Currency Definition Soft

Currency Definition Soft

Currency Definition Soft

A dollar crash in 2010 will probably occur based on a few key triggers.

Triggers for a dollar crash can come from internal decisions made by the U.S. political machine and the reactions these political decisions have on U.S. creditors such as China, Russia, Japan, etc.. As with all currencies worldwide, the U.S. Federal Reserve Note (FRN) or dollar, has nothing but government edict supporting it. There is no conversion requirement for the U.S. currency. This fact has historically lead to a currency crises at some point. For example, the Weimar Republic, the Argentinian Peso, the British pound, etc. were all fiat currencies that crashed when large government debts strained the credibility of the currency's value.

The dollar currency crises could also come from external factors outside of the direct control of the U.S. political machine such as Sovereign Wealth Funds (SWF) from China, Russia, and other countries trading their $2 trillion plus in dollars for other currencies, or commodity plays.