Question by NOLA Girl in Texas: What single event will cause the dollar to free fall? What can be done to avoid a devalued dollar?
There has been a lot of talk about the falling dollar these days. I have researched and found very little info on the sinking dollar. Has the dollar already lost its world status? Many countries have increased the amount of euros in their portfolios . Will a sinking dollar have an effect on the Euro? Was Richard Nixon wrong to change the backing of the dollar from gold standard to Federal Reserve. Why is Ron Paul the only presidential candidate talking about changing the dollar back to being backed by gold ? What can the average person do about this?
Best answer:
Answer by is it 5 yet?
Has the dollar lost “world status”? No, but it’s status has diminished as the Euro has become a strong competitor.
Will a sinking dollar have an effect on the euro? Yes, well, sort of. In order for the dollar to sink, it has to sink relative to something. The euro is one of the primary currencies the dollar is “sinking” relative to.
Was Nixon wrong to change the dollar to fiat? No, I don’t think so, but Ron Paul disagrees. I can’t think of any country that backs thier currency with gold today, can you?
Why is Ron Paul the only talking about putting the dollar back on a gold standard? The rest of them are not as crazy. How much gold would it take to do this? What would it acomplish, besides making the price of gold increase and gold companies rich (which Ron Paul is an investor in).
What can the average person do? Buy American products, don’t default on your mortgage, pay down your debt, and save a little money in dollar demoninated assets.
Know better? Leave your own answer in the comments!
