What Would US $ Collapse Mean for the World?

Lorimer Wilson * Munknee.com

I came to the conclusion several years ago that it was just a matter of time before the world realized that the relative functionality of the U.S. dollar was about to go belly up – to collapse. [Below is an explanation as to why I have come to that conclusion and what I think it would mean for the well-being of the world.] 

So said Chris Laird (Prudentsquirrel.com) in paraphrased comments from his original article* entitled USD collapse…end of the world as we know it.

The following is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and the FREE Market Intelligence Report newsletter (sample here – register here). The excerpts may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.

Laird goes on to say, in part:

Were the USD to actually collapse…the entire structure of the world economy would collapse for a period of time…[and] go through cataclysms politically during that period. That usually leads to massive wars, starvation and mass homelessness around the world.

What Would Happen in a USD Collapse?

• The U.S. and Western economies would all face insolvency simultaneously, with the U.S. first in line.
• The entire Western industrial/consumer/credit economy would fall apart so fast it would make your head spin. The supply chain would stop and stores would empty quickly.
• The USD would fall over 50% in one week’s time and then temporarily stabilize before its final last gasp…
• Worldwide currency panic would set in paralyzing what’s left of the world economy which means the ‘emerging markets’ would stop dead too.
• China would have a revolution, or go into military mode, which would be even worse.
• A one-world currency would be demanded and implemented.
• Asia would fare horribly…If Western consumerism goes away, then the entire foundation of the Asia macro economy would instantly crash and stop cold. Do you remember what happened that fateful last quarter of 2008, after the Lehman debacle, and the world banking system almost collapsed en masse? Exports from China and Japan for example collapsed over 30%! Don’t think economic demand cannot stop on a dime, because we already had one very scary case of this in 2008. So, all the pundits aside, Asia would get killed too economically. The big question is, could they successfully adapt to a new economic paradigm before they had their own revolutions? I do not think so.

It would be a dark time worldwide.

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

http://www.kitco.com/ind/Laird/dec292009.html