The 5 most chilling predictions for the US dollar collapse

Written by Andrew Henderson
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The US dollar is in bad shape. Having lost 97% of its purchasing power in one hundred years, it’s easy to argue that the dollar has suffered a slow but steady collapse.

And many financial experts claim this is only the beginning. In an era when central banks are printing money to infinity and racking up debts like never before, something has to give. For those in the know, the question isn’t if the dollar will collapse… but rather, when.

As the United States plays a less and less significant role in the world economy and countries like Russia and China threaten to replace the dollar as the global reserve currency, here are five of the most chilling predictions about the future of the dollar.

The 5 most chilling US dollar collapse predictions

Bank run and Harvard dollar collapse predictions

One economist called for a bank run over the weak dollar. (Image: Georg Pahl)

5. Harvard economist starts a “bank run” over dollar collapse fears
Classical economist and Harvard professor Terry Burnham told the world that he was withdrawing $1 million from his Bank of America checking account because of the negative consequences Ben Bernanke and Janet Yellen have had on the US dollar, and is trying to start a bank run by getting others to do the same.

He claimed a dollar collapse is also underway because the Fed’s manipulations had two adverse effects on the currency: decreasing overall wealth by distorting markets, and redistributing wealth from unsophisticated investors to the political elite through the currency.

Burnham said he couldn’t stand getting paid zero interest by Bank of America anymore, and didn’t trust them to keep his money safe. At zero interest, he was losing tens of thousands of dollars in purchasing power every year due to inflation, while his well-connected bank benefitted.

Greece vs. the dollar collapse

The economic collapse in Greece will look like a picnic compared to what’s coming for the dollar, says Donald Trump.

4. The US dollar collapse will be worse than the situation in Spain or Greece
Billionaire Donald Trump says the dollar is on the edge of economic ruin, and an economic collapse is the only remedy. He painted an ugly picture of the US economy during an appearance on Fox News. In fact, he issued a warning to Americans to prepare for “financial ruin”.

Trump claims the United States is no longer a rich country because rich countries don’t borrow money. In the interview, Trump claimed that the US is becoming a third world nation forced to borrow money and issue debt. Trump also suggested an answer to the question “When will the us dollar collapse?”, saying that when US debt hits the $21 to $22 trillion mark, things will get much, much worse.

US government vs. US dollar collapse

The US government will eventually stop accepting US dollars, Jeff Berwick predicts. (Image: Zach Ridisin)

3. Even the US government will stop using the dollar
Jeff Berwick, editor of The Dollar Vigilante, predicts that things will get so bad that even the American government will view their own dollar as toxic waste. He says the average American is in “la la land” obsessing over TV shows or the next Presidential race. He says what just happened in Ukraine could easily happen in the United States.

And while Ukraine saw their currency crisis coming for some time, the US dollar collapse could happen overnight, he says. Berwick says the US is “turning a corner” and headed for total financial ruin as early as “this year”, and quotes Jim Rogers who says “there is no paper money in 2014 and 2015 that’s going to be worth much of anything.”

Berwick often predicts the “end of the monetary system as we know it” and claims that, once all of the capital controls have been implemented and the US government starts confiscating assets to pay creditors like China, it will not even accept the tainted US dollar.

Federal Reserve role in US dollar collapse

Jim Rickards says the US dollar collapse will be the chief outcome of the global currency wars. (Image: Agnostic Preachers Kid)

2. Federal Reserve insolvency will cause a 90% drop in the dollar
Financial expert and author of Currency Wars Jim Rickards believes the “international monetary system is headed for a collapse.” Rickards sets the record straight on what an “economic collapse” is, saying it doesn’t mean we all go live in caves. In fact, he says, we’ve seen three economic collapses in the last one hundred years.

In his new book, Rickards suggests the dollar will see the worst of the next economic collapse as part of the “death of money”, lamenting that “we are on a global dollar standard”. He says a fiat currency standard can work, but only if countries inject confidence into the system and welcome business with open arms. Of course, neither of those factors exist in the United States.

