Is the financial system is collapsing?

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Economic analyst John Williams predicts that this year sees the U.S. dollar due to hyperinflation panic begins. Using dollars as a reserve currency countries are gradually coming to the U.S. to reject , for example, Russia has now been sold off 10 million of foreign currency. For a long time economists have spoken out that the dollar is weak , but even if these events may initiate the degradation of the financial system ?

Williams says no one has been for some time longer wanted to use dollars as a reserve currency . Now the only question is who initiates the release of the pace of global dollars . If Russia begins selling its dollar inventory , will join him in China . The remaining countries in the world , who for some time have wanted to get rid of the dollar may begin to Russia in light of these events , even selling dollars forward . This is a real danger that people are trying to get rid of the dollar as fast as they can.



American , another recession would be catastrophic

But what would happen if the dollar will be massively over the world to get rid of ? Williams said the situation would be disastrous for the American market economy . Of dollars to be massive , the bonds would be sold off and the interest rate would jump to the ceiling. Mkt to be sold off , and America would be rising inflation.

Try to stabilize the situation and prevent the Treasury from the Fed to buy. Williams recalls one of America is still the largest economic crisis , 2008. year, and says that the situation would be extremely difficult. Already at that time, it was the American economic system on the verge of collapse . The Federal Reserve and the federal government spent all current , generated and accessible cash. A complete collapse of the system could be avoided though , but the economy is not taastunudki this hoobist . America ‘s financial system is currently highly vulnerable , and if Russia continues to sell dollar collapse of the American economy is also very real threat .



Structural change in the currency this year

Williams said the American would not be able to survive hyperinflation . Where else in the world are the people in your hyperinflation rapidly losing their value for money on the black market for dollars in exchange (as happened in Zimbabwe ), then America does not have anything to exchange their dollars . If , perhaps, the gold , the value of which Williams believes only the decline of the dollar rises.

Williams is not the only ” economic forecaster ” who believes that a great economic crisis threatens the global currency of dollars , and perhaps also the structure already in 2014. year . Jim Willie , a statistician at Carnegie Mellon University , predicts that 2014 will hit the world became a global currency – the market for a new gold currency trading , the dollar losing reserve currency in the international market caste .

More than 60 % of the world ‘s foreign exchange reserves of the central bank ‘s dollar at the moment . The euro as a reserve currency does not reach the next to close

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