Charles Hugh Smith: ‘ALL Currencies Will See A CATASTROPHIC DROP’ In The Economic Collapse

by | Feb 19, 2018 | Commodities, Emergency Preparedness, Headline News | 25 comments

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    Financial writer Charles Hugh Smith recently sat down for an interview in which he boldly declared that ALL currencies – not just the United States dollar -will see a catastrophic drop during the coming economic collapse. It’s not just the dollar, but every currency backed by government force will fall.

    In a video interview with USA Watchdog‘s Greg Hunter, Smith details the eventual collapse and says currencies such as the Chinese yuan will also drop. Smith, the author of the new book Money and Work Unchained and founder of the popular site says, “All these currencies, by which there is nothing backing the currencies except the government’s force. That’s the yen, the euro, the dollar and the Chinese yuan. They are all going to have a catastrophic drop against real assets because they are all based on too much leverage, too much debt, too much money being pumped into the financial system that ends up in unproductive speculation. You can’t grow your debt at six times the rate of your economy. In other words, if you are creating $6, $8 or $10 of debt to eke out $1 of low productivity growth, you are dooming your currency, and all currencies are doing the same thing. All the currencies are going to take a big drop at some point . . . relative to real stuff. Real stuff is commodities we need: water, grains, food, oil, natural gas, and of course, precious metals. Everybody knows they have been money for 5,000 years, and I personally feel there is a role for cryptocurrencies.”

    Once you destroy your currency, you destroy everybody’s savings, everybody’s purchasing power, everybody’s poor,” says Smith. He then explains that how governments run economies is not how economics works. Most assume we can continue to borrow from the future to pay today for the promises made yesterday. It simply doesn’t work that way. “Most of the households in the US are losing ground,” explains Smith. Hunter then asked a powerful question: “Do you think they [global elitists] are trying to crush the dollar on purpose?”

    “Yeah…there’s that idea that we boost our exports if we can reduce the value of our currency compared to the yen and the euro and so on. But then of course, we have to think about the other side of that which is…the Japanese are even more dependent on exports than we are, so they don’t wanna see their currency, the yen, shoot up in value becasue their exports then become more expensive here. It’s kind of a zero sum game…no country becomes great by devaluing their currency.

    The entire system of government is broken at every level. Is it time to evolve beyond the need for rulers and authority and central planning? Smith explains that only the elites have access to the capitalism that will lift everyone out of poverty.

    “If you’re in the inner circle, then capitalism works for you,” says Smith. The global elitists and politicians who get rich off the backs of those they force socialism upon don’t want a real free market to emerge because that’s how they will be taken down a notch and forced to compete in a real market scenario. “[The global elites] have protected it [capitalism] and only they get access to the benefits of capitalism and everybody else gets a watered down sort of socialism, like universal basic income. You don’t get any opportunity to do well.”

    But of course, as with all government programs (including government employment), there’s always a problem, and universal basic income will create a disaster of epic proportions for human beings. The best single description of the problem, according to Smith, came from Hunter. “The fraud of universal basic income has to basically attach itself to a fraudulent money system.”

    “It doesn’t really address the underlying problem which is a lack of productive work that gives a positive social role to people. In other words, they feel like they’re contributing to their family and their community. And just giving somebody a welfare check, I mean, how many people on welfare are writing poetry and really happy? I mean, we already have a test audience of what happens when you give people just enough money to scrape by, but no opportunity. What we really need is not universal basic income…we need to create opportunities to serve their community…the whole idea needs to be localized to the a real free market, everybody has an opportunity to pursue what they want and to contribute and this is what we’ve lost.

    Smith says he’s more concerned, however, that the market will slowly decay rather than just crash because he thinks that the public would let the elitists get away with it.

    “The consequences of the weight of our policies would become apparent if there’s a 5,000 or 10,000 point drop in the DOW. People would start asking questions…but if it just slowly erodes, people habituate to it.”

    Be prepared to protect yourself and your family financially for the dollar’s imminent collapse.



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      1. If one major economy goes they all will fall. but they will still be there just smaller.

        • Like the balloon popped with a pin, lying there on the floor, shriveled and unusable.

        • Propping up the US Petro Dollar with the point of a gun has been sucessful for many decades. Just ask Iraq or Libya who tried to back their Currencies with Gold. The Globalists tollerated no part of that. So which regime is still standing you ask? The phony US Dollar country. Thats who.

          The Author must be sitting on a pile of gold and silver pissed that the PM prices are being manipulated and supressed. Silver should easily be at $20 to $28 right now but it isnt. Carrying a Price Ratio, Silver to Gold at 81 to 1. Not ever close to normal.

      2. Correction: The Chinese Yuan is backed up by Gold. The Russians have been selling Oil to China for the Yuan. Russia then sells that Yuan for Gold at the Chinese exchange. They go home with the Gold. Same with the Winter Olympics. Ha.

        • The medal count stopped being posted when the Russians (11-medals) beat the U.S. (10-medals). Can’t have that, can we? [extreme sarcasm]

          The Russians didn’t even send a full team to the Olympics and are still beating the Evil Empire’s A**. LMAO.

