World War 3?

It really worked well in 2008...and I am speaking from a definition standpoint. In 1944, there was the Bretton-Wood agreement. This was to establish monetary order. They established the IMF and the World Bank in the subsequent years. The U.S., at the time, controlled much of the world's gold. So, it became that the U.S. dollar was as good as gold and foreign banks backed their loans with U.S. dollars not gold.

Then once Vietnam started, we started hemorrhaging money. Other countries saw this and wanted the real commodity back; they flooded the U.S. by sending U.S. dollars in exchange for gold.

This lead President Nixon to cancel of the direct convertibility of the United States dollar to gold, known as the Nixon Shock.

Ever since then, we have lived in a Fiat currency society; that is, something inherently worthless made into legal currency based upon governmental decree.

So, no we have not had a Fiat currency for the past 100 years (also included in that time frame would be the great depression)

2008 didn't turn into 1929 did it?
Here's the real, (inflation-adjusted), GDP per capita for the US since 1980. Looks like a pretty good indication of a country with a constantly expanding economy-which is why our fiat economy is doing fine and is in no danger of collapsing. Contrary to the SHTF bunch.



Why are you listening to the junk the Russians push online?

Why do you keep talking about Russians when all my sources have been CNN, or the Wall Street Journal, or the Washington Post, if they are Russian sources then I think we might be screwed.

Also, GDP may be on the rise, but so is the cost of living - just saying.

You really need to start from the beginning with economics. My quote was:

If you have difficulty understanding that inflation-adjusted figures take into account the cost of living, then you probably shouldn't be listening to people tell you how everything is going to go crash any moment now and how you need to buy gold. Frankly, you look to me like you are a True Believer already in the SHTF school of thought, and are not really receptive to any answers to your questions outside of the Armageddon school of economics.

If you really think you want to buy land and property because the economic system is going to collapse, then go right ahead. Just curious, what YouTube video made you think so?

So, now I've switched from a Russian supporter to an Armageddon believer. I actually don't get my news from youtube.

I wanted to learn about money and so I did some research and learned about the Bretton-Wood Agreement, IMF, the World Bank and ultimately the Nixon Shock and the rise of the Fiat dollar.

Then I learned about Henry Kissingers arragement with the Saudi Arabians in 1973 to only trade in U.S. dollars.

Then I read an article by them communist at CNN:

http://money.cnn.com/2016/06/30/news/economy/china-us-war-by-other-means/

Which is talking about the current economic warfare going on between the U.S. and the rest of the world.

Then I learned that they had established in January of this year the AIIB which we lobbied very much for our allies not to join, yet Britain, Australia and recently even Canada have (along with 54 other countries).

Then I learned that the Chinese Yuan is going into world reserve currency on October 1st, 2016 and will make up 10.92% of it (also they will be the only world reserve currency that is not a nation we are allies with).

And then I got interested. I don't know what will or won't happen, but has the stock market not collapsed before?

It could very well again, and if it does I would like to be prepared.

Well, Breton Woods happened a long time ago and Nixon took us completely off the gold standard in 1971, and we've had mostly prosperity since then. Izzy pointed out that while oil is priced according to dollars, they will accept other money besides dollars to pay for it. However, claiming that oil must be bought in dollars is a favorite debating tactic of those who want to somehow prove that the acceptance of the yuan as a reserve currency will suddenly bankrupt the US, an idea for which there is no historical or even theoretical support. Fact is, over 80% of the international deals are done in dollars, since most countries are used to dealing with them, (since they all trade with the US), and to do so eliminates the necessity of having two variable currencies in any international deal. It makes sense to use dollars, that's why most countries use them for international deals voluntarily,with no pressure put on them at all. So one more IMF endorsed world reserve currency is not going to change anything.

But you can suit yourself and buy land if you want. Plenty of other people made money that way.

I've not called you either, but you do spend a lot of time worrying about things that most people aren't concerned about. Either you have some incredible insight or your priorities are all screwed up.

I'm not going to say which.