Dollar Collapse

Weakening of the U.S. Dollar

Although the U.S. Dollar is one of the world’s most important reserve currencies, The US Fed continues to recklessly print more money as The US economy catapults into unprecedented debt. The more money that is printed the weaker the dollar becomes.The weakening dollar negatively affects the stock market, bond market, mutual funds, and money market accounts. Inversely commodities like Gold, Silver and Oil rise in price because it takes more dollars to purchase these same assets. As you can see in chart below the dollar has been on a steady decline since President Nixon took the US dollar off the Gold standard in August 15, 1971 (Nixon Shock)

 

The International Monetary Fund (IMF) recently issued a statement about replacing the dollar as the world’s reserve currency with a system of Special Drawing Rights called SDR’s, an international type of currency created in 1969 which is, in effect, a “basket of national currencies” backed by the full faith and credit of the member countries governments. Due to the uncertainly with the US Dollar counties like China, Russia, and Japan have already started moving away from the dollar with more counties soon to follow.

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