Maybe it plays that way but don't you see this happening slowly like errosion? How about the WTI brent spread I was looking to sell wti buy brent but the dollar falls makes wti go up....
Nobody knows how this is going to play out so there are many things that happen. I have no idea myself. But the things I recommended will work regardless.
The UK lost its reserve currency status without too much of a negative impact. I don't see a need for becoming a "Prepper." It will be okay to keep the puppy
I'm not talking about the dollar. The question was asked if ALL currencies basically get devalued vs hard assets and we see banks fail, central banks fall under pressure and the standard of living around the world downtick massively. Look at what's going on in Europe right now. It's not pretty. And to be honest, nothing bad has really even happened yet outside of their youth unemployment.
According to youth bulge theory, the flashpoint is the middle east and africa. I think the demographics are different in the western world now to the point where the populace is more passive and sort of resigned to the economic and political problems rather than wanting to go out and disturb the peace, generally and historically comparatively speaking. There are protests in Europe, but the severity does not compare to the fascist times of Mussolini and Nazis.http://ikigai-magazine.com/blame-it-on-the-boys/. Of course, anything is possible, and I could be wrong. Maybe I will wish getting that guard dog:eek::eek:
Interesting point. Perfectly reasonable to see faith lost in paper currencies in general. Still number one is avoid exposure to dollar dominated assets. Bonds. Even after all the mess in Europe still 1.33
Well that's certainly the conventional wisdom and was true in the time of Babylon and up until the 1970s at least. I don't think it is correct thinking anymore however. Currencies are no longer tied directly to a hard asset such as gold, and economies are no longer insular. If you want to protect the living standards in the U.S. you'll have to fix the public schools, and bring defense and medical costs in line with the other industrialized countries. There is more than enough money in the U.S. economy to re-build a strong middle class, it is just in the wrong places. Entitlements have nothing to do with economic problems in the U.S. They represent large pots of the money belonging to the countries citizens and as such are attractive to thieves. It's far easier for politicians to rob entitlements, surreptitiously of course, never directly, than to stand up to their masters in the medical and defense industries.
It is only a matter of time before the ECB follows in the footsteps of the U.S. Fed, Just as the Japanese are now doing. Then we will see the Euro move toward parity with the U.S. dollar. I thought it would happen by this winter but now I think I was wrong and it is going to take longer. (I still think it will be sooner rather than later, but who knows? The Germans may be very stubborn. They'll have to agree to a Euro bond or leave the EU.)
... and this is actually happening a bit right now. The earnings of the large US banks are suspect and people wonder why gold and commodities are being sold. In a crisis, one sells what has value to fund what does not. There is an obvious and a much deeper reason for that if one thinks about it.
because the control of the economic future is in the hands of madmen. It is hard for rational and ethical people to imagine what desperate souls will do when the SHTF.