It’s safe to say that the EU, the U.S., and quite a few other jurisdictions are nearing currency crashes, and in all likelihood, the euro will go before the dollar. When the euro and U.S. dollar fall, however, there is a very sound alternative – and it is NOT gold!
The following edited excerpts are from an article* by Jeff Thomas (internationalman.com) originally entitled What Will Happen to You When the Dollar Collapses?.
First, the Euro Crash
It’s safe to say that the EU, the U.S., and quite a few other jurisdictions are nearing currency crashes, and in all likelihood, the euro will go before the dollar…The U.S. dollar might well be chosen as an immediate solution to the problem, as the U.S. dollar is presently recognized and traded throughout Europe. Therefore, a relatively painless transfer could be made.
Then, the Dollar Crash
However, the U.S. dollar, which is presently praised as being a sound currency, is really only sound in relation to the euro (and some other lesser currencies). Once its less stable brother, the euro, collapses, the dollar will be exposed.
As the U.S. dollar is a fiat currency and is on the ropes, the U.S. (and any other country that is using the dollar as its primary currency when the time comes) will experience a currency emergency at the street level that will be unprecedented.
The big question that is generally not being discussed is: The day after the crash (and thereafter), what will be the currency that is used to buy a bag of groceries, a tank of petrol, a meal at a restaurant? Certainly, the need will be immediate and will be on a national level in each impacted country, affecting everyone.
I have discussed for some time that the U.S. will be prepared ahead of time with a new, electronic currency. This will serve three purposes:
- It will allow the U.S. government to blame paper currencies for the crash, in order to distract the public from recognizing that the government itself is the culprit.
- It will allow the U.S. government to create a currency system that disallows the holding of tradable currency by the population—that is, a debit card would be created by banks through which all transactions must pass, assuring that all transactions are processed by (and thereby subject to the control of) a bank.
- It will allow the U.S. government to have knowledge of every penny earned and spent by any individual or organization, allowing for direct-debit income taxation.
If the U.S. does institute such a system, U.S. citizens will then become the most economically controlled people in the world – overnight.
It’s likely that a black-market system would spontaneously be created by U.S. citizens in order to bypass the new government system. A portion of daily trade would occur under the table. It would unquestionably be made illegal, and we can only speculate as to how prevalent it would become: 10% of all transactions? 30%? Anyone’s guess. Certainly, the government would crack down, and penalties might become severe.
Elsewhere in the world, there would be greater freedom, but what would their currencies be? There are many countries that presently use the U.S. dollar as one of their official currencies. After a crash, the greater the link to the U.S. dollar, the greater the loss of economic freedom, although, in most such countries, the government is likely to be less efficient than in the U.S., which would work in favour of the individual.
Will the Chinese Yuan Replace the U.S. Dollar?
Such countries would also have the option of switching from the dollar to another dominant currency. With the euro and dollar gone, that currency might be the Chinese yuan. The difficulty with this possibility is that, presently, the yuan is not in common use on the street.
Adoption of a currency such as the yuan would require a sudden switch in monetary policy, complete with teething problems. However, recent developments amongst the BRICS and others indicate that many countries are already seeing the writing on the wall and are readying themselves for the use of the yuan as an alternate.
Will the Mexican Libertad Coin Replace the U.S. Dollar?
A further possibility is taking place in Mexico today. Mexico is re-monetizing silver. A 1 troy ounce pure silver Libertad coin will function in parallel to (and be interchangeable with) the existing paper peso. Banks will value the Libertad daily, based upon the silver price. Thus, Mexico will create a legal way for its citizens to protect themselves against devaluation of the peso, whilst creating an internal protection against currency crashes in other countries.
If the Mexican government remains consistent in its plan, it will do more than simply help stabilize Mexico economically.
It will serve as an example to other countries that when…the euro and U.S. dollar fall, there is a very sound alternative. [In addition,] the more countries that follow this policy, the more silver (and for that matter, gold) would become an international currency.
[The above article is presented by Lorimer Wilson, editor of www.munKNEE.com and has been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. This paragraph must be included in any article re-posting to avoid copyright infringement.]
*Original Source: http://www.internationalman.com/articles/what-will-happen-to-you-when-the-dollar-collapses (Copyright © 2015 Casey Research, LLC.)
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