There is an old saying that goes “history doesn’t repeat itself, but it does rhyme”. And that is what some analysts are seeing in the situation of the world economy. Thus, while the major governments of the world have launched stimulus packages billionaires to cope with the crisis of the Coronavirus. Many believe that this can result in the hyperinflation of the fiat money. Or as it says in the analyst known as PlanB in the Tweet of the day, to the collapse of the united States for the dollar:
L’histoire se répète. The Romans also wrecked their empire by debasing their currency. Must read: “The decline and fall of the Roman Empire” by Edward Gibbon. pic.twitter.com/4ghVaO72Rk
— PlanB ? (@100trillionUSD) June 12, 2020
The united states and the strength of the dollar
Two thousand years ago there was no nation on the face of the earth that could compete with the power of the Roman Empire. The legions of Rome had become in fact the Mediterranean into a lake to imperial. And his wealth allowed him to achieve a degree of prosperity never seen before in the Europe of Antiquity.
However, this situation could not last forever. Then, as the Empire expanded, and the financial needs of the same grew.
The only resource that they found their rulers to be able to continue to finance the military expenditure of the government, was the issuance outrageous money. Generating a crisis of inflation that ended up leading to the collapse of the Empire.
This story resonates today among many market analysts. Those who see in the attempt of the united States and other western countries to confront the crisis of the Coronavirus through the issuance of currency.
The perfect recipe to depreciate the value of the dollar, and collapse of the international financial system. Just the opinion expressed by the analyst known as PlanB on Twitter:
“History repeats itself. The romans also destroyed its empire and degrade its currency. A important reading: “The decline and fall of the Roman Empire” by Edward Gibbon“.
What will collapse the united States dollar as did the Roman Empire, the Denarius? Source: University of Tulsa
Of course, we do not live in the era of the Roman Empire, and the tools at the disposal of the united States to cope with the crisis are more spacious and powerful. However, the simple fact that many analysts wonder if it will collapse the united States due to the dollar. It is a bad sign about the direction they are taking the monetary policies of the north american country.