Currencies in commerce through the years. Public Domain.
Natural disasters and political upheavals are common enough around the world. The next Big Thing in disasters that Americans haven’t had to deal with is sudden financial shocks. The 2008-9 Great Recession was bad for many, and housing prices did dip severely (in some regions of the country), but for the most part, markets continued to play the game, the ATM networks stayed up, Social Security checks still went out, and people were still able to eat in fast food restaurants.
Like any of the aforementioned natural or political disasters elsewhere in the world, most Americans take note, sometimes write a check to a non-profit to help the “unfortunates,” and then go along their merry way. Yet the structural problems with the US dollar, economy, federal budget, federal deficit, along with our environmental and energy problems aren’t going away soon. There is no deus ex machina to save us, and like all other monetary schemes, the US dollar (and all that goes with it) will come crashing down.
The first part, as in any twelve step program, is admitting that you’ve got a problem. Unfortunately, although many Americans know there is a problem, the ones that are in charge seem to not act as if this means much. Given the plot above, or a zillion other plots showing the deficit and the other oncoming financial freight trains, why is this so hard to fathom? When you see a plot like that, it should reinforce the notion that no top dog stays the top dog forever. This topic has been covered (some would say, ad nauseum) over at Zero Hedge, but they do bring up a valid point:
Everything that has a beginning, has an end.
- 2019 is nice round 90 years from the 1929 crash. Any takers on if this is the year the US dollar finally starts becoming more irrelevant? Round year anniversaries tend to make people take note a bit more.
- Any thoughts on who might be the next top dogs, financially?
- If gold is a “barbarous relic,” then why are the Russians and Chinese grabbing so much of it?