America’s currency about to failon August 1, 2011 at 20:46
The majority of American citizens seem to remain optimistic about the U.S. Dollar remaining strong despite all the negative media attention regarding deficits and debt. Investors who are in the know and people who are not really interested in investments and finance share this sentiment. None of these people ever envisage that the dollar will land up at zero.
The advantage of studying history is that it teaches people lessons. With regards to fiat currencies, none of them last forever and ultimately they will fail. The poster that was recently published by BMG Bullion Bars that depicts the many currencies that have failed highlights this fact. Some of them might have taken years to fail and others to fail; however they have failed.
Fiat currencies have temptations that cause governments to abuse them and they eventually suffer the consequences of this. Contrary to popular belief, this does not only happen to currencies of third world nations. Small nations that governed with fiscal discipline have managed to survive, however countries that have abused their currency have learned the lesson the hard way.
You will be amazed to discover just which currencies have gone under and also how many have failed during your lifetime. In 1993, the Dinar of Yugoslavia crashed. Zaire’s currency went belly up in 1992. In Venezuela the Bolivares suffered a similar fate in 2002. The Karbovantsiv in the Ukraine fell apart in 1995. Turkey suffered similarly with the Lira in 1997. In 1992 the Russian Ruble took a pounding. Romania’s Lei crashed in 2001. China suffered similarly in 1947 and Peru likewise in 1989.
1990 was when the Cordoba of Nicaragua suffered in the same way. Hungary’s Pengo went down in 1945. The Greek Drachma took a nosedive in 1943. A few years after World War I in 1923, the German Mark failed as well. The list continues with the Laris of Georgia failed on in 1994 and France experienced this tragedy a few centuries ago in 1793. Chile currency was not so hot when the pesos crashed back in ’75. Brazil, which is not the most economically sound country experienced the same situation in 1993.
In 1993 the Dinar of Bosnia crashed as well. Bolivia and Belarus went the same way in 1985 and 1996 respectively. The Argentine nation had to face economic hardship when their Pesos fell apart in 1985. Angola and Zimbabwe are 2 more countries that also saw the Kwanza and Zimbabwean Dollar suffer similar fates.
It is interesting to discover that this has happened to so many countries in the past and that at least 2 of them are today considered to be powerful nations, those being Germany and France. Americans should therefore not become too comfortable with the dollar, as it is very possible that they too can suffer the same fate.
Americans should know that all of the above countries shared two common problems before their currencies failed and these were deficits and debt. Today, America’s debt is 400 percent higher than its GDP. It is also anticipated that by October the payment on debt will be higher than 30 percent and at that level, the currency is sure to fail.