority of people think it is an investment opportunity similar to how bonds and t-bills and savings accounts work in that the return is basically "guaranteed" and it simply is not.

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