Look What Will Happen After The Dollar Collapse
by AMY S.
PrepperFortress.com
MAY 4, 2015
What is dollar collapse?
The dollar collapse is no longer a secret. Almost everyone seems to know of this. The collapse of any given currency generally implies the absolute devaluation of a given currency in relation to others in the world. The collapse of the dollar, however, means this and much, much more. This is owed to the fact of the US Dollar’s unofficial status as world currency, alongside the Euro since the Bretton Woods agreement.
Numerous nations around the world have since pegged their currencies to the dollar as it has provided them with a hard currency they could base their reserves on. Most even use it to settle trade transactions internationally. This means that a greater percentage of the world’s commodities are priced and traded in US dollars, and thus, dollars must come in play at some point.
What The Dollar’s Collapse. Will Mean To The World
Over the last few days, there has been a number of articles in the media about the steady decline of the $US against the Euro. While many economists have forecasted the possiblity of the dollar declining against the Euro for sometime, most do not comprehend the significance of this. Some believe that the decline of the dollar against the currencies of American’s trading partners will help correct the USA’s trade deficit, and the dollar will stop falling when the trade imbalance is corrected. However, the evidence is that the opposite is happening – the $US has declined 40% against the Euro over the last 2 years, and during this time America’s trade deficit has continues to deteriorate.
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