In this video, we are going to discuss the economic indicators that show the true extent of the collapse we are already experiencing, and the fragility of the system that is propping up any semblance of normalcy we have left. We will show you what the experts are saying about where to put your money, and why precious metals may be one of the only safe options remaining.
The US economy has been slowing down and economists are predicting that a major economic collapse is coming. In a recent interview, Guggenheim’s Global CIO Scott Minerd said that the cognitive dissonance in the stock market is stunning as reflected by the ever rising prices and credit spreads. He expressed that this is not a buy the dip market but don’t try to catch a falling knife markets because prices have been plummeting for weeks. The stock market collapse has already begun!
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.
It is official now, the United States national debt has hit the 23 trillion dollar milestone, that’s twenty-three with twelve zeros after.
That’s a pretty staggering figure — $23 trillion dollars in debt and climbing every second of every day. And in order to give you an idea, that is basically every taxpayer is in debt for $186.576 dollars. And if you were to break it down evenly across every citizen in the United States including those who don’t pay taxes, every United States citizen is $69.735 dollars in debt. And the debt to gross domestic product ratio is now a 106.6 percent. That is very significant; for that ratio to be over a hundred percent, it means that it’s above and beyond 100 percent would be an equal right to the gross domestic product, but it’s now above it by six-point six percent. Unfortunately, the economic collapse always arrives eventually, and our future is looking extremely bleak at the moment. And as the argument goes, the more the debt spirals out of control, the more you’re going to have inflation, the more you’re going to have undisciplined frivolous spending. So a lot of different people will have a lot of different opinions when it comes to this subject, the more and more this national debt figure climbs. And as you know, nobody’s really doing anything to curtail it, not the FED, not the president, nobody.
The stock market performance in December has been termed as the worst performance of U.S stocks since the Great Depression in 1930. The dramatic decline in stock exchange has been evidenced by two key stock indexes: Dow Jones Industrial Average and the S&P 500 which closed at 7.6% and 7.8%. The significant decline of the two benchmark U.S. stock indexes has led the Russel 2000 to close in the bear market territory, a phenomenon that has greatly stunned economic analysists as well as worry investors across the country. In early October 2018, the Dow Jones average reached an all-time high of 26, 951.81 but dropped more than 3300 points in less than two months to close at 23, 592.98 on Monday with a high probability of an even worse decline.
In the past, the U.S stocks have always ended the year on a high a situation usually referred to as” Santa rally” but this year looks different attributed to a rapid decline in stock’s price. With close to two weeks remaining to mark the end of December, the situation is most likely to worsen indicated the Russell 2000 which stands at 20.6% from highs. The Russell 2000 is a crucial indicator of the movement of the Dow and S&P 500. A high Russell 2000 value points to a falling Dow and the S&P 500.
The new tariffs proposal by U.S president Donald Trump has intensified the trade wars between the two nation, but the chances of China cutting its trade surplus with the US in response to the new tariffs is absolutely nil. The 25% increase in trade tariffs proposed by Washington puts China in a debt crisis and cutting trade surplus would not be a suitable option to help the situation.
The imposition of new tariffs on low-value exports involving Asian value chains is seen as a strategy employed by the U.S to cut down on the trade of cheap imports rather than leveling offshoring. The 25% increase in trade tariffs is also a means of reducing the country’s account deficit which is currently lower than 6%. The effects of the increase in trade tariffs are already caused an economic crisis in China evidenced by the current exchange rate which is at 6.725 to the U.S dollar, the lowest rate this year.
It is certain that all Americans are currently worried about an impending economic collapse. Do you have what it takes to survive an economic collapse? If no, perhaps you have to develop measures that will help you survive an economic recess without much struggle. According to economic experts, there is a high possibility of an economic collapse in America than ever before thus calling for preparations to handle the situation effectively. But what exactly are you preparing for? In essence, you are bracing for an economic crash, and you would be among the 3 million preppers across the US.
The U.S economy is currently experiencing a debt bubble which can pop up anytime bringing the economy to its knees. Several sectors of the economy seem to be going wrong, a clear indication of an impending economic collapse. The banking sector, for instance, has since become risky attributed to snowballing debts which could lead to a sudden closure. The economic meltdown may be fatal in the US since the country has been living way above its limits for decades.