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Think Richlyâ„¢ | If a currency lost 95% of it's value over 40 years, would you hold onto it? |
The US dollar has lost 95% of it's value over the period of 40 years. What would happen to your savings? |
|


Joe S
 |
This is a complex subject - as I know that you're aware from all the questions on the subject you've asked. The basic point is that unless physically holding cash has some benefit to you (such as the warmth derived from sleeping in a pile of cash or burning it), then it is a risky asset to you in terms of the goods and services you ultimately would like to trade it for.
The supply of U.S. dollars is decreed by fiat. Because control of such fiat is of immense benefit to ambitious individuals, it is foolish to suppose that people in control of the money creation mechanism will use it for anything but their personal gain. The result has been what you described - though the exact figure you noted is subjective (95% compared to what? gold, I suppose...).
I subscribe to a publication written by and for hedge fund traders and other financial quants. We are used to thinking in terms of a "risk free" asset and typically assume that asset is cash. The "risk free rate" of interest is usually assumed to be the interest that can be earned on sovereign debt.
A recent issue had an article challenging the assumption of a risk free asset. It made the case that the dollar is hardly risk free in terms of the wealth that you eventually would like to trade it. I think that it is very telling that this community of people who drive so much trading are starting to talk about this issue..... |
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John M
|
you must have n't read the book. In 1967 the dollar was worth 42 cents, take 95% of that, and hold it in your hand.
now put a chevy p/u truck that was 2000.00 then and is 40,000.00 now and tell me what a dollar is worth?
If our money fails the country fails, so what do you think it takes to hold it up? The Gov? The People? or the boarders? When you change the value of money you hve to change what has taken place to return it to it worth!
ever hear of a Union, Sunday School, Church, Morals, Fair Trade, Single Mother.
What changed is in that list of terms and what they mean today and where they came from. |
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beesting
 |
I saw this coming in 1996, & started to slowly invest in Gold.
Gold is now over $900 per ounce, & I feel GOOD about my savings.
**************************************... |
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immutablesteelflash
 |
Yes I'd hold onto it. Because it'd have nowhere to go but up. |
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Larry
 |
Did you know 98% of statistics are made up? |
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kenhallonthenet
 |
If something is not done soon, you will have no choice as the currency will be entirely electronic and transfer/transactions will be via implanted chips and at the discretion of the authorities, based on your threat profile. |
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Doctor Deth
|
some countries have had annual inflation well over that amount - if you had extra money for 40 yrs and had half a brain, you would have invested it somewhere and not left it sitting in a non-interest bearing checking account |
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dmj_369
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Hell no |
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Mr. Nubbins
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broken glass, it has already happened! no wonder no1 thinks highly of canada! |
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livinhapi
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if anyone is giving it away i am here to take it anytime...it still one of the best currency in the world. |
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tumps
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it would not be good dude, would you sell it on or hope it regains its value? |
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Anyone Know?
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Still the richest country in the world.
Thats gotta mean something.... |
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Casablanca
 |
They'd be worth less. Hell no, I wouldn't hold on to it. But that will not happen to the American dollar so don't worry about it. |
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