What would life be like with a worthless dollar?

Discussion in 'Economics' started by peilthetraveler, Jun 2, 2009.

  1. I mean you can't really compare the US to zimbabwe, or 1923 germany because in the US people have aquired alot of stuff to sell during the good times so its not like all the poor are going to be heading to hills digging for gold to afford bread. I also cant imagine cars will be completely unaffordable to drive. I kind of just imagine that the US will just become like any other 3rd world country where people pile into large vans or jeepneys like in the philippines when they need to go somewhere. I also imagine the normal daily wage will be pretty close to these countries where if you measured it in silver, unskilled labor will be paid about 1/10 to 1/5 of an ounce of silver for a days wage(which is about what most of the world lives on now.) I mean for thousands of years that has always been the measure of a days wage...about 1/10th of an ounce of silver. Once we make it to that point, i imagine thats when the US government will go back on the Gold standard and we start all over again.

    Any other thoughts?
  2. It would be the same as the USD being the worlds reserve currency. Except that one would subject to the ECB (or a basket of central banks) for its seignoriage.

    You people really don't understanding this stuff do you?
  3. lrm21


    The U.S. will not be a third world country in our life time

    Third world countries are like that because they have 3rd world people.

    Don't confuse the trees for the forest.

    This country has survived civil wars, currencies collapses, depressions, etc.

    Americans have an enormous ability for righting themselves, if worse comes to worse, we will move on.

    Don't confuse a political crisis with an social collapse.

    What is happening now is a political crisis not an economic one.

    Even with all the socialism trying to be rammed down our throats America is still a highly decentralized and self governing country.

    The inherit nature for most Americans to be law abiding free marketers wont disappears in a generation or two.

    The anglo mentality is a far cry from the third world mindset. Although I agree that enormous damage is being done.

    I think those expecting us to be shoveling dollars into furnaces to stay warm or carrying backpacks into McDonald's to buy a hamburger are being ridiculous.

  4. If the same group stays at the Fed our chances of getting out of this mess are slim.
  5. Our exports would increase exponentially, the trade deficit would disappear overnight (cost too much to import and the world can't pass on our cheap exports), we would pay through the nose for oil (until we got off our asses and built more nuclear reactors, wind mills, geothermal generators, solar technology, etc.—not to mention drill for the remaining oil we have available), tourism would boom, Japanese cars would no longer be affordable, foreign investors would swoop in and try to buy entire city blocks but we'll find a way to screw them in the end like we did Japanese investors, GM would make a comeback and Ford would soon become the leading auto manufacturer in the world, China would have to close a lot of fake dog shit factories, WalMart Super Centers would all close leaving only the grocery stores in business in the U.S., and eventually the rest of the world would use all of the military hardware we exported to them on us because they'd be so pissed about the worthless treasuries they now own.

    Did I leave anything out?
  6. I'm guessing you have never traveled outside North America to make a ridiculous statement like that.
  7. You need to stop worrying and learn to love the bomb. A few of those babies are worth a few trillion dollars in the bank.

  8. Have you actually met anyone from a third world country?

    These are the most resourceful people in the world because they either figure out how to make it work or die. Unlike shiftless westerners, they can't vote in a politician who will rob the productive on their behalf.

    Third world countries remain impoverished largely because of big government, socialist policies and dictatorships which prevent markets. What isn't destroyed by the UN development projects is finished off by US food aid. Most third world countries are agrarian economies and it's pretty hard for farmers to compete with free food.

    Socialism has destroyed more than one country that wasn't originally a third world country. Wake up and look around you. The nation turns its weary face to the Obamessiah to do everything from pay their mortgage to provide free unlimited healthcare. Fantasy.

    This country is screwed unless the majority changes its attitude and fast. But they're all waiting for government cheese and free healthcare, so....good luck with that.
  9. lrm21


    I have worked with third world ''countries on a regular basis.

    Let me clarify my point.

    Just because you are from the third world doesnt mean you have a third world mentality and vice versa.

    Most third worlders migrate to escape that reality

    My point was the structures that exist in the third world.

    High Corruption, low trust perpatute a particular mindset. The fuck you first before you fuck me mindset. If you don't have this mindset you wont survive.

    This isnt just my loony theory it
    s a reality

    This mentality has been coming too the U.S. unfortunately for some time.

    The old example of how in some parts of the U.S. you can still pump gas and pay later.

    But my original statement stands.

    It's the people who havent done business on a regular basis with Third world countries that don't understand where I am coming from

    It's not a racist statement either its understanding of societal differences

    This is why also I say that we are in a political crisis not an economic crisis

    I don't disagree that 1st world countries bear some responsibility for the problems in the third world.

    Highly recommend reading


    Trust: The Social Virtues and The Creation of Prosperity

    Fukuyama (The End of History and the Last Man, LJ 1/92) examines the impact of culture on economic life, society, and success in the new global economy. He argues that the most pervasive cultural characteristic influencing a nation's prosperity and ability to compete is the level of trust or cooperative behavior based upon shared norms. In comparison with low-trust societies (China, France, Italy, Korea), which need to negotiate and often litigate rules and regulations, high-trust societies like those in Germany and Japan are able to develop innovative organizations and hold down the cost of doing business. Fukuyama argues that the United States, like Japan and Germany, has been a high-trust society historically but that this status has eroded in recent years. This well-researched book provides a fresh, new perspective on how economic prosperity is grounded in social life. Highly recommended for academic libraries.
    Jane M. Kathman, Coll. of St. Benedict Lib., St. Joseph, Minn.

    If you disagree with my thesis, I recommend starting and import/export company with third world countries and offer credit. See how long you last.
  10. clacy


    I agree with your posts and don't think there is anything racist about what you said. The facts are pretty much on your side.
    #10     Jun 2, 2009