Are you ready for THE DOLLAR CRASH?

Question

Expect price increases and inflation to soar.

HINT: The U.S. Gov't is issuing a dollar COIN.

Gotta be informed; I admire people who aren't in denial.

My common sense tells me that the dollar coins are needed only if INFLATION is expected to soar at least 400%. It will replace the quarter.

Answer 1

The fact that the US is issuing dollar coins has very little to do with the general soundness of the economy.
Cases in point:
Great Britain issued 1 pound coins and stopped issuing paper 1 pound notes in 1984. The 2 pound coin was introduced in 1997.
Canada issued $1 coins beginning in 1988 and $2 coins in 1996 and stopped issuing $1 and $2 banknotes at the same time.
Japan started issuing 500 yen coins in 1985 and dropped 500 yen banknotes at that time.
All three of those currencies have outperformed the dollar since then (in the case of Japan, the exchange rate went from 300 yen / US $1 to 118 yen / US$1 today).
To top it off, the US is NOT going to stop printing $1 banknotes (and that is the reason why the coins won't circulate).
Your argument is based on a fallacy. Will the dollar crash? I don't know (My personal investment portfolio is very heavy on precious metals, though, which have done very well this past year), but this won't be the reason or even a contributing factor.
Also: The US minted about 800 Million Susan B. Anthony $1 coins in 1979-1980 and about 700 Million Sacajawea $1 coins in 2000. The dollar didn't crash either time (unless I slept through it).

Answer 2

Didn't happen when we got the £ coin. Also, all that notes are is promisary notes. "I Promise to pay the bearer". The value of currency has more to do with economic factors, reserves, etc. Inflation only happens if you don't keep an eye of the money supply (God and to think Friedman was American). Go onto Wikipedia and look up Monetarism.

Anyway. Do not start inivesting in tined food and shotguns just yet. Your economy will not collaps because you introduce a coin instead of a note (The $ is doing poorly at the moment anyway).

Answer 3

I wished i made the money the US Government spent with just the storage of the Susan B. Anthony coins...real loser..did not fly
nor did any other coins
BUT
MAYBE THE COLLECTORS WILL pick up enough and horde them as they will have the Presidents on them? Well, it worked for the state quarter.
Its going to make the government money either way...just like all the stamp collectors and the stamps that get bought and are not redeemed..where does all that almost 100% profit go on unused stamps..or coins?

Answer 4

We will just have to deal with it,
Right..???????