Thousands of fiat currencies have failed throughout history and it has been said many times that eventually all fiat currencies inevitably reach their inner value of zero. Many popular currencies today like the U.S. dollar and Canadian loonie have already lost over 95 per cent of their value. This means that the cost of buying products has dramatically increased, as a direct result of the self-destructive monetary policies that we continue to operate with. It is suggested that many countries around the world are now racing through a currency war that will inevitably see the end of fiat currencies as we see them today; prompting an unprecedented global financial crisis.
Episodes of hyperinflation have occurred many times throughout human history. And the list of countries where hyperinflation is or could soon be a problem continues to grow, with financial experts saying that it will inevitably come to the West. There are countless countries that are facing trillions of dollars in debt. Citizens in Venezuela are stuck battling rampant inflation that’s up an estimated 720% with a state of emergency now declared for the country. South Sudan recently devalued their currency in December and now many businesses are being forced to close as a result; they’re saying hyperinflation is already present. Japan is another that’s facing an economic crisis over its decision to follow the same path of monetary failure with quantitative easing. Puerto Rico is having debt problems, Canada is experiencing economic turmoil, Greece still hasn’t sorted out its own debt dilemmas, and there are many others.
We are facing a situation unlike any time in the history of the markets. As the debt has continued to pile up over the past few decades, we have now reached a tipping point say many. As the economy rolls over, we are going to see the currency fiat wars heat up, according to financial expert Mike Maloney, and it’s going to be a race to the bottom.
However, some other financial experts, like Jim Rickards, say that the toolkit isn’t empty just yet for the central banks, and we could still see more of the same with quantitative easing and negative interest rates. But these “solutions” aren’t going to address any underlying problem and they will only delay the inevitable failure.