This week a lot has happened in the global financial markets and the global stock markets have dropped significantly within a few days and the question that most people are asking is whether this drop will culminate in a global stock market collapse.
The Federal Reserve has been targeting the stock market as a way of boosting economic growth. They have been pumping billions of dollars into the stock market for many years and now, the prices are inflated. The current global panic as a result of the outbreak has triggered stock selling and this is what is causing the stocks prices to tumble every single day and in the process wealth worth billions of dollars is being lost.
Will Gold And Silver Replace The Dollar After The Economic Collapse?
The dollar based system had dominated the global trade for decades but with the current economic condition and the instability in the global financial system, questions are arising on whether the dollar will support this very changing monetary system. Many people feel insecure with the current system and in this video, we will look at some of the reasons why the dollar will collapse and a gold based system will take over the global trade and the whole monetary system. Before diving into this, lets first understand what is the collapse of the dollar means.
The collapse of the dollar will happen if the value of the US dollar plummets and those who will be holding dollar-based assets will have to sell them at a very low price. This includes foreign government and investors who own the U.S treasuries. Such a crash can happen if everyone is simultaneously selling dollar based assets and when no one is willing to buy, the price will fall further causing the whole market to panic. If such a crash occurs, the world will shift to assets that are dominated by anything else other than the dollar. Most likely, gold and silver will be the best alternative and this will usher in a new payment system that will be based on gold. This might not happen any time soon but based on the current trend, at one moment it will have to take place.
The great fathers who founded our nation always referred to debt dependence as a way of stealing from our future generations. For several years, the United States has depended on debt and in 2020; the US is on its way to hit a new record of about $2 trillion dollar in deficit. This reliance on debt is almost getting out of control not to mention that we will have great trouble if the price of oil hikes. We are in trouble because the stock market rise is almost becoming unsustainable since the rise has been fueled by continuous pumping of cash into the markets by the Federal Reserve. If a war erupts with Iran, the Federal Reserve will not be able to finance a war and pump money to the stock market at the same time. Too many things are at stake at this point a major stock market crash will have to happen.
America is certainly not in an economic collapse now and most likely, the nation may not avoid big economic meltdown for long since the indicators that the nation might find itself in economic collapse are rising exponentially. The global investors in the bond market are sending a clear message; since the end of July, the long term interest rates have plunged and history has proven that this often precedes decline in economic growth, interest rates reduction by the Federal Reserve. If key policies are not enacted at this stage, things may get out of hands resulting in a financial collapse and stock market crash.
The Federal Reserve has already pumped $3 trillion dollarinto the markets and they are planning to pump more $2.8 trillion dollar. They are also buying treasuries worth about $60 billion every month. This indicates that the economic depression has already begun biting and any time, the bubble will burst and it will be obvious that an economic collapse has begun. However, any time a collapse is about to occur, the elites in the federal reserve always use existing crisis events or even intentionally trigger some events to distract the public attention. Usually, collapse is a process that is difficult for people to notice until it is too late. Everyone will realize that things are out of control the day we will wake up and realize that the dollar has already lost 50% of its value or if we find out that major exporting countries have rejected the dollar as global payment currency.
There is no limit in the amount of dollars that can be printed and this time around, it will become almost impossible to avoid the dollar collapse. It is not a surprise that most central banks prefer gold over the dollar.
In conclusion, we have a rigged economic model made up of fiat money, poor growth and inefficient policies. In this condition, it will not take long to find ourselves in a biting economic collapse than what we had back in 2008. It is clear that a major economic collapse is on the way and we have to be prepared and remain vigilant for any signs of extreme imbalance either in the stock market or the housing market since the things discussed can easily trigger a financial collapse in America. The system is already broken in many ways and it is crumbling under its weight. The world is driven by nature’s law and only humans think that they can defy the force of gravity. From history, we have learned the hard way multiple times that greed always leads to a disastrous ending. There is a very high chance that the worst economic collapse might happen in 2020. However, even if it does not happen, we should not feel safe because all signs signify that it will happen very soon. We may not know the exact date but we have all the signs so it is wise that we prepare for the worst.
The Devaluation of the dollar has been happening for the last 70 years or so, especially after 1971. The devaluation of the dollar is a monetary phenomenon and typically driven by lowering interest rates by the federal reserve to increase credit and liquidity. From the moment of the launch of quantitative easing (QE), worried investors have asked, will the U.S. dollar collapse? There are some probable scenarios that might cause a precipitous crisis for the dollar. The most authentic is the dual-threat of high inflation and high debt, a scenario in which increasing consumer prices force the Fed to raise interest rates sharply. Much of the national debt is made up of relatively short-term instruments, so a spike in rates would act like an adjustable-rate mortgage after the teaser period ends. If the U.S. government struggled to afford its interest payments, foreign creditors could dump the dollar and trigger an economic collapse. A reset means the banksters will have to increase the price of the gold. They own tons of it so that they can cover their derivative positions … The global currency reset is needed to hinder the most significant and fastest increase in global debt in half a century from exploding … But for the average middle-class family or pensioner on Social Security, it will mean “huge inflation”… As the reset will imply “an exponential increase in the quantity of money” by the Fed (meaning high inflation in the prices of everything) … Excluding for maybe “some food items” that are subsidized by the government to impede people “with pensions linked to the chained CPI” from literally starving!!