Will US dollar collapse in 2013?
First signs of trouble
For the people who are closely monitoring possibility of a dollar collapse 2013 has prepared few different options of possible development of the events in financial world. For example some believe, that the face value of money will increase, which caused by government printing more and more bills, therefore decreasing their buying power. This process will cause things like two or five hundred dollars bill to become reality, and the one who will posses it, will not even be considered to be anything close to wealthy. This has happened to different countries over the course of history, and they all dealt with it differently. In contrary, government might stop production of any new currency, which will increase its value, but also will hurt the economy, which then will result in dollar collapse. Meanwhile others are convinced that countries like China, will affect the strength of a US currency. Moreover, it has been already reported, that most of the countries prefer gold bars to dollar bills. Therefore, it is clear, that there is something stirring on the international financial arena.
How things will unravel?
Regardless to the growth that has been reported in the last quarter of 2012 this year does not look any good. Developed by economists, dollar collapse timeline shows that things will get tougher in next few years to come. While results for last quarters of 2012 were artificially stimulated, to create an illusion of growth, over all four quarters of 2013 dollar will slowly but steady slide down. It will be mainly caused by Americans being more cautious with money, and spending less. On the other hand, there is no proven information of an actual collapse, for a few reasons. Firstly, the countries that are capable of collapsing US currency, for example Japan and China, are actually profiting of its higher values. Second dollar collapse scenario does include all United States citizens to rebel against government that clearly failed to stir the economy in the right direction, which is also, highly unlikely. And thirdly, there is a certain sense of comfort that traders around the world get, since US financial markets are still considered one of the more sophisticated in the world. Therefore, even when it is down, dollar’s legacy is keeping it afloat.
Is United States interested in the financial crisis?
There also have been theories, based on the fact that no one else, but United States themselves, are interested in keeping the dollar low, and in a way stimulating its collapse. Just as it has been proven in the case of different countries over the years, lower exchange rate, does make exports from this country not only affordable, but most important desirable. This move might hurt the, if we must say, reputation of a currency, it will bring more business to the country on the national scale. This usually means more jobs created internally, more profit for the homeland based companies, which also means, that with the predicted dollar collapse, 2013 may become a very prosperous year for the Americans, and let the economy boom internally before striking up on the international market. Will that be a case? This question does seem to provoke a number of speculations. Some do prefer to believe in the brighter future of America and its dollar, while others consider it true, only after they see it happen. This has been a subject of speculation for already a number of months, but even the economists are not agreeing on what this situation will bring on.
Will it really crash?
Meanwhile at this point in time there is no sight of actual collapse on a dollar collapse timeline in 2013, but for many investors it becomes clear that as for now, there dollar value is constantly decreasing and so far no one can predict how low it will sink. Some choose to stock up on this currency while it is cheap, and patiently wait the moment it will rise. Others, in this time, are less optimistic and turning to other currencies that are more stable and predictable. Both of them are right in a way, but the first ones are risking a lot, since sometimes, regardless to everything governments do to improve the strength of their money, value of a currency does not ever increase. This is a matter of chance, and history has shown a number of cases where currencies collapsed and never went up.
Small gain is better than larger loss
In that gloomy state, many raise question, how to protect oneself, from being affected by a dollar collapse? In 2013, economists and financial planners recommend nothing else, but diversify investing portfolios, and never keep too many eggs in one basket. In today’s unstable market, where any currency can collapse, it would be good idea to turn some investments into gold, as well as invest small amounts into different growing currencies. It is important to remember, while everyone is closely watching the ups and downs of US economy and its dollar, some other currency may crash without fair warning, leaving thousands of investors putting their capitals in it to protect themselves from a dollar collapse in a red zone. Spreading investments will allow investor to be more protected in the event of the any of this currencies sudden drop, as not all capitals, but only its small portion will be lost, leaving potential to compensate for created deficit by slight gain on other transactions.
There is always something to keep an eye on
There have been times, when investing was easy and pleasant way to earn money and most of the people felt confident in US dollar, but the past few years has been proven really stormy and brought uncertainty. With the American economy still unable to recover from the financial crisis of 2008, and various struggles in both Europe and Middle East, many newer and less experienced invertors find it overwhelming, as one need to keep a close eye on too many things happening in the world. In order to trade successfully today, it takes experience and a firm grasp on the situation in the world’s markets. Often, many inexperienced members of trading society concentrate closely only on watching a possible dollar collapse, and missing the oblivious signs of larger trouble on the international markets. This once again, reminds everyone investing, not to concentrate only on one issue, have investments broadly spread out and surely keep an eye on every financial aspect of World’s market.