- Jim Costa
Dear Jim: What is the definition of a "collapse".
I responded to this question on a Prepper Site.
"What is the definition of a "collapse", related to the $$? How much value does the dollar have to drop before its considered collapsed?"
I hate to answer a question with a question, but here goes. How much does a person have to believe a con is a con before he believes it's a con? To rephrase the question mathematically, what percent pregnant does a woman need to be to be "considered pregnant"? We are talking about the kiss of death here. When word gets out you have it your social life is over.
XXXXXX: I apologize for my answer. I wasn't trying to be a wiseguy, I thought I was helping. There is no formal definition of money "collapsing". It is like the SCOTUS not being able to articulate a definition of pornography. They could only say "You will know it when you see it." You have to define Currency Collapse by its opposite - Hyper-Inflation. That is loosely defined as when the monthly inflation rate is more than 1% per month. Right now the government reports it around 8% per year (0.67 per month). Others claim it is now 14% to 32% per year. (1.16% per month to 2.7% per month). But here's why I said what I did: Recognizeable inflation occurs when those asleep realize the knowledgeable ones are liquiding their currency immediately before it shrinks. This creates a panic crises in all others and the race to the bottom begins. That is why hyperinflation lasts a very short time, just a few months, until the currency is worthless - no one wants it. This is just like a con.
This is why I warn business owners to have a plan in place now to watch for it and deal with it immediately. Otherwise, you will be bankrupt before you can react!
In fact, some owners plan to close their businesses during this period as the losses by temporarily closing are much less than going bankrupt by staying open.