So because the $ collapses, you're anticipating that resources disappear into thin air? Food just vanishes? Energy just dissipates?
There is no inherent destruction of resources when currency is destroyed. The destruction comes in inefficient market place activity due to lack of some sort of trade standard. Sadly, there is already massive amounts of inefficiency even with the $...so much so that it makes sense to stay at home and let the government pay for food rather than work. There is plenty of reason to think that new trade standards would emerge rapidly, especially with the existence of localized governments who would likely step in to right the ship.
I'm sure there will be raiding, I'm sure there will be riots, but these things will likely not be prolonged in as much as it is advantageous for all parties involved to reestablish order. The U.S. on the whole is not nearly populated enough for order to be evasive. Places like NYC and Philadelphia will be totally ****ed, but they are the exception due to their high amount of density and relative distance to staple goods.
The dollar doesn't collapse before these things happen. A collapse is the result of these things already having happened. The tipping point has already been reached (Welfare). A major change would need to take place in current valuations of markets in order to correct the relationship between the $ and the American Economy. For instance: Too damn much money goes to a select few pro athletes. Americans invest hundreds of billions of $s into this market and while there exists some great overall production, too much of the money spent in this market is going to too few people for the market to work efficiently. It causes destruction, misuse, and misappropriation of resources such that those resources are less accessible to other markets. It constricts the ability for other under-utilized markets to expand.If the dollar collapses, it doesn't buy what it did yesterday. If it doesn't buy what it did yesterday, why do people continue to work for less money? The tipping point I'm talking about is when people begin to not go to their jobs b/c there are more effective ways to provide food for the family. When that happens, goods aren't going to market anymore. The panic created by people seeing that coming makes the problem worse.
The question is can we correct the inefficient valuations quick enough to save the $ or are we trying to fight an unwinnable, uphill battle by sticking to the $ in the short run?
Last edited by Teo9969; 01-29-2013 at 05:25 PM.
I think what the original video was really talking about was the separation of the government and the economy which is probably needed more than anything. Government is incompetent at controlling things that big. And always will be.