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Which Of The Currencies Of The World Is Going To Crash First?

Last year was an absolutely fascinating time for world currency markets.  The yen, the dollar and the euro all took their turns in the spotlight.  Each experienced wild swings at various times, but the overall theme that we saw was that faith in paper currencies is dying.  The biggest reason for this is the horrific sovereign debt crisis that has swept the globe.  The United States, Japan and a whole host of European nations are all drowning in debt.  The U.S. and Japan are both steamrolling toward insolvency, and several European nations would have already defaulted on their debts if they had not been bailed out.  So which of the major currencies of the world is going to crash first?  Will one (or more) of the big currencies fall before the end of 2011?  Once one major currency collapses will the rest start to fall like dominoes?  The truth is that the world has never seen a sovereign debt crisis of this magnitude in all of human history.  Almost the entire globe is drowning in a sea of red ink and it has brought us right to the brink of financial disaster.

So which of the currencies of the world is going to be the first to come crashing down?  Well, let’s take a quick look at the yen, the euro and the dollar….

The Yen

Japan has the 3rd biggest economy in the world, but they are also deeply swamped in debt.  At well over 200%, the Japanese government has the biggest debt to GDP ratio of all of the major industrialized nations.  In fact, it is estimated that this massive pile of Japanese government debt amounts to approximately 7.5 million yen for every person living in the entire nation of Japan.

So why hasn’t Japan defaulted yet?  Well, a big reason is because Japan has one of the highest personal savings rates on the entire globe, and Japanese citizens have been more than happy to gobble up huge amounts of Japanese government debt at very, very low interest rates.

However, Standard & Poor’s has warned that they may have to slash Japan’s credit rating if the debt gets much bigger, and once confidence starts to falter Japan is going to have to start paying higher interest rates.

At some point Japan is going to be facing a financial meltdown, but for the moment they are hanging in there.

The Euro

Several large European nations would have already defaulted on their debts if they had not been bailed out last year.  Greece, Portugal, Ireland, Italy, Belgium and Spain are all on very shaky ground right now.  Several of them have already had their credit ratings slashed.

Bond yields all over Europe have been absolutely soaring in recent months.  It is getting really expensive for many of these nations to take on new debt.  Interest rates on 10-year Greek bonds went from 6 percent up to 13 percent in just a single month at one point in 2010.  In fact, even some of the nations that aren’t in the most danger are even feeling the pain.  For example, the cost of insuring French debt hit a new record high on December 20th.

Right now there are all kinds of rumblings that more European nations are going to need bailouts very soon.  Professor Willem Buiter, the chief economist at Citibank, is warning that quite a few EU nations could financially collapse in the next few months if they are not rapidly bailed out….

“The market is not going to wait until March for the EU authorities to get their act together. We could have several sovereign states and banks going under. They are being far too casual.”

So where is all of this bailout money coming from?  Well, a lot of it is coming from Germany and a significant amount of it is actually coming from the United States.

But will wealthy nations such as Germany be willing to pour hundreds of billions of euros into these financial black holes indefinitely?

Are the Germans going to accept a situation where they are permanently bailing out the “weak sisters” all over the rest of the continent?

Already some prominent politicians in Europe are calling for the European “bailout fund” to be doubled in size to about 2 trillion dollars.  Other analysts believe that it is going to take at least 4 or 5 trillion dollars to properly bail out all of the European nations that need it.

In any event, the truth is that the situation is really, really bad.  If at some point the bailouts stop, the defaults are going to begin.

The Dollar

The United States has the biggest national debt of all.  The 14 trillion dollar threshold has just been crossed, and the national debt is now less than 300 billion dollars away from the 14.294 trillion dollar debt ceiling.  If the U.S. Congress does not raise the debt ceiling, the U.S. government will shortly begin to default on its debts.  Of course everyone fully expects that the U.S. Congress will indeed raise the debt ceiling just like they have every time before.

However, U.S. politicians are not going to be able to keep kicking the can down the road forever.  Today the U.S. national debt is more than 14 times larger than it was just 30 years ago.  Everyone around the world is beginning to realize that this debt is not even close to sustainable.  Investors are beginning to become more hesitant about loaning the United States money.  The Federal Reserve has been forced to step in and “buy” more and more of the debt the U.S. government is issuing.

Yields on U.S. Treasuries have been moving up in recent months and this could eventually become a huge problem.

Why?

Well, the sad truth is that the U.S. government has been increasingly using short-term debt.

At this point, the average maturity of U.S. government bonds has fallen to 4.4 years.  The is the lowest figure of all the major industrialized nations. That means that the U.S. government must constantly roll over massive amounts of debt.

As a point of comparison, UK government debt has an average maturity of approximately 13 years.  That obviously gives them a lot more breathing room.

For the United States, the situation could become incredibly dire if interest rates start to go up.

If interest rates on U.S. government debt reach an average of 7 percent, interest payments on the debt would gobble up approximately 45 percent of the tax revenue that the U.S. government takes in each year.

Yes, at that point the game would be over.

But what the United States has going for it that the European nations do not is that the United States can just have the Federal Reserve keep printing currency.  Unfortunately for the nations involved in the euro, they do not have that option.

That is why an increasing number of analysts believe that it will be the euro that will crash and burn first.

But only time will tell.

There are even many that believe that authorities at the highest level actually want the dollar, euro and yen to fail.

Why?

