Topic: US Dollar collapse in 2015? (2) - page 10. (Read 11773 times)

There are arguments for and against an imminent financial bust.

Against: money and public debt being way over-valued and propped up is not exactly news -- it's been this way for most of the last 200 years.  There have been only two major crashes in the last century when things were so bad the casual observer could smell trouble -- the Great Depression and the 2008 crisis.  The rest of the time, the authorities always manage a hat trick.

For: while the world had a decent house-cleaning post-1931 by letting banks fail and experiencing the economic pain, there was no real cleanup post-2008.  The toxicity mainly stayed, just in a different form.  Government debt multiplied, and major investment banks are now exposed to impossible-to-understand derivatives which are too big to be bailed out by the total wealth of the world.  The crash of these derivatives might come without warning.  No central bank, including the Fed, has been able to raise interest rates from zero 7 years after the crisis -- the authorities have no soft-landing and are flying on limited fuel with no end in sight.

Either way, even if we do have an imminent crash with all the chaotic consequences, the authorities will always have one final trick up their sleeve (and this is pointed out by Rickards): re-peg major currencies to gold at a very high price of gold.  This would give the financial stability the authorities need to push all types of stimulus to get growth and inflation going.  Essentially, this would amount to a cancellation of past debt, which would clean up the toxicity, at the cost of expropriating the creditors who bought into the money and debt, and the humiliation of the authorities who have always maintained that the money and debt were valuable.

No ! the US dollar will never collapse , the most used devise ever , the most popular devise ,
You can use a dollar every where in this world , a dollar is really so valuable now . And
you're talking about collapse ? think you mean Euro right  ?

- Xing Ming .

I think in the short term this won't happen (next 2-3 years), but I still believe in 10-15 years we're in a world of hurt. If Japan can get to 230% debt of GDP then the USA can.

no still too early for a thing like that to happen(if it will ever happen), and i'm sure government are working on something to prevent the usd to collapse anyway

if china and japan start dumping their treasury, i might see some panic selling that could cause a collapse or a partial one, but i do not see them doing this, since it can hurt more their economy

An investment that has risen a lot in the past and is valued close to its historical peak almost never represents a good investment opportunity.

The rise of the USD is based on fake data and worldwide quantitative easing plus the psychological effects of a potential collapse of Greece in the eurozone. The days of USD reserve status are counted, because a coalition of big economies (led by China and Russia) are already actively exploring alternatives. The US have lost almost all support of foreign nations because of an aggressive foreign policy. Without currency reserve status and external support the US will not be able to maintain their living standard which is largely based on debt.

I'm not sure if the USD collapse will be in 2015. I'm not sure if it will happen as a singular event or in slow progression. But I'm sure that I will become a witness of a new (financial) world order in my lifetime.

ya.ya.yo!

Whatever datas might be showing, there doesn't seem to have the USD being on the verge of collapse as it is getting more and more stronger day by day, might be a trap but still, it is the start of Q2 and it seems to be the best opportunity to invest in.

Related news:

'Death of money': Author Rickards predicts collapse of global monetary system
Published time: May 28, 2014 19:43
http://rt.com/business/162084-dollar-collapse-monetary-system/

‘New gold fix may invite more players into market’
Published time: March 20, 2015 16:30
http://rt.com/op-edge/242673-gold-fix-price-banks-market/

Switzerland, Luxembourg apply for China-led infrastructure bank
Published time: March 21, 2015 16:03
http://rt.com/business/242897-switzerland-luxembourg-aiib-china/


Low rates will trigger unrest as central banks lose control - BIS

Bank for International Settlements warns that low rates risk backlash as effects spill over into the real economy

 Low inflation, bond yields and interest rates around the world will push the boundaries of economic and political stability to breaking point if they continue on their downward trajectory, the Bank for International Settlements has warned.

The Swiss-based "bank of central banks" said the "sinking trend" of global rates would push countries further into uncharted territory.

It highlighted that $2.4 trillion (£1.6 trillion) of long-term global sovereign debt was now trading at negative yields, with an increasing number of investors willing to pay governments for the privilege of lending to them.

"As bond markets show us day after day, the boundaries of the unthinkable are exceptionally elastic," said Claudio Borio, head of the Monetary and Economic department at the BIS.

"The consequences should be watched closely, as the repercussions are bound to be significant."


http://www.telegraph.co.uk/finance/economics/11479425/Low-rates-will-trigger-civil-unrest-as-central-banks-lose-control-BIS.html






Historically speaking, the gold silver ratio has rested somewhere between 15 and 10 to 1, reflecting the average supply of each metal. There have been times throughout the history of money where the ratio has been even lower—China had a 4 to 1 ratio at one point and the ancient Egyptians demonstrated a 1 to 1 ratio at one point.

http://www.silver-coin-investor.com/gold-silver-ratio.html


http://taxfreegold.co.uk/goldsilverratioshistoric1970onward.html