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If people believe there's a currency crisis and that the currency will crash, it becomes a self-fulfilling prophecy. They would instantly convert dollars to ano
by realusername 9y ago
If people believe there's a currency crisis and that the currency will crash, it becomes a self-fulfilling prophecy. They would instantly convert dollars to another type of currency or goods they think would retain value. They would take their entire paycheck every month and buy any possible physical good they can the same day to try to keep the value. You can have the largest military in the world, the currency would still crash like a rock, trust is everything for a currency.