Well, many of the same individuals and groups that brought us NAFTA, the WTO, the IMF, the OECD and the World Bank believe that it would be absolutely wonderful for humanity if we could all have a single, united global currency.  The “chaos” produced by the fall of our existing global currencies could provide the perfect “opportunity” to provide the grand “solution” that they have been hoping to introduce all along.

All over the world top politicians and financiers have been very open about the fact that a world currency is coming.  In fact, men like George Soros are openly talking about these things.  The United Nations has been publicly calling for the U.S. dollar to be replaced with a new global currency for some time now.  Just this week Chinese President Hu Jintao stated that “the current international currency system is the product of the past.”

So will the American people just sit back and accept it when their dollars are replaced with a new global currency?

Well, sadly, when things go badly most Americans seem to be willing to accept just about anything if it will mean that things will go back to “normal”.  When the global economy falls to pieces, and there already lots of signs that we are on the verge of such a collapse, will the American people be willing to say goodbye to the dollar if politicians from both major political parties tell them that the new global currency is the “answer” to our problems?

Hopefully the American people will wake up and will realize that “globalism” is rapidly wiping away almost everything that it means to be an “American”.  Now even many of our children and teens are primarily identifying themselves as “citizens of the world” rather than “citizens of the United States”.

Even if the U.S. dollar does collapse, it is absolutely imperative that we continue to have our own national currency.  The U.S. Constitution does not make any provision for any sort of “world currency”.  If we allow the globalists to push a truly global currency down our throats it will be another giant step towards the creation of a totalitarian one world system.

So what do you think about all of this?  Please feel free to leave a comment with your thoughts below….

  • Frank W,

    National sovereignty is a thing of the past and Americans must learn to cope with such reality.

  • Vegas

    Good article. Food for thought, but ‘the agenda’ is going along quite smoothly. And here’s why you don’t hear a peep from the masses: http://deliberatedumbingdown.com … This free book is a tough read, but well worth the effort. One can then understand that the ‘education’ system is a fraud, just like everything else…..

  • William

    This all did not happen by accident. It has been planned for centuries. Read WATERS FLOWING EASTWARD.

  • Andrew James

    Well yes they want a one world currency and if one of the major players goes down then they all go down because they are all connected.

    We need to follow the money to stop this happening and arrest the international bankers before it is too late and then lets see who they have been bribing.

    Euro does not work due to it’s size so what makes anyone think a single currency accross the world would fair any better or will we all except this when told out fiat paper is worthless as they throw the dog a bone.

    Gold/Silver seems to be the only answer i can see just now and even if these metals go down to half price i will still not be selling because soon or later the house of cards will fall

  • Maria

    There is no cure. There is no fix.

    The fiat economy is not broken. It is working as planned. The elite who shaped it know of its strengths and weaknesses. They created the tools…collateralized debt obligations, derivatives and credit default swaps. They know how to manipulate it and benefit from it. And they know how to keep people captive within it. It has been the weapon of the elite used to build and destroy whole nations. It is the legacy of the elite perfected over time.

    Bailouts have not and will not cure anything. They were never meant to. They are designed to create even more wealth building and power building opportunities for the elite. We are fools to think otherwise.

    A once viable world economy has been transformed into a completely fiat false paradigm. Every tax paying citizen of the world today was born into this system. They have never known anything else and are trained to remain within its confines…unsuspecting of the diabolical purpose for which it was intended…enslavement.

    The world is waking up to the stark realization…the emperor has no clothes. Fiat money is worthless. The fiat economy is a false paradigm. The wealth of nations is being confiscated by the most powerful individuals of the world who choose to remain anonymous…cloaked behind central banks and extremely powerful corporations.

    I wish this was all just a “crazy theory”.

    Unfortunately, it’s not.

  • Rick

    Dmitry Orlov talks about five stages of collapse; Gerald Celente talks about martial law.

    I think the World Bank has been using relatively healthy governments as errand boys.
    Currently, the World Bank has the military force of the USA, the UK, the EU, etc. behind it.

    Currently healthy countries may have economic crashes, gas shortages, food riots, etc.

    If the USA imposes martial law and there are food riots all over the world, then the World Bank/IMF/BIS bureaucrats may have *less* power just when they think they have *maximum* power.

    If the World Bank was counting on the USA to fight wars on behalf of bankers, but the USA responds that martial law does not allow discussion of such ideas – then the World Bank bureaucrats may find themselves trampled during food riots just like all the other civilians.

  • Lauren

    This is amazing. I am scared right now about an economic collpase and currency collapse. I think it could be the EURO, I heard that is in serious trouble.

    My friend and I subscribe to the FFT newsletter the guy over at http://forecastfortomorrow.com
    He predicted the stock market crash, and the US collapse ages ago, and many other
    things, it is spooky how accuaret he is. He has been talking about this recently, and what he says coming next is intresting, he is well worth a look.

    Time to prepare was yesterday people!!

  • Rip Van Winkle

    BEWARE: The Mark of the Beast Cometh!

  • Alice

    Ours does not have to. If we end The Federal Reserve and the IRS (which are not part of our original governmental system anyway and are 100% in violation of the U.S. Constitution) we could be completely stable again in 2 years.

  • Matt

    This will solve all our problems: 50% of Americans pay no income tax, including Gary2 a nd his gang of followers. So tax them all at 40%. Problem solved!

  • Cary

    This is an incredibly complex issue.

    On the one hand it may be a fight for survival by the worlds smallest, possibly brightest, ultra minority.

