So what will happen if the US. dollar?

Question

falls to 5 cents in value, or even 0. Will the government issue a new currency, like they did in England or Argentina, last century?

Answer 1

I don't think the government will let things get out of hand. As things look bleak, steps are now being undertaken to improve the economy.

Instead of worrying if the dollar will go down, why not profit from it? A number of people are making money trading foreign exchange. To learn more about our low risk managed forex program, go to http://jsforex.blogspot.com

Answer 2

If the dollar ever fell that far you might be right.

I wouldn't worry about that though.

I would invest in PRPFX mutual fund.

Answer 3

you are thinking pessimistic

It is imposibility.

Answer 4

Well, for one positive -

Lower valued currency means our goods are cheaper compared to others and we will begin to export more, which will raise it slightly.

Answer 5

Real quick answer to the poster about the dope in office.

Hold onto your seats, because it looks like a democrat might be the next president.  You know the democratic party.

1.  That won't allow us to drill for our own oil.

2.  The democratic tree huggers that proposed ethanol, which is turning every farmer to grow corn.  So we are importing more rice and other "foods" from China.  You know the country that puts lead in all the toys?

3.  The democratic party that recently wanted to pass a bill, but left out 32 important pages of a document.  But, just wanted the president to sign it anyways.

4.  You know the democratic party that allowed Enron, and other book cooking schemes drive up share prices of Poo-poo companies.

The list goes on and on.

One thing to keep in mind about the U.S. dollar is that it would never get to that point.  There are other things congress can do to pump value into the dollar.  Whether it be trade on gold or what not.

And if it does drop that far.  Then I suggest buying some great firearms, and canned soup.  Cause all heck is going to break loose.

:P

Answer 6

It's not possible for a dollar to be worth 5 cents. A dollar is worth a dollar and 5 Cents is worth 5 Cents.

You can only make comparisons to something that's not a dollar, like Euros or Pounds or gold.

But issuing new currency would have no effect.

What would happen is dollars become severely debased is simply that we would have astronomical inflation and become poor. Let's say your salary stays the same but a loaf of bread costs 9 dollars and gas 10 dollars a gallon. Of course in England and Europe gas is already the equivalent of 10 dollars a gallon.

Answer 7

No matter which dope gets into office, if our government doesn't stop spending money like a drunken sailor, the dollar won't be worth toilet paper.

The dollar is already worth less than 4 cents, in 1933 dollars.

You are too young to remember,but once upon a time, the dollar was backed by gold, $35US per troy ounce.  Looked up the price of gold lately?   Spot price is $902US/oz.  You figure it out.  As this post ages, you can watch the price of gold (an inverse measure of the dollar's worth) go up:

http://www.kitco.com/

Answer 8

Puh-lease.   It's not as if the dollar is worthless.  It's going through a rough time for sure though.  Nevertheless, the US economy is still gigantic.  

When the dope running the US finally leaves office, the dollar will bounce back.  It has more competition now for sure, but it will bounce back.