At the time of writing this article, the United States Dollar is the most widely used and accepted form of currency throughout our country. These tiny, green slips of paper are traded for food, clothing, and even homes and cars. It’s what we rely on to survive and to get the things that we need to live, but while the currency may be fine and well at this point in time, will the USD collapse at some point in the future?
This is something that a lot of preppers have concerned themselves with, and understandably so. Putting so much faith and trust into slips of green paper to get the items that we need doesn’t sound like the best setup in the world when you really take time to think about it, and it’s because of this that there are a lot of US Dollar collapse predictions circulating around the Internet.
We decided to look closely into this matter to see what the exact state of the USD is at this point in time, and we did this to finally answer the question of, “Will the US Dollar collapse?”
The current weaknesses of the USD
The United States Dollar has its fair share of strengths over the years, but it’s also had quite a few stumbles and mishaps. Although the USD did increase by 25-percent since a few years back in 2014, the dollar was actually on a decline between the years of 2002 and 2012 by as much as 54.7-percent when compared to the Euro.
That’s a pretty significant move down, so just what caused the change?
One word — debt.
It’s no secret that the United States is in a pretty massive pile of debt, and during that period of 2002 to 2012, the amount of debt that our country is in tripled in size from $6 trillion all the way up to $15 trillion.
Thought that was bad? It gets even worse.
Right now, it’s estimated that the United States is facing a debt of $19 trillion. It’s hard to explain the magnitude of this debt by just reading this article, and while we can throw around big numbers like this all-day long, the fact of the matter here is that the United States owes a crap-ton of money that it simply does not have.
So much debt weighing down on the country’s shoulders could likely result in the value of the USD sliding further and further down, and this is because it’s easier to pay off debt with money that’s cheaper and less valuable.
As long as there is debt, there’s going to be the chance for the USD to decrease in value. There’s no sign of that debt going away at any point soon, so that essentially means there’s always some amount of risk for the value of the dollar to hit rock bottom.
Looking at its strengths too
As mentioned above, the story for the USD isn’t all doom and gloom. There are still some strong points for the currency, and one of its most notable strengths is the fact that other governments around the world have relied on the USD as a reference point for setting the value of their own currencies since the 1944 Bretton Woods Agreement.
The United States Dollar is seen as an extremely legitimate and valuable form of currency by many domestic and international individuals, and when compared to other currencies around the world, the USD stands out as a strong beacon when it comes to comparing currencies from around the globe.
In addition to the USD being the most prevalent and powerful reserve currency that exists in our world, the economy here in America is easily the largest and most important one throughout the entire planet. Growth of the economy here in the States has slowed down quite a bit ever since 2001, but it continues to perform better than countries such as Japan and Europe.
American workers drive up the value and power of the United States Dollar, and as long as people in the United States use the USD either exclusively or almost exclusively for all purchasing activity, it remains in a fairly solid and good position.
What sort of event could result in the USD collapsing?
For people concerned about will the USD collapse, one of the most commonly debated points of discussion is what sort of event in our world would trigger such a collapse.
There are numerous theories and tales out there for what will cause the value of the USD to completely fall through, and while some of these seem legitimate and others are quite far-fetched, the main thing to keep in mind is this:
If the United States Dollar would ever collapse, there would need to be some sort of massive economic event that would completely demolish people’s trust and faith in the dollar itself.
In other words, if our country faced another Great Depression or an onslaught of natural disasters or nuclear bombings, that could result in other consequential events which would create for the loss of value for the USD.
That $19 trillion of debt might seem like a big enough reason for the US Dollar to collapse, and while there are some people who believe this will eventually be the currency’s downfall, it will most likely require something much more massive and devastating before the currency is completely and entirely worthless.
Is the United States Dollar going to collapse in 2017?
Although we can’t say anything with 100% certainty, we would be very, very surprised if the USD completely collapsed this year.
If fact, we don’t envision the dollar collapsing at any point in the foreseeable future.
Here’s the thing.
If the USD did collapse, it would wreck havoc for not only the United States, but countries like China and Japan as well. These other nations use and hold onto the USD as well, and as such, the collapse of the currency would create for a meltdown throughout pretty much the entire world.
Instead of a complete collapse, our guess is that the USD will continue with its subtle decline down the hill while other countries look for alternative currencies and markets to do business with. A total collapse is not something they want to see happen, and as such, you shouldn’t expect one to happen in your or your children’s lifetime.
It’s easy to fall down a scary rabbit hole when thinking about how bad of shape the USD is in, but try not to be of the mindset that a complete and total collapse will be taking place any time soon. The USD will continue working just as it has been for so many years, but if you want to be as prepared as possible, considering investing your money in gold, silver, or even other currencies just so all your eggs aren’t in one single basket.