          Do you think if the American Olympians were actually allowed to concentrate on their sport instead of which end of the flag they are supposed to let dangle from their a**es, maybe things would be better?


          Gotta love it.

          • So which is it? Are you now living in China or Russia?

            • Hey Tex Jack. Are you still living in a cave or in your van down by the river? Accept reality, good or bad, its the truth. I’ll take truth over propaganda any day. Dopes who choose propaganda are those who join the military. Blood nded by patriotism. Ask those who fought in Viet Nam what they were fighting? Or those in Iraq or afghanistan? Or Libya or Yemen or in Syria? You want reality and truth or propaganda.

          • Why are you happy to see your country lose?

            You don’t have to be an anti-American halfwit in order to be informed on our empire status. After all, America’s hegemony has been the only reason for lower parts of society like you to even have the ability to communicate and thrive in the world, even if to a really small degree; such as the ability to pick up a burger and fries for your family to share when you’re done cleaning floors each night.

        • The Chinese Yuan is NOT backed by gold. Only oil importers can receive gold for their oil and they must go through the gold exchange.

          For all intents and purposes its only BARTER and the ability to BARTER is limited to those who will sell their oil to China. Investors also have the ability to use the Yuan, the dollar, the ruble and a few other currencies to buy gold from that exchange. BTW, oil importers in the USA can take the dollars they get for their oil and take it to any exchange and buy gold.

          Same, same.

          A currency is backed by gold when an importer or a citizen can take their currency to a BANK and get gold for it without a FEE, meaning that it is FREELY CONVERTIBLE !!!

          For once and for all time, the Chinese Yuan is NOT backed by gold !!! It never will be. BTW, most oil importers will want dollars, euros, pounds, and yuan for their product, not gold !!!

          Get real people !!! 🙂

      3. Chas. Hugh Smith is right. And it’s overdue as hell. Time my extra ‘evil’ tools found some good hands to be put into. I’m not selfish, I plan on handing out some precious metals when it all comes tumbling down to those I reckon can stand firm on the line. Ever watch that old show ‘Jericho’ when Robert Hawkins (played by Lennie James) says (season 1 episode 21) “guns, guns are easy…” and the next scene he and ‘Jake’ are opening up Hawkins’ storage unit? One more time chilluns, it ain’t the guns that count so much as it is the men willing to use them effectively.

      4. “in a real free market, everybody has an opportunity to pursue what they want and to contribute and this is what we’ve lost.“

        This is because we have Democrats and really bad grammar.

      5. Time to learn how to barter…….

      6. I’ll say it again. 40K Dow means nothing if a loaf of bread is 12 bucks.

        • and welfare barges that never worked a day in their lives earn six figures annually compliments of the US taxpayer

        • Dow 40K (if you own stocks) means that you have kept up or ahead of inflation if a loaf of bread is $12.00. Just saying. 🙂

          • Not if you make 10 bucks an hour.

      7. bullion beans bandages bullets booze……hot babe =a ok

        • Guns Gold and Silver, Grub, ground and guts. Never surrender. 3 Things you never sell. Your Land, your Guns and Your Soul. CSS

      8. Sweden leads the way toward a cashless society.

        ‘No Cash’ Signs Everywhere Has Sweden Worried It’s Gone Too Far

        “Sweden is widely regarded as the most cashless society on the planet. Most of the country’s bank branches have stopped handling cash; many shops, museums and restaurants now only accept plastic or mobile payments.

        But there’s a downside, since many people, in particular the elderly, don’t have access to the digital society.”

        ht tps://

      9. Likely no catastrophic drop well into the 2140’s. Oil is too abundant therefore debt is unlimited until the day the trucks stop delivering. We will be shocked by the future prices of things, just like a factory worker that earned $6.00 a week working 50 hour weeks back in 1907 would feel today. They can and will [AND MUST] must tack on as many zeros as they like as long as the trucks keep delivering fruits grown on the other side of the planet.

      10. Missing detail in all these articles.

        Currencies will drop in relation to what precisely? Gold, the cost of food, clothing, shelter?

        A change in the value of a currency usually relates to a shortage and price increase of a necessity.

        The value of any fiat currency is tied to emotional factors and the flow of readily accessible necessities.

        Anyone in Venezuela who has gold can cross a border and buy anything they like, if they have a number ten can filled with $10 Venezuelian notes they likely can’t buy lunch. Inside Venezuela you can’t buy food with gold because no one has food for sale at any price with any currency.

      11. The Chinese backing their yuan with gold. and Russia selling oil for Yuan instead of USA digital fiat Petro Dollars. That is a new event. It could be a game changer?

      12. Charles said ALL currencies will see a catastrophic drop. Why would the ruble drop? Debt is the killer here as interest rates rise, but Russia has less than 20% debt to GDP. It’s so small that Russia can write a check to pay off their sovereign debt and still have a couple of hundred billion in the bank. As Bill Holter forecast about a year ago, the ruble is the only major currency likely to survive in its current form when all the dust settles.

      13. by in large this article is accurate. I would cite China as a possible exception due to its huge gold reserves. I believe the largest in the world. Russia is second, I believe.

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