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Major News!


http://www.globalnews.ca/world/dollar+could+collapse/4839011/story.html#ixzz1NUSQMMJr (http://www.globalnews.ca/world/dollar+could+collapse/4839011/story.html#ixzz1NUSQMMJr)

Yawn.

These stories come out every couple of months, and have for years, and years, and years.

The dollar has some big problems, as does the US in general, but there is simply no viable alternative, and no prospects for an alternative.  Also, nearly every man, woman and child on the face of the planet has a vested interest in preventing a full blown collapse.

Wow, what a bold prediction. If the value keeps going down it will lose it's value? Holy revelation batman.

I bought some dollars as an investment about a month ago and from that time dollar has been going up steadily. I doubt that it will collapse in close future.

Some people say it will be a short period of deflation after QE2, due to credit contraction. Remember that most of the USD supply is created by commercial banks and not directly by the fed.
I guess it all depends in whether there will be QE3 or not.

It will be a QE3, after it will continue to 4,5 ... n.

Nobody wants to deal with the boogie man -austerity measures, so they print and print and print...

I bet it won't. I bet they call it something else so they can shout over and over how they stopped QEing and you should hate the market for the prices rising etc.

Whatever they call it, the end result is the same, the paper value goes to zero.

Will this make bitcoin value go to infinity?

;D I see your sarcasm there, but the correct  answer is that when paper value is zero, you value your BTC against other valuable goods, resources for example, or hours of work, etc.

Paper value is not zero. Paper can be used in any buisnes ...

ummm, what is bitcoin all about?

Try to use in any business some Zimbabwe dollars.

:D

Value against USD, yep!

we're heard such "news" 100 yrs ago.
but nothing happen :P

About the only business some fiat notes are worth using for is morning business when perched on the porcelain throne.

America owes China more than it can repay.
America has land.
China has lots of people.

Maybe some day.  Not today, not soon.

This time it could be real.
The US Dollar has a extremely high inflation rate.

Here are my arguments:

1) US Gasoline prices have skyrocket:
http://www.eia.gov/oil_gas/petroleum/data_publications/wrgp/mogas_chart.gif

2) US Food prices are going up and up and up:
http://inflationdata.net/wp-content/uploads/2011/02/Global_Food_Prices_2011.jpg

3) Unemployment rate explodes:
http://www.hendon-group.com/wp-content/uploads/2011/03/2011-01_US-UnemploymentRate-Chart-482w.jpg

4) The Fed (Ben Bernake) recently emphasized in the first press conference ever, that the inflation could be a big problem.
http://www.guardian.co.uk/business/richard-adams-blog/2011/apr/27/ben-bernanke-press-conference-live

5) The US is technically bankrupt:
http://www.bloomberg.com/news/2011-05-26/vtb-ceo-says-u-s-nearly-bankrupt-as-instability-lingers-1-.html

6) The money supply is out of control. The FED even does not longer try to measure the M3 since 2005. It's gone exponential:
http://www.theintelligence.de/images/stories/bilder/us_dollar_money_supply.gif


Conclusion:
The US Dollar will continue to inflate which means a deterioration in actual value (=You can buy less stuff).
This means alternative assets/currencies like Bitcoin and Gold will continue to increase in its value (=You can get more stuff for it).

If you fear the crash of the Dollar you probably should think about what "Change" means to you.

I'd welcome lots of inflation with open arms.  With your net worth is negative, it helps.  :)

True :)

Debt reduction.
That's the reason the US can welcome an inflation as long as it doesn't get out of control.

Since I'm not in the US and there is few people changing BTC into my native currency, I discount much of the MTGox USD rises by the relative increasing weakness of the USD.

the economy is in trouble if interest rates rise.
the economy is in trouble if interest rates stay at the zero bound.
the economy is in trouble if the dollar strengthens.
the economy is in trouble if the dollar weakens.

http://www.safehaven.com/article/20703/bernankes-qex-box

if anything, the author understates the problem, but the point is sound. The economy is going to tank, but that could mean EITHER hyperinflation or a deflationary death spiral. The best hedge agains an unknown like that is not an alternative currency but an alternative economy.