Comment: Collapse will happen with loss of faith, not loss of gold

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Collapse will happen with loss of faith, not loss of gold

The only thing giving the dollar value is faith that it can be used to buy something. The total number of dollars have been increasing dramatically. So law of supply and demand indicates increased supply of dollars will cause value of the dollar to plummet if demand falls. When there is loss of faith in the dollar, demand will fall as people seek to trade dollars for anything that has real value: gold, silver, food, bullets, etc. When that happens en masse, bond prices will fall, interest rates will spike up, the housing market will then crash, banks will fail due to worthless low interest loans, prices of everything will skyrocket, people with cash savings and fixed interest investments will be wiped out....this is the financial collapse of Biblical proportions that everyone appearing on the Doomsday Preppers show are worried about.

The fact that Germany wants their gold back suggests that they are losing faith in their central bank partners. If there is a mass exodus out of paper and into holding real assets, the U.S. economy will be destroyed.

Disclaimer: I'm probably not smarter than you, and most everything I learned about economics came from the internet.

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis