Dollar coming to an end

[cbeast]

All of you against the dollar, pour it into my bank account now. I am calling you out and prove it with your actions that you truly believe dollar is going down the drain, and you are willing to back up your stance instead of slinking back again when things don't turn out the way you want them to.

Sorry, we're pouring it into Bitcoin. Try trolling those nice Dogecoin or Litecoin folks.

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[Yakamoto]

All of you against the dollar, pour it into my bank account now. I am calling you out and prove it with your actions that you truly believe dollar is going down the drain, and you are willing to back up your stance instead of slinking back again when things don't turn out the way you want them to.

Sorry, we're pouring it into Bitcoin. Try trolling those nice Dogecoin or Litecoin folks.

Heh, that was a really good response to that statement.

How is it now obvious the dollar is set to collapse? Everything is in place, all we need are for countries to start realizing that the dollar is worthless (Which is already happening, some countries' banks are pouring their USD into gold) and send it back to the US, causing a massive deflationary cycle and the collapse of the dollar.

Most countries buying gold are either;
1) Morons, cause the dollar will "NEVER" collapse
2) Building up other ways to store value
3) Trying to find a way to maintain value through a dollar collapse

So it is very possible that they are doing any of the mentioned scenarios, but I believe that it has to do with the look of the dollar right now.

[thezerg]

I think there are two different ideas people have when talking about "death of the dollar."  One is that it will lose its status as being used for most transactions around the world.  The second is that it's use will become obsolete due to something like Bitcoin, or going to a barter economy.  

Yes, since the dollar is not actually alive obviously this term is used as hyperbole.  I think that most people predicting the "death of the dollar" are actually taking about a short period of significant super-exponential value loss or by a similar reduction in use world-wide.  Basically if you went on vacation for a few weeks, you'd come back to a thing still called the "dollar" but in practice it would be a totally different beast.

Since QE has basically had the effect of backing USD with mortgages, in the case of an international "run" on dollars the US Federal Reserve will be left with the unenviable position of choosing to let the value of the dollar fall dramatically or choosing to sell all those mortgages to overseas investors.  But of course there will be less value-in-houses available than dollars printed b/c organizations like the Fed and the govt do not produce value.  So it is more likely that the FED will have redeem a lot more dollars for the backing mortgages -- that is, a sudden loss of dollar purchasing power and massive paper profits for the FED which by law will go to the US government to pay off the deficit.

The big losers in this game will be everyone with USD-denominated instruments, including salaries, and the big winners will be USD-denominated liabilities (mortgages for example).

[hyperdimension]

Bitcoin coming a begining.

[galbros]

I finally had a chance to read this today and I thought it was a nice article.  I'm not sure the dollar is doomed but it was nice to see bitcoin get a shout out towards the end of the article.

While it is clear that commerce is moving away from the USD, it is less clear what it is moving towards.  Maybe we are looking at no reserve currency, after all the RMB isn't even freely convertible yet.

[polynesia]

The BRIC nations do hold vast reserves in dollars.
So they do have a vested interest in ensuring that the dollar does not decline.
The decline of the dollar, if it does happen, will happen very gradually.

[fran2k]

Interesting article with a very surprising end (related to Bitcoin see last 2 paragraphs)

http://www.telegraph.co.uk/finance/comment/liamhalligan/10978178/The-dollars-70-year-dominance-is-coming-to-an-end.html

I also believe central banks may include cyber-currencies (such as bitcoin) in their reserves.

I'll go one better: I believe central banks WILL include cryptocurrencies (plural) in their reserves (plural).

Make no mistake, behind the scenes the powers that be are formulating systems to make bank (pun intended) on this newfangled experimental money thingie (Bitcoin, et al.) seeing how they can fatten their wallets further, thus allowing the Twins to test the waters.

I say in less than 5 years we'll see existing and start-up companies creating regulated pre-mined altcoins for the sole purpose of generating funding, with said alts traded similarly to how stocks and commodities are traded today. That one key difference is that the altcoins/stocks/shares can be bought/sold/traded sans any exchange of which they'll also be located on, something that's a bit difficult to do with common stocks.

Can you say CC*Trade Financial Corporation (purhaps styled CC*TRADE)? Them guys aren't goin' to miss the boat on this next wave, let alone the new guys entering the market directly outta Harvard, Yale, and...wait for it...MIT.

Companies are already doing that.

[arbitrage001]

Most of us will probably not be alive when the dollar collapses so it's not going to make much difference to us.

Actually, if you are still in adult age, you will most likely still be alive to see the next great war.

For those who are 60+, they may be lucky and be gone before that happen.

[leex1528]

Actually, if you are still in adult age, you will most likely still be alive to see the next great war.

For those who are 60+, they may be lucky and be gone before that happen.

I think even the people who are 60+ will see a big war before they die....

