WATCH THE VIDEO VERSION! http://www.youtube.com/watch?v=18LYC-bQfeY&feature=relmfu dailyreckoning.com Is the US Dollar headed toward complete failure? Learn what led to every fiat currency in history to fail and how the US dollar could be next. Follow Us On Facebook: http://www.facebook.com/TheDailyReckoning Follow Us On Twitter: https://twitter.com/DailyReckoning

2. Is the dollar on its way to being worth
the same amount as toilet paper?

3. 1971
In 1971, President Nixon took the United
States off the gold standard – meaning the
dollar could no longer be converted to gold.

4. Since then, the world has operated under a system
of money called fiat currency. The Dollar, Pound,
Euro, and every currency in the world are all fiat.

5. Fiat currency is paper currency that a
government has declared legal tender…

6. But can’t be redeemed for gold or silver.

7. Fiat money is essentially nothing more
than a piece of paper worth something
only because the government says it is.

8. Its only value comes from good faith by the
people that use it - to accept it as payment.

9. The problem with a fiat system is that government
is free to print as much money as they want…

10. Without the burden of finding gold to
support the amount they are creating.

11. Thus, they can create billions out of thin air
and pump it into circulation – making the
money already out there worth less and less.

12. History has taught us that no fiat currency lasts forever.
In fact, every currency since China experimented with
paper money in the 11th century has failed.

13. So why would it be different here in the United States?

14. According to a study of 775 fiat currencies by
DollarDaze.org, the average life expectancy for
a fiat currency is 27 years. 599 of those are no
longer in circulation. Some have taken only a
month to crash. Others have taken centuries.

15. Here’s how those currencies died.

16. The two longest running currencies are British
pound sterling (1694) and the US dollar (1792).

17. But since its inception, the British
pound has lost 99.5% of its value.

18. As for the U.S dollar, from 1971 to 2008, the amount
of dollars in circulation increased by 17-times.

19. This
has
resulted
in
an
81%
fall
in
purchasing
power.

20. The U.S. has all the characteristics of other currencies that
have collapsed in history. Right now we are at war. And
financing this expensive war results in monetary inflation.

21. The U.S. currently owes more than $15 trillion in debt.
Historically speaking, when a country has gotten itself
into huge debt, its answer has been to create more money.
Perhaps the U.S. is headed toward complete failure like
the currencies before it. If so, what comes next?

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