The US debt is growing exponentially and the only way to pay that much debt is printing even more debt > hyperinflation
It will be either Weimar Germany or there will be WWIII soon. I don't think the USD will go down silently and peacefully.
It will be either Weimar Germany or there will be WWIII soon. I don't think the USD will go down silently and peacefully.
Yep, unless there's a WWIII or the US performs some kind of financial wizardry, it seems inevitable that US citizens are going to be using Canadian dollars or Mexican pesos (or maybe euros) as their preferred currency. But somehow I have a feeling that none of those things are probable except for a war--and that's frightening.
With regard to silver and gold, I'm not sure their recent rise is tied to deteriorating economic conditions. That could be the case, but if you remember the years leading up to 2011, it was really just speculation that drove gold and silver to all-time highs (though silver had reached $50 in the 1980s because of the Hunt brothers if I'm not mistaken). That might be what's happening now, because asset prices have been rising across the board for some time now, with metals (including copper, too) lagging stocks and crypto for years.
Gold and Silver is pricing the incoming interest rate drops. Meaning; People are increasing their positions on precious metals (and bitcoin) to front run the hyperinflation scenario which is expected to happen in the near future after the FED drops the interest rates.
Remember, the markets are always future looking. That's what we are seeing here. People expect high/hyperinflation and that's why the commodity prices are hot. Stocks are moving upwards too. Especially commodity&mining stocks.
I don't think the US people will be using Mexican Pesos or Canadian Dollars. They ain't much different than the USD unless I am missing something. The currencies which are backed by production power & commodity possession are the powerful FIAT currencies. Combine this currency with a country that has huge trade surpluses, and then you'll see which countries are actually winning.
EURO is an abomination. As you can see above; Germany, Norway and the Netherlands are doing the hard work while the others are the do the leeching. If EURO was only used Germany, Norway and the NL (and maybe France since it has some real economy), then it would be a strong af currency but not in its current state. It is crap as it is.