How would the US Administration react to a total US Dollar and Wall St. collapse?

Question

I’m not American, but I follow US politics & current affairs

The US Dollar has been losing value throughout 2006. The American people are the most debt burden in the world. The US deficit is the biggest in the world, with record military spending and record borrowing from foreign nations. Iran is moving its oil dealing to the Euro, with other nations to perhaps follow.

The US economy is ready for perhaps the biggest collapse in history. This would cause panic sale of stock, panic cash withdrawals from banks, business collapse, civil unrest, loss of property, bankruptcy on an unprecedented scale and perhaps Police needed to control the panic.

Would we see the suspension of the constitution? Katrina let Bush remove Posse Comitatus, so would there be Martial Law and troops on the streets? Would FEMA take control, set-up disaster villages for any people made homeless?

Your views? Be paranoid & pessimistic if you wish.

ghggj g - That's how a crash works. The US economy is being propped up by record deby and political management of the Fed Reserve. If China stops lending money, the economy will crash. Trust me.

thunder2s - Im British and we are the 2nd biggest lender to America. The US gives us none of its foreign aid. It all goes to Israel. So we help you out.

Answer 1

The current administration would deny it . They see the world through rose colored glasses .
If the economy totally collapsed , I think it would be total pandemonium on Wall street , and other financial places . The rest of America would probably be slower to react . After all we already have had one great depression , and many smaller ones . I truly hope we never have to find out though .

Answer 2

I doubt your scenario will occur.You better hope it doesn't. Without the US markets the entire world will fall into a depression.Who will buy oil?Where will the manufacturing countries make up for lost US sales?How will the debt be repaid.Remember it's really the citizens, perhaps of your country,that hold the paper on US debt.If it's unpaid who will take the loss?A US collapse would bring down the entire world economy.The only winners would be the Bin Ladens of the world.So if your living in a free country and want to stay that way be carefull what you wish for.By the way a European collapse would have the same effect.

Answer 3

Read an American History book. There is a period in history from 1929 until 1940's that was called the Great Depression. That is what happened with a dollar/stock market collapse. Some safety nets have been installed to prevent another depression of that proportions.

As a matter of fact, if you knew as much about US politics and monetary issues, you would know that there was a stock market crash in the 80's. We did not fall into marshal law. Losses were taken and investment strategies were changed. Those changes lead to the good economic growth years of the 90's. Now, the principles of saturation have taken effect. You cannot have contiual/infinite growth. At some point, the market will reach saturation and will decline. Investment strategies are changing again. The current DOW increase, in my opinion, is the result of people getting out of real estate markets. Home vaules seem to be meeting a maximum inflation point and are starting to decline. People are starting to secure thier profits and transfer them in to more reliable forms, bluechips. Otherwise, large corporations with good economic outlooks.

Answer 4

Iran is moving to the Euro because Europe will soon be a Muslim homeland.

When Europe collapses under the weight of Islam, the euro will be in deep doo doo.

Is that paranoid and pessimistic enough for you?

Answer 5

maybe its time we stopped handing out aid to countries like yours. Then we'd have money to fund the things in our own country for a change. Oh yeah, how about all those countries that owe us money from the previous world wars pay their debts? Then we'd have even more money.

Answer 6

interesting scenario,but I don't foresee the suspension of the Constitution. I would hope that as a country,we can get through it without chaos and anarchy-although initially,it would be seen as prime time to sow those seeds,by our enemies.

Answer 7

Deny all knowledge and Invade Europe looking for 'Weapons of Mass Destruction'.
If you ask me Bush is a 'Weapon of Mass Destruction'

Answer 8

1) It won't happen.
2) I don't know. I'm not an expert in monetary policy.

Answer 9

seeing how the market has went up about 40% since pres bush cut taxes, and home values are highest in history, the dow is higher than ever, 7 million jobs created in the last three years, and people keep voting liberal idiots out of office. it seems your question is stupid.

Answer 10

It happened before loads killed them selves.