Dollar died? Or not?

Question

50% cost lost.

Answer 1

Since 1913, the dollar has lost 95% of it's purchasing power. In order to get the purchasing power of $1000 in 1913, in 2005 you'd need $20,343.75 to get the same purchasing power.

Considering the U.S. is basically insolvent (net liabilities in the U.S. is 400% higher than net income), the only way the U.S. is going to be able to pay it's debts is to monetize, ie, print money. That will erode purchasing power of the dollar further. The dollar is on it's death bed, I expect to see a dollar collapse/crisis in the near future.

Don't get me wrong, I love my country, BUT I'm also a realist. No entity can keep piling on debt the way the U.S. has and escape a financial day of reckoning.

EDIT: For the people that say it make American goods cheaper, answer this: What does the U.S. manufacture anymore? Beside weapons and heavy equipment, the U.S. imports basically everything else. And to the poster the said China pegs the Yuan to the dollar - China unpegged about a year ago and it's a managed float right now with roughly a +/- 0.3% intervention band. And since the unpegging the Yuan has strengthened from 8.26:1 to 7.81:1 against the dollar.

Yes a weaker dollar helps the export market, but since the U.S. really doesn't make anything anymore, it doesn't matter. A weaker dollar is inflationary is in increases import prices.

Answer 2

Actually what is happening is fairly healthy and also a reflection of the world economy. First, China's currency is pegged to the dollar, which is unfair and causes... drag on the dollar. Second, inflation is fairly low, so the dollar isn't worth less to those who use it most. Third, having the dollar be cheaper is good when you are trying to sell a product.

What we are seeing is mixed, but it is a reflection of a healthy economy.

Answer 3

As far as I know, the members of Dollar are still alive, unless they went and did a Buddy Holly

Answer 4

We are in so much dept to so many countrys that our money is worthless. We are not in a third world crises but we do owe. So yes the value of a dollars is dropping. Blessings

Answer 5

Don't forget that will be really good for American exports though, and bad for countries wanting to import goods to the states so it isn't necessarily a good thing.

Answer 6

Its definitely not worth much...continued attempts to coin it as pocket change just seem to reinforce that ......and its purchasing power is nil.

Answer 7

Yes.

Answer 8

it depends which countries dollars your referring to

Answer 9

It has been dying for along time,,,YUCK

Answer 10

noooo