Experts say the US dollar is going to go bankrupt in 5-15 years. Is this true?

Question

If this is true, then how will this effect realestate investing , or stock investing? Should we put our money in oversees company`s?

Answer 1

there has never been a fiat currency that has not gone to zero.
the final stages will be hyper-inflation

Answer 2

The answer is: Not Likely. The U.S. Dollar technically can't go bankrupt: currencies are not legal entities and therefore can not owe money to other parties. The definition of bankruptcy requires this in order for it to occur. However, I think you're actually referring to the U.S. Government going bankrupt, which is also a remote possibility. However, even if the U.S. government goes bankrupt, the dollar may still retain value as its the leading currency relied upon worldwide. Many other countries hold the U.S. dollar in their reserves (China is one of our largest holders with over $800 billion!), so even if the U.S. went bankrupt, they may still support the value of the currency independently of the issuing country. In fact, China's (and other countries) significant holdings create a situation where it is in their interest to ensure that the value of the dollar does not fall too low as it would lower their reserves. Additionally, a decline in the value of the dollar would improve our economic situation as the U.S. would be able to export more products based upon their relatively lower prices.

Answer 3

Name an "expert" who says any such thing.

Despite any political or social issues we may have, the dollar is still THE currency the world chooses when they seek stability and value. Currency values fluctuate against one another--but "bankruptcy" is not a legitimate issue.

The main threat to any currency is inflation-- which can reduce the buying power of a currency. If you're old enough to remember the disastrous Carter years, you'll know about times when inflation was up to 17% or higher. Prices increased on basic items (like groceries) every coupkle of days. People's buying power was limited. You couldn't buy a car, for example,if your grocery bill was going up every week.

Answer 4

The dollar can't go bankrupt.

The gov owns a printing press, in an emergency, they can print however many they want. All of our debt is denominated in dollars.

It can collapse relative to other currencies. Other countries can refuse to take the dollar in trading. Some people claim the US Gov is very afraid of OPEC changing the currency they sell oil in from the dollar to the Euro.

Answer 5

In what way is it "bankrupt"? The money hasn't been based on a hard metal (such as gold or silver) for years. It's only been based more on the faith of our government.

The US government is driving us to "bankruptcy" but we would probably do like other nations as ask for forgiveness in debts.

Most money I find is more based in faith. Only real value is to buy gold or silver. I think the US dollar, the Euro, and the English pound, will be pretty good value for a few years to come...

Other countries are also good but their value right now is low, such as the Canadian and Australian dollars IMO

Answer 6

No, the US Dollar will always we worth something because it used by practically every single country in this world. Even the futures markets around the world trade in US Dollars.

Answer 7

The US is not going Bankrupt, debt is relative to GNP. Government debt is not like personal debt(which I am sure you all know), but it still scares people.

The US accidently ran a surplus during the internet boom and it scared Greenspan. Government has no way to handle surpluses except to retire debt. Government needs to manage debt; not eliminate it.

We pay old debt with new debt.

Answer 8

Dollar is the leader of all currencies in the world.Our ecomists easily know which way to manipulate to trade with the world.
America has two weapons to work withe world.One is amass of wealth and advancing technology.Dollar can never be bancrupt
unless it makes the whole world bancrupt,I mean economy of majority countries is depndent upon Dollar.

Answer 9

Yes!

Answer 10

China is taking every single opportunity it has right now to ensure this. The Iraq war is a complete waste of money, lives and time. China is buying up all of our war debt, which we will never be able to repay, unless we print more bills, which means INFLATION!!! so yes, we are screwed thanks to g.w.