Multiple Currency Collapses?

[junebug0000]

Many people have heard about the dollar collapsing. I am an American citizen living in Europe and many people here are either thinking the Euro will be fine or hoping/ thinking the EU and its currency will collapse. In the country I am in, people say they were better off before the EU because the pay is about the same, but the price of all goods has significantly risen as a direct result of this. They are even talking about re-adopting the gold standard here again.

What are people's thoughts on this?

[rsol]

"currency will collapse" a currency is only what its worth in regard to its availability, its use and how others are doing. Its all relative.

[junebug0000]

True, but when it is back by something that has real value, doesn't that make it stronger. Also, the more money in circulation, the less value there is, generally speaking? As far as I know, the US, EU, and China probably are some of the top issuers of currency. The US has been the leader having its currency distributed more than most others (in the past) and now the debt has exceeded the amount of actual money in circulation, so it is impossible to pay the debt off. The money system itself in the US is mainly based on confidence. If the value of the dollar were to continue to devalue, it would push goods way up and people would demand another form of payment and so forth.

After WW2 in Hungary this happened. The currency went into hyperinflation and Hungarians refused to be payed even in cash. They wanted hard goods. Even today, about 65 years later you run into prices that are like 10,000,000 HUF for a car, not isn't as bad as Zimbabwe, but then again its been many years.

[GrimlyHefty]

I think the safeguards, whether you think they are positive or negative, add a very large safety buffer to the Euro, similar to the large foreign reserves of US currency held by other nations' central banks protect the US populace from domestic price inflation.

I think it would take a much more serious economic down-turn and eventual long-tern decline of several of the major and numerous minor economies in the Eurozone and other European non-Eurozone countries. A long-term shock to the economic system that drains the resources of governments and citizens alike. Only then will breaking points be reached and talk of ANY alternative currency system even be tolerated in official circles, let alone even being considered.


Grimly

[yeti]

The Euro is already collapsing. If Spain is bailed out it will drain the entire Euro reserve.

The collapse of the American dollar is inevitable for the simple reason that the debt is too large to pay back.

[Dunamis]

Single world currency on the horizon? Will they push to make it all electronic?