Tuesday, November 1, 2011

DOLLAR COLLAPSE 2

I discussed with a lot of people about the dollar and the American economy recently. More and more people talked to me about the role of the dollar in the recent protests in the Middle East. We are truly in a precarious position. The moment the United States dollar experiences a weakening, and the value of basic commodities like oil, gold, and grain skyrocket, a lot of people will be scared for their own daily survival. More and more analyst say the United States will face a big depression in the following years. There are a lot of reasons why more and more people think the American economy will collapse.

The fiscal crisis in Europe has affected global markets in the year 2011. This was prominently displayed in the precious metals market. Initially, prices for these metals rose high as investor’s sentiment was that they provided a safe haven against the weak global economy. The question is will the U.S. dollar collapse that will then lead to a breakdown in the banking system? As a money guru said a few decades ago, “If something is unsustainable, then it can not last forever.” In its current form, the dollar system is no longer sustainable. There are three major threats to the dollar that is endangering the currency. Read more....

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