The Triumph of Paper Currency ?

So many experts call for the demise of all fiat currency.  Some of these are highly respectable and experienced commentators. 

We're not convinced.  First of all, it makes little sense that all paper currencies could collapse.  More likely, via habit or convenience, people will flock to one currency at the last.  As we've predicted in the TREND Letter and TTT, against the popular grain, the U.S. dollar is most likely to ascend if only because it is the best of the worst.  In the kingdom of the blind, the one-eyed man is king. 

Maybe someday we'll have a credit/debit system backed by people having physical gold in bullion vaults rather rather than the dollar credits in computer systems we have now, but that day won't come soon or easily.  Proponents of imminent hyperinflation may look wrong and foolish for a very long time to come.  Witness Japan's "lost decade(s)" and know that it can happen here. 

The big surprise will never be what so many are looking for - in this case a super-surge in gold and the collapse or paper "money" - instead it might be a continued flight to cash (per collapsing interest rates) in the face of a collapse of "asset" prices. 

If deflation continues long enough, people will be dumping many so-called "assets" like they do stocks in a bear market or real estate when a housing bubble bursts. 

In a deflationay environment "cash is king", and history repeats.