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The coming depression blog | January 20, 2019

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How to survive and prosper, while the U.S. dollar collapses

The pound sterling was the world’s reserve currency until the Second World War. It is when “we were the reserve currency of the financing of England because they could not pay their debts and have diluted their currency …” Chuck Butler, president of Evergreen markets of the World Bank, said. They needed assistance from other countries to service their debts and had overloaded their military. “

It does not guide a currency to notice the eerie parallels in the world today.

China started to sign the swap agreements in 2009. They have done many deals in Asia, European Union, Canada, Russia, Brazil, Belarus and Argentina. Japan and Korea are joining soon. It is rumored that they are in negotiations with oil producing Arab countries.

What does this mean for the U.S. dollar? Nothing good. “The U.S. dollar loses its reserve currency status somewhere between 2014 and 2020,” said Butler. “There will be no trumpets, and it will just happen.”

He thinks it is inevitable that the dollar will lose its reserve status. So how can you protect your portfolio against the inevitable? According to Butler, “is 94% of investment returns based on asset class selection, and a low covariance with other assets.” Translation: the diversification of dollars. “You would not buy just one stock,” Butler said, “why you have one currency?”

It recommends Yuan, Singapore dollar, the Norwegian krone and Swedish.

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