A Reader Responds to "Will the Dollar Crash, Yes or No"
As you pointed out, our economy will not collapse as long as everyone keeps pumping their faith into it in the form of buying treasury bonds, funding our debt, etc. However...you can't forever write checks to yourself without having anything to back it as this causes inflation which wrecks havoc with the economy.The reader explains very clearly the worst-case scenario. In fact, what she describes could very well happen, exactly as she describes.What It Means for You Because no one really knows what will happen, you need to learn as much as you can and decide for yourself. So many people want to avoid the topic because they are not interested, or they assume it is too difficult.We have already maxed out congressional debt limits and won't have enough money to pay when Americans come knocking for health care and social security payments. Even the head US economist says that we are bankrupt, and this is not even taking into account what would happen if any of our international financiers also came knocking to be paid for the debt bonds they are holding.
So when our international creditors jump ship, not because they no longer want to support the dollar but more simply just to save their own economy (several countries are getting rid of their dollar reserves in fear that they will be worthless soon), then it will be a rush to cash in (again before their reserves and notes become worthless), thereby collapsing our economy. No it wasn't in their best interest, and yes they stayed on board as long as possible, but eventually jumped because they didn't want to go down with the sinking ship. What do you think? Thanks!
That is why I created this site - to make it as easy as possible for you to understand the U.S. economy, decide for yourself what you think will happen, and take the appropriate action to safeguard your personal finances.
Tomorrow, my response.
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