Money paper has been used since the times of the Chinese in 800 AD. Many events happened along the way, where the paper money was used and abandoned and used again. The use of paper money to fund the soldiers became paramount during the Civil War. Money is the way things happen in the modern world. Without it, no business would exist; without business, no money revolves. The world would have not been what it seems today.
There are quiet a number of good and bad things when money is the problem. If for example, a country loses its currency and suffers from a greatly devalued currency. Although it is highly for a countrys currency to turn zero and worthless, there can be catastrophic consequences that the government and the people will face.
Initially, the demand for imports would drop to almost zero due to very prices that can no longer be afforded by that countrys currency. Furthermore, prices for almost everything will skyrocket. We call this hyperinflation. Second, export demand would hit the ceiling. Today, more countries would buy due to almost ground level prices of export goods. Thirdly, most foreign countries then would look at that country as economically and politically unstable, thus their unwillingness to invest.
The upside potential is that the government may have a chance to consider starting again ,if there is ever such a thing for countries, but, it seems to be like that for a country that has a way too devalued currency. Much like the computers reset when it gets stuck somewhere. But the trail still ends up with one domino collapsing one after another.
There are many factors why this event might be feasible. However, the fear of most is when too much politics gets into the arena that instead of the issues at hand are being addressed, most of the energy of policymakers and lawmakers are being diverted into something else. Although rarely does this concept happen, but like I said, it is possible.
At the aftermath of the global financial crisis due to the enormous housing bubble rupture in the United States, the domino reached to as far as Iceland. The country was in the brink of a nationwide bankruptcy. Prices of goods soared high and stock market prices plummeted.
Governments and financial institutions, the worlds downfall can also be instigated by few of the worlds leaders and decision makers while its true that the world is being fueled by economies from the different regions through the different countries. So those that run governments and political machineries should be conscientious enough to put the interest of the majority above any personal intention and selfish gain.
Many recent predictions paint a picture of doom and gloom for the American dollar. Asia as an emerging economic powerhouse will negatively influence the value of the American dollar. In general paper money will become almost worthless and a new economic system will be put in place.
Owning physical wealth such as silver and or silver mining shares is an opportunity to hold onto your wealth. In an inflationary environment you want to own actual assets, not paper money. And what exactly is an asset. An asset is what you can trade as a measure of worth for products you want. Precious metals have been assets since biblical times.
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