Among Rickards’ chief reasons for predicting a dollar collapse: quantative easing, a “lousy business environment”, high taxes, and low growth. He says that dollar-euro swaps from the Fed will make the next collapse much bigger than the last one.

Russia bans US dollar

One Russian lawmaker has proposed banning the US dollar, fearing its inevitable meltdown.

1. Russia will ban the US dollar
Russian legislator Mikhail Degtyarev has likened the US dollar to a “worldwide Ponzi scheme“… one he has claimed will end with the collapse of the dollar in 2017. He submitted a bill to protect Russians against the “collapsing US debt pyramid”, saying growing rates of US debt would cause a US dollar collapse if spending isn’t remedied.

Degtyarev’s bill would ban US dollars from circulating in Russia and forbid private citizens from holding Russian bank accounts in US dollars. Those with dollar-denominated accounts would have to convert their accounts to other foreign currencies (his bill would not ban the euro, pound, yen, or renmibi). However, Degtyarev has proposed some wacky bills before, such as offering “menstruation leave” for women in the workplace.

While the bill acknowledges the weakness of the dollar, it’s also rather authoritarian: anyone caught holding dollars would have them seized and reimbursed in rubles… thirty days later. However, the bill would not forbid Russians from holding offshore bank accounts denominated in dollars or buying goods priced in dollars online. And, like any good law, the government would be exempt.

Of course, these are just a few of the best predictions about the dollar. Others, from Charles Goyette to Charles Nenner, have said the currency’s days are numbered.

Andrew Henderson
Last updated: Jan 13, 2020 at 3:07PM

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24 Comments

  1. Dirkk

    Its now September 24. Still waiting for these predictions to come true. Have stacked up on silver and the US dollar has climbed. Go figure

    Reply
    • Liz Nunya

      Once the world powers are ready for the dollar to collapse, it will.

      Reply
  2. Dirkk

    $16.17 was under $16.00 yrstetday. Starting to ger worried. I dont think the dollar will totally collapse. But it might lose 30% to $50%. Some predictions now are saying 2 years, some are saying 5 years.

    Reply
    • Eric Riley

      And those ‘predictions’ are largely nonsense. Perhaps you should stop paying attention to them.

      Reply
  3. Will Hart

    The dollar collapse is has turned into the biggest investment joke of the millenium…the dollar has been surging and is poised to go even highers in 2015….

    Reply
    • kalle gran

      Lmao what are u smooking?

      Reply
  4. Eric Riley

    Yep – I remember that collapse of 2014. Things were really rough back then. Worse today, of course. Just wait until the dollar *really* collapses, then we’ll be in trouble.

    Reply
    • mike

      But you do remember the collapse of 2008, because of the government getting involved in the housing market which is why it collapsed. You remember people losing tons of money then, right?

      Was all just papered over and we didn’t take our medicine. Idiots like you think prosperity is based on debt and printing fake money non-stop and that a collapse even bigger than ’08 isn’t going to happen.

      Take your head out of the sand sheep. 42 million idiots on foodstamps.

      Reply
      • Eric Riley

        The government was ‘involved’ in the housing market since the creation of Fannie Mae in 1938 – it’s kind of hard to put the blame on ‘government involvement’ when it looks more like the reverse (a lack of government regulation and oversight) is what was allowing private lenders to both loan to people without performing their due diligence (or actively encourage the commission of fraud) and to bundle those loans into various derivatives without properly assessing their risk.

        So – while you may want to live in your dystopian fantasy world, I prefer to stay here in reality.

        BTW – what do food stamps have to do with it? The entire cost of that program is about $6 billion – somewhere around 0.25% of the federal budget. You think *that* is causing the problem? It’s not even 2% of the deficit – which has shrunk for the last 6 years…

        Oh – and the dollar is still not showing any signs of ‘collapse’.

        Reply
        • mike

          Two things…

          1st….Government, recently (last 20 years), got waaay more involved in the housing market than its involvement back in 1940 or 1950.

          2nd…you are absolutely right that private lenders helped cause the collapse, BUT, what you fail to realize is that government is who allowed private lenders and banks to go wild doing this. By reducing restrictions so the riffraff and minorities were able to buy homes with their quotas they enacted that banks had to follow.

