Do you know about the “reserve currency?” it is defined as follows:
“A reserve currency is a foreign currency or precious metal that is held in large quantities by a country’s government, central bank, or other monetary authority. It is used for participating in the global economy, such as through international transactions or investments.”Read more HERE
Currently, the US dollar is the world’s reserve currency, Will it ever lose its reserve currency status? It’s not if, it’s when.
In this video, I explain the history of the world reserve currency, what would happen if the dollar loses its reserve currency status. I also give tips on what we can do to protect ourselves;
Many people may be surprised to think the dollar could lose reserve currency status, but that’s a real possibility.
Reserve Currency History
Since the 1400’s, seven countries have held the title of reserve currency. The United States had had it since 1921. No currency has held reserve currency status for more than 110 years.
To think the U.S. will hold onto the hold onto the world reserve currency forever is a mistake. No one holds it forever.
Purchasing Power and Inflation
Should the U.S. dollar lose its reserve status, life in America could be drastically different. One problem could be inflation. Inflation could increase and cause the price of goods and services to increase astronomically. We’ve all seen prices increase over the years. Losing the reserve currency status would only make inflation worse:
Purchasing power has decreased tremendously over the years, which only widens the gap between rich people and poor people.
No More Money Printing?
Another problem would be the ability to print money. The ability to print money would become extremely difficult. For example, as the U.S. trade deficit widens and the dollar loses purchasing power, what country will want to buy U.S. bonds? How would we pay them back, with interest?
It’s critical people understand the history of money, what’s going on with the global economy and how it can affect our daily lives. Another thing to understand is the role of petrodollars and how they affect our economy. Thanks to petrodollars, the entire WORLD must use American dollars to buy oil. What would happen if we lose petrodollars? The world may not need dollars as much anymore. This could be disastrous.
Time To protect Yourself
When attempting to build wealth, many think the only thing they can do is invest in the stock market. Unfortunately, when it comes to the dollar losing its currency reserve status and reduced purchasing power, that may be one of the last places you should put your money. The key is put your money in assets OUTSIDE the current monetary system. Top choices are precious metals and cryptocurrencies.
Gold and silver have been used as money for thousands of years. They are often used to hedge against inflation and a weak dollar: in other words, as prices rise, gold and silver tend to rise along with them. if the stock market crashes, they tend to hold their value as well.
China, for example has increased their gold reserves over the years:
Russia, Hungary and many central banks have purchased tons of gold in the past year. To see the story click HERE.
Even Warren Buffet has begun to purchase gold mining stocks:
This is important because for years, Buffet shunned gold as an investment:
“Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.”Read more about Buffet buying gold stock HERE.
Silver is a precious metal that is also used as money. It was even mentioned in the Bible, but has many industrial uses as well. such as in electronics, car batteries and solar panels. Many silver coin investors purchase the metal due to it’s tremendous upside potential.
Cryptocurrencies like Bitcoin are also used to hold money outside of the dollar. Elon Musk has begun accepting Bitcoin to purchase Tesla cars. Read this story HERE.
Much of this information is not discussed on mainstream media or taught in school. That means you must be proactive and seek this information yourself.
Call To Action
What will happen going forward? No one knows for sure, but if history repeats itself, the US dollar won’t be the reserve currency in 5-10 years. Now is the time to take the necessary steps to protect yourself. This can be accomplished by doing the following:
- Clearing all bad debt
- Living below your means
- Starting a business
- Owning a home
- Purchasing gold, silver and cryptocurrencies
More than ever, it’s critical people start understanding the importance of gold and silver and how it impacts the world and world history. Another important thing to consider during signs of uncertainty is how to generate multiple streams of income. Get more tips in my online course: Tired of the 9-5? How To Retire Early With Passive Income.
Our kids should begin learning about business as well. Order a copy of the my book Planting Seeds: The Children’s Guide to Entrepreneurship today. Available in English, French and Spanish.