Is the US dollar in danger of crashing? If so, how long will it be?

Question

http://allafrica.com/stories/200705310796.html

"A new United Nations (UN) report released yesterday has warned that a crash in the United States dollar will be disastrous since the world economy is still tied to U.S. fortunes. It therefore called for concerted effort to keep the dollar from falling rapidly in order to prevent a recession."
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Compare the value for 1975 versus 2005 - it's worth
about a quarter of what it was then.

So - if you had a house that was worth $100,000 in 1975
and it appreciated to $400,000 in 2005, you've just
stayed even.

If that trend continues, by 2020, it will have lost half
its value again...

What do you think?

Answer 1

It is in serious danger of collapse. Our federal deficit will soon hit $9,000,000,000,000.00. It takes $500,000,000,000.00 annually from our budget just for interest. It is a criminal act on the part of the government to blindly spend so much and ignore the consequence.

It is very similar to the economy before the Great Depression.

Answer 2

Well the simplest way to start this is "The dollar is a mythological entity". It's value has not been pegged to anything since 64. It's more a measure of the worth of traded goods than a real object. So what does that mean? Don't hoard them, use them. Values change based on the overall ratio of exchange / "real materials", with the "external costs" removed.
The problem comes in when it's exchanged for resource items, oil. The value of that item ( for the most part) is not real, it's determined by a formula. The scale of the purchases and the look ahead scope of the formula drives inflation. The lack of instant reinvestment of the artificial or time lag is the biggest factor causing inflation.

Back on topic. It will go on for ever, Even with the rusian european conspiracy to undermine it.

Answer 3

You can thank Consumers, Banks, Loan Company's,Credit Card Company's, U.S. Government, Employers who went overseas for what is about to happen. The real buying power of the U.S. Dollar today is less than Twenty-five (25*) cents.........This is what happens when the Government does not manage our tax money and maintain a balanced budget....Hope for the Best, but prepare for the Worst........

Answer 4

your dollar is falling, yes indeed. I live in Asia, many countries here, mine included had started dumping us dollars and switch to holding Euros. Many people here for years have said the us dollar backed by the pentagon is way over valued, and soon not really worth the paper its printed on. Not sure if this is a factor, since the war in Irak, many people here have boycotted American business and some have left, American goods sit on the shelves unsold. perhaps this contributes to declining us dollar. Likely if China stops propping up your dollar by purchasing your debt, it could fall. But your leaders have a back up plan, north american deep intergration and the north american dollar. a meeting was held in secret in Banff Canada last June to discuss this very issue.

Answer 5

I do not pledge allegiance to the flag of the United States of America, nor to the republic for which it now stands: one nation under god and Capital, insufferable and unyielding, with liberty and justice least of all. America has become not just a gun nation, a TV nation, a Ritalin and Prozac nation, an obese nation, and a remedial nation, it has also become a rogue nation. In brand as in empire, America has become the ultimate menace – the superego state that says **** You to any nation that stands in the way of its state and corporate interests. And it manages to get away with it.

In the angry 21st century politics of the world's only Superpower, the official doctrine of "Love it or leave it" too often permeates the media and the schools, two institutions that foster incompetent thinking. Robotically placing a hand on the heart with a tear in the eye while reciting the Pledge of Allegiance as a loyalty oath qualifies as incompetent thinking. In contrast, critical thinking might suggest that this public display of group-think allegiance is anathema to a free society. One might wonder about the purpose of this collective activity that recognizes non-participants as outsiders? Critical thinking people might wonder what has changed the U.S. flag into the logo of the corporate state? What has desecrated the former people's flag and morphed it into a symbol for the greed, corruption and avarice of the rich, wealthy class.

Answer 6

Well the first thing to drop is the real estate market and the bottom has fallen out from under that.

Just think of all the poor people who can't sell their property for the equity they have already put into it.

The rich folks will be jumping from 3 story windows again, just as they did in 1929, thanks to this herbert hoover style cowboy wannabe.

.

Answer 7

Absolutely. The dollar is based on nothing and with the debt we have run up its just a matter of time before we have hyper inflation.

www.prudentbear.com

Great website.

Answer 8

some say as early as 2008 , then again it could happen tommorow because that would only happen if the banks started denying loans to people , its what caused the stock market crash of 29 .

Answer 9

It's only a matter of time before other countries start to dominate the world economy.
Bravo to superpolitics for an excellent answer.

Answer 10

What I'm more concerned about is that our entire economy is based on credit. Fewer than 2% have the money to back what is borrowed.

But inflation is getting worse, and you are right to worry.