    On the other hand it may also be a racist/supremicist agenda to control the global herd by that same ultra minority.

    It’s really just a matter of perspective I suppose.

    In any case it appears as though they are intent on erradicating all real culture in the world because culture and nationalism are threatening to them; historically this has proven true.

  • Jeff

    “Now even many of our children and teens are primarily identifying themselves as “citizens of the world” rather than “citizens of the United States”.

    Perhaps they are ashamed of the USA, after our own President lied to the world to justify the invasion of Iraq.

  • tony-s

    “Now even many of our children and teens are primarily identifying themselves as “citizens of the world” ”

    Not my kids. Kissinger and Rockefeller want our kids to be little nation-less slave pions in their NWO world. The elites will rule like some modern-day Greek gods, being fed grapes by slaves as they decide how low to set the global mandatory euthanization age.

    No, my kids aren’t globalists, nor are any others I know of. Only those who envy what Western culture built think like that. Easy to be ‘globalist’ when you have nothing. Everyone can aspire to be like us, but engineering financial catastrophe to make us all ‘Equally Poor’ to bring in this great plan, is doomed to fail.

  • Lennie Pike

    Hu he laughs last,……….

    Don’t ask Hu for who the bell tolls………..

    And everyone else like him with dreams of a one world authoritarian utopia which includes every single politician and leader in the U.S.A except maybe Ron Paul and Rand Paul. What the h*#ll happened?

  • Richard L.

    Sorry, I don’t agree with the “experts” on the Euro. I’m an American living in a member state of the EU and have paid close attention to the economies here. They are all united on the notion of lowering debt and balanced budgets for all member states. They have all taken serious action towards these goals. In the US, they talk about a balanced budget, but nothing is EVER done. When the EU decided balanced budgets were the way to go, the country I live in took a whole 8 weeks to approve 20% sweeping cuts in the budget. Lots of government employees were shown the door. Sure people were upset, but we are now on track for a balanced budget by the end of this year. Try that uncle sam.

  • Lennie Pike

    What happened began in 1913.

  • Kevin

    If global currency exchange rates were frozen wouldn’t that be a de-facto global currency?

    Does the picture on the various pieces of paper really matter?

    The body politic of all the nations would be far less alarmed if they still held fimiliar currency in their hand.

  • Tripseven

    Who falls first? that has already happened, when does the U.S. fall is the question.

    The whole world is embroiled in a struggle for Sovereignty.
    Currencies have been manipulated and devalued. In my short lifetime, six South American countries have turned to communism, without so much as a raised eyebrow of indignation from the U.S.
    The E.U. is socialist, again without a grumble.

    The world has gone to war twice for the agandas laid out by the socialists and communists.
    I’m not sure if we will again because the push toward communism has been much more subtle and effective. In similar fashion as Hilter “taking” the youth of Germany. Our own children have been lead down a socialist path, by denying God in schools,
    dumbing down education,
    by collective efforts for grading,
    individualism is discouraged,
    team effort is applauded,
    gov’t care is expected.

    Soon the scales will tip and it will be too late, and freedom will really be gone for a very, very long time.

    Join the battle for your freedom!

    777

  • Dave

    Having our own currency is fine, but DO NOT ALLOW ANY PRIVATELY OWNED CENTRAL BANKS(aka:Federal Reserve)to be involved with it under ANY circumstances! We must finally heed the warnings of many about the dangers of central bankers.

    “I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the government at defiance. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
    If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” -Thomas Jefferson – Founding Father, Patriot and 3rd President of the United States

    “The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies, all who question it’s methods or throw light upon it’s crimes. I have two great enemies, the Southern Army in front of me and the Bankers in the rear. Of the two, the one at my rear is my greatest foe. Corporations have been enthroned and an era of corruption in high places will follow, and the money powers of the country will endeavor to prolong it’s reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed. – Abraham Lincoln

  • impeachRonPaul

    Gold Crashes first. The decliene has already begun

  • jox

    The European Central Bank has started buying public debt from some countries, just like the Federal Reserve does in USA. This is pushing stock markets in Spain to new heights. What’s the purpose? I don’t know. Only they are buying time, I suppose.

  • Maria

    Here we go…state bankruptcies and bailouts! How do you think this will change our currency standing?

    A Path Is Sought for States to Escape Their Debt Burdens
    By MARY WILLIAMS WALSH
    Published: January 20, 2011

    http://www.nytimes.com/2011/01/21/business/economy/21bankruptcy.html?_r=1&src=busln

  • Rocketman

    What’s the old jewish saying? “A drowning man will grab even the point of a sword”? Seems to me that everything has been set up just to have this outcome by the banking elite and the socialist/communist leaders. The final joke though is on the bankers. Once they get what they want the statists will no longer need the bankers.

  • http://GreatRedDragon.com Edward Ulysses Cate

    All that having a one-world currency means is that fewer financial sociopaths would be able to pilfer wealth from every citizen on earth. It’s what financial sociopaths dream about. Why? Because a sociopath, who doesn’t know when enough is enough, will never have enough. Not even if they own the whole world. But without empathy nor conscience, there’s nothing to stop them from trying.

