Then, as if part of a coordinated effort, this summer it was revealed
that China had implemented a similar strategy, dumping half a trillion in dollar denominated assets.
But that’s just the beginning of the end for the US dollar. Amid a major
meltdown in Chinese stock markets the People’s Republic sold off billions in
dollar assets last week in what was reported to be an effort to stabilize
their collapsing financial markets.
And now, as Russia’s economy collapses under the weight of American and
European sanctions, including what many believe to be widespread downward
manipulation of oil prices, Vladimir Putin is sending a clear signal to the
central bank of the world’s reserve currency.
The implications for such a move, though not necessarily immediate, are
serious over the long-term. That China and Russia are now overtly divesting
themselves of U.S. dollar assets signals a significant paradigm shift in
global trade.
The dollar may be strong today as panicked global investors rush to the
perceived safety of the US Treasury assets. But as the Federal Reserve is
left with no choice but to print trillions more to keep financial markets
from ruin, the creditors who usually buy those assets are drying up.
There will come a breaking point in the near future, and when that day
comes we will see the largest monetary collapse in the history of the world.
When the collapse of the dollar occurs, it will literally and figuratively
come like a thief in the night, and I do mean overnight!
We are all familiar with the concept of inflation, which is the
intentional byproduct of the Federal Reserve. But I am not just
talking inflation, I’m speaking about hyperinflation which is caused by the
collapse of the value of the currency resulting in runaway prices. Here are
three examples of how quickly a currency collapse can occur when a nation’s
money when its money no longer holds it value:
1. In Weimar Germany, from 1922 – 1923, prices doubled every
three days.
2. In the modern era, in Yugoslavia from 1992-94, witnessed
prices doubling every 34 hours.
3. In Zimbabwe, in the two year period from 2007 – 2008, prices
doubled every 25 hours.
History is replete with examples of currency collapses and they typically
follow very predictable patterns in which a nation unravels and social chaos,
and many times, widespread violence and even genocide becomes part of the
national landscape.
Source: What will happen when the dollar collapses?
And though such things could never happen in the “developed” world, we
urge our readers to consider the reality of a scenario that involves a
break down of the US dollar. We direct your attention to Venezuela, where we
can see what a total system collapse looks like in real-time:
With 30% of Venzuelans eating two or fewer meals per day, social
unrest is mounting rapidly in President Nicolas Maduro’s socialist utopia. As
WSJ reports,soldiers have now been deployed to stem rampant food
smuggling and price speculation, which Maduro blames for
triple-digit inflation and scarcity. “Due to the shortage of food… the
desperation is enormous,” local opposition politician Andres Camejo
said, and nowhere is that more evident than the trampling death
of an 80-year-old woman outside a state-subsidized supermarket.
In such a scenario we can fully expect that our regular systems of commerce will break down to the point that
essential goods like food, gas and other critical supplies become
unattainable to the masses at almost any price.
Tess Pennington, author of The Prepper’s Blueprint, explains what happens
within three to five days of the reality of the monetary disaster
setting in:
Have you ever heard the saying, “We’re three days away from
anarchy?” In the wake of a disaster, that’s all you have is three days
to turn the crazy train around before crime, looting and chaos ensue. In
reports during the aftermath of hurricane Sandy, residents from Staten
Island were pleading for help from elected officials, begging for gasoline,
food and clothing.
…
Multiple factors contribute to societal breakdowns including failure of
adequate government response, population density, citizens taking advantage
of the grid being down and overwhelmed emergency response teams.
The 3-5 days following a disaster is the bewitching hour. During this
short amount of time, the population slowly becomes a powder keg full of
angry, desperate citizens. A good example is the chaos that ensued in
New Orleans following the absence of action from the local government or a
timely effective federal response in the aftermath of Hurricane Katrina. In
such troubled times, people were forced to fend for themselves and their
families, by any means necessary. This timeline of Hurricane Katrina effectively illustrates
“the breakdown,” and within three days, the citizens of New Orleans descended
into anarchy, looting and murder .
Source: Anatomy of a Breakdown
It’s difficult to imagine a sustained breakdown across America. But make
no mistake, should the US dollar every come under attack, and it appears that
the opening salvos have already been fired by Russia and China, then life as
we have come to know it in America will come to a drastic and near immediate
halt.
Also Read:
The Prepper’s Blueprint: A
Step-By-Step Guide To Prepare For Any Disaster
Shadow Stats Founder On Hyperinflation: Disruptions to Food
Supplies, Normal Flow of Commerce
Mark Levin: Government Is “Simulating the Collapse of Our
Financial System, the Collapse of Our Society and the Potential for
Widespread Violence”
Analyst: “Millions Upon Millions of People Are Going to Die
on a World-Wide Scale When the Debt Bubble Bursts”