Dollar House of Cards

The recent surge in precious metals (1) clearly indicates that the era of faith in the US dollar is coming to an end (2) as governments and investors turn to the “safe havens” of gold (3) and digital currencies (4). Experts are ambivalent on which alternative could eventually replace the dollar (5), although some suggest that Europe has long anticipated a return to the gold standard (6).

China and Russia have ditched the dollar as a trade currency in favour of their own (7), both for geopolitical reasons (8) and in the interest of self-preservation (9); reducing the flow of dollars in cross-border trade (10).

China is moving away from the US-centric SWIFT (11) system, while increasing their acquisition of gold mines (12) to add further stability to the yuan. Economists are predicting an inevitable dollar crash and return to the gold standard –recommending that investors take note (13).

Others floated the idea of a devaluation of the dollar in hopes of stemming its rapid decline (14) and create an improved and more competitive economy, before the situation approaches emergency-levels (15). Historically, this has often been a misleading strategy, as countries with declining FX rates were relatively poorer and less competitive.

Excessive money-printing has brought the dollar to near irrelevancy and the repercussions of a dollar crash would resound globally, upsetting currencies (16), economies (17), industries (18), investments (19), and the entire geopolitical dynamic as it currently stands (20).

 

References

  1. ‘The world is going back to a GOLD STANDARD as the US dollar is about to collapse’ – Peter Schiff

  2. The U.S. currency's demand as an 'emergency dollar' could be waning, Deutsche Bank says

  3. Goldman Warns "Real Concerns Are Emerging" About The Dollar As Reserve Currency; Goes "All In" Gold

  4. Goldman Sachs Warns US Dollar Risks Losing World Reserve Currency Status, Gold and Bitcoin Soar

  5. The Dollar’s Leading Rivals All Have Their Own Drawbacks

  6. Europe Has Been Preparing a Global Gold Standard Since the 1970s | Voima Gold

  7. Russia-China "Dedollarization" Reaches "Breakthrough" As They Ditch Greenback For Bilateral Trade

  8. Resilience and decoupling in the era of great power competition

  9. The Dollar "Has Us By The Throat": Chinese Official Urges Gradual Decoupling Of Yuan Ahead Of...

  10. Russia-China trade in dollars falls below 50%

  11. Chinese Banks Urged To Switch From SWIFT And Drop USD In Anticipation Of US Sanctions

  12. Chinese Gold Miners Continue to Gobble Up Gold Companies - Gold Telegraph

  13. Experte Peter Schiff: US-Dollar steht vor Zusammenbruch – Welt wird zum Goldstandard zurückkehren

  14. Hugh Hendry Urges Massive Dollar-Devaluation, Wants Joe Rogan To "Radicalize" The Fed

  15. The crisis goes up a gear

  16. The pound’s future in a dollar collapse

  17. Peter Schiff: The Dollar Crash Will Take Down The Entire US "House of Cards"

  18. El-Erian Warns Retail Face "Big Potential Losses" From Professionals Selling

  19. 10 Major Investment Implications (and 32 charts!) of a Weak US Dollar - Knowledge Leaders Capital

  20. The yuan won't unseat the dollar soon but could grow in prominence if China dominates tech and trade


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