Over decades, if not centuries, the US dollar has been the worlds leading currency. The central banks all over the world hold an enormous part of their investments in the US currency, while some private companies use it for international transactions. With this, the trade in US treasury has boosts the American economy and greases the wheels to the global financial system.

But, many experts predicted a tipping point will come that would cause the dollar to collapse, thus lead to a global economic problem. In this scenario, many investors would rush to other currencies to run off further losses. This would mean a breakdown of the national economy. The aftermath of this scenario could likely lead to a dollar collapse.

What is Dollar Collapse?

Full of sudden currency collapses have happened in history. A dollar collapse is characterized to a long-term depression in economic activity, increased poverty and a disruption of the social order. One of the primary roots of any collapse is the lack of confidence in the stability or efficacy of money to serve as an effective store of value or medium of exchange.

The main sign of a dollar collapse is when the value of US dollar drops. There are some conceivable scenarios that could cause a sudden crisis for the dollar. When there is a great threat of high inflation and high debt, in which rising consumer prices force the government to raise interest rates.

If the US entered a steep recession without dragging the rest of the world with it, anyone who holds dollar-denominated assets might sell them at any cost that includes foreign governments and no one wants to buy them, worst would leave the dollar. Thus, anytime, everyone should prepare for the worst, but you can prepare for a dollar collapse through these economic indicators.

If US dollar collapse happens, it might come to pass. No one would predict it. Thats because the signs of forthcoming failure are difficult to see. It is imperative for the government to take a necessary intervention to bring an economy back from collapse. Yet, this can often be slow to remedy the problem.

US Currency is weakening

When US dollar weakens, it suggests an adverse financial effect. A weaker currency would encourage exports and make imports inflated. This would mean decreasing a nations trade deficit over time. Every business will have a certain degree of effect depending on the increased price of goods and services.

A weak dollar can boost the gross domestic product during an economic recession. Because exported goods cost less, foreign buyers buy them in greater amounts. It can also result in higher inflation expectations and higher commodity prices. Furthermore, it could lead the Federal Reserve to react and tighten monetary policy.

The emergence of China and Europe Economy

The emergence of major foreign holders of US treasuries is a potential factor to a dollar collapse. Nonetheless, the US dollar must be quite resilient to bar this kind of occurrence.

The Risk of Growing Government Debt & Central Banks

According to the Federal Reserve and U.S. Department of Treasury,

foreign countries costs over trillion dollars of debts like China (about $1.17 trillion) and Japan (about $ 1.06 trillion) held the highest percentages as of January 2018. It appears that central banks will do its power to save the situation, but remember that central banks can also lose control. This situation would be very demanding for the government with high debt loads.

A dollar collapse suggests an economic plight. It is akin to deep recession that scarcity and shortage of resources would occur. One must prepare for the worst scenario and to respond to this kind of uncertainty, you must be mobile. Here are few ways to prepare and protect yourself and survive a dollar collapse.

1. Prepare your Finances and Start being Smart with your Money Now.

You start with cutting all unnecessary expenses and spend that money to pay down your debt. The possibility of losing your home to debt collectors is a very real prospect.

An Emergency Fund is a potential aid to prepare for financial troubles. It will give you stress-free during hard times. It can provide you with a fund to buy last minute supplies once things start to go bad.

Remember to always have a cash on hand. When things go wrong, there is a very real possibility that the banks may freeze your accounts. Its important to have cash that is accessible, either from a savings account or a cash box in your home. This can drift you over in an emergency until you can access money in your emergency fund.

Now is the perfect time to buy long-term supplies that you will need to survive in the future.

Start stockpiling food and long-term supplies. In any type of crisis, especially during a collapse, food, water and long-lasting consumables are essential and indispensable. You will likely see main supply chain shortages and problems, making these types of supplies one of your most important pre-collapse concerns.

Put together a supply of first-aid & medical supplies on hand. Once you create a kit, in the event of a collapse, you may not be able to shop for these supplies, sots important to have them on hand.

