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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17 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.

  4. Croatian Capitalist says:

    I doubt that will happen either (that soon), and countries such as Sweden and UK have disappointed me so much that I wouldn’t care even if it did happen, what worries me is not the prospect of such countries becoming Islamic, rather the prospect of the EU loons in Bruxelles ruining the few remaining sane countries in the EU such as Poland and Hungary.

    As for the USD, since I don’t live in the USA, don’t plan on moving there, and hold no savings in USD (I have one 100 dollar bill, one 20 dollar bill and, one 10 dollar bill, and a few 1 dollar bills, but I keep them as souvenirs from my trip to the USA, not as savings in the traditional sense), I don’t really care about it.

    • fafc says:

      I wouldn’t be surprised if it happens sooner. Europeans have nothing to believe in. They hate themselves. And the soul longs for something to believe in. Islam might just fill that longing. I would also suspect it will be from the top down with important European leaders jointly announcing that they have all converted to Islam and that they encourage the rest of their citizen to convert. Islam can be very appealing: lower taxes, better dental and health care benefits, and more and longer holidays. Its not all beheadings and throughing gays off rooftops.

      • Croatian Capitalist says:

        Maybe, but the problem with discussing the effects of the Islamization of (Western) Europe is the fact that Islam isn’t really an unified religion, Saudi Arabia has it’s wahhabi version, Turkey has a more liberal version of (Sunni) Islam in place, the Shiite version Iran has is again different than those two, etc., so even if Europe does become Islamic, what version of Islam will rule over Europe? The Iranian one? The Saudi one? The Turkish one? Some new European version? Until that question is answered, making realistic predictions will be really hard.

        • alex says:

          I didn’t say it would work or that Islam would do anything else but turn Europe into a giant garbage dump. I only suggested that it might be very appealing to several generations of degraded decadent Europeans aimlessly wandering through life look for a reason to live.

          • Croatian Capitalist says:

            Well, it’s true that something will sooner or later have to replace to godless “liberalism” that is wrecking most Western countries, and sadly Islam is the only alternative on the horizon so far.

  5. Croatian Capitalist says:

    Besides, if a few countries like Sweden became third World, that might actually be good thing for the rest of the World, since Sweden is a poster-country for “liberal” policies, if it became the European Yemen, that would discredit “liberal” policies in every country where the common person isn’t completely brain-dead.

    • fafc says:

      Its on its way. Sweden is openly discussing sending the military into “no-go” zones that a year ago the government was denying existed.

      • Croatian Capitalist says:

        I am not in the least bit sorry for them, they (both the government and the people) supported (politically, financially, etc.) the communist terrorists in South Africa against the capitalist government, they supported Castro’s Cuba, the marxists in Chile, etc., I actually have a hard time thinking of a group of degenerates in the last 50 years that didn’t or don’t have the support of the Swedes.

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