Many experts believe the fate of the US Dollar is sealed. And if it doesn't die and go away completely, it will likely be worth much less than it is today, and since the early 1900s, it's estimated to have already lost over 90% of it's purchasing power.
We could talk about how gold and silver are the "REAL" money, and how, back in the 1800s to early 1900s, using paper notes was simply a convenience to the citizenry, so people didn't have to lug around heavy gold and silver coins.
But the powers in government and banking have pulled the old switch-a-roo on the public. They took advantage of our grandparents and great grandparents, with the greatest sleight of hand maneuver in the history of the world - and most people today, under 50 to 60 years old, are mostly clueless.
Money today (as in Federal Reserve Notes) are not actually "real money," simply, because the dollar is not backed by any tangible asset. But, back in the good ole days, you would take your $1 Silver Certificate to the bank and exchange it for $1 in silver. Or you could exchange your $20 bill (Gold Certificate) for a $20 gold piece (just about one full ounce of gold).
The silver-and-gold-backed paper currency were simply "claim tickets," to the assets they represented. With a few deceptive changes in the monetary system, cash has gone from representing valuable metals, to currently representing debt issued by banks.
It's like having a claim ticket for your laundry. What good is the claim ticket, if the laundry was stolen? But in the case of dollars today, people still think the claim tickets are good. And they are, as long as everyone else accepts them for payments. And they are, because the government says they are legal tender.
But while a government can declare dollars to be "legal tender for all debts public and private," they are not providing a guarantee of how much they are actually worth, in terms of buying power. Although they could guarantee the value of the dollar will decline, as their stated goals to increase inflation, whether by printing or digitizing money into existence, out of thin air.
The US Dollar has held the reserve currency status since 1921, which means it's the currency mainly used for international business and transactions for things like oil. And speaking of oil, the US Dollar is also referred to as the Petro Dollar, because countries around the world are required to purchase oil, using the US Dollar.
So here's the problem.
Gold helped restrict excessive printing of US Dollars, since the dollars had to be redeemable for gold and silver. While still on the gold standard, there was some degree of printing of currency beyond the amount of gold that backed the currency. But that didn't create a problem as long as everyone didn't exchange their paper for metal all at the same time.
Without the gold standard, the banks were free to print their little lives away! So much so, they abused their privilege and authority, going far beyond any reasonable measure - printing or digitizing TRILLIONS of dollars, out of thin air. Borrowing TRILLIONS more and over-promising government hand-outs in programs and benefits that are full of incompetence, fraud, waste and corruption.
Other countries are beginning to unload their US treasuries, as they are moving to alternatives to the US dollar as the exclusive payment method for oil, thus the decline of the petro dollar, and possibly hyperinflation headed our way!
There's also this thing called the SDR. The Special Drawing Rights, which is represented by a basket of currencies, which last year added in the Chinese Yuan, diminishing the power and privilege of the US dollar, over at the IMF (International Monetary Fund).
Something, soon, is gonna break! Could be a stock market crash. Maybe a global financial reset. Countries declaring bankruptcy and restructuring. Who the hell really knows?!
So while some believe the US dollar will remain a currency, at least here in the United States, it's value could be diminished greatly, when it loses it's global reserve status, and as the petro dollar goes bye-bye.
Whether we keep the dollar or not, what comes next could be one or more of the following...
- A devalued US dollar
- Gold or Silver backed cryptocurrency
- The SDR (Special Drawing Rights)
- Federal Reserve cryptocurrency (FedCoin?)
- Government issued debit or credit cards
- New US treasury notes
- And probably other options I'm not yet aware of
I hear a lot of talk about the SDR becoming the new reserve currency. And the US dollar, and other foreign currencies, could be pegged to the SDR. BUT, what backs the SDR? From what I've read, the IMF has a bunch of gold. Are they going to back the SDR with gold... or, will they be adding gold into basket of currencies that make up the SDR?
I've got a feeling some really big things are about to happen.