2015 Predictions: U.S. Dollar to Collapse?

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2015 Predictions: U.S. Dollar to Collapse?

The value of the U.S. dollar is anchored in trust. As a fiat currency, the U.S. dollar isn’t linked to any physical reserves, like gold or silver; it’s just paper. For the U.S. dollar to be worth anything, it has to be backed by an economy people have faith in. Otherwise, the U.S. dollar would collapse.
Regardless of its intentions, the Federal Reserve’s quantitative easing (QE) experiment has left America with many unintended consequences, namely a devalued U.S. dollar, growing income inequality, and a weak economic underpinning. Not the best framework for the world’s largest economy.

This might also explain why many countries are losing faith in the U.S. dollar and predicting its inevitable collapse.
The Federal Reserve’s Easy Money Experiment
Back in November 2008, the Federal Reserve stepped in with its first round of quantitative easing, an easy money strategy designed to avoid a full-out financial meltdown and a plan to supercharge the economy.
By artificially lowering interest rates to near zero and injecting money into the system, the Federal Reserve wanted to make it easy for banks to borrow money and pass the cheap money onto people and businesses, stimulating economic growth.
Over the last six years, the U.S. has waded through uncharted economic territory. Before the financial crisis, the Federal Reserve had a balance sheet of $898 million. Today, it sits at $4.5 trillion.(1)

Unfortunately, creating trillions of dollars out of thin air and dumping it into the economy devalued the American dollar. While all of that extra money pumped into the economy was supposed to spur growth, it also did the opposite; it diminished the buying power of each dollar…..More Here

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2015 Predictions: U.S. Dollar to Collapse?