We all know that the dollar is in sad shape. From Giselle Bundshen allegedly not accepting US dollars in payment and Jayz waving around Euros in his videos to Jim Rogers, the guy that helped George Soros break the Bank of England in 1992 by shorting it and is now looking to divest from the US dollar entirely. My gold broker is even suggesting that the US dollar is headed for a major downturn. (I am sure he is looking for me to continue to buy gold but still....)
Who here feels the US dollar is headed for a collapse. If not, explain why you think so.
2007-11-26 09:50:22 · 5 answers · asked by Kenneth C 6 in Social Science ➔ Economics
Collapse? Not so much. Continued decline in value? Yes. The dollar's price as compared to other currencies pretty much has the future value of it factored into it's exchange rate.
The business environment and the poor investment/savings decisions by Americans and the debt-ridden U.S. Government will continue to drive down the value of the dollar.
It's also important to note that the dollar's decline sets up a situation where americans get poorer, but our exports are set to rise and the cost of doing business in the U.S. goes down as compared to other countries.
2007-11-26 10:09:40 · answer #1 · answered by asphaltjesus 3 · 1⤊ 2⤋
i think of it has already collapsed. The dramatic shrink interior the money value over the final couple of years is unquestionably a protracted previous due adjustment on the area of something of the international to the financial realities confronted by employing the U.S. because of the fact '01 whilst Bush took workplace the value of oil has greater desirable than tripled, annual value variety deficits have greater desirable dramatically and the national Debt has long previous up forty% to over $9 trillion! Plus Bush has shown honestly 0 willingness to be fiscally conservative and an incredible variety of economists are looking forward to a recession to start interior the subsequent 3 hundred and sixty 5 days on the heels of the present subprime loan catastrophe. All of that has ultimately led to something of the international to lose faith interior the U.S.' potential to tend to their very very own financial equipment wisely. And for this reason the dollar has lost an incredible variety of value with regards to different international currencies. That mentioned in spite of the incontrovertible fact that, it extremely is clean that the U.S. continues to be an financial powerhouse and no-one thinks that there will be an enomic fall down or possibly a recession, so the value of the dollar might style down slightly greater, yet any "fall down" in step with se has already befell. And regrettably, now that the bloom is off the rose, with the objective to chat, i do no longer think of the dollar will get well till the U.S. gets its abode so as, which will take a minimum of 10 - two decades, whether the political will could be mustered.
2016-09-30 05:01:30 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Whatever else you do, do not listen to gold brokers... :)
More to the point, collapse of the U.S. dollar is highly unlikely, unless the U.S. experiences a period of hyperinflation. A more likely scenario is a gradual devaluation of the dollar to the point where U.S. reaches some resemblance of trade balance (which is already beginning to happen; this year's exports are sharply up due to the declining dollar).
2007-11-26 10:24:14 · answer #3 · answered by NC 7 · 2⤊ 2⤋
Yes, sadly the US government is constantly printing more money with anything to back it up to pay for the wars in Iraq and Afghanistan. This cannot go on forever.
2007-11-26 09:59:14 · answer #4 · answered by Ti 7 · 1⤊ 2⤋
Yes.In about 3 years.
2007-11-26 10:22:19 · answer #5 · answered by Anonymous · 3⤊ 1⤋