We read stories about China, Iran, Brazil, and others doing more business in their native currencies as if it were the end and people are wondering what to do about the collapse of the US Dollar as the world’s trading currency of choice.
There would be economic upheavals and no one is saying this is the breeze that portends a coming storm, but the process is (apparently) not as simple as that.
[S]ecurities analyst Ed Dowd tells Flyover Conservatives here that, counter to a lot of the catastrophism emanating from the Alternative News and perhaps counterintuitively, the smart money is now moving into cash to buy bargains in the future.
He says, “Cash is not a bad place to be and a lot of the smartest people I know are starting to go into cash and just waiting for the storm to pass and then do what JP Morgan of old would do and buy while there’s ‘blood in the streets.’”
As another financial guy personally told me yesterday, the US dollar is still the world’s reserve currency. While 100% of global trade used to be conducted in the dollar, with the recent exodus, it’s now “only” 97%.
It’s a dicey topic that gets at least as much breathing room as the Feds seizing your 401K (or what’s left of it). Government spending is out of control, and you can only print more fiat currency for so long. At some point, the Feds have to cut spending, or they need to rob everyone else to pay for their addiction. The latter is preferred, any reason will do, and the history of progressives pursuing utopia tells us it is inevitable.
They will run out of other people’s money.
I can’t speak to the non-advice advice, but safe havens for cash are never a bad idea in the short term with the understanding that if we don’t get the politics right, it won’t matter. They will come for it in all its forms, and they won’t ask nicely.
