The biggest threat yet, to an already fragile US economy still reeling from the global COVID pandemic, could be looming. It is the Possible Collapse of the Mighty US Dollar.
As warning signs continue to emerge, some analysts and economists have become increasingly concerned that a dollar collapse could be inevitable.
Former leading economists at Morgan Stanley, Stephen Roach, recently predicted that a dollar crash is imminent. Like him, other leading experts share the same sentiment,a 35 % decline in the value of the dollar.
The warning signs
There is the skyrocketing US debt and budget deficit, massive stimulus spending, soaring unemployment, a devastated economy, ongoing China/US tensions, recession fears, and the fast-changing global landscape. Analysts fear that these issues alongside an estimated $4 trillion budget deficit could have damaging effects on the US currency.
China’s digital currency
Furthermore, China has been quietly working on its central bank-backed digital yuan currency
to challenge the US dollar in international influence.
If this digital currency is realized, it could pose a major threat to US Dollar dominance.
Russia and Iran are also pushing to use or develop national currencies to reduce dependence on the US dollar, in trade.
This development has drawn the attention of the US resulting in growing calls for the US to also work on its digital currency.
What happens if the dollar crashes?
A dollar collapse would reap havoc on the already battered global economy and would significantly affect savings, retirement income, IRA, and 401 K.
- Assets backed primarily by the US Dollar would become more unstable, risky, and volatile.
- The purchasing power of your investment portfolio could significantly decrease.
- We could see more people, investors, countries transacting in other currencies such as the yen and euro, and more buying assets such as Gold and Silver.
- A dollar collapse would intensify global and economic uncertainty and could have detrimental effects on the economy, possibly leading to another recession.
How to protect your wealth?
The days of US Dollar dominance could be numbered. Americans are taking these steps to safeguard their retirement income and preserve the purchasing power of their wealth. Many agree that a well-diversified retirement portfolio should include assets that perform well even in times of global instability and uncertainty, geopolitical tensions, low-interest rates, rising debts, dollar debasement, etc.
With a retirement portfolio consisting of only paper assets such as stocks or bonds, you could be leaving yourself vulnerable to massive losses if a stock market crash, dollar crash or recession occurs. So, including tangible assets like gold could yield tremendous benefits.
Gold is seen as a safe-haven asset and is a great hedge against inflation and a falling dollar. It is also a great store of value and a great diversification tool.
Learn how to diversify and protect your retirement income with gold by calling 800-462-0071