Is the Dollar In Danger Of Destruction?

How Long Can The Dollar Be Sustained?

Reckless printing, Heavy borrowing and exorbitant spending are all descriptive words of the money management of the U.S. dollar.  Every year for the last four years we have run a budget deficit of over 1 trillion dollars and there has been no war, no major outlay of expense to cause the budget deficit to be so out of control.  The dollars are flying off the printing press as fast as humanly possible flooding not just our economy, but flooding the countries around the world who continue to accept and purchase U.S. dollars.  The fact is…the U.S. is a consumer economy, and the majority of our dollars are sent overseas to export countries who exchange our dollars for products, goods and services that we do not make for ourselves in this country.  However, what happens when the system loses confidence in the dollar?  At some point China, India, Japan, etc. are going to view the U.S. dollar as a bad check.  Worthless….what happens when we can no longer ship our inflation overseas?

A Flood Of U.S. Dollars Threatens To Destroy The U.S. Economy

Eventually, after years of abusing our power as the World Reserve Currency, after destroying the value and the confidence in the U.S. dollar through the allowance of excessive dollars in circulation, other countries around the world are going to throw up their hands and say “Enough!” of the dollar.  What many Americans do not realize is that the majority of our dollars are actually overseas.  Currently, 70% of 100 dollar bills and 60% of 50s and 20s are all being held abroad.  If the tides reverse and instead of dollars flowing out of our country they flow back into our country, picture the biggest super storm you have ever seen.  A storm that makes hurricane Sandy seem tame…  Now, imagine that every raindrop in that storm is a dollar threatening to flood and destroy the U.S.  There is no way the infrastructure of this country can withstand a storm of so many dollars entering circulation in this country.

The Destruction Of The U.S. Dollar Is An Imminent Real Threat

I can hear it now.  “This is speculative” you say, “there is nothing that points to this destructive problem”.  Well, I hate to inform you that you are wrong.  As we speak, many countries around the world are forming currency agreements that encourage the use of their own national currency over the use of the dollar.  The countries have had enough of our recklessness. One example being the BRIC countries.  Brazil, Russia, India, China and South Africa; have formed a bank and bailout fund including only their own currencies.  The fund will be larger than the combined GDP of over 150 countries.  Countless other countries have followed suit.  In no time at all, the dollar will have lost its clout as the world reserve currency.

What Will Happen To Me If The Dollar Is Destroyed?

Dollar StormBased on the information out there, if the government keeps up with their reckless money management it’s not “If” the dollar is destroyed its “when” the dollar is destroyed.  On Black Friday, only one single day out of the calendar year, the federal deficit increased by another 24,000,000,000 dollars.  So where is you money safe?  If your advisor promises you diversification, but still has you tied up in dollar based asset classes your money is not safe.  If your advisor promises a “safe” low-yield low-risk investment in bonds, or a CD, your money will be destroyed by inflation.  What you need the most to protect your hard earned money from being destroyed by inflation is diversification in commodities.  If your advisor hasn’t yet recommended that to you, then it’s time to ask yourself “why?” Redhawk advisors offer a safe haven from the storm of inflation that is threatening the dollar.  By offering many different investment vehicles that are not all tied up in the dollar you can ensure that your family, your retirement, your college fund are well insulated to weather the economic storm ahead.

Just like you would prepare for a hurricane rolling in on the cost, by purchasing bottled water, stock piling canned goods and getting batteries for your flashlight.  Insulate yourself against the dollar superstorm that will be striking U.S. shores in the near future.  Do yourself a favor, talk to a redhawk advisor located near you, today.

 

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