Homeschoolers/Educators/Parents: (Skills: identify, comprehend, analyze, opinion, creativity) Sketch/color an illustration. Read one story from any of our books (Amazon.com: Learning to Read: American History, Kindle Store) and write an analysis of what you read. It can be a few sentences or longer. Your student can print, type or write the report out. Include (Story/Article Name, ABCD Homeschool, Instructor Name, Your Student Name):
- Main Idea
- Three important facts or examples
- Subjected evaluation of the story/article – What did you learn? What was one strength or weakness?
- Your opinion
Below is a sample analysis:
Could The U.S. Dollar Collapse? March 29, 2023
- Briefly state the main idea – The main idea is that the U.S. dollar cannot collapse.
- List three important facts or examples that the author uses to support the main idea. The author (Jason Mountford, Forbes Staff) defines possible independent variables to induce a collapse. He does not provide a reasonable explanation as to why or why not it could occur.
- Mountford states that political instability as a catalyst will not likely happen in the United States. 2. The author believes that hyperinflation similar to what happened in Zimbabwe in the early 2,000’s will not occur in the United States. 3. The author believes that the high United States debt ($33,728,009,000,900 as of 11/19/2023 U.S. Debt Clock) is not a relative factor in the collapse of the U.S. dollar. 4. The author believes because the United States has been, in the past and currently is, the world’s reserve currency that it is insulated from any type of future monetary collapse.
- Subjected evaluation of the article. What did you learn from this article? In your opinion, what are the strengths and weaknesses of the article? 1. I already knew that Forbes is an American business magazine, and its editor-in-chief is Steve Forbes. I learned that it was founded by B.C. Forbes in 1917 and owned by the Hong Kong based investment group called Integrated Whale Media investments since 2014. It is based in Jersey City, New Jersey. One of the strengths of the article is that it defines a few of the known variables that could induce a dollar collapse. However, by definition that only suggests a minor factor of authority, not necessarily reliability. This article suggests a weak overview of possible events which in turn puts the ownership of individual investment as a responsibility on the investor. One possible strength of this article might be found in the financial advice for investors to diversify in order to protect their portfolio. (We know that advice is not necessarily sound anymore.) However, at this moment I have seen retirees and other investors lose money from year to year, these past five years. In fact, one person might say, “I only lost 5% in my diversified investments this year.” Or someone else might say, “I put my money in 1-year CD’s and got 5% back.” However, both might realize the inflation rate for the past year was at least 8%, so neither of them is really happy.
One of the weaknesses of this article is the statement that hyperinflation cannot occur in the United States. It appears the author of this article is stating a scenario with definitions and likelihood to establish their authoritative stance, with an invitation to invest in their company to protect one’s money. If all things remain constant, (and we know is not too likely, then the answer is no,) than hyperinflation will not occur in the United States. However, can or will droughts occur? Do internal droughts affect the crop growing of farmers in or outside of the United States? How will the agricultural supply curve affect the demand curve? Will the lower supply curve affect the monetary policy? In the past, economic statistics such as gross domestic product (GDP), the rate of inflation, and industry and sector-specific growth rates influence monetary policy strategy. For instance, a central bank may revise the interest rates it charges to loan money to the nation’s banks. Then those banks revise the interest rates it charges consumers. So, yes, with that reasoning, the U.S. dollar can systematically collapse, even if just a little bit at a time. By collapse, I’m talking about the value of the dollar as it is valued internally, within the United States. This has been happening for many decades relative to the value of gold, even though President Nixon took us off the gold standard in 1971.
You probably remember the international monetary system after WWII was called the Bretton Woods system. The countries agreed to keep their currencies fixed (but adjustable in exceptional situations) to the dollar, and the dollar was fixed to gold. U.S. dollars were convertible to gold at a fixed exchange rate of $35 an ounce. The United States had the responsibility of keeping the dollar price of gold fixed and had to adjust the supply of dollars to maintain confidence in future gold convertibility. In 1971, when the government no longer exchanged dollars for gold, the international monetary system turned into a fiat one. This system was thought to be the cure for inflation, but inflation returned more vigorously. In fact, what do we now have that proves the dollar bill is actually worth one dollar in terms of buying power? Is it commodities, gold, silver, skills, or faith in the system? Possibly it is the faith of the people in the Ponzi scheme of printing more money on the ink presses of the Bureau of Engraving and Printing (BEP) which are then delivered to the Federal Reserve System.
I would venture to say that the United States is still divided politically—with a segment of the population believing that the last election was stolen by the current president. In 2021, the dollar dropped more than 12% against a basket of other major currencies from what appears to be this internal turmoil. I predict easy street until the next federal election; then a possible current presidential win; coupled with a slow and eventual changeover to a one world currency. Hopefully, this scenario does not occur. This is dangerous policy as we (U.S.) would lose our flexibility to adapt to times of economic stress. In 2022 with the Covid-19 crisis in the United States, inflation rose to the highest level in 40 years. The Federal Reserve was able to raise interest rates and tighten the money supply to put downward pressure on inflation. Why lose this tool to protect our internal economy?
What is happening to capitalism in America? Why the attacks in some economics books on the free enterprise system? Yes, and in my humble opinion, I believe definitely, that the U.S. dollar can indeed collapse, and it is partially due to a scapegoat attitude with capitalism as the supposed culprit. In addition, one might ask, “What happened to the conversations where families discuss daily events?”
Finally, the coalition of BRICS could lead to at least a partial collapse of the U.S. dollar. The original alliance of Brazil, Russia, India, China, and South Africa in 2009 grew with the addition of new members of Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates. The focus of this group is to oust the U.S. dollar as the dominant global current and end its use as the preferred payment for the global trading of oil. Never, say never. While involvement in foreign wars and our international assistance help prop up the U.S. dollar, it faces stiff competition to keep its stance as the leading world economy. Along with others, I appreciate and support the U.S. Constitution and the economic freedoms we as citizens enjoy each and every day. There are still more than a few patriots around. Nonetheless, I will fight for freedom by the pen, voice, and associations that will lead the current and next generation into greater innovations and peaceful neighborhoods.