What If the Dollar Falls?

[Truck Fump / h1b]

Denying your paradox does not make it go away or clear it. You can only clear your paradox by utterly discarding one of the conflicting arguments.
There is no 'time line'.

there is no paradox.

inflation, or a rise in prices due to monetary supply, is real.

 

[Walt]

China will allow it with the Bric countries

China has larger public debt than we do, with no outside financing of that public debt. Worse yet, they have repeated technical defaults. The only thing keeping them from collapsing is their currency controls forcing their huge national savings to be invested in the public debt.

If they give up their currency controls they will be in serious trouble.

 

[Truck Fump / h1b]

China has larger public debt than we do, with no outside financing of that public debt. Worse yet, they have repeated technical defaults. The only thing keeping them from collapsing is their currency controls forcing their huge national savings to be invested in the public debt.

If they give up their currency controls they will be in serious trouble.

he's saying china will allow trade in the yuan. dipshit.

none of your response addresses that.

you're just emitting a vague and non-responsive pro-china miasma of malformed thoughts.

 

[Walt]

he's saying china will allow trade in the yuan. dipshit.

They really will not. If they lose currency controls, their entire economy collapses.

none of your response addresses that.

Currency controls are the opposite of allowing their currency to trade internationally. How do you not know that?

you're just emitting a vague and non-responsive pro-china miasma of malformed thoughts.

It is "pro-China" to say their economy is a mess?

 

[Truck Fump / h1b]

They really will not. If they lose currency controls, their entire economy collapses.



Currency controls are the opposite of allowing their currency to trade internationally. How do you not know that?



It is "pro-China" to say their economy is a mess?

you're downplaying the threat. because you're a sympathizer with the ccp.


your argument is stupid.

they wouldn't allow people to use their currency because they wouldn't want the inflation?

fucking retarded.

 

[Truck Fump / h1b]

You are economically illiterate.

you dont know what inflation is, douche-nozzle.

stop lying.

 

[Walt]

they wouldn't allow people to use their currency because they wouldn't want the inflation?

They are not allowing the Chinese people to move money outside of China, because they need the extremely large savings for themselves.

 

[Truck Fump / h1b]

They are not allowing the Chinese people to move money outside of China, because they need the extremely large savings for themselves.

that just their totalitarianism towards their citizenry.

allowing international transaction in yuan is a huge win for them.

this new argument is also retarded.

is your brain just a series of fallback positions and shit thrown on the wall on the inside of your skull?

 

[Walt]

allowing international transaction in yuan is a huge win for them.

They would be forced to think of the currency before their economy. It would cost them greatly.

Or put another way, if it would have been a huge win, they would have done it decades ago.

 

[Into the Night]

No it's not, it's a supply and demand issue.

It is both.

 

[Into the Night]

China is part of BRIC

So?

You buy stuff from South Africa with ZARs, not yuan.
Gold is accepted in either nation though.

 

[Into the Night]

I know that. I'm asking why you think China won't manipulate their currency when dealing with the BRICS nations. That doesn't make any sense to me.

All fiat currency is manipulated. It is OWNED by governments. It is, in fact, communism.

 

[Into the Night]

Actually no, and fuck you!

You go on 'head and believe what Nostradumbass there says. I figured you would.

Nostradamus never wrote about America. He was writing about France in 1547. He was an astrologer. His 'predictions' were of a general nature and cryptically written, that could apply to almost anytime. It was like he predicted it would rain somewhere, but cryptically. Since it's always raining somewhere, his 'prediction' appears to be genuine for devout believers in this crap.

Gold has been in use for thousands of years. It was the first widespread currency because a way was found to easily check it's purity and weight (using touchstones). From that point on, various metals have been used as currency over time, usually stamped as coins for easier handling. The dollar itself was originally a unit of weight (nominally 1/20th of an ounce of fine gold).
The gold itself was the currency. It was the medium of exchange (making it a representation of value), and using standards like units being equivalent to 1/20th of an ounce, it had a unit of account. In other words, gold had the two characteristics of all money (fiat or not). It held value (you could use it as a medium of exchange), and it acted as a unit of account (you could set a price with it).

Gold also held a certain amount of intrinsic wealth, since it is also an industrial metal, used to make jewelry, leaf plating of statues and other items, made into fine wire and used for plating in electronic components, and, of course has been stamped into some truly beautiful coins, some of which are collector's items now.