  • http://rv-prep-end-of-days.blogspot.com/ flyingdog

    I’m actually in the process of doing some astrological research on the current US Saturn Return. We’re at a pivotal point even according to astrology, one that occurs apx every 30 years.

    http://rv-prep-end-of-days.blogspot.com/2011/01/8th-us-saturn-return-part-1.html

    During 4 of the 7 previous returns, the US has experienced a significant economic decline due to decisions made during the period. 3 of these were downright devastating, including both the Great Depression and the Panic of 1837.

    I’ll be posting an analysis of the current Saturn return in the coming days to hopefully shed some light on exactly what we can expect before September this year and for the period leading out to 2024.

  • mondobeyondo

    Keep bailing out more big banks, nationalize more corporations like GM, Chrysler, Fannie, Freddie, etc. AND keep printing more money, and the U.S. dollar will win the race to the bottom.

    The Euro won’t be far behind. Europe is basically doing the same thing, but they’re bailing out whole countries.

    Even the Chinese yuan isn’t safe. Inflation in China is raging.

    Personally, I think the South African Kruggerrand looks pretty healthy…

  • croc

    When the economic collapse happens, I’ll be here to fight against a world currency til the end.

  • DeathSpiral

    Most people simply do not realize how dangerous of an event this would be!

    If you want know then read: When Money Dies (The Nightmare of the Weimar Hyper-Inflation) by Adam Fergusson.

    During this period scores of people starved to death in the streets. Mobs, violent protests and related deaths became a common occurrence. A desperate nation put Hitler into power and soon after World War II began.

    This is what happens When Money Dies!

  • dodiligence

    What is all this talk about abolishing the Federal Reserve? As if this is a government establishment we can just get rid of. The Federal Reserve is a private bank, not part of the government. A bank that holds the largest amount of U.S. debt in the world. People think that China is our largest creditor, that is simply not the case. If we try to abolish it or revoke its charter. Can it not demand payment in full? Pay with what? The sad truth is they own us lock, stock and barrel! Remember “The borrower is servant to the lender” This is why President Wilson after it was created said “I’ve unwittingly ruined my country”. Furthermore the U.S has already crashed, they are just propping it up until everything is in place for them to do what was planned many years ago. People, please do your research and pray for understanding in what you uncover. It is time to prepare. And that starts with your heart first and foremost.

  • lostinmissouri

    Which currency goes first doesn’t matter. The fact is that all fiat currencies will fail.
    The global economy is so intertwined, that either the dollar or euro collapse, will bring them all down. Things are not going back to “normal”.

    The question is: What will stand after the currency collapses? THE ONES THAT HAVE STOOD THE TEST OF 6000+ YEARS OF HISTORY…..GOLD/SILVER. got gold?

  • GoneWithTheWind

    It all depends on what the definition of crash is. I think the Euro could indeed crash with the stronger countries being forced to get out of the EU to protect themselves. I think the U.S. dollar will undergo a revaluation and quite possible a total face lift with new bills and coins. The dollar will be worth considerably less but is this a crash? I think that the Canadian dollar and the Australian dollar will hold up fairly well. They each have the advantage of a small population and a large resource rich country.

  • bigfish

    Another article getting people all riled up with little information. The last paragraph citing the Constitution is typical of conservative scare tactics. I don’t know if the dollar is going to be replaced or not. It may be the least of our worries what with the sordid financial mess caused by greed and deregulation.

  • Michael2

    At this point is safe to say or ask if representative democracy is a complete and utter failure?

  • Just Observing

    Now even many of our children and teens are primarily identifying themselves as “citizens of the world” rather than “citizens of the United States”.

    Well, duh…..150 years ago, you were a citizen of a STATE. Then the 14th amendment made you a “US” citizen. So the logical progression is to do away with that political subdivision as well, and make you one, happy serf of the planet.

    Can we have a round of Kum-by-ya now ?

  • JF

    Frank w,
    I’ll (and many others) will “cope” with it over our dead bodies, if that’s what it will take. This is “OUR” United States, not the Globalists. If you are going to succumb to them so be it. In the words of Samuel Adams:

    If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or your arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that you were our countrymen.

  • Armlaw

    Whereas gold and silver have been universal mediums of exchange from time immemorial, the
    fact that the WEIGHT of the metal can not be INFLATED, provides for stability in all settlements.

    Paper currency, however is merely numbers, printed on commercial instruments and is subject to theft by inflation as is the fractional reserve, used by the banking industry which creates the fictional credit by a factor of 1-10 and collects interest on
    9 of what they don’t have. Great system isn’t it.

  • http://google.com robert parker

    God said it,THE WORD can not lie.It is written and its all ready done.J

  • ricardomaago@yahoo.com

    firstly,is not crash the ultimate things to happen,it is what currencies is going tobe no.one is phillippines,future energy is in the philippines which is deuterium,nextis the philippines is the center in the political arena in the global affair,all the country will become equal in opportunity

  • http://n/a Willard

    Rev 13:11 Then I saw another beast, coming out of the earth. He had two horns like a lamb, but he spoke like a dragon. Rev 13:12 He exercised all the authority of the first beast on his behalf, hand made the earth and its inhabitants worship the first beast, whose fatal wound had been healed.
    Rev 13:13 And he performed great and miraculous signs, even causing fire to come down from heaven to earth in full view of men. Rev 13:14 Because of the signs he was given power to do on behalf of the first beast, he deceived the inhabitants of the earth. He ordered them to set up an image in honor of the beast who was wounded by the sword and yet lived. Rev 13:15 He was given power to give breath to the image of the first beast, so that it could speak and cause all who refused to worship the image to be killed. Rev 13:16 He also forced everyone, small and great,rich and poor, free and slave, to receive a mark on his right hand or on his forehead, Rev 13:17 so that no one could buy or sell unless he had the mark,which is the name of the beast or the number of his name.
    Rev 13:18 This calls for wisdom. If anyone has insight, let him calculate the number of the beast, for it is man’s number. His number is 666

