- Genocide on the American citizens.
- Collapse of the US Treasuries.
Fiat Money is paired. US-Euro, US-Yen, US-Yuan, Euro-Yen, Euro-Yuan. It is basically a tug of wall. All of them has been printing since the crisis of 2008. I believe all of these currency will have a zig zag pattern against each others, due to the fact of credit implosion at a different time.
What the traditional money like GOLD. All of them will be depreciated against gold eventually, in the long run, like what the US dollar, which has dropped more than 97% in the last 70 years. However, there will be a catch, how would any of them collapsed? It had to collapsed against another currency.
So, one can argue that, if your rating is cut, hence, the confidence issue will arise. So, let us say, USA's AAA rating is cut to just an A (we know it is worst than junk bond), so it will force everyone to dump US dollar. However, the unfortunate part is that when you dump a currency, you will have to be against another currency, what would you buy then, Yen? Sterling? Euro? or perhaps gold? Brilliant idea, since gold is real money (with limited supply) why not everyone just convert their US dollar into gold. But at the moment, gold is only worth on paper USD7 trillion and world's wealth in about USD125 trillion. So, gold price will have to explode, from US1500 to US15000 per oz?
Will it be possible, then everyone will trade with GOLD? In such a case, what about Euro, will it shoot up to the moon, since US dollar collapse. The next question we ask, is Europe economically more sound than USA? They are not far off.
So, how would we explain the Collapse of US dollar. We do know, the end game that US dollar will be a toilet paper, so is Euro and so is Yen.
MyView
Problem with experts nowadays, they only explain one side of the coin. And of course, some hide the other side of the coin. But the world has not really seen how a credit implosion looks like, Japan experience it for the last 15 years, they are still in denial.
We know that US have trillions of bad debt that is yet to implode, what will happen if it burst? This is a trillion dollar questions. But Thomas Jefferson did said about the credit creation, first it will cause INFLATION and ultimately DEFLATION. The question now is inflation comes about from credit creation, and deflation comes about from credit implosion. Which is the like scenerio going forward?
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