Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: MissDairyGoodnessVT
Suppose the dollar collapses , say, next month in Sept. ... What happens to the US gov’t? what happens to people in my aunt’s situation? Do they still get paid?

Yes and no.

The government will continue to pay social security, Medicare, etc., but the government will be forced to print the money to do so because it can no longer borrow enough funds or collect enough taxes. This will increase the money supply and thus drive inflation. As a result, your aunt will still receive a payment of, say, $1,000 -- but because of inflation the money will only buy, say, $500 worth of goods and services at today's prices. In this example, her spending power will be cut in half.

64 posted on 08/13/2009 11:53:48 PM PDT by Zakeet (Obama: Always wrong, never in doubt.)
[ Post Reply | Private Reply | To 61 | View Replies ]


To: Zakeet

thanks for answering my question- i guess we can all breathe a little easier now :)


65 posted on 08/14/2009 1:05:12 AM PDT by MissDairyGoodnessVT ("Economy is the method by which we prepare today to afford the improvements of tomorrow"C.Coolidge)
[ Post Reply | Private Reply | To 64 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson