Responses: 58

Over the long term, the dollar is declining. Partly it’s because of the large U.S. debt. which drives down the value of the dollar. It’s also due to the strength of emerging market countries, like China, which are becoming less dependent on holding U.S. dollars to keep the value of their currencies low.

Many experts believe there will be a tipping point, causing the dollar to collapse suddenly. This would create global economic turmoil. Investors would rush to other currencies to escape further losses. Global trade would seize up, because the majority of international contracts demand a dollar payment. Other assets would skyrocket, especially the euro, the yuan and gold. Interest rates in the U.S. would probably rise, as demand for Treasuries fell.

Some of the ways to protect yourself from a potential dollar collapse are also good ways to protect your assets from the far more likely dollar decline. First, keep your investments diversified away from the dollar by making sure you hold foreign mutual stock and bond funds and some gold. For more, see Why Invest in Gold .

How should you protect yourself from the global economic turmoil that would result. This high level of uncertainty could occur from any sudden shift in the world economy. The best defense is to be mobile. That means keeping your assets liquid, so you can shift them quickly. Don’t tie a lot of money up in real estate, which could tie you down. It’s also difficult to sell when the real estate market goes south. You could even lose money if you can’t get renters.

The best defense is to invest in yourself and in your knowledge. Stay on top of the global economy. Understand investing. And it’s never a bad idea to keep your passport updated —just in case! what an idiotic article. after reading everything, its written it will never happen. Then why waste our and your time writing Guest preety

re: interesting to read eveyone response

Well first let me say I don’t claim to know what to do for everyone. It took me five years but I finally left the USA and live in South America and I am trying to create new income streams outside the USA. I don’t plan on ever moving back to the USA to work or stay. Few people will ever take the route that I have chosen so I am preaching exile so much as wanted to chime in say Good Luck Everyone! Math is a hard taskmaster and she is going to teach the Ole USA a few very difficult lessons in the coming years. For those thinking about fight back. jajaja. you will end up in a FEMA camp with shackles on. What I do suggest is realistically evaluating your options and create a plan [it things get bad enough] to alter the wave you live, perhaps where you live and with whom you live. It’s your life, they have not yet finished the FEMA Gulag Archipelago yet. and remember there are places like Puerto Rico, US Virgin Islands, etc. that are legally part of the USA. etc Guest Pal