RE: Is The GameStop Trade Illegal? Chances of a Dollar Total Crash, and a Strong 1-Trillion-Dollar Force Driving Markets Higher
Dear @deathcross
As usual: interesting choice of topic. It's hard not to agree with you, that we're living in exciting times (Very positive way to describe current challenging times, isn't it? :)
Some people think the dollar may collapse totally, but they forget central banks may also “taper".
So, inflation may be higher in the short and middle term, but the total collapse of the dollar and other diluted currencies can be avoided.
Question is: how long can it be avoided? I studied little bit history of FIAT currencies and it's obvious to me, that there is not one FIAT currency which would survive in a long term. There has been hundreds FIAT currencies in the past, and pretty much ALL came to bitter end.
I don't see a reason to believe, that USD would be any different. Especially since trust towards this currency (especially as a reserve currency) is diminishing. And competition will be only growing (with Chinese YUAN leading that competition).
Perhaps USD won't crash and burn within upcoming few years, however I strongly believe that it will go through that process within our lifetime. At least within mine (I'm planning to live long and happy life :P)
ps. check out my recent post about crypto in Nigeria (you may find it interesting)
Enjoy your weekend :)
Yours, Piotr
200 years seems to be enough proof for now (USD). But not only dollar survived in a long term, also the Swiss Franc (since 1850) and the Swedish krona (since 1874), some others.
It depends also on the decision of governments and central banks if a currency survives. Hyper-inflation is very unpopular, so, I suppose, in developed democracies, won't happen.
The frugal Germans, for example, are almost paranoid about inflation.
Most disappeared fiat currencies died in dictatorships, wars, or "populist regimes". (Soft dictatorships.) I think the world is also evolving in the sense that very unpopular measures are being taken less and less in modern democracies.
sorry for such a late reply @deathcross
true. there are some exceptions. Most of them however survived that long because country has been in power to "expore" inflation to other countries.
If ww2 wouldn't happen, then USD would never become world reserve currency and would probably be dead by now.
Cheers, Piotr