Recently, I came across news that Belarus at the end of last month devalued its Belarus Ruble by 36 percent against the US Dollar and up to 56 percent against other currencies in order to help resolve the country’s balance of payment crisis, but that still didn’t stop the country from now having 20% inflation. This reminded me of what happened to Britain in the 1960s when it had devalued the pound by 14% overnight and had 25% inflation in the 1970s and why I choose to keep my wealth in sunnah/sound money like gold and silver – because central banks can easily wipe away people’s wealth in an instance.
Luckily for Belarus, Russia has decided to step in using the regional bailout fund and give the former Soviet republic a three-year $3 billion loan to stabilize its economy. But when it comes to the United States, with its unemployment at over 15% (22% according to shadowstats), inflation over 2% (11% according to shadowstats) and the US dollar being devalued by over 5% a year, I believe that in the not so distant future, we will have another financial collapse of the US economy and as a result the world economy as 70% of circulated currency in the world is the US Dollar. But unlike Belarus, nobody will be able to bailout the US economy or the world reserve currency, as they are not too big to fail.