Persistent high trade deficit of the last few years and
extremely high level of USD reserves in foreign central banks
pretty much ensures a dollar crisis in future. So far any
weakness in USD has been met with increased accumulation
of USD reserves by foreign central banks. As the dollar falls,
that could change eventually, leading to a sharp drop of our
currency.
Any currency crisis usually involves much higher 10-year and
30-year interest rates and a meltdown of all asset classes,
with the possible exception of precious metals. This thread
will focus on the discussion of imminent risk
of USD currency crisis, and the ways to survive it.
<img src='www1.istockphoto.com/file_thumbview_approve/2918918/2/istockphoto_2918918_dollar_toilet.jpg'>
"There is no means of avoiding the final collapse of a boom
brought about by credit expansion. The alternative is only
whether the crisis should come sooner as a result of voluntary
abandonment of further credit expansion, or later as a final
and total catastrophe of the currency system involved. The
breakdown appears as soon as the banks become frightened by
the accelerated pace of the boom and begin to abstain from
further credit expansion."
-- Ludwig von Mises |
