4 Potential Economic Crises You Should Know About

4 of 4Next
Use your ← → (arrow) keys to browse

deesmoney

4. The Collapse of the US Dollar

The US Dollar isn’t what it used to be, to say the least. The value of a dollar is significantly less than it was when the US implemented the Federal Reserve System in 1913. An item purchased for $1 dollar in 1913 would today sell for $25. The Federal Reserve’s quantitative easing practices in response to the recent economic crisis have only worked to further weaken the dollar.

Many economists are warning that an actual collapse of the currency could occur and lead to what is known as hyperinflation. In hyperinflation the price of goods skyrocket as the value of a currency plummets, leading to massive economic instability and widespread poverty. The fear of such an event is already known by many Americans. The rising prices of gold and silver are in part a reflection of more Americans deciding to keep their savings in metals rather than US dollars.

4 of 4Next
Use your ← → (arrow) keys to browse

Similar Posts

3 Comments

Comments are closed.