What happens if the American currency is replaced?

Question

Let's say the dollar would be replaced with the Amero, as I hear every so often. (This is not an argument about whether it will happen, but what happens if.) Would my dollars in the bank be replaced with Ameros? When Ameros come out, will they be worth the exact same as dollars at their current market rate? If so, what's the point of changing currencies? What would happen to mortgages that have all the paperwork agreements in dollar amounts? Would the paper dollars I have in my mattress be worthless, or could I trade them in for Ameros at the bank?

Also, what would be the point of changing currencies? (obviously because one is weak and one is strong, but what makes the new currency stronger?)

Is there any country that has changed currencies? Where could I read about the finer points?

Answer 1

Look up Euro roll-out.

there is fixed exchange rate between new and old currency. Bank accounts are transformed automatically.

You'll have to take cash from under the mattress and to the bank. And if you have too much cash (e.g. over 10K), they might ask you to prove that you got it legally.

The point is to have same currency with neighboring countries, so you do not have to bother with exchange when going to Mexico or buying stuff from Canada online.

Answer 2

When and if that ever comes it is because the country has gone bankrupt .

Answer 3

Do an investigation into the Euro.  This currency effectively replaced most of the currencies in the European Union.  The UK holds out with the GBP (quite rightly in my view).

The USD is more likely to be replacedas world reserve currency rather than in the US by the Amero or whatever.  The US has been technically bankrupt for years now, and cannot service it's debts.  The USD is hopelessly debased as well.  The trouble with the Amero, as with the Euro, is that it would be a common currency of a number of sovereign states (US, Can, Mex) as far as I know.  This will lead to a massive financial upheaval in all of these nations, and the Amero would be devalued against stronger currencies such as the GBP,  Yen, Yuan and Euro.

The new currency is stronger because it is not as debased, and because minting is controlled.  The production of US bank-notes by the Fed Res is no longer reoprted, and this costs the American people hundreds of millions of dollars a day.  There would have to be measures in place to prevent excessive production of the new currency, and the US Gov would have massive (and costly) issues with the Fed Res because it would risk  losing power, and fight that in the courts.