Things to Know about the Devaluation of the USD, EUR and Other Major Fiat Currencies
There is one thing that we know about fiat currencies, and it goes as follows: people should be able to rely on its value — a value that has to maintain some stability over time. For this reason, many people made a shift to fiat currency, but like with any other type of currency, this might also be considered a “hit or miss.” And just as it might be expected to gain value, it can also go the other way around and lose its value. Feels like a poker game at this point, doesn’t it?
What Is Fiat Currency and Why Does It Collapse?
Fiat currency will refer to any type of currency that the government has declared a “legal tender” — in other words, money that has the backing of the government issuing it. Throughout time, every fiat currency had its episodes or rising and falling — most of the time because of devaluation.
But why does this happen? Well, initially, when paper currency gets introduced into a system, it eventually leads towards an economic “boom.” New money, valuable money — and people will eventually spend the last cent of it (or whatever the form of money is). Eventually, however, that money will get overprinted — which will also kick the economic world into inflation and make the currency lose its value.
In the end, that money will devaluate so much that the currency will collapse and will drag down the economy connected to it as well. To replace the failure of the old currency, the government introduces a new one — and the vicious cycle begins once more.
This is mainly what happened with the EUR and other big fiat currencies. As a result, no matter how much we may want to get rich with fiat currencies, history shows us that at some point, it will inevitably fail. It is also why people tend to steer towards precious metals — at least these tend to remain a good hedge against the fussy inflation.
The Dollar Trouble
When it comes to fiat currencies, the USD has all the characteristics of all the previously failed currencies. It’s the one that beat them all the ground — literally. When the USD was originally issued in 1913, everyone was super excited — and was spending it like there was no tomorrow. Due to continuous overprinting, according to 2018 data, the dollar had already lost 92% of its value — and it still keeps dropping, if that even seems possible.
According to President Donald Trump, the EUR and the other currencies have also been devaluated against the USD and other fiat currencies — placing the United States at a great disadvantage. The bank rates are low, whereas the rates for the Federal Reserve keep going up. Because of this, he also mentions in a tweet that “the Fed doesn’t have a clue.”
In the end, fiat currencies will keep devaluating — and the people need to be prepared for it. Investments in precious metal might be a great option, but there are also various other opportunities, GRAYLL is working to expand options people will have to secure their savings, freedom and wealth in an uncertain future where Central Banks no longer have control and do not know how to turn around economies — only additional experiments are to be expected from the people in control of the supply of government/sovereign money in leading global economies that will most likely fail — just like all other experiments and schemes have for the last 2,000 years and longer.
