Friday, January 11, 2013

The Eventual Demise of the US Dollar

The Dollar Will Disappear


The Euro isn't going to survive. There will be a politician in every single country that blames rising prices on the Euro, and the will take them out of the union. In a generation, Asia will have risen dramatically. There will be three blocs. The American bloc, the European bloc, and the Asian bloc.

The standards of living in America and Europe will stagnate or possibly decline in real terms, and the standards of living in Asia will rise. Asians won't uniformly become rich, but there could be a billion people that could live as well as we are now. The young European just wants to take it easy. They want to take a lot of holidays. Because of this, they won't get as much out of life. The Asians are just as smart and talented, and they work 365 days per year.

Europe always adapts itself to new realities, but Asia is working twice as hard. They are losing their prosperity. Europe is definitely losing ground on a relative basis, but their values will remain intact. Many cities throughout history have aged well. It is possible for Europe to age well. Tourism could become a huge industry. People in Asia might want to own a house in Europe. Venice may be sinking, but it has still held up rather well.

After the fall of communism, 3 billion more people joined the market economy. This has caused instability, but it will be better in the long run. Lots of politicians will bash Brussels because it will make them popular at home. But the citizens will still want to remain part of the EU. For the next ten years, you will probably want to invest in the Euro or the Dollar. Ideally, you will probably want to be in the Euro, because the US Dollar has some major problems. Something needs to replace the Dollar. It will disappear in the next 20 years. America gets the politicians they deserve, and there have been some rotten politicians in the past few decades.

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