Saturday, November 21, 2015

The Death of Money

The Death of Money is all about the death of the USD, the collapse of the existing monetary system, and the emergence of a new system. This will take place once confidence in USD is lost, and without an alternative currency to replace the USD, the financial system will crash. James Rickards describes the impending collapse of the current monetary system as unprecedented. He identified the existing and impending threats to the USD include currency war, deflation, hyperinflation, and market collapse.

The book also shows to investors the overview of risks in the current financial system and the best strategies to protect themselves financially. The book's message is timely in a time that investors are confused. The author describes the current state of existing monetary system as out of control. He mentions at least five factors that contributed to such chaotic condition and investors' confusion: altered state of global economy, the emergence of new players, "shifting allegiances, political ineptitude, and technological change" (p.16). 

Guide Questions:

1. What is the book all about?

2. Why the international monetary system will collapse? 

3. What are the existing and impending threats to the USD? 

4. Why do you think James Rickards describes that the collapse of the existing monetary system is unprecedented?

5. How can the book help investors? 

6. What made investors confused about the current financial system?

7. The author said that the existing global economy has been replaced. What do you think was the prior economic system before it has been replaced? And how would you describe the current system?

Source: Rickards, J. (2014). The Death of Money: The Coming Collapse of the International Monetary System. New York: Penguin Group.