Silver has also been used as currency, particularly in Germany and Israel. It also held intrinsic wealth, due to it's use as an industrial metal. Usually when silver was used as currency, it was coined. Silver is harder to check for purity by your average Joe. Counterfeiting with silver is easier to conduct since it readily forms alloys with zinc or copper.
In America, silver is still used as currency, in the form of coin (dimes, quarters, and half dollars). Because the dollar itself has fallen so far, these coins are no longer pure silver. They are now 'sandwiches' with a copper center. The material is made by cold welding using explosives, then coins are minted from that.

Copper has also been used as a currency, but because it corrodes and discolors, it's use has been limited. Copper is an industrial metal, however, used as a building material, wiring, electronics, and jewelry.

Aluminum has also been used as a currency (at one time it was used to coin pennies in America!). Before the discovery of processes to cheaply obtain aluminum from ore, it was considered a precious metal (at one time worth almost as much as gold and worth more than silver). Now it's a beer can. The first canned drink was for beer and was introduced by Coors in 1959. Aluminum is used to manufacture drink cans, aircraft, cars (and especially their engines these days!), as a building material, in electronics, food wrapping and handling equipment, and even explosives.

Even paper has been used as a currency. When one deposited gold in their bank account, the bank would issue a 'receipt' for it (often with decorative artwork on it) that acted as a bearer note anyone could use to get that gold out of that bank again. People would trade the notes instead of the gold itself. Fiat currency is almost always paper or even in electronic form these days.
The dollar today is no longer a unit of weight. It is an electronic currency with some paper versions. Today, the dollar is a fiat currency. It has no intrinsic wealth. It is, however, currency. It is has value (it can be used as a medium of exchange), and acts as a unit of account (you can set a price with it).

Like all fiat currencies, the natural tendency is inflation, since such currency is typically issued by governments that are basically broke. They owe more than they can pay and still operate. By issuing fiat currency, they can continue to operate and even expand, all while continuing to borrow (from anyone dumb enough to loan them money!). Eventually, fiat currency collapses (people no longer generally accept it and turn to another currency). The government may issue a 'newer dollar' (where a 'newer dollar' is worth 100 'older dollars' or some such redefinition, but the loss of faith in the dollar is still there, even if somewhat mitigated. This kind of thing has happened to the Real, the peso, the drachma, the Mark, the yen, the ruble, the franc, and the yuan. The dollar is NOT immune.

Restoring faith in a fiat currency is not easy nor quick. It takes time. A long time.

The dollar is already nearing this crisis. People are already looking around for another currency. As soon as one is accepted, general acceptance will occur almost overnight, creating a major crisis for any government using fiat currency. Governments fail this way. At the very least, they are forced to dissolve many government programs and services.
Anyone dependent on welfare from government are especially hit hard during such times. Today, in America, that welfare extends into public education, agricultural welfare, social security and medicare/medicaid, welfare to homeless and drug users, and of course all the criminals depending on scamming various welfare programs.

In other words, when it happens, it ain't gonna be pretty.

 

[Into the Night]

Are we talking about the "business" you claimed to run a few months ago until you got busted not knowing a fucking thing about how an S-Corp works? Or not knowing a fucking thing about how Social Security works?

I can explain why I believe what I believe...you can't. You have failed more than once.

I'm here right now, you want real time argument with me? Let's dance.

Social security is welfare. It is communism.
An S corporation is a small corporation (a limited number of investors). It has simpler tax reporting requirements than other type of corporations. The 'S' corporation is a creation of the IRS.

He is free of debt (or so he claims). If he is, that is economically very wise. That is NOT economic illiteracy.

If only our government could figure that out. Dark days like ahead for it.

 

[Into the Night]

Fuck your gloom and doom, bitch!

I have to agree. He's given up already. He's trying to get everyone else to give up. He has no faith whatsoever in people making their own way.

He sees changes coming, and they are, but to him it's the 'end of all things'.

 

[Into the Night]

it's both, dipstick.

Okay. You will consider your paradox resolved...for now. You are correct. It's both factors.

 

[Into the Night]

there is no paradox.

inflation, or a rise in prices due to monetary supply, is real.

I never said it wasn't. Pay attention.

 

[Truck Fump / h1b]

 

[IBDaMann]

You're full of shit

What I wrote is totally accurate. About what are you bitching and griping?

and this thing is bad and Biden is the worst ever, bitch!

What makes you think Biden is doing anything, or somehow has any control over anything?

