This past week, we saw the Russian ruble lose nearly 65% of its purchasing power:
In the above chart, it takes 97.999 rubles to get ONE dollar.
Here is the dramatic decrease in the exchange rate between the ruble and dollar:
In this chart we can see the dramatic collapse that happened: The ruble was behaving normally then suddenly CRASHED. In the second chart, one ruble is only worth $0.009 dollars.
We all know the ruble crashed because of economic sanctions, but there’s one thing we all must remember:
The ruble is a Fiat currency, and ALL Fiat currencies eventually go to zero.
The US dollar is a fiat currency also and will eventually go to zero also. It’s not if it happens, it’s when.
The World Reserve Currency
Did you know? The US dollar was NOT first world reserve currency. It is the MOST RECENT. But there is an interesting trend if you look at the picture:
It’s important to note that all the previous reserve currencies ended within 110 years.
As we read this, the US dollar is at 100 years of being the world reserve currency. Unfortunately, people don’t know the history of money, but if history repeats itself, the US dollar will no longer be the world reserve currency within 10 years.
Consider the following:
- The US prints trillions of dollars annually
- The US has a $30 TRILLION dollar budget deficit
- Countries like Russia and China are stockpiling TONS of gold
- Russia has announced their plan to cease using dollars
The company — one of America’s last remaining true dollar stores — said Tuesday it will raise prices from $1 to $1.25 on the majority of its products by the first quarter of 2022. The change is a sign of the pressures low-cost retailers face holding down prices during a period of rising inflation.Read the article HERE
If we look at history, the US dollar will NOT remain the world reserve currency forever. To prepare for this possibility, central banks are doing two things: buying gold and working to create their own central bank digital currency.
Central Banks Buying Gold
Central banks around the world are increasing their gold reserves. Gold has been used as money for thousands of years:
In a third consecutive quarter of net central bank buying, global gold reserves grew by 199.9t in Q2, the highest level of quarterly net purchases since Q2 2019 (227.8t) and 73% above the five-year quarterly average. This brings net buying for H1 to 333.2t, 63% higher than H1 2020, 39% higher than the five-year H1 average, and 29% above the ten-year H1 average.Read the entire article HERE.
The Rush to Create Central Bank Digital Currencies
The term central bank digital currency (CBDC) refers to the virtual form of a fiat currency. A CBDC is an electronic record or digital token of a country’s official currency. As such, it is issued and regulated by the nation’s monetary authority or central bank.
Central banks worldwide are examining the possibility of issuing a central bank digital currency (CBDC), with some already testing theirs for different uses. Countries that have advanced their digital currency projects include China, Singapore, Canada, the Bahamas, Thailand, Uruguay, and Sweden. India has also included the digital rupee in the country’s draft cryptocurrency bill.Read the article HERE.
Both of these are signs that countries are moving away from the US dollar.
How to Prepare
It’s critical people start protecting themselves, and an option worth considering is to hold money OUTSIDE of the US dollar.
Looking at the Russian ruble, how could Russian citizens had protected themselves before their currency collapsed?
There are 3 options available:
Each of these are separate from the ruble (and the dollar) and are designed to protect your wealth in case the currency crashes. No one knows when the dollar will lose its reserve status, but based on history, it’s not if it happens, but when.
In other words, if Russians had some of their money in gold, they would still have some wealth:
It now takes 196,380 rubles to buy one ounce of gold.
This is why the rich get richer: they own ASSETS. They own assets like gold and silver because they are a store of value and most importantly, hold their value, especially during economic crisis. When all else fails, people turn to gold and silver as safe haven assets. They also own businesses and can generate their own money. In other words, they won’t get laid off or fired, they DO the laying off and firing.
They also have multiple streams of income.
Call To Action
By owning precious metals and crypto and having your own revenue streams, you will be able to protect yourself from an economic crisis when it comes our way.
In 2022 it’s critical you have a strategy. What will you do if any of the following occurs:
- The stock market crashes
- Real estate market crashes
- Inflation continues to increase
- The dollar loses reserve currency status
Mainstream media focuses on problems, but we must also create solutions. By being proactive, we can withstand any challenges that come our way. Get more great tips and lessons in the books and online courses from the Yes We Did Virtual Learning Center:
Books:Jeffrey White’s complete Library of Books
- Tired of the 9-5? How To Retire Early With Passive Income
- Planting Seeds: The Entrepreneur Course For Kids