I have repeatedly commented on this but I believe the time has come not just to speculate about the collapse of the USD but to plan for it. The laws of economics are inviolable, and despite the advantage US has, with its reserve currency, nothing is for ever. In particular, no country can expect to life off debt, for ever. It is clear that the USD will collapse, sooner than later. Unfunded liabilities, massive increases in debt, lukewarm growth/ recovery, all point in one direction. As USD has become a welfare state and veered steeply towards socialism, the writing is on the wall. Yes, if the US manages to invent something hugely productive, and very soon, such as fusion energy, it might still escape this fate, but at this stage, there is more than an 80 per cent chance of the USD collapse in the next few years. What will happen when the USD collapses? 1. Just before the USD collapses, China will try to buy out strategic US assets – else it will be left holding the lemon. 2. Americans will no longer be able to afford Chinese imports and poverty will rise dramatically 3.
Read more about Scenario analysis: What will happen to India and Australia upon the collapse of the US dollar
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