Sunday, November 10, 2013

The End Of An Empire if its currency collapse.

How can it be possible for a currency to collapse?

What can cause an international currency to collapse?

What could possibly happen if one day the international world reserve currency collapses?

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A currency  collapses is when thev value of that currency falls so fast that all those who hold the currency  panic, and sell them at any cost. 


In this scenario, sellers would include: foreign governments who hold bonds in this particular currency take action to sell them all, or most of them at any available price possible, and individual investors who demand assets denominated in anything other than that particular currency. 


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The collapse of that currency means that everyone is trying to sell their dollar-denominated assets, and no one wants to buy them, driving the value of the dollar down to near 



What Would Cause This to Happen?:
Several conditions must be in place before the dollar could collapse.
#1- First, there must be an underlying weakness. 
#2- Second, there must be a viable currency alternative for everyone to stampede into. 
#3- Third, a triggering event would need to occur.

The dollar became the world's reserve currency officially after the Bretton woodS convention New Hampshire USA  in 1944.
 The standard rate at that time was $35 for one ounce of gold. 
 
President Nixon abandoned the gold standard  in 1971. The dollar is used for pretty much  all cross-border transactions in the world. But,  today not anymore....


 China Calls for New Global Currency  / and others have argued for a new global currency. However, replacing the dollar would be a massive undertaking, would require great global resolve and not happen quickly.
What Event Could Trigger a Collapse?:
 China is sending a warning message to the U.S. to cut back on the U.S. debt, which is at $11.4 trillion and rising. China is also negotiating currency swaps  with other nations, with other trading partners.

China and Japan Can, But Won't, Trigger a Collapse:
Would China and Japan ever really do this? Only if they saw their holdings declining in value too fast AND they had another market to sell their products to.

The economies of Japan and China are dependent on U.S. consumers. They know that if they sell their dollars, their products will cost more in the U.S., and their economies will suffer. Right now, it's still in their best interest to hold onto their dollar reserves.
China and Japan are selling more to other Asian countries, who are gradually becoming wealthier. However, the U.S. is still the best market in the world.  


How to Protect Yourself:
Protect yourself from a dollar collapse by first defending yourself from a gradual dollar decline. Keep your assets well-diversified  by holding foreign mutual fund , gold, silver and other commodities. A dollar collapse would create global economic turmoil.



To respond to this kind of uncertainty, you must be mobile. Keep your assets liquid , so you can shift them as needed. Make sure your job skills are transferable. Update your passport, in case things get so bad for so long that you need to move quickly to another country.



When Will It Happen?:
Fortunately, it's highly unlikely that the dollar will collapse. That's because any of the countries who have the power to make that happen (China, Japan and other foreign dollar-holders) don't want it to occur. It's not in their best interest.



The dollar collapses will be the single largest event in human history. This will be the first event that will touch every single living person in the world. 


All human activity is controlled by money. Our wealth,our work,our food,our government,even our relationships are affected by money. 


No money in human history has had as much reach in both breadth and depth as the dollar. It is the de facto world currency.
All other currency collapses will pale in comparison to this big one. All other currency crises have been regional and there were other currencies for people to grasp on to.

This collapse will be global and it will bring down not only the dollar but all other fiat currencies,as they are fundamentally no different. 


The collapse of currencies will lead to the collapse of ALL paper assets. The repercussions to this will have incredible results worldwide.
This time around,it is a national and global problem. The global Ponzi scheme has run out of gas as the demographics decline,as cheap abundant oil declines,as hegemonic power declines. This comes at a time when we reach the exponential or collapse phase of our money. 

The Irresistible Force Paradox says, “What happens when an unstoppable force meets an immovable object?” We are about to find out,when infinite money hits a very finite world.

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