The death of the U.S. dollar is among us, although the mainstream media is shielding this truth. In fact, the Washington Post recently reported, “The dollar’s supremacy — in trade, in finance and as the global reserve currency — shows little sign of erosion.” This isn’t true reporting; it’s storytelling to keep a narrative going. The truth is that the U.S. dollar is on shaky ground as the national debt spirals out of control, and world leaders attempt de-dollarization by moving away from the dollar for international trade and financial transactions. This is why Donald Trump, even prior to taking office, is showing his stance on protecting the dollar, taking action by declaring the following:
“The idea that the BRICS Countries are trying to move away from the dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”
Efforts Toward De-Dollarization are a Threat to the U.S. Economy
Although news headlines are bashing Trump’s statement, he has some merit behind his efforts to stop the dollar from slipping out of its position as the world’s reserve currency. In his words, he feels that the U.S. dollar losing its power in global trade is “the equivalent of losing a war.”
The media marginalized his comment on how BRICS nations will face tariffs if they move away from the dollar, but are they taking all the facts into consideration before pushing their pieces out to the public? And most importantly, do they realize what will happen to America if the dollar does lose its dominance?
Related Article: Global De-Dollarization Intensifies Signaling Economic Devastation on the Horizon for U.S. Citizens
Any threat to the U.S. dollar should be taken seriously, and with the BRICS nations’ desire and plan to create an alternative currency, it’s not only a threat to the dollar itself, but to our economy, and the people who reside within the U.S. borders. But again, the mainstream media sticks to the decision to publish statements such as these that show claims of an alternative currency in a foolish light:
“I don’t think anybody takes seriously the BRICS coming up with their own currency. I don’t think there’s anything here.” Said Marc Chandler, managing director at Bannockburn Global Forex in New York.
“The BRICS would desperately like to reduce their dependence on the dollar as a payments currency and a reserve currency because it exposes them to the whims of U.S. policies, especially a mercurial president like Trump,” said Eswar Prasad, a professor of international trade policy at Cornell University. “But the proposal for a BRICS currency is a fantasy.”
Should we stand by to “watch and wait” and risk their progress going beyond what can’t be stopped – that, in itself, sounds foolish and irresponsible. The media focuses on how this will never happen but fails to highlight the fact that China’s Central Bank has been decreasing its holdings of U.S. Treasury securities, and that Russia and China have been bypassing the dollar in their bilateral trade, with over 90% of transactions conducted in their national currencies. So, it’s actually happening now, slowly but surely.
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Foreign Nations Compelled to Break Away from the U.S. Dollar
There are many reasons foreign countries are attempting to break away from the U.S. dollar, and this isn’t a new concept either, but it has picked up momentum. Many feel that the U.S. government has abused its power by using the dollar’s dominance to control and punish other countries, and this has led to the accusation that the dollar is being used as a weapon.
A big push in the de-dollarization movement came when the U.S. placed sanctions on Russia a few years back for its involvement in the Ukraine war, as well as freezing Russia’s access to $300 billion in liquid foreign exchange reserves. Other countries took note of this and feared keeping themselves in such a vulnerable position.
Sanctions can cripple a country and its people, and Russia is not the only country to face them – China, Cuba, Venezuela, Afghanistan, and others have been hit as well. Whether a country deserves sanctions or other retributions or not, it makes sense for them to desire to move away from being in a place where they can be subjected to these consequences – and this is exactly what’s happening.
Yes, de-dollarization would be a difficult quest, but despite this, nations are still working toward that goal. Their desire to do so is captured in this statement recently made by Putin: “The growth of payments in local currencies makes it possible to reduce the debt service fee, increase the financial independence of BRICS member countries, and also to mitigate geopolitical risks to the greatest extent possible and, as much as possible in the current world, separate economic development from politics.”
Losing Dollar Dominion Would Spell Financial Ruin for Americans
If the dollar were to lose its status as the world’s reserve currency, economic and financial power and influence would be shifted away from the U.S., and it would result in a wave of surplus dollars within America, and this would unleash massive inflation.
For those who are struggling with inflation now, this is nothing compared to the inflation that would hit the U.S. if de-dollarization were to occur. There’s a lot more to this story, such as stock market crashes, diminished retirement accounts, and so on, but the bottom line is that America would be in financial ruin if the dollar lost its stronghold.
Investing in Assets Not Dependent on the U.S. Dollar for Financial Security
Despite the constant stream of reports from various news outlets claiming the dollar’s strength and resilience, the truth is that there’s a growing global trend to decrease dependency on it. On top of this, the dollar’s value has been eroding due to the national debt that’s just over 36 trillion dollars.
Related Article: A Ticking Time Bomb – National Debt Growing by $1 Trillion Every 100 Days
Taking this all into account, Americans who tie their life savings to an asset connected to the dollar risk losing their money and their stability. The U.S. hasn’t been in a place of offering stability to its citizens for quite some time, and with the current economic state of affairs, it’s highly unlikely that will happen anytime soon, or at all.
U.S. Retirement Accounts are at Risk in Today’s Economy
Most American’s have their life savings sitting in a retirement account – a 401(k) or traditional IRA. These accounts are dependent upon the stock market, which fluctuates according to how the economy is performing. For instance, think back to the start of the pandemic; millions of Americans lost hundreds of thousands of dollars in retirement funds in the blink of an eye.
This same scenario can happen again. Now, the next crash may not stem from a pandemic, but could originate from the threat of war, the de-dollarization progress, and a whole host of other possible factors. It’s just not worth keeping your funds in an account where it becomes a sitting duck, vulnerable to the unstable economy.
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- America’s Retirement Crisis – Have We Passed the Point of No Return?
Hard Assets are the Only Form of Investment that Can Protect Your Wealth Against the Effects of De-Dollarization
Investing in tangible assets that are not tied to the government or the U.S. dollar is the only way to ensure your wealth is safeguarded. This would include assets such as precious metals and real estate. As an example, Americans are currently dealing with rampant inflation, which devalues the dollar. In contrast, inflation has had the opposite effect on real estate – property prices are skyrocketing and rents are on the rise as well. This means that those who own rental real estate have gained thousands in increased equity and have experienced increased monthly cash flow from rent.
There’s no question about it, the U.S. dollar and anything attached to it is at risk. If you’d like to look into moving away from your current investment strategy. Feel free to schedule a call with Morris Invest. We provide new construction rental properties that produce steady monthly cash flow that’s not dependent upon how the U.S. economy is performing. You can also visit our sister site, The Financial Freedom Academy, for more information on building and securing your wealth.
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