I was watching the series Sleepy Hollow (2013), about a man who came from the 1700s to live in Modern-day America, and he was shocked to find that there was someone who was a millionaire.
He couldn't believe the USD was so valueless that a person could amass millions of it.
But of course, millionaires are all too common. Guys are billionaires. Guys have 10s and 100s of billions. It's not the rarest thing or something that would shock anyone.
Do you know what all this tells you, it tells you how much the USD has been losing value, even those who have been living in a hole know, so apologies for stating the obvious, it was only to lay the foundation.
Now, this constant devaluation of the USD makes a lot of people fear that the entire financial system will one day collapse. Collapse in the sense that the USD would lose so much value that it would no longer have any value and people would no longer accept it for transactions.
And people would have to resort to trade by barter or gold or cryptocurrency, or something.
I've been only mentioning the USD because it is currently the most important currency in the world, but this fear of collapse extends to all the currency, the fear is for the entire financial system. The fear is that every currency including the USD would all collapse at a certain point, most likely at the same point.
But this is PROBABLY impossible. A collapse is not possible enough for fear. The only thing that is possible enough for fear is the devaluation of your savings, and the extent of this possible devaluation is not certain but it's certainly nowhere near what can be considered a collapse
Why?
What caused the collapse of the Zimbabwean and Venezuelan currency? What causes the USD to continually devalue?
Mostly over printing and inadequate demand by other currencies.
With the BRICS trying to create their own currency, many other countries considering moving away from the USD, and with the rate at which the US is printing USD, it's possible that up to a 50% or more devaluation occur at one time.
But this wouldn't be a collapse. Because for all these to happen, it must mean the BRICS and some other countries have pulled away from the USD which means the fall of the USD wouldn't affect them.
There would always be many countries not affected and the currencies of the countries not affected would become preferred by US citizens and others who want a stronger currency.
The simple fact that not every country can be affected means the entire financial system cannot collapse.
There's hardly a scenario by any reasonable stretch of the imagination that would show that every country's currency would collapse at the same time, because that would be the only way it can be said the financial system has collapsed.
Except there's a nuclear apocalypse or something of the sort and the surviving humans no longer try to respect institutions and fiat but want exchange done with currencies with inherent value like commodities. Yeah, except that.
The End
[Cover art created by myself]
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