Colin’s note: Countries worldwide are losing faith in the U.S. dollar. They’re dumping their reserves. And colleague Teeka Tiwari warns that an event scheduled for later this month will trigger what he calls the dollar’s “final collapse.”
Our beat here at The Bleeding Edge is how to profit from the world’s most powerful tech trends. But that doesn’t mean we should ignore important world events.
And if Teeka is right, we need to be prepared. To learn more about his shocking warning, make sure to join him tomorrow night for his Final Collapse event.
He’ll give you his entire playbook on how to prepare for this potential collapse. He’ll also reveal why it will send an obscure asset skyrocketing higher than anyone can imagine. (It’s not bitcoin, gold, real estate, or stocks.)
Sign up for that with one click here. Then read on for more from Teeka about why the U.S. is headed for “deep trouble” as the value of its currency breaks down.
The world’s central banks must hold U.S. dollars in reserve.
That’s because countries use U.S. dollars for trade.
If you buy oil… copper… or wheat you pay in dollars, not your local currency.
This has been the case since the Bretton Woods Agreement of 1944. It established the dollar as the world’s reserve currency.
According to the agreement, the U.S. would back the dollar with gold. And other countries pegged their currencies to the dollar.
But in 1971, that changed.
That’s when President Nixon ended this global currency regime by removing gold backing from the dollar.
This allowed it to balloon the money supply without the need to back new dollars with gold.
And since then, the U.S. federal debt has skyrocketed.
America’s debt now stands at $33 trillion. It’s the amount of spending Congress has authorized that hasn’t been covered by taxes.
And as I’ll show you today, that burden is about to get worse because of a new phenomenon called de-dollarization.
De-dollarization is when nations around the world start dumping their U.S. dollar reserves.
The U.S. dollar’s share of world reserve currencies has fallen from 73% in 2001 to 47% this year – the lowest level ever.
Most Americans don’t realize why this is a huge deal.
Thanks to its status as the world’s No. 1 reserve currency, there’s always been a lot of demand for the U.S. dollar.
That’s the only reason why our government has been able to print billions of new dollars without having to worry about the consequences.
It’s a huge advantage that’s afforded us the standard of living we’ve gotten used to as a nation.
But now that trend is reversing.
And it will lead to what I call the Final Collapse of the dollar’s buying power.
In 1971, the U.S. government moved off the gold standard. That turned the U.S. dollar into a “fiat” currency.
(Fiat means decree in Latin. It’s a currency that isn’t backed by a physical commodity like gold or silver. Instead, the government decrees it to have value.)
By moving off the gold standard, Congress was free to spend as much as it liked without having to back it with gold.
The result?
Inflation – rising to double digits – crushed Americans in the 1970s. By the end of the decade, their buying power collapsed by 50%. And since 1970, the dollar has lost 87% of its value.
Here’s another way of looking at it…
It takes about $7.82 in today’s money to buy the same amount of goods and services a single dollar would have bought you back in 1970.
In other words, most Americans became poorer under the new U.S. dollar regime.
But Congress could continue to spend as much as it wanted because there were always overseas buyers of U.S. Treasury bonds.
That started to change in February 2022.
That’s when Washington took things to a whole new level by weaponizing the U.S. dollar’s reserve status.
To punish Russia for its invasion of Ukraine, the U.S. froze the dollar Russia’s central bank held at the Fed.
That was $630 billion worth.
The rest of the world watched that unprecedented move and started thinking, “Wait a second. If the U.S. can do that to a nuclear power, it can do that to anyone.”
That’s why an increasing number of nations in Asia, Europe, and Latin America have announced plans to dump the U.S. dollar as their sole reserve currency… and instead trade in their local currencies.
Over the past year or so, China has slashed $191 billion of U.S. Treasurys… Japan has sold $116 billion… Ireland $44 billion… Brazil $8.6 billion… and Singapore $5 billion.
The finance ministers of the Association of Southeast Asian Nations – which includes Indonesia, Thailand, the Philippines, Singapore, and Vietnam – recently met behind closed doors. And they also decided to start reducing their dollar reserves.
And look at Saudi Arabia. For the past 48 years, it’s accepted only U.S. dollars in exchange for the oil it sells to nations. But now, the Saudis say they’re considering trading in currencies other than the U.S. dollar.
Friends, these aren’t tiny, obscure countries that nobody can even find on a map. They account for 60% of the global economy.
The bottom line: Everyone is losing trust in the dollar. And that will contribute to the Final Collapse of the dollar’s purchasing power.
The de-dollarization trend is spreading wider and it’s not slowing down. But there’s something more troubling happening behind the scenes.
I’m talking about an unprecedented government event scheduled for this month that will trigger the Final Collapse of the dollar’s buying power.
One of the few people who grasp what’s happening is legendary trader Stanley Druckenmiller. In his 30 years managing money, he’s never had a down year.
During a recent CNBC interview, he said of this event, “We’re in deep trouble.”
That’s why tomorrow at 8 p.m. ET, I’m hosting a special briefing called the Final Collapse.
During this briefing, I’ll tell you what this event is… why it’ll put America in “deep trouble”… and the one asset that will skyrocket as a result.
The last time the dollar went through a similar crisis, my readers had a chance to make 27 times, 56 times, and even 850 times their money… in less than two years.
As a bonus to folks who join me, I’ll give away a free pick – no strings attached. You should know my past free picks have an average gain of more than 1,100%.
Friends, when this event occurs this month, most people will watch their buying power evaporate.
But tomorrow at 8 p.m. ET, I’ll show you how a handful of tiny investments could help you come out of this collapse with a six-figure nest egg.
And that could set you up for life.
Click here to reserve your seat today.
Let the Game Come to You!
Big T
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