  • http://www.planorperish.com/ Gutter Economist

    “Ireland central bank counterfeited 51 billion Euros out of thin air. The amount is not backed by government bonds. Nor was it a loan from the ECB or anyone else. The money is counterfeit in every sense of the word.”

    http://globaleconomicanalysis.blogspot.com/2011/01/ecb-allows-irish-central-bank-to.html

  • RAJEEV MAHESHWARI

    I have gone through the views expressed and comments from many people. For me as a layman it appears that problem exist with many major currencies like USD, YEN and EURO. Manipulation by Govt and its Central Bank is not quite new. All developed countries see their first interest and developing countries suffers.
    I am sure Asia Pacific countries are relatively doing well and it will be again picking up like China, India, Singapore, Malaysia and other countries in this region. However this is not digestible to western side. I am sure coming time will tell who is weak and who is strong and at what cost.

  • http://www.pathtoasia.com rhea

    The reason every country on the planet is experiencing crashing economies is that they’d been suckered into the interest-bearing Loan finance system by a little cabal of Banksters. In asking myself how it’s come to be, that the world is flooded with currency, yet standards of living are conversely deteriorating, it wasn’t enough to simply stop with recognition of the phenomenon of ‘inflationary devaluation’. Currency war has been going on, and no one wins in a war…

    We help Americans find jobs and prosperity in Asia. For details, visit http://www.pathtoasia.com/jobs/

  • http://veerar-merryblogging.blogspot.com/ sadasivan

    The G20 seem to be in control at the moment.First “their”,stranglehold has to be removed.
    I think,that this group is trying to “make” room, for China by making the Renminbi the Global Currency of sorts.
    Efforts for,a Gold standard without the IMF,the World Bank,the Wall Street Bankers, and other Globalists trying to usurp POWER,is a must now.

  • Dave

    Once the U.S. dollar loses its status as a reserve currency, and it will, that will be the straw that finally breaks the camel’s back! No “petrodollar”….hyperinflation will be rampant here in U.S.!!!

    Good luck everyone, we’ll need it.

  • Tim

    The governments of the world appear committed to waging currency wars. They are all focusing on the short term benefit of boosting exports but appear inured to the threat of monetary inflation which could bring about a global collapse of the division of labor. This race to bottom will not end well. Inflation is never a solution to a country’s economic problems much less the world’s. The dynamics of mass politics make any serious reforms highly unlikely. Nobody wants be the one to propose the huge budget cuts and other austerity measures that are necessary to address to huge imbalances brought about by fiat money. What is needed is a repeal of legal tender laws and reintroduction of gold and silver as actual money. This would reintroduce fiscal discpline to government planners. The worst idea is a global currency issued by global central bank that could inflate forever. The second worse idea is national currencies. The best reform would be to allow for currency competition with all the currencies redeemaable in a valuable commodity like gold or silver or whatever the market would decide which I suspect would those two metals. But monetary freedom would require the political and financial elite giving up their power.

  • ricardomaago@yahoo.com

    everybody really dont understand what the world is going to be,the left and the right is already united.did you not remenber that all the philosper said that communism and democracy will never be united,now there is one great leader from the far east siad by means of fil. idealogy will be united now is unite.

  • ricardomaago@yahoo.com

    at this time no need for your intelligent comment all the system has been finished.

  • http://WBDM Joe in JT

    I see a ironic comparison between the EU countries and the individual states here in America. With only the Fed able to print more money at will. Not California or Illinois or New Jersey, and not Spain or Greece or Italy, none of these can create cash out of thin air. What I see first is this. Each state here in America will claim some form of bankruptcy (even though legally they can’t) but they will make drastic cuts in all spending and somehow try to make our federal government pay for state worker pensions. The Muni-Bonds will tank causing huge problems. Then at about the same time the EU countries will default too, causing an amazing mess. Then when desperation takes hold, the only way out will be to start a large scale war. In the aftermath a new world order will emerge. The new world currency will follow and the Constitution of the United States will be used as kindeling.

  • http://WBDM Joe in JT

    Remember when former Treasury Secretary Hank Paulson made his omenous speech in 2008 demanding a bailout for his Goldman Sachs buddies or martial law will be declared? Heck he even trashed the stock market the following day when Congress originally said no. That whole fiasco was over a measely 750 billion TARP fund. What I’ve noticed is this. Today to avoid all the speeches and voting and threats to steal money, Bernanke and Tim Gietner simply push buttons on a keyboard giving “credits” to all the banksters, and when the taxpaying public asks “where’s the beef?” rrrrrr “where’s the money going”, Berstankee tells us “none of your damn business”, just trust us. This simple fact is why the whole system will crash, it’s a casino parlor game and a ponzi scheme. The only real wealth is gold, and they stole all of that already. Fort Knox has been looted and has not been inventoried or reconciled in decades. The only gold their is gold plated lead bricks.

  • Kevin

    Gone

    Well if the devaluation lowers the purchasing power of the USD 50% and you only get a 10% increase in pay you standard of living just dropped 40%. Ok that might not be a crash but it certainly is a real hard landing.

