Economic collapse could be just around the corner, according to Casey Research Chief Economist Bud Conrad, who predicts the collapse of the dollar during his lifetime.
Conrad made the comments in a Future Money Trends story that details the destabilization of the global financial system and offers advice for citizens who want to shield themselves from the downfall.
Conrad believes that manipulation of the world economy is being undertaken by governments, central banks, and other various financial institutions – making the world economy appear as it things are all well, when they’re not.
“In my lifetime, the US government issue of currency can’t be trusted,” Conrad said. “It will implode and will issue a new currency to replace the dollar.”
He also says that any new currency will be backed by gold – significant for Americans who in recent years have bought the precious metal.
“That [replacing the dollar] will destroy an awful lot of debts, and it will give the government a new leg if they can base it on something like gold,” Conrad said. “It will both be very bullish for gold and create new confidence. If they create a new paper system like the old paper system it will die just like a banana republic 10 years later. Before that [replacing the US dollar] we will see gold hit $10,000 an ounce.”
Gold has never been traded at such a high value in US history. A significant economic calamity would surely have to occur before the dollar is devalued to the point that gold and other precious metals increase to such an enormous value.
The Casey Research Chief Economist also predicts that the next economic collapse crisis will be based largely on the same woes which caused the 2008 recession: Too much public and private debt once again putting the American financial system on the edge.
Conrad’s comments come as the national debt continues to hit new highs. It passed $17 trillion this year. Next year, America will implement the largest entitlement program in the nation’s history.
Despite what Obama administration officials and Affordable Care Act supporters state on the nightly news, the premiums for many middle class Americans are doubling. When Americans are forced to once again stop spending money on trips to the movies, dinners out and the purchase of new appliances, a 2008-style economic downturn could happen.
The United States, Conrad says, is printing money that has no backing. Conrad said this about foreign investors backing away from purchasing more United States debt:
As the American public doesn’t save much, and because foreigners are stepping away from US government debt, the Fed is left as the buyer of last resort and will have to keep up its [quantitative easing]. Simply, the loss of foreign enthusiasm for US government debt would normally be a red flag for our economy. This time around, the slack is being papered over by the Fed, which is creating money out of thin air in order to buy what is, in essence, most of the new debt being issued by the federal government. By filling the gap left by exiting foreigners, the Fed has been able to sustain low interest rate, for the time being.
It is impossible, he said, to predict with any measurable level of exactness when the United States bond bubble will burst.
Bloomberg recent reported the Ukraine is on the verge of an economic collapse. Hundreds of thousands of citizens have reportedly protesting in the streets against both their own government and the role Russian President Vladimir Putin has played in the fiscal crisis.