How long will our dollar be considered valuable to other nations?

Question

When countries realize that the dollar has no backing, what will we do?

"Our whole economic system depends on continuing the current monetary arrangement, which means recycling the dollar is crucial. Currently, we borrow over $700 billion every year from our gracious benefactors, who work hard and take our paper for their goods. Then we borrow all the money we need to secure the empire (DOD budget $450 billion) plus more. The military might we enjoy becomes the “backing” of our currency. There are no other countries that can challenge our military superiority, and therefore they have little choice but to accept the dollars we declare are today’s “gold.” This is why countries that challenge the system – like Iraq, Iran and Venezuela – become targets of our plans for regime change."

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Iran have already decided they will not accept the dollar any longer and now only accept Euros

Answer 1

Very hard to estimate a time limit on the demise of the dollar. For years Japan & the U.S. have had some kind of agreement where they will buy U.S. issued debt.



I think it's a major political problem, that only one candidate dares to discuss.



Yes, it's Ron Paul, who has written several books on economics, and is a member of the house finance committee.



In the meantime I would recommened buying physical Gold......because just in case the value of the dollar takes a further nose-dive Gold will become more valuable in most other currencies.



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Answer 2

It is not the backing of the dollar that made it the money used as a common monetary unit.



The big deal is when business' in two countries make a deal. They must pay this money using an exchange rate and a medium to finish the exchange. It used to be the federal reserve--the US. We were the fastest at getting the funds from one form of currency to the next.



The Patriot Act changed this. It now takes longer for our bank to exchange the money as we look for evidence of terrorist activity. It has nothing to do with the foundation of our dollar.



Iraq, Iran, and Venezuela didn't challenge our dollar, Iraq invaded Kuwait, Iran is sought by the UN--we aren't really doing anything to them, and we buy the hell out of Venezuela's oil.

Answer 3

I like to think that realistically the backing of the U.S. dollar is actually the tip of our military spear. Looking back in history, what we can't buy we usually take shortly there after, (Oil too..) And as far as "deficit spending" it isn't something we need to worry about for the same reason. The U.S. literally puts its DOD as collateral for that big budget. As long as the military doesn't fail, the credit line will be bottomless.

And besides that, the U.S. dollar is actually stock in the United States itself, and a very wise person once told me that the "U.S. is the last business in the world that would fail" and he's right.

So by trading U.S. dollars, you are actually investing in America. Investing in the government, the people and the land. It's not a bad investment if you ask me.

All in all, the dollar won't go anywhere for a very long time. Iran is simply not accepting U.S. dollars as political propaganda, don't worry about that.

Answer 4

With the debt load that we, as a nation, are carrying, very soon we will be unable to make our interest payments let alone pay off the holders of our treasury bonds when they mature.



Our country has a debt load that cannot be satisfied by current tax revenues, even if our current debt level stays where it is now. Which is never going to happen. Every government program is paid for with money we don't have. This has been the case for a long time and as all those who live beyond their means know, we will eventually have to face the fact that we are a bankrupt nation.

Here is a government website that will give you information on our "Public" Debt. Right now it is at over $29,000.00 per citizen.



http://www.treasurydirect.gov/NP/BPDLogin?application=np



No one will be willing to buy our worthless bonds and those that are holding them will be lucky to get 50 % of what they paid for them. The impact of the drop in the dollars value will be felt around the world, and will have a negative effect on every major economy. China will be the one most effected by the dollars demise, as their government has subsidized our economy to keep us buying their products. This could kill their industrial revolution before it has the chance to develope completely.



My advice to every american is to invest all that you can in precious metals and foreign currency. Don't let the false over valuation of our stock market or our currency fool you.

Answer 5

I think you have to live in Italy for 10 years, or marry an Italian or prove you have Italian relatives (but not further than granparents I guess).



Check the Italian Embassy website for the US.



By the way moving to Italy wouldnt be that bright idea since nowadays we are turning more and more into a country where highly qualified and educated people do have very little paid jobs.

Answer 6

Don't worry, all the world know that the US has no backings... Actually, only 2 countries in the world can back their money value... Germany and Japan... How odd is this?

As for Iran, this is only political... China has 1.3trillion in Us treasury, what do you think they will do with it, ask a refund? If they do so, they kill their own economy...

Answer 7

We have some time to fix things, but we need to get started soon. It is in everyone's best interest to buy good assest's that you can hold thru tough times. Like land, gold, silver and many more. Even if our dollar crashes we have value in this country and we can rebuild the system, hopefully in a much smarter way. So you should think of preparing yourself if you are worried it will happen soon.

Answer 8

i think u have some very good points. our military is superior but i dont think for long. because in 10 to 15 years china will be world super power economically and considering military power. they are spending 50 % more money on their mililitary then they did 5 years ago. their might be another cold war against china. but hey u know people who even know about this dont pay much attention or dont do any think to make this country better until they realize that we are not the super power like after 20 yrs from now then they might try to do something but i dont think that will help then. i dont even think we are super power right now if we were we would have had the guts to stop iran from building up their nuclear weapons. i think the U.S is scared or something from iran because they have been trying to shut downt the nuclear plant for 1 and half years now but nothing happened. i think diplomacy is a good thing. but not this much diplomacy, U.S should bomb the nuclear plant because these sanctions and diplomacy crap is not working. and if we really were superpower the U.S would have done that

Answer 9

It won't be to long before the world says goodbye to dollars. It will be between the Euro, Chinese money, and Arab currency. All those places are on a huge upswing and gainging political clout. Haven't figured out who will win but the US will be the losers.

Answer 10

At this point in time the U.S. is owned by China. We have borrowed trillions from them. The U.S. dollar is not the currency anymore. It has turned into the euro.

Answer 11

The dollar has as much backing as any other currency. It's been an amazingly stable currency for a very long time, it will continue to be valuable.



And these people aren't "gracious benefactors" by any stretch of the imagination. They're investors who get a nice return on their loans and dollar purchases.

Answer 12

nicely, technically.... the actual tale grew to become right into a conspiracy concept. the form grew to become into conspired no depend what. yet, the administrative.s concept is that Al-Qeada did it. this is in basic terms a concept by way of fact even the FBI claims to no longer have sufficient information to make a conviction. i ask your self how they more advantageous this concept (which grew to become into released on 9/12/01) without the earnings of an analyze. in actuality, the actual analyze did no longer even initiate until eleven/02; AFTER the finished crime scene grew to become into wiped sparkling up and shipped off in a boat to China. are you able to think of? whilst grew to become into the final time any actual organization wiped sparkling up the crime scene ahead of their analyze? and located a to blame social gathering the day after the crime? IF this would not ring absurd to you, then you definitely might have fallen sufferer to the corporate/government-owned mainstream media propaganda.

Answer 13

The Canadian dollar is just about there now.

Answer 14

Not very long as soon as OPEC changes to the EURO...

Answer 15

Always.

(Don't pay any attention to propaganda.)



It's our schools' fault, but you are very gullible.



Economically, China will not surpass us for Generations, UNLESS they become even more Capitalistic, OR the Democrats turn us into a Socialist/Communist Nation.

Either could happen in a few years.