Thinking Silver

If the US dollar collapses, it will have a dramatic impact on the world economy because the dollar is the standard unit of currency for commodity markets, especially gold and oil. The U.S. dollar is still the world’s reserve currency, but the reality is that it can lead the world into an economic depression.

Nations with large external debts will not be able to trade sufficiently to earn the needed income to service their debts. They will slide into bankruptcy. However, countries such as Russia and China are taking necessary steps to avoid an economic tsunami caused by a collapse of the US dollar by announcing in 2010 that they will use their own currencies which is the Russian Ruble and the Chinese Yuan for bilateral trade.

Iran and India decided to trade gold for oil due to US sanctions on Iran because of its nuclear program.

Japan and China announced that they will also trade in their own currencies despite diplomatic problems involving the Diaoyu Islands in the East China Sea.  One thing is certain, the world is slowly but surely moving away from the US dollar.

The cost of living among people who deal with the US dollar on a daily basis especially by those who live within the United States will see a rapid decline in the standards of living due to Federal Reserve Bank’s debasement of the dollar by printing unlimited amounts of money through Quantitative easing (QE). The Federal Reserve’s action will cause food, clothing and energy prices to soar, which will hurt the average family. As the US Federal Reserve Bank continues to print dollars, the result will be inflation. It will cause panic on the world markets and civil unrest among the people who realize that the US dollars they depend on would no longer be able to buy their basic necessities.  What can be done around the world to avoid such a scenario when the collapse of the dollar is inevitable? History proves that silver can become an alternative currency that can replace the dollar, although many countries are purchasing large amounts of gold such as Russia and China with other countries in Latin America and Asia following in the same footsteps.  However, silver will still be a good option.  At least you have a choice in which precious metals you can invest in…


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