“Global De-dollarization Navigating Economic Chaos and Change"
This imminent de-dollarization positions a vast, global economic chessboard teetering on the edge of transformation; all the while, personal financial security hangs in the balance. For those with US bank accounts and retirement accounts,
their value, stability, and future growth will be significantly undermined, caught in the cross-hairs of these global economic changes. What was once a fortress of stability - the dollar - will be transformed into sand, slipping through your fingers. De-dollarization will shake the very foundations of your personal financial well-being, possibly resulting in the 'destruction' of value and stability within your US bank accounts and retirement portfolios making understanding this economic vortex crucial for safeguarding your future. Here are five key reasons how this shift could negatively impact your US bank accounts and retirement portfolios: 1. BRICS and Global De-Dollarization: BRICS (Brazil, Russia, India, China, South Africa) and (71) global countries are shifting their trade dependency from the dollar to their own or other currencies. This de-dollarization will lead to a weakened dollar, thereby reducing the value of dollar-denominated savings or retirement accounts. 2. High Inflation: High inflation reduces the purchasing power of money, meaning that your dollar-savings or investment returns would buy less over time. This deterioration in purchasing power will erode the real value of your bank savings and the future incomes from your retirement accounts.
3. Bank Insolvency: This occurs when a bank lacks the necessary assets to cover its liabilities. If your bank becomes insolvent, your deposits are at risk. The Federal Deposit Insurance Corporation (FDIC) only has $116 billion to cover $10 trillion of insured deposits. You will be bailed-in and lose your money to protect the banks.
4. Bilateral Trades Outside the Dollar: Major global economies engaging in bilateral trades using their own or non-dollar currencies undermines the value of the dollar. A depreciated dollar will lower the value of your dollar-denominated savings or investment portfolios. 5. Multipolarity Currency Scenario: The emergence of a multi-currency system where global transactions no longer heavily rely on the dollar will diminish the dollar's global standing. This will result in the decreased value of your US bank account balance or US retirement accounts due to a weakened dollar.
Made with FlippingBook - Online catalogs