The world is diversifying away from the dollar. What are YOU waiting for?
The days of being able to continually export our inflation might be numbered…
There are numerous alarming examples of several KEY allies and trading partners making moves to diversify away from the dollar. Even CNN is sounding the alarm.
- Brazil and China just struck a deal to trade in their own currencies. Previously, they converted everything to dollars first and transacted in US dollars exclusively.
- China has just completed its first import deal of LNG (liquified natural gas) settled in yuan. 65,000 tons of LNG was imported from UAE.
- And right or wrong, US sanctions against Russia over Ukraine has pushed Putin straight into the welcoming arms of Xi Jinping.
- Perhaps most alarmingly, the Saudis are striking deals with China. They just announced two new refinery projects in China…
Are our days as uncontested global economic superpower coming to an end? The world is diversifying away from the dollar for many valid reasons, from the perspective of those diversifying. These seismic shifts could impact our way of life and threaten our American “privilege” in ways we can try to anticipate and predict and prepare for.
Or we can ignore them and assume life will continue merrily along as it always has indefinitely and independent of these outside forces. Which course of action do you think is the wisest? The most prudent? Which is the riskiest? You must check your gut and decide for yourself.
The United States has long been able to print, spend and run up huge debts and deficits because of our ability to export our inflation to an insatiable global market for dollars. If that appetite wanes, and that inflation has to sit and fester here on our shores, things could get ugly in ways most Americans are just not accustomed to or prepared for. Will you be caught by surprise? Or will you have something solid to fortify your wealth if and when all the digital blips disappear?
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