  • mondobeyondo

    The vast majority of states are broke.
    Many U.S. cities are broke.
    Many U.S. people are broke.
    I’m broke.
    The federal government is flat broke.
    Europe is broke.
    Japan is broke.

    So who has all the money???

    Guess.

    Follow the money, as they said during the Watergate days…

    • Barbara Ewing

      Your post made me laugh on a Wed morning, thank you.

  • Chris F

    The first country that adopts a Gold Standard will force all other nations to go back on the Gold Standard. The Global Currency idea is toast. Even if by some miracle it was adopted, how many years would you give it? Years, not decades.

  • http://crisisprofit.blogspot.com/ Roth

    Hello,

    Perhaps the Dollar crashes first?

    Thank you,

    Roth

    http://crisisprofit.blogspot.com/

  • John

    Which currency will collapse first?

    I question the premise. Currencies collapse all the time. Hasn’t the dollar been collapsing since 1913?

    Thirty years ago my grad school tuition was $3600 a year. Today, tuition at the same school is around $40K. We’re using the same currency, we just need a lot more of it to buy things these days. Some people keep up, some people are left behind.

    I see more expensive oil and more expensive food ahead. Ditto for the junk from China we all buy.

    I’m not sure what the answer is. Buy some stock in Big Oil?

  • NothingNew

    OK, so the whole world runs on little peices of paper (or electronic numbers in a hard-drive in a bank), backed by nothing but psychology. That’s fiat currency. Any lasting system must be backed by something tangible. Even if we do go to a global currency, the same problems will manifest again.

  • GoneWithTheWind

    Well that’s the point. I can weather a 50% devaluation. It won’t be easy or fun but I can do it. A crash implies the streets will be unsafe and crime will be rampant. Look at countries which have had an economic collapse. Our purchasing power has been “devalued” every year we have been alive.

  • Digby

    If we had one currency, think of all the currency traders and bankers that would lose their jobs.

    They make money out of nothing.

    And we would not have to worry about converting currency on trips and shopping etc.

    We would all adjust in the end.

    Countries like Greece would just have to pull their socks up up. Eg the middle class to pay taxes and less corruption. And make something people want to buy.

  • SPECTRE of Deflation

    The Irish just printed $51 Billion Euros with absolutley no debt to back it up which constitutes outright monetization. Individual nations within the EMU are not supposed to have this ability, and how long do we think it will take the other EU countries with monetary problems to do the same as the Irish?

    The sad truth is that all fiat currencies will fail, and in a global system, it’s a fair bet that it happens everywhere all at once just like 2008. But for the US, the world would of imploded back then. We no longer have that particular luxury anymore after kicking the can down a very long city block. We are all on the Titanic. It’s only a question of who knows what at this point. The sheeple continue to dance while those with a clue watch the life boats sail away half full with crew members.

  • Kevin

    Gone

    I suspect a 50% loss in purchasing power (without any raise in pay to offset it) would be a catalyst for much higher crime. The labor disruptions with workers striking regardless if they have a union or not that will probably turn violent is frightening. Those disruptions tend to cause shortages of things including necessities.

    I have doubts if it will get that bad because I believe most of what is happening is no accident. The power elite need a US with political stability in order to maintain Wall Streets international police force known as the US Military.

  • ben roberts

    The real hope is right here in this forum. Thankfully, most of you are aware and informed as to the true nature of the problem. That is the most essential ingredient necessary to solve the problem. The first thing is to understand, the second is to act on that understanding.

    Everything can be boiled down to this global fiat monetary system and those who want to make it worse by establishing a one world currency. Accepting that would be the worst possible thing mankind could ever do. That would be the end of national and personal sovereignty to whatever extent there is any left in the world. In most cases very little now exist anywhere. A Gold and Silver, or any form of precious metal backed monetary system, is the only sensible answer to begin the restoration individual and national sovereignty.

  • http://Www.goldmania.net Gail spencer

    The uk is in 156 billion debt and are trying to pay back 6 billion this year, the problem is by the end of the year they will go another 6billion into the red.

  • Robert Happek

    It is highly unlikely that any of the major currencies (Dollar, Euro or Yen) will crash simply because there is no viable replacement for these currencies. What will happen instead is a combination of inflation and selective defaults. Holders of government debt for instance could be forced to accept lower interest and repayment stretched out over many decades.

    The crash will not only be postponed but it will be also stretched out over many decades.

  • NO NWO

    Great article! Please wake everyone up to the NWO agenda. The economic collapse has been deliberately engineered. infowars.com

    http://www.youtube.com/watch?v=qX_qOaZmCFM

  • Ep

    Signs of the times. Better trust that Jesus paid the price for you and accept Him as your savior. You don’t need religion, you need Jesus Christ.

