PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
B Cameron
 
Comments: 16
Article views: 2958
 
 
Latest Badges:

 
View all B Cameron's badges.
 

The dollar meltdown

23 June 2014, 13:55

As global “reserve currency" the U.S. dollar forms the backbone of our world's financial system.

 But according to a new research report, the U.S. dollar could lose its status as the world’s reserve currency as a result of the new US legislation, which takes effect on July 1, 2014. 

The report claims that the new law, U.S. House of Representatives Bill “H.R. 2847”, passed into law by U.S. Congress in 2010, will usher in a potential meltdown of the U.S. dollar.

Compiled with input from analysts, the report says that this new law will wreak havoc with local currencies around the world, including the S.A. Rand. It may be the U.S. Government’s biggest blunder which could effectively lead to a collapse of the U.S. Dollar.

The New York Post recently reported, "The US dollar is getting perilously close to losing its status as the world’s reserve currency. Should it cross the line, the 2008 financial crisis could look like a summer storm."

Global Impact

As the U.S. dollar gets closer to losing its position as the world's reserve currency, the impact will be felt worldwide. America contributes 34% to the global economy. Should the U.S. Dollar collapse America’s economy will just about shutdown. Business will at least temporarily grind to a halt. This will directly affect America’s trade partner countries like South Africa.

Commodity prices for petrol, oil and other commodities are expected to skyrocket. Almost everything will get dramatically more expensive - clothing, furniture, household goods, food, electronics, televisions, computers and cars.

Currency crisis. In Cyprus citizens cannot withdraw or write cheques for more than €300 per day from their own accounts. In Argentina citizens must pay an extra tax on vacations abroad. In the Ukraine, recent tensions mean that Ukrainians must wait six working days before making any type of foreign currency purchases.

All these countries have one thing in common – they’re all in the midst of a currency crisis. Unfortunately, in just a few weeks the USA will not be spared the same fate. Neither will other countries.

What to expect when the US Dollar collapses

This is not good news for the rest of us, I’m afraid. Briefly here’s what to expect in South Africa when the US Dollar collapses.

·         South Africa’s struggling economy will plummet deeper into recession.

·         Inflation will run rampant, as a new currency crisis undermines the last, which will set off higher inflation, even bigger price hikes on essential foods.

·         The SA Rand will tumble to unprecedented lows on the back of the news, instead of improving, and will be on the back foot for months before making a slow recovery.

Since the U.S. dollar has been the world’s reserve currency for decades now, most people cannot comprehend what the repercussions will be of a dollar collapse. 

The research report, called U.S. Dollar Meltdown Report[i], gives the facts on how this new regulation that will be enforced on July 1, 2014, will affect investors, business and consumers in general in the coming months.


[i] For information about the research report, called U.S. Dollar Meltdown Report, contact the author on bertramjc@gmail.com.

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.
 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
16 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
Mkhuseli Vangile
Intellectual issues: Restructurin...

What this article tackles is something that we as human beings failed to appropriately deal with in early stages of our integration.  Read more...

4 comments 45 views
Submitted by
ruffieb
Whose Bread I Eat, His Song I Sin...

This is a translation of the German idiom, “Wes Brot ich ess, des Lied ich sing”, a nifty little phrase which came into being round about the time of Martin Luther. Read more...

0 comments 41 views
Submitted by
MarkH
Doing things the "African" way

I note that “Bob” Mugabe - good, kind, benevolent, according to his party of course – has only just assumed the chair of the AU. Read more...

4 comments 81 views
Submitted by
MarkH
Jackie Selebi and Clive Derby-Lew...

With regards to the death of Jackie Selebi and the continued incarceration of Clive Derby-Lewis I would like to make a couple of points, and I’m no lawyer - just a bystander. Read more...

18 comments 1731 views
Submitted by
Alessio Petrone
Proof of GOD's Existence

It is commonplace now in the year 2015 for all and sundry to debate the existence of GOD….many believe in been Atheists. Read more...

183 comments 4110 views
Submitted by
KingIshman Busa
Call for corruption register

A humble call is hereby made for our government to their seriousness in fighting corruption in SA Read more...

12 comments 468 views

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

Valentine’s Day gifts – 14 Feb!

Gifts to spoil him and her. While stocks last. Shop now!

Games on Sale!

Save up to 60% on selected games. While stocks last. Shop now!

Up to 30% off All Textbooks

Save up to 30% off an extensive range of prescribed textbooks for all major universities and FET colleges. Shop Now!

Save up to 40% on outdoor accessories!

Tents, sleeping, day packs and more. While stocks last. Shop now!

30% off fragrances

Get 30% off fragrances for him and her. While stocks last. Shop now!

OLX Free Classifieds [change area]

 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

Calais Website keywords automated by OpenCalais.

 
Interactive Advertising Bureau
 
© 2015 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.