But it may not necessarily be in any of our lifetimes. In fact things could end up going really well before it all goes down hill.
Best case scenario is that we end up like Japan, with the Fed just pretty much buying everything. Even then it would be pretty crappy for most people. Not a total collapse, society would still more or less function, but more and more people would be on food stamps, taxes would slowly creep up, government "services" would get worse and worse.
At the same time, China and Russia would have to SLOWLY replace the dollar.
PROBLEM is that the Military Industrial Complex (and all the other complexes) are going to fight to the death BEFORE they let the dollar lose it's reserve status. As it stands now, all the "industrial complexes" and pretty much run off government printed money.
BUT when that party ends, prices of a LOT OF THINGS will increase significantly. Americans will have to BALANCE TRADE. We can only import equal to what we export.
Because we import WAY MORE ENERGY than the stuff we export, if the dollar loses it's reserve status, and other countries that sell stuff (oil, food, etc) want currency OTHER THAN DOLLARS (like gold, for example) we are irrevocably FVCKED.
Gas would be twenty bucks a gallon. Food would be ten times as expensive (as oil is used in every step of the way).
And unfortunately, there is VERY LITTLE CHANCE the dollar will maintain it's reserve status for another thirty years.
There might not be a total collapse, like back to the stone age, but there is going to be a VERY PAINFUL reset.
Imagine forty million people realizing their food stamps only buy ONE TENTH of what they used to.
Imagine all the cops and public school teachers who realize their pensions are WORTHLESS.
Imagine the entire health care industry, where up to EIGHTY PERCENT is paid for by FED money. That means all the drugs, all the doctor visits, all the hospital stays, are now TEN TIMES AS EXPENSIVE.
In all likelihood, not a lot will survive.
Here're some fantastic books that explains not only WHY we are likely to collapse soon, but why there's NOTHING we can do about it.
The New Depression
The Crash Course
The Death Of Money
If you got forty minutes check this out:
If you want to understand the problem IN FULL DETAIL:
http://www.peakprosperity.com/crashcourse
BOTTOM LINE:
I believe there is a very high probability that in OUR LIFETIMES (I'm 49 btw) there will a significant economic event, or series of events, that will cause a catastrophic change of the way we live.
No idea what that will be, but it will likely involve wars, millions of not billions of deaths, and a significant decrease in economic freedom and potential for everybody but the top 1%.