About 3 weeks ago I published a disturbing post titled,
A Harrowing Prophecy of The Future. In the post I posted a frightening video predicting the imminent demise of our dollar as the world's reserve currency. ( I would highly suggest watching the video it is that chilling.) Now I am afraid to note that our economic demise is occurring much more rapidly then expected. Just to give you a snapshot, in the past three weeks nations such as India, China, and Russia have already begun trading in other currencies thus lessening the demand of our already weakened dollar. After that countries such as China will begin dumping our quickly devaluing dollars in favor of other currencies causing massive inflation. This will cause our dollar to collapse literally over night. To read the short but distressing article from
The Creative Minority Report click
here.
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| Wall St. Black Tuesday Oct 29, 1929. |
It is important to note that I am not trying to be a dooms day prophet. I hate bad news. I am just a regular, married man just finishing up my college degree. The last thing that I want to think about now is how our country's economy will collapse. I am simply coming from a place of utter concern about the well being of my country. Why? because my country is not some abstract concept it is made up real people, my family and friends. Mark my words if our dollar loses its prestigious world reserve currency status then our way of life will be profoundly effected overnight. Think that the prices of gas and groceries are bad now then just wait and see what happens if our dollar loses its world currency reserve status. This is the time to prepare for the worst. We must pray, fast, and make the appropriate preparations. Most of all we must remain steadfast in our hope even if our nation's economy crumbles remembering Jesus' words,
"In the world you have tribulation, but take courage; I have overcome the world." John 16:33 Now more than ever we must cling to our Lord!
The "collapse" of the dollar would be a huge benefit to American manufacturers, who would no longer be forced to compete with cheap foreign goods. The trade deficit would reverse itself. Something to think about.
ReplyDeletePossibly in the long term there might be some benefits. But what about the short term? What about the consequences of hyper inflation? And if our dollar collapses which currency would become the world reserve currency?
ReplyDeleteI don't expect hyperinflation. We might be looking at a decade or so of 10% inflation a year, but that is not hyperinflation. It would create some difficulties, but nothing we haven't seen before (Carter era).
ReplyDeleteI think the lowering of the value of the dollar against other currencies is inevitable, and ultimately a good thing, because it means that the standard of living is rising in other countries (which is great if you care about international poverty) and that to the extent that there's a leveling, Americans will be able to slowly rebuild the manufacturing base that we have outsourced.
I'm also happy about a globalized economy because I think economic ties will become an ever-stronger incentive against war. It's not in China's or our interests to have a war because our economies are so interdependant. Maybe dollars and yuan will speak louder than conscience can.