There are always journalists claiming the end is near for specific currencies. It's as if the world currencies swing around the financial merry-go-round and journalists take their whacks at every turn. Contrary to what the major media would like us to believe, there have only been a few times when some of the world's major currencies were fragile.
There were times where the major currencies of the world devalued significantly. An example is in the Nixon era, where the U.S. witnessed the devaluation of the dollar. Also, in 1992, George Soros is thought to have crushed the British Pound Sterling. Both cases were exceptionally rare, and financial circuit breakers are in place to prevent such events from occurring again.Currencies are taking on a similar form to stocks. When the world is shouting that the end is near, savvy investors are stepping in and buying. The next time headlines tout the destruction of a major currency, look closely for buying opportunities. If you find solid investments, you can earn significant returns.The main reason major currencies will avoid severe devaluations is economic globalization. The connections among the major economies of the world are very strong. The world is becoming much more specialized. The reliance on one another means it is in the best interest of all economies to preserve the financial health of each other. For example, let's say the dollar crashed. The ripple effect would extend across the globe, causing a global depression. Therefore, the United States and many other countries would intervene during a severe move of the dollar in either direction. This would also be the case with other major world currencies.
