How Bout A Dollar!!!

Before the dollar could collapse a few things have to take place.


First, it must start to weaken - CHECK.

Second, there must be an alternate currency to take it's place - CHECK

Third, a triggering event would need to occur - hmmmm??


The first condition is happeneing now. The dollar had a 40% decline against the euro from 2002 and 2011.


This happened because the U.S. debt more than doubled during that time period, from $5.9 trillion to $14 trillion. The U.S. let the value of the dollar slide, by printing more money to try and pay back the national debt that is owed to the Federal Reserve, which it borrowed to fund the war efforts around the world.


The dollar is the world's reserve currency and has been since President Nixon took it of off the gold standard in the 1970s. The world's reserve currency is a single global currency that is accepted throughout the world. The dollar is used for 43% of all cross-border transactions, and 61% the world's central bank foreign currency reserves. The next most popular currency is the Euro. China and other countries have argued for a new global currency but replacing the dollar would require great global cooperation and would not happen quickly.


Foreign countries own $2.4 trillion in U.S. Treasuries. Treasuries are long-term obligations of the U.S. Treasury having a maturity period of more than ten years and paying interest semiannually. If China, Japan or other major holders started dumping dollars on the secondary market, it could cause the dollar to collapse. China owns more than $1 trillion in U.S. Treasuries but China pegs its currency to the dollar. When a country pegs its currency to the dollar, they control the value of their currency so that it rises and falls as the dollar does. This keeps the prices of what it exports to the U.S. cheap. Japan owns more than $800 billion in Treasuries, it keeps it's currency low also to stimulate exports to the U.S. Japan has been in a 15 year deflationary cycle, and the nuclear disaster sure does them no favors.


If the dollar did collapse suddenly it would create a global economic disaster. Investors would rush to other currencies, like the euro, or assets such as gold and other commodities. No one would want the treasuries and this would drive up interest rates. Import prices would rise fast, causing inflation.



You can protect yourself from a collapse of the dollar by keeping your assets. This can be done by holding foreign mutual funds, gold and other commodities. As of now, it appears highly unlikely that the dollar will collapse because none of the countries who have the power to make that happen (China, Japan and other foreign dollar-holders) wants it to. It's not in their best interest. The Us is thier best customer. But you can certainly see the position the US has placed itself in by being in debt to the Federal Reserve. The dollar will instead probably continue to decline gradually, as these countries slowly find other markets.


However, the dollar will collapse if the government continues to print more and more dollars without assets to back them up. For every dollar printed, it makes every other dollar worth less. The Federal reserve is an independent entity and not a part of the US government but has been allowed to print the US's currency and charges the US a dollar plus interest on every dollar that it prints. Wow!!! What a mess!!


This has not happened by accident. There are people in the background now and have been throughout world history who have pulled the strings on this puppet. I encourage you all to join me in researching this subject and finding out the truth to all of this. And stop it!!!!

BY: Kurt