  • Michael Mensah

    Listen, this is not avoidable, desolation has been decreed, it is written and what is written will and shall come to pass, please take advantage of the little time Christ Jesus is still given us,there is a global unity coming, unity of one currency, one government, one religion and one world leader who will be the antichrist, satan in human flesh, the stage is being set for him now, i always wondered how he would be embraced by the people of the world and going as far to recieve him as God,well, now i know God is in control of all world events, this man of sin that is coming will come at a time when the whole world is experiancing the same turmoil and will bring very enticing and deceptive solution to it all, expecially when the graves bursts open and those dead long ago since Christ up till now go to meet Christ in the air and those alive who are believers in Chris will also vanish in a blink of an eye to meet Christ and those once dead in the air, this again will be global along with the global economy collapse,this satanic system that is coming will be very sophisticated designed by the devil since the garden of eden but controlled by God, guns and weapons will be futile because in that time he who leads into captivity, he himself shall be led to captivity,he who kills with sword shall also be killed with sword Revelation 13:10, you cant kick agaist the rock, what is written in the bible will come to pass, dont listen to unlearned people who compare everything to the bible, doesnt matter if you believe the bible or not, international peace WILL be the TRAP, Israel will experiance their false peace for seven years only to be set up, but like i said God is in control, keep watch, and repent, seek Christ for salvation befor he comes to gather us, one more thing, when the vanishins occure, the government of the world has already devised an explanation, they’re already conditioning the world public to except that aliens out of space really exits when all their witnessing are demons who are shapeshifting and causing all this confusions in high authorities, there’s so much more to say, but i recommend a seriouse prayer to our heavenly father who pardons us of all sins through his Son Jesus Christ and get a bible and start reading, time is running out.

  • Tahoe

    The USD will be removed as the reserve currency. Euroland/Bric will ignore the U.S. America fades into darkness…..

  • Steve Romano

    One World Currency? One World Government? Makes me shudder because it sounds eerily like the Book of Revelation.

  • DD

    So let me get this right. All currencies are at risk of crashing? Can they all crash at the same time? Crash against what? Crash against each other? Is that possible?

    I agree that currencies may crash relative to gold or some other fixed asset in the world (if they haven’t already) but relative to each other is missing the forest through the trees.

  • J.A.

    “The true US GDP is 30% lower than official figures”, please check the coresponding article at http://www.leap2020.eu/English_r25.html

    Excerpt:
    “The United States’ entry into the austerity phase actually started at least two years ago. In fact, the crisis and its consequences in terms of a collapse in earnings and capital, as well as the drastic restriction of consumer credit, are only one step in the process of the impoverishment of the US middle classes which started nearly thirty years ago. Throughout the whole of this period, the frenzy of easy credit had the aim of hiding this impoverishment by compensating for a shortage of income with unlimited debt. The crisis having brought an abrupt end to this process, Washington (Government, Congress and the Fed together) has tried to make up for its disappearance by gigantic public debt. But, as we see on a daily basis, looking at the country’s economic and social development, this attempt has failed for the reasons discussed earlier in this issue of the GEAB. However, this attempt has a direct impact on US GDP that most economists and experts refuse to acknowledge because they would be a shock of such violence for global economic and financial stability that the so-called « Greek crisis » would look like a simple training exercise.”

    Whatever currency will fall 1st, the US$ will be among them for sure. According to the quite accurate LEAP-GEAB-forecasts (accuracy 2010: 78%), the US will have to declare its insolvency not in decades from now, but during the next 3-4 years to come.

    After all, it was quite shocking to witness to what degree the LEAP previsions made since 2006 have been prooven to be fully right!

  • somadat

    Beginning in the 1940s the American system was converted from a civilian economy to a permanent war economy. This was finalized by the Corporate Coup d’Etat of 1963. The resultng neglect of education, health care and domestic infrastructure is now obvious. People in many counties came to live on credit while pretending that this could continue indefinitely. Then the credit system itself was manipulated to turn over the meager remaining wealth to the financiers and owners of the war economy. I predict the result will be – war.

  • FazioGazabo

    HelloooooO!

    The USD will crash. Greenspan just did a complete 180 and said he suddenly changed his mind back to believing in a gold standard and doesn’t believe in a central bank model. Since he and the NWO killed the USD of course they want a gold standard because they have all the gold. They will create a quasi gold-back currency and loan out 10x (fractional banking) the amount of gold on deposit and suck out the last bit of wealth left outside of their evil grasp.

  • GoneWithTheWind

    Kevin: Some people may indeed choose to go riot or turn to crime in the face of a 50% devaluation. However it is still a better option then a 100% crash. Our money is being devalued all the time. It is something we understand and deal with. Yes a huge 50% devaluation will be more challenging but not as challenging as a collapse.

  • Lennie Pike

    DD:

    Currencies will crash relative to wages due to inflation caused by debt. There will be injuries.

  • Kevin

    We have seen a decrease in USD purchasing power but wages in many cases increased over time compensating for the loss. Now we’re faced with a real 50% drop in the standard of living which I think is quite likely. If the US is going to become competetive in the global market place it will require that much of a drop. It’s back to the 50s with a 1000sq/ft home, one older car, hand me downs and less of everything.

    A total collapse would result in such kayos that the US as a global power would be nutered. The people that make this happen (it’s no accident) need their global police force. Actually they would need it under that circumstance the most. The world could easly come apart. For that reason I’m betting on the lesser of the drop. I think there is a high probability that there will be some “bumps in the social/political road” that might make leaving home for short periods of time more dangerous.

    The US has far too much military power to be pushed into kayos with unknown political ramifications in the end. If I’m wrong it’s not just we’re doomed; the world is doomed. China filling that role? Nonsense.

  • http://devidal.blogspot.com Chris de Vidal

    One world currency? Bible called it first!!

  • CM

    Well, the only way they could have a ‘world currency’ would be if EVERYONE paid taxes to the issuing entity. That is tough within single countries, and may be impossible on a worldwide basis.

