Ayanna Nahmias, Editor-in-Chief
Last Modified: 22:15 PM EDT, 1 June 2012
WASHINGTON, DC – For decades the American public was warned of the impending crash of the U.S. dollar. Economist sounded the alarm far in advance of the 2007–2012 global financial crises, which was the result of a confluence of complex financial events. However, to simplify the catastrophic cascade of financial market collapses, the root causes were high-levels of global debt, risky and speculative investment practices, and unchecked avarice.
High-net worth individuals will be able to weather the storm of the impending diminution of the dollar’s value, but people of moderate to impecunious means will suffer levels of hardship not witnessed since the Great Depression of the 1930s.
In 2004, then Federal Reserve Chairman, Alan Greenspan prognosticated, “Foreigners will eventually sour on U.S. bonds and the dollar because of America’s bulging trade and budget deficits, posing significant risks to the nation’s economy.
Greenspan told a banking conference in Frankfurt, Germany, that international investors were likely to either unload their dollar-denominated investments or demand higher interest rates. Either scenario would present problems for an economy that is heavily dependent on foreign capital to fuel its free-spending ways.” (Source: LA Times)
Eight years later, billionaire market movers such as Warren Buffet are more insistent and vociferous in warning Americans of the real possibility of the removal of the dollar as the global reserve currency. Unfortunately, most Americans have little bandwidth to digest or calculate the exact impact a change of this magnitude will have on their lives. The average American in recent years has been focused on how to pay for gas, put food on their table, and cover the cost of every day needs with less money.