The End of Dollar Supremacy?

Mises.org ^ | October 20, 2003 | Antony P. Mueller

[sourcery]

FYI

[Luke]

The dollar is where it is because it is backed up by nothing..., not even a promise to pay. Return us the the gold standard and watch the world become our plaything. FDR and his ungodly socialists/democrat minions have all but destroyed this nation.

[RS]

"Return us the the gold standard and watch the world become our plaything."

Return us the the gold standard and watch the world clean out Fort Knox in a week.

[imawit]

WHAT !

watch the world clean out Fort Knox in a week

Not if $50,000 equals an ounce of gold ! There's you devalue the dollar in spades !

[RS]

"Not if $50,000 equals an ounce of gold ! There's you devalue the dollar in spades !"

... and just how does the U.S. government do this ?
A 50 K price while the rest of the world is at $400 simply means that you don't exchange gold for dollars - same as now.

[Hugin]

In the final stages of the currency crisis, the dollar will most likely devalue not so much against the euro and the yen, but all of these currencies and most of the rest will devalue drastically against gold.

In other words runaway inflation. But weren't we just being warned that the big threat was looming defaltion? If there is anybody more fickle in predictions of gloom and doom than envirometnalists it's gotta be economists.

[Digger]

So you think that there IS gold in Fort Knox?

[RS]

"So you think that there IS gold in Fort Knox?"

Didn't you see Bond keep Goldfinger from getting it ?

... seriously - do you think there is NOT gold there ?
... where did it go ?

[AdamSelene235]

In other words runaway inflation. But weren't we just being warned that the big threat was looming defaltion?

What a head fake. I for one am outraged by the falling prices of medical care, housing, education, energy, copper, soy beans, lumber, etc. etc.

[imawit]

means that you don't exchange gold for dollars

You got it. And it anchors the value in stone, if you will. Every one else has worthless fiat money. Especially those holding old dollars and other currencies not backed by gold.

Course this action would probably mean war but it points out there are ways to politically get around debt, if you're a government. It's also too late to put in this type of fix but it is a better one than printing more dollars and letting the dollar devalue as a means to negate debt. Because in the end you have something stable not more of your own worth less dollars.

[imawit]

Gotta keep everyone on their toes, spinning that is. If every body came up with the same conclusion we'd have had a crash months ago.

That's why we now have Snow and the good guy/bad guy game being played.

Saw the Lincoln SUV commercial this weekend where it's 0% interest and $4,000 rebate. And quess what, small businesses can buy these things and write them off up until Dec with Bush's tax program.

Sign up now fo mo hellichoppeter moola. It's also patriotic, me first, the American.

[RS]

"You got it. And it anchors the value in stone, if you will. Every one else has worthless fiat money. Especially those holding old dollars and other currencies not backed by gold."

It dosen't anchor squat... There is enough gold floating around that the noone in there right mind will pay the 50 K for it - It effectively takes US holdings off the market ... just as they are now.

"OLD dollars" ??? so your idea is just to revalue our money DOWN ? and that's supposed to make other money worthless ????

[DeaconBenjamin]

Did you ever hear of Truman's search for a one-handed economist ("On the other hand....")

[DeaconBenjamin]

You mention the falling price of copper. I read where nickel is becoming fairly pricy. How far is the price of nickel from driving nickels from common usage? And what does one use to debase a nickel?

[AdamSelene235]

You mention the falling price of copper.

I was being sarcastic. All the items named are inflating like mad.

How far is the price of nickel from driving nickels from common usage?

No idea.

[longtermmemmory]

The supremacy of the Dollar is a function of the USA's world power. It is why europe united to form the euro. They want to take over the US dollar's supremacy.

Here is something to really ponder regarding stability. Every US dollar made this century is still usable. Even though we have new versions of our paper money, the old money is still valid and will still be valid.

In europe, they have a nasty habit of issuing new versions of their money and making the old versions worthless. How long before the EU needs to issue new versions and makes the old versions worthless? They have done it before, they will do it again.

Whose money do ou want long term?

[Hugin]

Nickels aren't made of nickel anymore, and pennies aren't made of copper. Both are mostly zinc these days with a small amount of the real metal for color.

[AdamSelene235]

Every US dollar made this century is still usable.

Yes, but they've lost more than 90% of their value.

[Tauzero]

Medical care, housing, and education are special cases.