Three Top Steps you can Take to Protect yourself from The Death of King Dollar
Today, we are seeing evidence of a world that is repelling itself away from the dollar. For years, the U.S. dollar enjoyed the benefit of being artificially propped up and supported by the rest of the world’s lack of infrastructure that it essentially was the “best of the worst.” The Japanese yen, Swiss franc, and even Chinese yuan have been increasing as a percent of foreign reserves held in banks as the “king dollar” is shrinking as a percentage of the world’s currency. There was no question that in 1952, America was number one considering the U.S. dollar made up 90% of the money in the world. Today, the U.S. dollar only makes up 15% of the currency all around the world.
The BRICS nations are definitely making their move away from the dollar. They are creating institutions to replace those that are on the west including the Federal Reserve and the International Monetary Fund. These institutions are being put into place so these nations can print money, and service their own debt while saying goodbye to the U.S. dollar. This institution will not be hosted on U.S. soil, but rather in Shanghai China. The shrinking demand for dollars will pave the way for higher interest rates and could potentially release the cap that has been keeping inflation under control.
Furthermore, Russia and China have a new deal to sell energy in their local currencies instead of the dollar, Iran will sell oil directly to China in Chinese yuan. Again, this is an indirect attack on the U.S. dollar which will impact the purchasing power that the U.S. dollar historically enjoyed.
All of the facts for why the U.S. dollar is under pressure is in the mini documentary, and I recommend everyone watch if you haven’t already. You can do this by visiting CrushTheStreet.com. I really want to get into three areas in which you can help offset and thrive through a dollar crisis in a world that is becoming less dependent on the U.S.
Click Here – Watch the Death of King Dollar Video
Start a Business
This is probably that hardest and most rewarding thing someone can do. The reality is that most people lose money trying to start a business, and rarely even break even for that matter. Aside from the enjoyment of working for yourself, having your own business is a great way to take control of your income.
In the event of a dollar crisis, local economies will likely be devastated and drastically change. Leaving your income in the hands of an employer might be a poor strategy. Being smart in the services you provide as a business person, will give you greater assurance that your business will succeed and endure the new normal of the economy going forward.
Protect Your Wealth
The basic most fundamental answer to this is exit the dollar. I want to stress the point that I’m not saying that you absolutely need to exit the borders of the U.S. to accomplish this. This could be purchasing hard assets, stocks, real estate, and other things that would HAVE to appreciate if the value of the dollar was devaluing.
Many people worry about purchasing U.S. stocks because they equate the paper certificates with U.S. dollars, and the fact that the paper certificates are measured in dollars. The reality is that if the dollar devalues, the business should cost more. Owning stocks is a way to take your money, which is backed by nothing, and back your wealth with a solid business.
Special note: In the event of a dollar crisis, money that you have lent out might be severely devalued by the time it’s paid back to you. Lending money is a great way to earn income and build your wealth, but it’s important to distinguish that money that is lent out is repaid at a fixed rate generally, and is subject to great losses in a currency crisis.
Grow Your Wealth
Many times, you will notice that people who are thriving and making a lot of money, tend not to care about the economic news and the problems existing in society. This is because they are busy making money. Their economy is doing well so there is a disconnect between what everyone else might be facing and what they are facing. Grow your wealth by continuing to add value to however you produce your primary source of income.
Grow your wealth by saving 10-20% of your income and investing it. Grow your wealth by providing value for others around you which will pay off now and in the future through a financial crisis. If you are positioned correctly, while the rest of society gets crushed under an environment of inflation, your wealth could grow. You’ve heard that the rich get richer, and the poor and middle class gets crushed; my suggestion is to pick the right side to be on and thrive.
Don’t Be A Statistic
Many times when we read the statistics, we tend to lump ourselves in with the averages. My suggestion to everyone is to not be average. Be above average, and don’t get caught up in the overall destruction that most will face. Many people will be severely impacted by the devaluation of the U.S. dollar, you don’t have be one of these people.
Chief Editor at CrushTheStreet.com