Will October 1St Be The End Of The US Dollar??

paoli2 | Aug 23, 2016 | 2,641 posts since 2011

"October 1st may prove to be the beginning of the end for the U.S. dollar. On October 1, the IMF will officially add China’s currency – the Yuan – into the IMF’s foreign exchange basket."

Ok, So who on DA knows more about this than me? Everyone probably!! Have I been in a coma? I know these articles come mostly from sites trying to sell us precious metals but is there any truth to the October 1st and the Yuan? If that is going to happen, shouldn't we take this seriously? So other than hoard precious metals which another site claims the government will confiscate from us, how are normal humans who only have "dollars" going to exist? This could cause horrible chaos in the streets worse than the Big Depression. Sooooo what I need to know is, is there any truth to the October 1st date? I need some peace of mine about this and I don't have time to spend days "googling" info that may be misinforming me. So once again I go to the horse's mouth or whatever the saying is and hope some informative DA member or members who are "in the knowledge loop" will direct me where to go to find the truth about this latest scare. (I need to quit with the internet and go back to reading Daffy Duck comics!! ) Thanks for any info you can provide.

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Answers

CapitalClimate | Aug 23, 2016 | 143 posts since 2011

Could we please avoid internet conspiracy theories here?

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paoli2 | Aug 23, 2016 | 2,641 posts since 2011

Could you please find a way to keep all those others from posting their so called "conspiracy" theories on the internet? BTW, how can you be so certain all of these are just "theories" and can't possibly happen. Don't you watch the world news and pay attention to problems other nations are having? It can be pretty scary and the US has been very fortunate to still be able to function financially but we are just skirting the edge of real problems if we don't change soon. With that, I will leave you and my "concerns" to learn more for myself and come to my own opinions of these "theories".

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Ally6770 | Aug 24, 2016 | 4,292 posts since 2010

I think if you look at the link to these articles that you read you are finding them on other pages of articles that you are reading. These links are from paid advertisers that are trying to get to sign up for their newsletters and to get your money.
Many people sell this space for additional income.

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paoli2 | Aug 24, 2016 | 2,641 posts since 2011

I googled the title and there were other articles on this topic. Can they all be just to scare us to get money out of us? How do we know what to believe anymore? Thanks.

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topkapi56 | Aug 25, 2016 | 48 posts since 2011

Capital, unfortunately there are conspiracy theories because there are always going to be gullible people willing to believe them. It is much like all the spam emails we have to deal with. There would be no spam emails if there were not some people willing to believe them and click on them. The people with the tinfoil hats make life a bit less convenient for everyone else, but I have yet to see a way to stop them from being gullible. People believe what they want to believe.

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Frank Walker | Aug 27, 2016 | 83 posts since 2016

I take your inquiry seriously. I have read any number of your posts here on this website. You appear to me a prudent individual. So I must ask you, for the sake of this response of mine, to pretend you are less than prudent when it comes to money management. Pretend, please, you have outsized wants and desires but with insufficient personal wealth to finance your "must haves". Now pretend you are handed a very special kind of credit card. You can use it to buy whatever you want . . . and you are not required to pay off your balance. You are required to pay interest on your magical credit card . . . but you are allowed to borrow more on that same credit card to enable payment of interest charged.

I think you might agree with such a magical credit card as that you would be sitting pretty. You would be dripping with (apparent) prosperity. Queens would envy you.

What could possibly go wrong with such a sweet arrangement? Well, you already know. If the magic evaporated for whatever reason, and if you were asked one day to pay off your gargantuan balance, difficulty, discomfort, and unhappiness likely would ensue. If principal repayment were demanded all at once you would go out with a bang. If principal repayment were demanded over a period of time, you would go down with a whimper. But you would go down either way.

Americans prefer to blame their politicians for our uncontrolled spending. But we elect political leaders who facilitate our own irresponsibility. America's magical credit card is $20T in arrears currently. But that pales when contrasted with well over $100T in completely unfunded future hard obligations. Our US dollar is no better than our own United States of America. And America right now, while superficially healthy and thriving, is simply bankrupt. The apparent prosperity we see all about us today exists only because we continue to have, and to use, a magical credit card. Take that credit card away, stop the borrowing and spending, and believe me things in America would change DRASTICALLY!

So how will it end? Will we go down with a bang, or slowly with a whimper? I believe the latter. And the measure to which your post makes reference is but one of many, many small cracks in our present "magical" situation which will multiply and grow in size over a really long period of time. I can offer this final thought:

There is no such thing as a free lunch. And there never has been. Eventually the piper must, and will, be paid. There are no exceptions.

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paoli2 | Aug 27, 2016 | 2,641 posts since 2011

Mr. Walker: I totally agree with your post and that is why I am so concerned. Until we get leaders to take control of the deficit in Washington and Americans take control of their "need" to overspend, your piper will be paid. I have always lived "below" my means but unfortunately most Americans I know prefer not to follow my example. I think it is sad that what could have been such a great country as America will have to pay the piper one day and be destroyed. If this makes me a pessimist, so be it, but the signs are glaring at us and those that refuse to see them will be forced to see them "if" we don't get leaders who will help us get things under financial control, "if" it is already not too late. Thanks for your reply and your thoughtful insight into this problem. At least you are the rare one who will actually admit there is a problem. Have a good day.

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paoli2 | Aug 23, 2016 | 2,641 posts since 2011

Ok. I just drank an entire 3 oz. glass of coke (the cola) took 2 tylenols and googled up some peace of mind. This guy gives good reasons we don't have to burn the dollars "yet" imo. I feel better after reading his report and I don't think he was selling anything that I wanted. If you have reasons to believe he is wrong, don't let me know! Thanks!

http://economyandmarkets.com/markets/currencies/will-imf-yuan-destroy-dollar-october/

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paoli2 | Aug 25, 2016 | 2,641 posts since 2011

topkapi56, a person doesn't have to be gullible just to be looking for validation for what they are reading. If they were truly as gullible as you believe, they would not be looking for validation but just believe anything they read or hear. You are also wrong about your theory about spam emails. Clicking and clearing them off doesn't mean one believes in them. I clear off hundreds everyday without ever opening them yet they still appear daily. Maybe the people with your tinfoil hats are not how you think they are.

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