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

The Old Lady of Threadneedle Street to USA: You’re Toast

Let me introduce you to my friend Ralph Benko, of the American Principles Project. We first met at the watershed October 2011 Heritage Foundation Conference on “The Stable Dollar: Why We Need It and How to Achieve It.”

At the end of 2011, Ralph told Forbes readers, “The world dollar standard’s death certificate arrives in the mail this week.”

He’s referring to a paper issued officially on December 20, 2011, by the Old Lady of Threadneedle Street—aka the Bank of England.

The Bank of England, as you can guess from the nickname is the staid, prosaic, conservative bunch on the block of central bankers.

So it’s no surprise this working paper hides its revelation under the dull title, “Reform of the International Monetary and Financial System.” But here’s the dollar bomb: The world was better off when the world’s currencies were tied to the dollar and the dollar was tied to gold—however tenuously.

To understand the dollar’s future, it’s important to understand the dollar’s past.

By now, we have a vast cornucopia of dollar-denominated debt securities. The scale of these markets is unprecedented. The bigger the market the lower spreads it can offer, making deals here the most attractive.

There are also plenty of ways to hedge dollar exchange rate risk (which will be part of the solution set you’ll learn about in this book). It’s the reason why everyone from corporations to governments and central banks consider it a great currency ...