In current days, newspaper article coming out of China inform that the Chinese government is encouraging its own residents to start buying and owning gold. The Chinese government rests on the biggest pile of American dollars on the planet and doesn't wish to get stuck with useless script. If something great happens in China relating to gold and money, don't be amazed.
I am going to share this secret with you. The primary problem here is all world currencies, including the U.S. Dollar, are debt-based. That is right; these currencies are NOT backed by something tangible that holds value, such as gold. Instead there backed only by the guarantee and good faith of the country that prints them.
You know that soon enough the French public was all set to lynch Mr. If you treasured this article so you would like to get more info relating to What Will Happen If Dollar Collapses i implore you to visit our own site. John Law if you understand history. He tried to leave the country, camouflaged as a woman, in a carriage loaded with. no, not bags filled with paper Assignats. however with bags filled with genuine cash. Gold and Silver!
As the stakes get higher, this low-level background chatter need to increase. By the time there is serious and prevalent talk of "what to do about the dollar," if China's objective is achieved, it will seem like the subject is taboo or not new, however had already been on the table for quite a long time. And those who heard China's message early on will be prepared.
Obviously, what will happen if dollar collapses the less welcome implication is that unbacked 'cash dollar collapses,dollar die,collapsing dollar ' is less than real! This statement is really an understatement. but what does 'backing' actuallysuggest?
There are other disastrous consequences to the U.S. dollar losing status as the world's currency. For instance, there would be much less need for U.S. dollars around the globe, so interest rates will increase. Stock prices will likely drop by at least 50% in a matter of weeks as a result of this occasion in the currency markets.
China's State Reserves Bureau (SRB) has instead been purchasing copper and other industrial metals over current months on a scale that appears to exceed the normal restoring of stocks for commercial reasons.
