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What will happen if the “Dollar Collapses” In 13 September 2015
Disclaimer: This article is opinion based with likely scenarios derived from logic based situations.
Discussion includes doomsayer fears, logical outcomes, and a good example of how currency value is subjective.
It is well known that the U.S. Federal Reserve continues to print money to pay down debts owed to countries such as China. It is also known that the Fed printed billions to “bail out” banks and create “stimulus” plans to boost the economy.
There are a lot of doomsayers on the internet and in media that say this devalues the U.S. dollar both locally and globally. Technically their claim is correct: each dollar used to be backed by actual gold; that backing was removed in the 1970s and ever since then money could basically just be printed up.
But this is where the doomsayers logic ends. Their belief is that because money’s value is only as good as the economy’s belief in it, the value can disappear because there is no gold backing the paper money. Once confidence in the dollar is lost, many doomsayers say that the U.S. economy will completely collapse.
A few popular predictions are being made across the internet and in the media by doomsayers:
vanished and now gold is the only accepted currency. The concept cited is “hyperinflation.”
When the dollar collapses we will be thrown into a state of chaos and lawlessness. Money will be burned like in Germany a few decades ago due to lost value. People will steal and commit other crimes to stay alive and with no economy there will be no one working to maintain the infrastructure.
Gold and silver will become the standard once again. Which is oddly suspicious, because when you Google anything about the dollar collapsing, you get a lot of sites trying to sell you gold and gold trading schemes.
Since other countries are trying to move the World Reserve Currency away from the U.S. dollar due to decreasing value, the U.S. will be left high and dry by the other countries.
Countries will stop lending to us and the interest on the existing loans will default.
What is likely to happen if the U.S. dollar collapses (based on something known as “logic”). Here are a few possible situations:
1.) The U.S. dollar collapses and there is a brief time of chaos. However the U.S. chief export is consumption, we consume the highest amount of resources and goods in the world. Countries that once sold to us can no longer sell if there is no money, so the dollar could in theory be propped up by another currency. Imagine a dollar backed by the yen, the Euro, or once again by gold.
2.) There are over 300 million “consumers” in the U.S. Other economies would suffer if U.S. citizens suddenly lost all of their money and their spending power. The U.S. could adopt another currency or begin consuming using multiple currencies and abandon the dollar. Financially, it makes little sense to let a huge consumer base collapse and vanish so global companies and countries that export often to us will step in.
3.) Like a repo man coming to collect his due, the countries that the U.S. government owes large amount of debt to will come in to collect their payment. Of course what happens if someone can’t pay? Things get taken away. China, a country who the U.S. owes billions to could technically lay claim to the U.S. So we would become a part of another country altogether.
As an interesting side note, some local towns in America have started to print their own currency that is traded and accepted among merchants within the town. This shows an extremely important concept in the debate of what happens if the dollar fails.
This experiment is a microcosm of the national economy and even the global economy, paper money’s primary value exists only because the economy continues to believe in its value.
Technically you could pick up an orange and claim that oranges are equivalent to what was once $100. If a lot of people also believed it, you’d be buying and selling in oranges instead of dollars.
In the end one key concept came to mind when trying to dispel the doomsday predictions: As long as you have some currency that the economy sees as having value you can continue to make and spend money. Does it matter if that currency is the U.S. dollar, a Euro, gold, or an orange?(source)
Jeff Berwick: Systematic Market Crash to Occur on September
Could a market crash occur this year, on September 13th? We are delighted to bring on a new guest to the show, Mr. Jeff Berwick. Jeff founded Stockhouse.com, which grew to a $200 million plus market cap company, before the tech bubble burst in the early 2000’s.
Jeff now resides in Acapulco, Mexico, from where he writes his financial newsletters, holds conferences and lives his laid-back, free from worry type lifestyle.
Knowing that Jeff has a large following of international investors, it was great to hear his thoughts on portfolio choices and life in general, from his home in sunny Acapulco…
Takeaways from this interview with Jeff:
● How Jeff built and sold www.Stockhouse.com, and what he experienced traveling around the world…
● Jeff’s take on freedom, and how you can live a free and prosperous life today
● Why Jeff recommends holding hard assets (gold & silver, foreign real estate, etc.) outside of the financial system
● The market crash which Jeff thinks is coming on the specific date, September 13th 2015.
● One of Jeff’s investments that can reap 10,000% gains in the next few years…
Hope for the best, but prepare for the worst.
This is a good motto to live by, despite how you think about things.
Individuals can still hope for the best (that things can and will eventually work out), but what good is your prosperity going to do if you don’t have anything to eat or a safe place to hang out for an extended period of time?
Why not prepare while you still can — when things are readily available and can still be purchased at cheap prices? The coming hyper-inflation will make any such purchases beforehand look very intelligent…
To prepare for the worst, you need a plan. Why are most people so against doing basic preparations that could be the difference on how they survive — or whetherthey survive?
History shows time and again that those who prepare always fare better than those who did not.
Having a plan and being determined to act on that plan will always be the best way to handle any contingencies, should they occur.
After disaster strikes, your mind is going to be racing around like a car on a race track. Preplanning and having a written set of measures to take will make someone’s life go much smoother when the SHTF.
SOURCE : http://www.prepperfortress.com/what-will-happen-if-the-dollar-collapses-in-13-september-2015/
Other useful resources:
Survival MD (Best Post Collapse First Aid Survival Guide Ever)
Backyard Innovator (A Self Sustaining Source Of Fresh Meat,Vegetables And Clean Drinking Water)
Blackout USA (EMP survival and preparedness)
Conquering the coming collapse (Financial advice and preparedness )
Liberty Generator (Build and make your own energy source)
Backyard Liberty (Easy and cheap DIY Aquaponic system to grow your organic and living food bank)
Bullet Proof Home (A Prepper’s Guide in Safeguarding a Home )
Family Self Defense (Best Self Defense Strategies For You And Your Family)
Sold Out After Crisis (Best 37 Items To Hoard For A Long Term Crisis)
Survive The End Days (Biggest Cover Up Of Our President)
Drought USA(Discover The Amazing Device That Turns Air Into Water)
Credit to Michael Moore
http://nunezreport.blogspot.com/
Source: http://nunezreport.blogspot.com/2015/07/what-will-happen-if-dollar-collapses-in.html
