Is a US Currency Crisis in the Future?

The Fed and other government entities have been discussing and proposing the imposition of “capital controls” in the USA. Capital controls are when the government limits what people can do with their money with the goal of reducing outflow of currency, and preserving foreign currency balances. Capital controls are a sign that something very bad is happening or about to happen in the currency.

For more than 50 years, Americans have never really thought twice about the value of our currency.

But times are rapidly changing. And most Americans don’t realize that the greatest weapon in our nation’s arsenal is not our military might or our education system, but the simple fact that the U.S. dollar is the world’s “reserve currency.” As such, our money forms the basis of the global financial system. And banks around the world hold our dollars in reserve against their loans.

That’s why, for the past few decades, we have been able to print and borrow trillions of dollars, with no real negative impact.

read more: http://wealthreporter.com/sa/fed-employees-bold-idea.html?mvcode=255787

About fafc

The goal of the “Find a Free Country Project” is to research, explore and find a safe and secure free country outside the USA, that is not too large, has a relatively open immigration policy, has a friendly business climate, has a non-intrusive government committed to freedom, and then move to it.
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5 Responses to Is a US Currency Crisis in the Future?

  1. Croatian Capitalist says:

    The USD will probably sooner or later be replaced as the World’s reserve currency, which will cause all sorts of problems for the USA, but I doubt that it will happen anytime soon.

    • fafc says:

      That is the problem: when? Things tend to fall apart slowly… until they don’t. A complex system like the US economy, so hyper-regulated by an incompetent US government, only needs a little push to bring everything crashing. Frankly, I think the only reason we have not seen a crash so far is because our Creditors (Russia, China, Saudi Arabia, et al) are more interested in propping us up in the hope of someday seeing their money.

  2. Croatian Capitalist says:

    Well, the only two currencies that could realistically replace the USD as the main reserve currency in my view are the euro and the Chinese yuan, but the EU is currently very much under American influence, so I doubt that you will see a push for such a thing from the EU for at least another decade or two (if ever), and PR China won’t become a real first World country for at least another 30 years, so my guess is somewhere between 2040 and 2060.

    • fafc says:

      Who is to say? I think it is very dangerous to operate under the assumption that everything is under control. Right now the system is being held to together with duct tape, paper clips, and prayers. And it is also in everyone’s interest to see the status quo remain the same. But that might change, or they might just run out of duct tape.

  3. Croatian Capitalist says:

    Of course that it could happen sooner for various reasons (Saudi Arabia and the rest of the currently pro-American oil-rich countries deciding to de-dollarize, the democrats managing to pass amnesty for the estimated 11-30 millions illegal immigrants (who would then probably bring their families over, so you would probably get 50-100 million new socialist voters) would probably cause serious societal friction and economic problems in the USA, anti-American parties rising to power in the EU, etc.), but I still think that it will be a slow process.

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