Dollar value, Depression, Collapse, OH MY!

Let me start off by saying I dont know crap about economics. The reason I am starting this thread is to maybe get a better understanding of what is happening and learn something. With that said, lets begin.

There must be a million threads out there talking about the depression, dollar value decreasing, etc. Within those threads are discussions about whether or not these things are happening.

I wanted to make this thread almost like a center for all of those.

For example, in this thread, www.abovetopsecret.com...
people discuss whether or not the report of Walmart's loss in profit is a sign of the collapsing economy. I asked if we were in a recession in that thread, and people began to debate whether we are or not.

In this thread,
politics.abovetopsecret.com...
talk is about the dollar collapse. Again, people debate whether it will or won't.

My point is, with so much talk on the board, are we headed towards a prosperous economy, a recession, a depression, nothing..???????

Another question, and I will try to make this as understandable as possible since my understanding of economics is about as good as my understanding of astro physics. In today's world, is it even possible to hit a depression? Would there not be safe guards in place, strategies in place, counter measures to take, etc.?

Considering that the United States has printed more money, than they have backed by gold, we could be heading ourselves into a depression.

Just incase... I don't know what you know, so I'll just be repeating information. A dollar bill, or coin, entitles you to a percentage of gold in whatever countries national bank the bill is for. Your $20 bill, entitles you to the equivilent worth of gold. When a country prints more bills, than they have in gold, that sets them up for their currency to fall in value. When I saw this happening, I converted the majority of my savings to be banked in under the Euro. The Euro's worth rose, as the US currency began to fell. I now have a lot more money than I started with.

Anyway, the way it's going, it could set up for a depression. After WWI, Germany began printing their Mark's, in a mass quantity to pay of the French debt. Eventually, it took a basket full of marks to pay for a loaf of bread. They hit a massive depression because of this, and Hitler helped bail them out.

Actually, the way you just explained it, I understand now.
I wonder why our "economists" who are running the show would let this go on?

How do you pull yourself out of a depression. One of the scariests posts I have seen is someone said the collapse will be so bad we will become a third world country.

Ever study what Hitler did? He pulled them out of a huge depression, which is why he literally was, a great leader. In being a great leader... is also being a great deciever, which is exactly what he did. No different than Bush.


In order to get your money to be worth something, you must destroy some bills. This makes your currency have worth again, because it entitles you to a higher percentage of your countries gold. Many people are without a job, so that must be changed. Hitler was able to spend more money than they had, "defecit spending," allowing them to hire a large portion of the population to work on "public works programs." Using the labor force of Germany, schools, libraries, roads, the auto-bon(sp?), bridges, and other structures of society were built. This gave people valuable money to put back into the economy, a job, and a working society.


Eventually, taxes can pay off the over-amount of employees, and building projects.

[edit on 17-8-2006 by alpha_omega]

That is absolutely misleading. The United States does not back its currency with gold. In fact, I wager to say most countries with a GDP exceeding $1 trillion do not back their currency in gold, because I do not think the entire world's supply of gold is worth close to $1 trillion. No gold standard.

That is absolutely misleading. The United States does not back its currency with gold. In fact, I wager to say most countries with a GDP exceeding $1 trillion do not back their currency in gold, because I do not think the entire world's supply of gold is worth close to $1 trillion. No gold standard.

The US dollar is fiat money without intrinsic value, which means that it has no backing and would be entirely worthless other than for the fact that people have been persuaded to use and accept it as if it had worth.

In 1963 the words "WILL PAY TO THE BEARER ON DEMAND" were removed from all newly issued Federal Reserve notes.

In 1968, redemption of pre-1963 Federal Reserve notes for gold or silver officially ended.

The only exception to this rule is the $10,000 gold certificate of Series 1900






[edit on 8/17/2006 by pstiffy]