How much longer will our present fiat currency last?

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   Ross Harrisonposted 13 years ago

   How much longer will our present fiat currency last?
   
   I am reading Rich Dad's Guide to Investing in gold and silver, by Mikchael Maloney.  In the book he describes the history of fiat currencies and how they always fail at the expense of man's unshakeable conviction and trust in the value of gold. 
   With the world as it is now, I just wondered how many other people have thought about this same question.

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   Brie Hoffmanposted 13 years ago

   Boy, if you knew the answer to that you'd be a rich man/woman!  I thought it would crash last year.  I wait each and every day to see when it will happen.

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   humagaiaposted 13 years ago

   I don't know how long it will last but what I do know is that the more fiat money that is generated in the economy the closer it gets to an economic failure. If history tells us anything it is that pumping un-backed paper money into the economy leads to hyperinflation and eventual collapse.

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   Article Magickposted 13 years ago

   Good question... I must admit, investing is something I've had little exposure to but out of interest I have followed the price of gold and silver and other commodities in recent months with added interest but little to lose or gain from it all... a bit like the guy who watches his kids playing monopoly but doesn't want to throw the dice!
   One thing I think I have gathered from it all is that people make decisions based on fear or greed and not on logic and as the situation around us is likely to get worse before it gets better I would imagine a lot of people will make a lot of hasty decisions they may well regret further down the line..

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   Elizabeth Guinooposted 13 years ago

   Been thinking about it. Following Mike Dillard's Elevation group where he talked about gold and silver.

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   Ross Harrisonposted 13 years ago

   I wish I had read the book a couple of years ago, I would have started buying Gold and Silver already.  Still, no time like the present.
   
   All the pointers are that it will collapse very soon, and it is really a matter of utmost urgency, it actually makes me feel a little uneasy thinking about it.  However, I think no amount of intervention is going to prevent it happening and so we must all act now.
   
   We have been magicking money into existence for too long now, that it has literally turned into monopoly money, and the thing with monopoly money is that we all know it is worthless, hence the lack of faith in the fiat currency.

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   Old Empresarioposted 13 years ago

   How much longer? Probably about a decade before that fourth horseman of the economic apocalypse swings his scythe and inflates the dollar. Hopefully it inflates to the 60% mark suddenly as opposed to gradually over many years. Otherwise, no one will notice.

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   Mavis Nongposted 13 years ago

   Great question... I wish I knew the answer... People are panicking at the moment and some make bad decisions. The situation is going to get worse before it gets better

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   My Esotericposted 13 years ago

   Darn, my answer was too long and HP wanted me to create a hub, so I did.  Anyway, this is the first and last part.
   
   I had done some reading on this but went back for some quick refresher.  I don't think anybody is advocating going back in time when trade was done in the actual metal; that, I believe, would be a physical impossibility.  So, what the proposal is, is to go back to the Austrian school of thought which is the gold standard.
   
   [In a nutshell, I said - Tagging the dollar to gold didn't work and it won't again.  Also, the price of gold fluctuates with good times and bad times.]
   
   So, what will happen to the price of gold when the world economy stabilizes and things improve again?  It will plummet as it has always done once people feel somewhat safe again.  So, long story not so short, I don't suspect fiat currency to ever disappear.

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    arizonataylorposted 13 years ago

    I firmly belive it's tied to overspending.  Our money used to be tied to the value of gold and silver.  Now it's tied to our belief in the dollar.  With spending as high as it is, many wonder if we can continue like this.  When we spend less and become financially responsible, the value of the dollar will increase.

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    FrugalandFabposted 12 years ago

    Not long. As you are well aware the writing is on the wall. Gold and silver is climbing. Greece is currently in the process of doing the dead goldfish routine...again...which in turn is going to take a toll on/crumble the euro. Anyone who truly thinks we are not already under a one world currency system clearly has no clue what fiat currency is. Call it a dollar, call it a pound, heck call it foofoo cuddly poops it's still all fiat currency and it's doomed to failure as it has, time, and time, and time again. What’s truly frightening is the fact that in the course of fiat currency's repeated failures it was merely the one country involved at the time (Athens, Rome, Holland, etc...) this time the entire global economy is in on it. We are headed for a worldwide economic correction the likes of which the world has never known and the end game has already begun. True story.

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