Since 1944, the U.S. dollar has been the world's reserve currency, the foundation behind all other currencies. But as the U.S. continues to spend vast sums it doesn't have, the value of its money is steadily declining.
For example, until 1964, a U.S. quarter of a dollar was 90% silver and 10% copper and felt solid to the touch. But that mix began to change. Today, U.S. a quarter of a dollar is 91.67% copper and 8.33% nickel and it feels tinny and cheap and weighs practically nothing.
It's one thing to be able to print paper money and claim it is worth what a nation says it is. But coins are minted from precious metals that trade on world markets. The metals that comprise those coins in a country whose currency is going down, will become the cheapest metals possible.
All the signs of a financial fall are there. The U.S. has unsustainable debts and deficits which continue to mount, a grid-locked government and out of control spending, complete with tax breaks rather than tax hikes, and all of its shortfall spiraling on to the national credit card.
Something has to give and unless you and I as Americans raise our voices in unity, one of the things that will give is the value of our money, a process that has already begun.
Dick
1 comment:
Agreed that the US is having to deal with the falling value of its own currency while the cheap metals they're made of are increasing in comparison. Sad day indeed!
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