In what way do you disagree with my statement:

Yes, every American would be poorer and it would not be the optimal situation, but the US would bounce back; not necessarily so for the rest of the world.

?

 

[Truck Fump / h1b]

Nostradamus never wrote about America. He was writing about France in 1547. He was an astrologer. His 'predictions' were of a general nature and cryptically written, that could apply to almost anytime. It was like he predicted it would rain somewhere, but cryptically. Since it's always raining somewhere, his 'prediction' appears to be genuine for devout believers in this crap.

Gold has been in use for thousands of years. It was the first widespread currency because a way was found to easily check it's purity and weight (using touchstones). From that point on, various metals have been used as currency over time, usually stamped as coins for easier handling. The dollar itself was originally a unit of weight (nominally 1/20th of an ounce of fine gold).
The gold itself was the currency. It was the medium of exchange (making it a representation of value), and using standards like units being equivalent to 1/20th of an ounce, it had a unit of account. In other words, gold had the two characteristics of all money (fiat or not). It held value (you could use it as a medium of exchange), and it acted as a unit of account (you could set a price with it).

Gold also held a certain amount of intrinsic wealth, since it is also an industrial metal, used to make jewelry, leaf plating of statues and other items, made into fine wire and used for plating in electronic components, and, of course has been stamped into some truly beautiful coins, some of which are collector's items now.

Silver has also been used as currency, particularly in Germany and Israel. It also held intrinsic wealth, due to it's use as an industrial metal. Usually when silver was used as currency, it was coined. Silver is harder to check for purity by your average Joe. Counterfeiting with silver is easier to conduct since it readily forms alloys with zinc or copper.
In America, silver is still used as currency, in the form of coin (dimes, quarters, and half dollars). Because the dollar itself has fallen so far, these coins are no longer pure silver. They are now 'sandwiches' with a copper center. The material is made by cold welding using explosives, then coins are minted from that.

Copper has also been used as a currency, but because it corrodes and discolors, it's use has been limited. Copper is an industrial metal, however, used as a building material, wiring, electronics, and jewelry.

Aluminum has also been used as a currency (at one time it was used to coin pennies in America!). Before the discovery of processes to cheaply obtain aluminum from ore, it was considered a precious metal (at one time worth almost as much as gold and worth more than silver). Now it's a beer can. The first canned drink was for beer and was introduced by Coors in 1959. Aluminum is used to manufacture drink cans, aircraft, cars (and especially their engines these days!), as a building material, in electronics, food wrapping and handling equipment, and even explosives.

Even paper has been used as a currency. When one deposited gold in their bank account, the bank would issue a 'receipt' for it (often with decorative artwork on it) that acted as a bearer note anyone could use to get that gold out of that bank again. People would trade the notes instead of the gold itself. Fiat currency is almost always paper or even in electronic form these days.
The dollar today is no longer a unit of weight. It is an electronic currency with some paper versions. Today, the dollar is a fiat currency. It has no intrinsic wealth. It is, however, currency. It is has value (it can be used as a medium of exchange), and acts as a unit of account (you can set a price with it).

Like all fiat currencies, the natural tendency is inflation, since such currency is typically issued by governments that are basically broke. They owe more than they can pay and still operate. By issuing fiat currency, they can continue to operate and even expand, all while continuing to borrow (from anyone dumb enough to loan them money!). Eventually, fiat currency collapses (people no longer generally accept it and turn to another currency). The government may issue a 'newer dollar' (where a 'newer dollar' is worth 100 'older dollars' or some such redefinition, but the loss of faith in the dollar is still there, even if somewhat mitigated. This kind of thing has happened to the Real, the peso, the drachma, the Mark, the yen, the ruble, the franc, and the yuan. The dollar is NOT immune.

Restoring faith in a fiat currency is not easy nor quick. It takes time. A long time.

The dollar is already nearing this crisis. People are already looking around for another currency. As soon as one is accepted, general acceptance will occur almost overnight, creating a major crisis for any government using fiat currency. Governments fail this way. At the very least, they are forced to dissolve many government programs and services.
Anyone dependent on welfare from government are especially hit hard during such times. Today, in America, that welfare extends into public education, agricultural welfare, social security and medicare/medicaid, welfare to homeless and drug users, and of course all the criminals depending on scamming various welfare programs.

In other words, when it happens, it ain't gonna be pretty.

faith should not be restored in fiat currency.

it's always totalitarianism.

quit sucking banker dick and choose humanity over genociders, dickhole.