    I do think that we will see accelerating problems, price rises, rioting, and crackdowns in the new for the foreseeable future. The first ‘complete’ collapse will probably occur in Europe when the Germans refuse to bail out another country. Then it will revert to independent nations, as they once were.

    And the dollar will follow.

  • Portlander

    I imagine that the trend would continue. There would conceivably be two forms of economies to arise from a collapse. The global model (more of the same, gold-backed, or the global currency) and the local model. People can and do participate in both. Trade will become much more common as a medium for exchange. States, countries, and local communities may have their highest value goods depending on their geography and needs and may also develop a local currency like some states are. You wouldn’t be able to buy anything online with your local currency but most things you need you could.

    Hopefully, the lesson will be to never put all your faith in any currency and have all assets valued in that currency. A world currency would be a problem because when the same game is played there is no longer any alternatives left but an even more painful global collapse.

  • Kevin B

    OK, so this website is called “theeconomiccollapseblog.com” — gee, does that mean that the conclusion of the article is preordained? This was a very informative article up to the point where the author introduced the last paragraphs and began to editorialize and offer his/her presupposition there is some plot afoot to slam a global currency on the United States. And certainly every reader should have sat up and taken notice when the writer states: “The United Nations has been publicly calling for the U.S. dollar to be replaced with a new global currency for some time now.” OK, let’s be a good journalist and back up this broad claim. What do you mean, “the United Nations”? Who in the United Nations? This is just poor journalism. Obviously there is an agenda at work here on the part of the blogger (and I suppose that those who visit here often know exactly what that is). There are conclusions the blogger asks you to accept without really creating a basis for agreeing with him.

  • Lennie Pike

    Kevin B :

    The answer to your demand: By The United Nations the author meant The United Nations. Google United Nations and you can learn all about it. Who in the United Nations has been publicly calling for a world currency? – all who voted for the resolution. If you Google that you can find country names and people’s names.

    Amongst many other leaders of the “U.S.” Financial System calling for a world currency is Timothy Geithner – or Littler Timmy Geithner, the better fit. You can see and hear him say it on YouTube.

    Amongst others who say it are the Elite of the world who either control or own the majority of everything in the world (due to fiat currencies) who meet in Davos Switzerland every year. Just this last week they met and resolved that the world needed 100 trillion dollars of new credit (debt) to keep the world economy going. It is highly suspicious that this debt will be in the form of a one world currency and not an agreement to have all or many countries create a percentage of the 100 trillion in their already existing currencies. Not only is the suspicion caused by the U.N. resolution and what many including Little Timmy have said, but it is the first time ever that the Elite have come up with something like this and at the perfect time for them to try to pull it off. This perfect timing of financial chaos and debt has also been intentionally planned by them for this very reason.

    I think I should be the one who has the right to issue all this debt so the world can work for me instead. Where and how did only they get the right to issue debt, create money (debt or debt slavery) and no one else? I can do that – I have a copier and enough paper to make enough money to buy a huge printing press or an entire world wide electronic money system – but I won’t be paying with hundreds.

  • James

    There is a concept in the Bible called the “Year of Jubilee” where all debts are forgiven and everyone starts with a new slate. This might be something that would fix the economies of the World.

  • James

    Well, globalism can only progress if there is ample energy supplies. Once the Oil supplies dwindle, aircraft, the mainstay of globalism will cease to exist leaving only boats. This will throw us back to a slower time and globalism will be illogical. The only economically feasible means of transportation will be rail, boats, cars (limited by battery range), and buses. These will not support globalism.

  • CinC Cody

    THE ANSWER: Abolish the Federal Reserve Bank. Pull out of the International Monetary Fund and the World Bank.

    http://WWW.AbolishtheFederalReserve.org

  • MicroChipThis

    Problem. Reaction. Solution.
    The problem: Difficult to completely control
    a population as long as physical currency exists.

    Reaction: OOPS, fiat currencies collapsed.

    Solution: Tiny little Microchip
    “Give me control of a nation’s currency,and I care not who makes the laws.” Guess who?

  • http://www.ivamu.com/ Kenneth Lowndes

    If you wish to see world-wide economic GROWTH (remember that term?), then we need everyone switching off paper backed only by still more paper ‘money,’

    We need precious metals.

    BUT, many say there simply is not enough precious metals for it to be doable — but now, we have the IVAMU Solution.

    Visit this site, and catch your breath. Then you will know WHOM to focus your Righteous Wrath upon!

    http://www.ivamu.com/

  • http://www.spiritjewelry.info suzanne

    According to Lindsey Williams, interviewed on Alex Jones’ show… the Euro will collapse first, and when that happens, you have less than 3 weeks to get out of paper… that is, the stock market, IRAs, CDs and dollars. I tend to believe him. The globalists told him that they were going to stage a crisis in the middle east and that oil was going up to $150 a barrel soon… if the Suez Canal closes, we will likely have that. If the regime change in Yemen closes the Straits of Hormuz… absolutely.

    I should hope that everyone reading this blog is buying silver, guns & ammo and storing at least 6 months’ of food.

  • http://www.saifreight.com Pa Vohra

    Come to India. The Sun continues to Shine with Growth ! Warm Welcome :) BRgds/Pa ( Shipping & Logistics, River/Lake Restoration, Renewable Energy and Waste to Value Concepts )

  • Th1rdeyeIR

    Americans got thrown under the bus, hopefully when the time comes we hang these clowns.

  • Jon

    We will do just fine. We’ve recovered before. We’ll recover again.

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