          So you need to realize that government allowed, encouraged, and, forced private lenders to do what they did. You cut off the head of the snaked (government), and none of that would have happened. I mean who in the world needs the government to buy a home? Idiots like mexicans and blacks? Maybe, but not most people.

          You are expecting a bunch of stupid immigrants and minorities to due their own due diligence when predatory lenders are saying it is all cool and that the government allows it? yeah…ok…

          Reply
  5. mike

    Dude, the dollar is the biggest fraud in U.S. history. The dollar is a promise to pay in silver. That promise was broken.

    Reply
    • Eric Riley

      So – you don’t use dollars then? How do you buy your things? Barter?

      Reply
      • mike

        Just because the dollar is the biggest fraud in U.S. history and the Federal Reserve and government have caused all the income inequality that there is. Doesn’t mean I don’t use dollars. I keep enough in the bank for monthly expenses. I’m not off the grid by any stretch.

        But the dollar is not a store of value, and throwing lots of it in the bank and forgetting about it is dumb. People should be taking responsibility for their own money. Silver is real money, and it is good to have your money in real assets. Not confetti fraud dollars.

        Reply
        • Eric Riley

          Which is why silver is worth less against the dollar now than it was – but keep putting your real money into something you think may be more valuable someday. It’s a lot easier than actually learning about how finance works.

          Reply
          • mike

            Huh? Silver is worth less now than it was? What are you talking about? You mean it is worth less now against the dollar than it was last year or a few years ago? Yeah? So what?

            People don’t invest in silver to get rich, they invest in it to protect what they have already earned. People also invest in silver to reject the corrupt government and system and its money printing.

            A silver ounce 800 years ago is the same as a silver ounce today. Nothing has changed. Just because the value of silver in dollar terms fluctuates, just shows how unstable the dollar is genius. An ounce of silver remains unchanged, but uneducated people like you do not understand this.

            Only government educated derelicts think paper is money, not realizing silver is real money.

            China itself sponsored to its entire citizenry to invest in silver in 2009. And they are secretly amassing thousands of tons of gold, same with India, and Russia.

            You NEVER hear an american politician telling the public to invest in sound money. Only to invest in the overinflated stock market and that the banks are fine. Politicians think americans are stupid and the sad part is they are right.

            Reply
            • Eric Riley

              “A silver ounce 800 years ago is the same as a silver ounce today.” True, and pointless. So what? Or are you trying to say that the *purchasing power* of a silver ounce today is the same as that of a silver ounce 800 years ago? While I am pretty sure that is not the case, I would love to see your source.

              Money is whatever people will accept as money – if you are using dollars, you de facto accept is as money.

              As for investment – gold and silver are terrible investment vehicles. The only people who say that they are are trying to sell you gold and silver (or buy it from you when the price is low).

              And really – “…they [China] are secretly amassing thousands of tons of gold, same with India, and Russia.” So secretly that you managed to hear about it?

              Reply
              • mike

                My source of what? A silver ounce 800 years ago is the same as a silver ounce today. Nothing has changed. Just because you can trade 17 fraud dollars for an ounce of silver today doesn’t mean it is worth 17 fraud dollars. The dollar price change of silver and sometimes violent change reflects instability and changes in the dollar, not silver. This is a very simple concept.

                Gold and silver have been money for thousands of years. They aren’t investment vehicles. What you don’t seem to understand is that people who seriously stack gold and silver are doing so to protect what they have from a failing dollar. Serious stackers are not trying to get rich or buying silver and gold to exchange them back at a later date for more worthless dollars. If my goal was to grow the amount of dollars I have, then you are right, silver and gold aren’t great investment vehicles and there would be a lot of other investments that would grow my dollars. But you need to understand that getting out of dollars and into silver and gold is a rejection of the rotten to the core system. If most people went to their bank account and withdrew most of their money and put it into metal….the power would be taken out of D.C. and our politicians hands literally overnight. Which is why you see China sponsoring to its citizens to buy silver (a real store of value), and why you never see american politicians ever saying to do that to the dumb american public.

