Dear FutureMoneyTrends.com Member,
Here’s a scenario everyone wishes they had the exact answer too. My goal in writing this as a follow up to last week’s Weekly Wealth Digest, Paradigm Shift, is to run a few scenarios by you that I have considered as realistic possibilities.
Here are 7 likely scenarios that could happen if the dollar died in the next 5 years. Obviously the longer this paradigm shift takes, newer options could be on the table. China overtaking the U.S. currency is nil today, but in 10 to 15 years, it could be a real possiblitly. Often times people making predictions about the U.S. dollar forget that liquidity is still going to be a very important factor in whatever the new currency will become.
7. The United States issues a new currency, backed by a commodity like oil, gold, or possibly a basket of several.
6 . U.S., Canada, Mexico, and possibly even the EU, create a super currency backed by over 50% of global GDP.
5 . The IMF introduces the SDR, a currency already in place, as a new global reserve currency to stabilize the markets & world economies.
4. World markets flood into the Euro, the only currency even close to having the infrastructure to absorb the reserve status.
3. Several currencies arise as replacements, Swiss Francs, the Euro, Yuan, and whatever currency replaces the dollar within the U.S.
2. Markets turn to digital currency, private cash issued by JP Morgan and other large banks.
1. Gold, for a short time, the world may only trust gold in a transition period. Possibly with a multiple of nations backing a new currency or merger of currencies with physical gold.
Remember I said 5 years, if given more time, I think it becomes more and more likely that the paradigm shift transfers from the American Empire to Asia, either with a gold backed yaun, or an Asian bloc currency that could include Russia, China, and India, giving this bloc super power status for the next 150 years.
We really don’t know how this is going to end. Always keep in mind that even after losing the world reserve currency, our nation will still be a major player, just as London continued to be after the U.S. dollar took over as reserve currency.
Financial markets used to center around London, in my lifetime, its always been New York, I suspect that the new financial capital of the world will be in Asia (Hong Kong or Singapore).
Enjoy your Thanksgiving meal tomorrow, we all have a lot to be thankful for. I am thankful for all of you, each comment, email, and conversation I have with FutureMoneyTrends.com members is important to me and our staff.
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Weekly Wealth Digest Video Episode 46
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