Alright so I did a quick search and couldn't find anything on the world Economy and the current financial problems around the world, so I thought I would make a little thead. As many of you know and experience first hand, 2008 was a rough year for America and various other countries, most notably in the Euro zone. England, France, Netherlands, Greece, Iceland were all immediately affeced by the financial/banking crisis and various others are suffering now (Portugal, Spain, Italy). Interestingly enough, during 2008 and up until Christmas, Canada actually seemed immune to the mayhem that was occuring South of our boarders. Despite a sharp drop in the equity markets (TSX) from about 14k, business went on as usual here. We didn't have major drop offs in GDP, employment, disposable income. Everything in Canada, or at least in Montreal went off without a hitch. People began to praise our tighter monetary policies, morgage system, and banking rules, that allowed us to avoid the accumulation fo toxic assets that U.S banks were spreading all over the world. However, this month the government announced that inflation in Canada hit 3.3%. Just like the rest of the world, inflation seems to be rising at a scary pace around the world. So what exactly is happening? http://www.theglobeandmail.com/repo...y/inflation-rate-surges-to-33/article1990859/ Fiat money is happening! America continues to take on massive amounts of federal debt, continously raising the debt ceiling time after time after time, spending uncontrollably and without check. http://abcnews.go.com/Politics/geithner-congress-raise-debt-ceiling/story?id=13393920 In return the FED prints more and more and more money to service these added debt levels, to the tune of trillions of dollars. No other country is able to do this, the US is literally making money out of nothing. They are allowed to do this because the USD is the reserve currency of the world. Everyone wants it and uses it for transactions. China receives its good for USD, Canadian (timber, oil), Saudi Arabia (Oil) Germany products (Cars), etc...The list goes on. As a result America keeps printing money, and its the world who begins to absorb this debt, and inflation, especially for those markets that peg its dollar against the USD (China).... But what happens if suddenly the world doesn't want USD anymore...well, thats when scary things start to run through my brain. How about the crisis of 2008 tenfold... The 5 largest emerging economies, Brasil, China, India, China and South Africa have recently decided, and with no warning to the U.S.A, to discontinue using the USD as a medium of exchange when making purchases between themselves. http://articles.economictimes.india...83_1_economies-food-security-local-currencies This is a HUGE problem. It means that people don't trust the USD anymore. As soon as this begin to take effect, and countries realize around the world that the USD has a lesser and lesser influence, they will begin to demand that their currency be used. If the FED continues to print money (never mind the money that hasn't been released yet), American dollars wil flood the market. Add the massive amount of commedities that China, India have been buying up, whether it be actual gold, silver, copper, or the entire mining companies themselves (With American dollars no less, clever little bees) and you have a recipe for disaster....Hyperinflation, and I fear fiscal and social choas... No more USD reserve currency, the end of Fiat money?