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Prepared by Lorimer Wilson, editor of munKNEE.com – Your KEY To Making Money! [Editor’s Note: This version* of the original article by Chris Laird has been edited ([ ]), restructured and abridged (…) by 71% for a FASTER – and easier – read.]
[Below is an explanation as to why I have come to the above conclusion and what I think it would mean for the well-being of the world.]
Were the USD to actually collapse…the entire structure of the world economy would collapse for a period of time…[and] go through cataclysms politically during that period. That usually leads to massive wars, starvation and mass homelessness around the world.
What Would Happen in a USD Collapse?
1. The U.S. and Western economies would all face insolvency simultaneously...
2. The entire Western industrial/consumer/credit economy would fall apart so fast it would make your head spin. The supply chain would stop and stores would empty quickly.
3. The USD would fall over 50% in one week’s time and then temporarily stabilize before its final last gasp…
4. Worldwide currency panic would set in paralyzing what’s left of the world economy which means the ‘emerging markets’ would stop dead too.
5. China would have a revolution, or go into military mode, which would be even worse.
6. A one-world currency would be demanded – and implemented.
7. Asia would fare horribly…If Western consumerism goes away, then the entire foundation of the Asia macro economy would instantly crash and stop cold…
It would be a dark time worldwide…
(*The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)
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Nobody knows when the final crisis will occur, but like so many times throughout human history we are marching down a narrow path to the final catastrophe of our fiat currency system. [Let me explain why.]
If we want to better understand the answer to the elusive question of “When will the fiat US dollar collapse?”, we have to watch the petrodollar system and the factors affecting it.
Imagine if the Fed and the Big Banks are actually planning on the US Dollar to tank! If that is, indeed, the case, here is how I imagine such a coup would unfold.
Conspiracy theory notwithstanding, claims that the reserve status of the U.S. dollar unfairly benefits the U.S. are no longer true. On the contrary, it has become a burden, both for America and the world. [Let me explain.]
When the supply of something is increased sharply relative to demand, the value of that commodity will decline. If the supply continues to increase rapidly and indefinitely, then that item will become worth less and less, with the potential to finally become nearly worthless. This is the Developing Disaster facing the US Dollar and the world. This is the factor that could become the single most important criterion in investment allocation decisions and possibly even for individual financial survival.
This is the scenario nobody thinks is possible but really, at the end of the day, it’s not like the U.S. can print money and live on debt forever – right? so when something cannot go on forever what happens when it stops?
Technically the U.S. left the gold standard in 1971 but, in reality, we abandoned it in 1913 with the creation of the Fed…setting the stage for the collapse of the dollar. [Given that this is] the 100th anniversary of the creation of the Federal Reserve, it seems only fitting that we should present a brief history of the U.S. dollar debasement since then.
Those in the U.S. power structure know what the plan is if the U.S. dollar should fail. They are not admitting publically that there is even the remotest chance that it could happen but, rest assured, there is a plan. There is always a plan. To paraphrase Franklin Roosevelt, nothing happens by chance in government, so don’t be caught up in such a ‘surprise’ event – whatever it may be and whenever it occurs.
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Before the U.S. dollar became the world’s reserve currency that honor was held by Britain, then France, the Netherlands, Spain & Portugal and the U.S. dollar is no less susceptible to succumbing to the same change. In fact, many nations have been actively turning their back on the dollar over the past decade.
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