The dollar collapse occurs when the dollar falls so quickly, that all investors who are holding dollars panic and try to sell their stock at any cost. These sellers would include individual investors, traders who exchange future rates and foreign governments that hold US dollars. The dollar collapse means that everyone will try to sell their dollar assets and no one will buy them, driving the value down to zero.

This is what would cause the dollar collapse?

The dollar collapse would occur if several conditions are in place. Firstly, there will need to be an underlying weakness and confidence by holders of the dollar. There should also be a currency alternative for panicking buyers to run to. Thirdly, there likely will need to be a political or economic event triggering the dollar collapse.

Are you aware the The Federal Reserve note also known as the US dollar is one event away from collapsing as the worlds reserve currency?

I subscribe to The Elevation Group because I know that the Dollar is a fiat currency and fiat currencies always collapse. Being prepared for the collapse requires being educated and informed on how money and the current worlds money system works. In 2008 when most investors where loosing money Mike Dillard who founded The Elevation Group was making money. Why? Because he has been study the financial system and knew that the transfer of wealth was underway. The transfer of wealth and the collapse of the dollar are linked.

Click here to watch a short video in which Mike Dillard explains the 7 steps of money.

After watching this you will be able to connect the dots to understand why the collapse of the dollar is going to eventually happen.

The first condition already exists. The dollar collapse has been feared since the US dollar declined against the Euro in 2002 until 2009. This is because US debt has doubled during the past decade, increasing from $5.9 trillion to over $13 trillion. To avoid the dollar collapse, the US government may let the value decrease, allowing the nation to repay the debt with lower value money.

Viable Alternatives

When Nixon abandoned the gold standard in 1971 the US dollar became a fiat currency. Because the US dollar was pegged to gold in the US Treasuries it successfully became the worlds reserve currency. It currently holds 63% of the world’s reserve currency, while the euro only holds 30% of the reserves. China and other nations have been arguing for a new global currency, fearing the dollar collapse. However, replacing the world’s reserve currency is huge undertaking that would require global resolve.

Events Triggering the Dollar Collapse

Currently, foreign nations hold $2.4 trillion of U.S Treasury money. If Japan, China, or other major economies began dumping dollars, it would cause a panic that would lead to the dollar collapse. China holds $800 billion of US currencies because the yen is pegged to the dollar. This keeps US export prices relatively cheap. Japan holds $759 billion in US Treasuries, and their currency is also pegged to the dollar to keep prices low.

Either Japan or China could trigger the dollar collapse. However, they would only do it if they say their holdings declining rapidly and had another market where they could sell their products. The dollar collapse in the near future is unlikely since both China and Japan receive billions of dollars from US consumers.

The Dollar Collapse ??” What Would Happen?

The dollar collapse would create a global economic crisis since investors will immediately start rushing to other currencies or assets, like gold or silver. The dollar collapse will create skyrocketing import prices in the US that will lead to inflation and possibly Hyper-inflation. Exports from the US will be cheaper due to the dollar collapse and there will emerge a new world reserve currency.

Consumers can safeguard against the dollar collapse by diversifying their assets. Invest in gold and foreign currencies so you will have numerous options to fall on. Assets should also be kept liquid, so they can be shifted if the economic situation takes a sudden downturn.