Things are not exactly looking the greatest right now

[Daniel91]

The BRIC nations do hold vast reserves in dollars.
So they do have a vested interest in ensuring that the dollar does not decline.
The decline of the dollar, if it does happen, will happen very gradually.

Yes I agree with this.
I think not just dollar as currency but whole USA economy is loosing top position in world market and very soon China will replace USA on the top.
In the future I think that BRIC nations will lead the world because of their resources and human power.
 

[cr1776]

It already collapsed

1971 Milk .51 cents Gal USD in USA on gold standard

1971 Nixon Leaves Gold Standard

2014 Milk 4.50 Gal USD compare that to .0072 btc

People gonna love BTC and low numbers

Wow milk is only .00000001 btc soon

haha

Well I wouldn't exactly call this 'failed'. It's just good old inflation. Happens. The wages also increased over time. But hey, if you're right we could swim in milk all day long. Poor cows!

Inflation happens with fiat (non-backed) currencies. Until FDR started and later Nixon finished taking the US off the gold standard, it didn't just happen.

That is one advantage of bitcoin - there is no stealth tax taking money from you and giving it to politicians and other powerful people.

[Yakamoto]

Most of us will probably not be alive when the dollar collapses so it's not going to make much difference to us.

Actually, if you are still in adult age, you will most likely still be alive to see the next great war.

For those who are 60+, they may be lucky and be gone before that happen.

I'd debate the possibility of that.

Mostly because the US is going down the hole, how in the world would they be able to go and fund a large war of any kind? They're also decreasing their military spending and sending the MRAAPS or whatever they are (I'm Canadian so I only see this stuff here and there) to local police forces. If anything, they're expecting a civil war, not a large international war.

Ukraine won't have anything come out of it. It was the same for Syria, then North Korea, then and still currently Ukraine, and then Iran. It will be covered, big speeches assuring American freedom and #1 country safety and international investigations, then it will slowly fade from the news unless something else happens (Like MH17, Ukraine was almost out of the air waves and Iran was taking it's place) that causes more hype.

There may very well be another war, but it won't be a nukefest or total war (Well, it could); it will be smaller wars or civil wars.

Just my opinion.

[LostDutchman]

You know how I would handle things like the Middle East conflict and all that shit in the Balkans?

Given the power, I'd set arbitrary boundaries and tell the goofy bastards to fight it out but if they make one step outside of the boundaries, I'd fry their asses with the worst sort of weaponry imaginable short of nukes.

If they got nukey with things I'd turn the whole place into glass for the betterment of the rest of the world.

[oceans]

The dollar still has a long time left yet regardless of the situation now. 70+ years sounds about right for how long it has left to be honest however what is to say anything will replace it? 70+  years is a long time yet and we never know what kind of currencies may be available then.

[fdiini]

We live in the modern and information age. Everything will happen faster the government able to respond. If you think it will take 70 years for it to end, it will probably happen in 10 years or so.

[theonewhowaskazu]

I think what everybody is expecting is that suddenly there will be some gigantic collapse of the dollar and boom everything dies suddenly people have a hard time buying food and somehow BTC is priced at $1M per coin.

I don't think that's whats going to happen.

I think there's going to be a deflationary spiral first, a crash in things like Gold & even potentially foreign currencies, maybe even BTC. This could be caused by many things considering how fragile everything is, but I'm willing to bet some big financial entity will go bust, that will start it. People will get used to working with few $s because there won't be many of them around to work with because we're in deflation. But the government doesn't like deflation, so it will buy up all the bad assets, effectively serving to forgive lots of debts. When those debts are forgiven, then there won't be any guaranteed demand for USD, and with the inherent shortage of everything caused in the time just after a crash, THAT'S what will cause the hyperinflation. Because, recessions are like a bubble, in the value off money, that's what deflation is. Like all bubbles, money bubbles pop. Only, since we're using USD, with no value, that bubble never needs to revert to the mean; the mean is 0.

That's how the dollar will end, probably. And it probably will take at least 8 years before the deflationary phase, and 2 years in the deflationary phase before hyperinflation starts.

[polynesia]

That's how the dollar will end, probably. And it probably will take at least 8 years before the deflationary phase, and 2 years in the deflationary phase before hyperinflation starts.

That is 10 years for our elected representatives to fix the system.
Hope they don't screw up things for that long.

[yunkie]

Yeah you cant beat fiat currencies.

[ApexEvo]

There are more and more econmists that warns about possible collapse of dollar, and it looks like american economy doesnt have very bright future... also it seems like Russia with China and India, would be more than happy if dollar colapse, and it looks like they already strated doing some steps to help with it.

[polynesia]

There are more and more econmists that warns about possible collapse of dollar, and it looks like american economy doesnt have very bright future... also it seems like Russia with China and India, would be more than happy if dollar colapse, and it looks like they already strated doing some steps to help with it.

They have started taking steps to reduce dependence on the dollar.
Looking at the amount of dollars they hold, it would be a disaster for them if the dollar collapses overnight.