3. Secure your Home

To prepare for a dollar collapse is to choose your shelter type. A separate shelter is designed to survive from natural disasters or man-made weapons or attacks. During this kind of crisis, power systems may fail and robbers and scavengers may threaten your home. Take precautions to protect yourself and your home.

Another thing is to create two sources of electricity. One source could be solar. Hook it up to your home and then run the system underground. The second source might be an underground generator. You will use this in the event of a total loss of power. Keep your energy sources hidden underground to protect them.

Set an alarm system in your home. Home alert alarm systems are easy and inexpensive to install and maintain. Wireless security systems notify you if a trespasser is approaching your home. Hidden cameras allow you to see internal and exterior areas in your home where a trespasser may be present.

One of the prevalent risks youre going to face during dollar collapse is the threat posed by people. Learn everything you can about self-defense. When things go bad, you are going to need a way to protect yourself and those you love, your home.

Make sure that every member of the family is mindful of the situation. To prepare for a dollar collapse, you need have to guarantee that your whole family is ready with your preparations. This means informing them in honest terms what is about to happen and telling them what they should be doing. It is important that everyone takes the situation . Otherwise, they will not be mentally prepared in the event that collapse happens.

Each family member must be informed of the steps you have taken to prepare your finances, essential supplies, food, and shelter. Instruct them on doing the same.

Every member should understand the relationship between inflation and economic growth. Explain to them the adverse impact of a dollar collapse on your familys socio-economic life.

Consider including other family members, neighbors, or a community group in your preparations. Make sure that these are people who are reliable and will put to work for the benefit of the group.

5. Equip your Mind

Even more important than supplies, is survival knowledge and awareness. Knowledge is the key to your survival, and now is the time to get plenty. During any kind of crisis and survival, including a dollar collapse, knowledge is going to be your most powerful ally.

Read books on survivaland preparedness, then start collecting information on how to live a more independent lifestyle.

Do your own research and dont rely on government spun stories, or crafted in the media; you need to do your own research too. Check the reliability of the information you get to prepare for the collapse.

6. Expect a Financial Crisis

The major risk you are going to face in a dollar collapse is the downturn of your finances. It is important to be ready beforehand on what to do and what not to do on your financial systems.

Check and track the price of commercial commodities. Changes in the prices of commodities affect the countrys economy and the value of the US dollar. An increase in commodity prices is associated with an increase in inflation. Increased inflation correlates with economic growth. But, if commodity prices drop, inflation slows, which indicates an economic decline.

Take note of the financial markets. Big ups and downs in the markets are a red flag signaling a general decline.

Watch the oil prices. When oil prices increase, the Gross Domestic Product (GDP) goes up too. Remember that the fluctuation of oil prices has a macroeconomic impact. If it is increasing, then the value of goods and services also increases.

Everybody else could tell that a dollar collapse would be coming. A sudden dollar collapse would create global economic depression. It would allow the US government to come up with a currency system and a kind of economic strategies to avoid grave consequences.

Demand for Treasurys would drop, and interest rates would go up. US importprices would skyrocket, causing inflation.

Irregular public services like school system experience frequent strikes that shut them down, power issues and outages become more frequent.

Unemploymentwould worsen and more people will experience job loss or layoffs. More people are displaced and finding a job will become almost impossible.

An increase in criminal activity will definitely happen. People will become desperate to feed themselves and their families and more people will be more willing to cross the line into criminal activity to get what they need.

Lots of people will lose access to their healthcare when they lose their jobs. Healthcare appointments may become more difficult to schedule and it may take longer to get in to see a doctor because more people are getting sick and need care.

You can expect increased incidents of domestic violence as family relationships are strained and crack under the stress of poor living conditions.

A dollar collapse is a real threat with far-reaching repercussions. While it is inevitable, there are advance preparations that individuals and their families can make, at the very least, protect themselves from the event triggers. Stay informed on top of the global economy. You can be safe in a dollar collapse if you follow the ways that protect you from an economic crisis.

Continued here:

Dollar Collapse Predictions: What Will Happen When It Happens?