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Message: It would seem likely...

I am wondering about what everyone here thinks about the USA being 18 trillion dollars in debt..

unsustainable

and what would that do to the economy should the dollar someday very soon bust.

why would the dollar bust if the USA can't pay its debts? it would be the US government that goes bust, not the dollar.

suppose that the government announced that it could no longer pay it's debt. suppose that it reduced (for example) everyone's social security payment by half. that would mean that dollars would be harder to come by in the economy. wouldn't that mean that their value would go up?

My question is, if the dollar busts, what would happen to our ZEN stock and how would we be paid?

ZEN would be like every other resource stock. The stock would represent value, the same as it always has. Even if a currency becomes worthless, a stock does not. If the US dollar became worthless, i would demand payment in francs or something else or i wouldn't sell it. The stock exchanges would likely not sell stocks in a worthless currency and would adopt a more viable one. The value of ZEN wouldn't change because a currency changes value. There would have to be other factors to change the value of ZEN.


Im not the only one that thinks this way because there is a lot of information out there from experts saying that the American dollar cannot continue in the way its going...thoughts anyone?

most people don't have a clue how a currency works. there are many misconceptions out there.

the dollar won't lose much value because of what the banks are presently doing. i disapprove of what they are doing though, like targetting interest rates, QE, bailouts and all the rest. it's true that those things do damage, but not near the damage that is being done to the economy by raising taxes and increasing burdensome regulations. also government spending is a huge misallocation of resources, which again is damaging to the economy.

an economy reflects the efficiency of its labor and it is the efficiency of labor that sets the value of the dollar. all the things above hurt the effiency of labor, and therefore hurt the value of our dollar.

there will be tremendous upheaval ahead. but owning a good stock like ZEN should be a very good way to preserve the value of the wealth you have.

i hope this answers your question.

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