                It is well known China is amassing a lot of gold secretly. Their holdings are secret because if it is known how much they have exactly it would shock the system. And China can’t just come out and say this is how much we have, rather they are waiting for the dollar to fail on its own and then be there to replace it as the reserve currency and show much they have once the dollar is done. If they come out today and say they have 15 thousand tons of gold, they ruin it for themselves too. Needs to be a seamless transition. Look it up how china is amassing a lot of gold….very easy to find.

                Reply
                • Eric Riley

                  How much wheat could you trade for one ounce of silver 800 years ago vs today? Hor much bread could you buy? Was it worth a night’s lodging? A week’s? Could you buy a suit of clothes? Just a pair of pants?

                  You act as though the value of metal is constant – but it is only in the trivial sense that it is constant relative to itself (yes, an ounce of silver is worth an ounce of silver, but is it worth a bushel of apples?) Of course – economics is complex and the same amount of silver could buy different amounts of things at different times.

                  You also ignore that metals (1) were not the only things used in exchange – especially 800 years ago; and (2) you assume (incorrectly) that the metal coins used represented the value of the metal (they did not). So – an ounce of silver coins was generally worth more than an ounce of silver (sometimes considerably more, depending on the time, coin, etc).

                  So you’re concept that ‘an ounce of silver is worth an ounce of silver’ isn’t as simple as you think.

                  Gold and Silver have been used as money for thousands of years – but not everywhere, and not at every time (many other things have been used as money – Roman soldiers were paid in salt, for example).

                  You are also hazy on the concept of ‘secrecy’. How can it be ‘well known’ that something is being done ‘in secret’. If it’s well known, pretty much by definition it isn’t being done in secret.

                  What color is the sky in your fantasy world?

                  Reply
                  • mike

                    I’m not even saying that some of the things you say are wrong.

                    But you need to really understand and realize that serious silver and gold stackers aren’t stacking to get rich, they are stack to protect what they have already earned. What is wrong with that? Especially with the dollar becoming more and more worthless every day.

                    You keep saying your waiting for the dollar to collapse, not even realizing that the dollar is currently collapsing.

                    The Federal Reserve and government have been making the dollar more and more worthless for decades. There is a reason the promise was broken to pay in silver for dollars, there is a reason they took metal content out of coins. And that is to benefit the elite and to bury the poor further and further.

                    I mean, heck, look at the conversations going on now. Income Inequality, and 8-9$ minimum wage not being enough to live on. And it is absolutely fascinating to me that almost nobody blames the Federal Reserve and government for destroying the dollar and making that 8-9$ too little as an hourly wage. It isn’t the Mcdonald’s franchise owners who should be condemned. It is the government and Federal Reserve that should be condemned for screwing up the money. But virtually everyone is dumb and has no idea that it is the government that made the currency so worthless that 8-9$/hour is too little to live on.

                    Min wage in ’64 was 5 silver quarters. Those same 5 silver quarters today are worth between 15-20$ in metal content at a coin store. So someone making minimum wage in 1964 was making the equivalent in purchasing power as someone making almost 20$/hour today, and literally twice as much as someone making minimum wage today. Think about that, and how the Fed and government have depleted the currency so much today that it has caused national conversations on minimum wage, yet nobody even talks about the source of minimum wage earners not being able to survive, and that is that the money is broken.

                    Reply
                    • Eric Riley

                      Now you are mixing up ‘inflation’ with ‘currency collapse’. All currencies undergo inflation over time. Even those based on metals.

                      Putting money into gold and silver as a hedge against inflation is a technique – but it’s a poor technique given the price volatility of gold and silver (and other metals).

                      Since the dollar is not ‘destroyed’ in any sense of the term (it’s still the reserve currency for many countries, and enjoys significant value around the world), I am not sure what there is to blame the Fed for on that score (though there is plenty to blame them for on other issues).

            • Eric Riley

              BTW – still no collapse.

              Reply
  6. Riz M.

    I have an annuity worth $20000….where should I move it to with the backing of precious metals?

    Reply
  7. Bongstar420

    Such enlightened thinkers….nothing like “push polling” at all!

    Reply
  8. Rubin Scanio

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    Reply

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