The Little Book of the Shrinking Dollar: What You Can Do to Protect Your Money Now

Chapter Eleven

Dollar Apocalypse

The Dollar’s Days Are Numbered

We can run through plenty of scenarios and will give some of them down below.

One thing we admit is that the timing will be uncertain. However, we can’t dismiss the fact that so many of the experts we interviewed gave the dollar only a decade longer as the world reserve currency.

That was the outside figure—which puts us at 2022.

While we can’t pinpoint the year, we can give you a list of the main problems that can and will take out the dollar down the road.

• Reduced foreign investment, signaling we’ve hit our credit limit.
• Slow foreign demands for U.S. goods continue.
• Unfavorable currency exchange rates damage everything from purchasing power to capital investment.
• Uncle Sam finally can’t raise the debt ceiling.
• Inflation heats up beyond the 5 percent level.
• Another nation gold-backs its currency first.
• Oil is no longer priced in dollars.

I’m sure you’ve heard about the Chinese “nuclear” threat when it comes to our bonds. But here’s the thing. We’re in such a precarious state that the Chinese don’t need to sell our bonds to create untold havoc on our financial system. They just need to stop buying our bonds or just make a serious threat of not buying our bonds.

Keep in mind, too, that should we only keep importing cheap gewgaws and gadgets, but not find markets for our own goods, we’ll expand the trade deficit further. A weakening international exchange status for the dollar will only make the situation worse. Forget ...