Monday, 18 January 2016

Do The Dollar and The Euro Face a Definite Imminent Crash in 2016?

The world is crying hoarse about fiat currencies be it the dollar or the euro, crashing in the near future. Some economists are also predicting the year 2016 as the year when the currency bubble is most likely to burst. Many world economists and financial strategists are cautioning investors to turn this oncoming predicted disaster into an opportunity to work towards quiet  transfer of wealth towards precious metal investments; advising them to turn to gold and silver which has always withstood socio economic turmoil, since commodity  trading began.


An attempt is also being made by a few international financial economists to awaken the American middle class before it is too late since it is the dollar that is likely to take the downward plunge. Unrest is being witnessed in Europe as well.

Countries like Russia & China are being observed turning into major procurers of gold ever since 2009. All in an effort towards stabilising their own currency and even desiring  it to emerge as the alternative  reserve currency of the world, as against the dying fiat currency- the dollar .

The European Central Banks till 2010 happened to be net sellers of gold in the market, flooding it with precious yellow metal between 2003 and 2009. They have suddenly turned tables and are now becoming the net buyers of gold.

In 2010 the European Central Banks took 77 tonnes off the market, in 2011 this figure was raised to 457 million tonnes, nearly 70% of the annual world production, in 2012 the Banks lifted 544 metric tonnes, in 2013 the figure reflected was 409 metric tonnes; and finally the 2014 balance sheets of the banks in Europe reflected 450 metric tonnes of gold purchase. Making it clear to everyone that gold was the only way to survive a socio economic crisis anywhere in the world.

Just to understand better why are a currency collapse being predicted and the reason behind the certainty of it happening let us look into the events that have led to this disastrous economic reality.

The Central banks have been loaning out money to governments on interest basis, without actual money for the same being in existence. The Central Banks have been typing money into existence, instead of printing it since all money is digital. We all understand, money that the Central Banks loan out is interest based and money that is required to pay back that interest does not exist in the system. Therefore, there is always debt and interest to be paid back, forcing governments to return to the banks for more loans, which in turn create more money and charge interest on it. This then leads to a situation where there is always more debt to be paid due to interest, and no money in actual existence for it. Thus making currency crash an undoubted reality – a mathematical dogma.

Who is responsible for having created a mechanism that was bound to fail? The answer is a few bankers of international stature who wanted to get rich at the expense of the public before the system gave away; these bankers then used this money to buy assets for themselves that would maintain their value after the currency fell. The world is witnessing the impact of their criminal act in a big way now, in the form of the existing fiat currency all over the world.

It is time for the world to wake up to the situation and save this Titanic from sinking. A good beginning would be diversification of portfolio investments; in other words 20% of all investment to be diversified towards precious metals likes gold and silver.



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1 comment:

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