New World War
Make no mistake; it’s clear there is a war, and it began long ago. It started back in 1946 to be exact. There was no official declaration of war. No bullets were fired, no boots on the ground, no ships or airplanes dispatched or weapons of mass destruction released. We are in an economic war over the world’s reserve currency. The U.S. Dollar forms the basis of the world’s financial system. It’s what banks around the world hold in reserve. The U.S. Dollar is required as payment by every country when purchasing goods or trading with foreign nations. So for example, when European countries want to purchase oil from Middle Eastern countries, they must convert their money into U.S. dollars. Then they can buy oil or other goods and services based on the value of the U.S dollar, rather than their home currency value. This affords access to cheap oil and cheap prices and has been America’s #1 advantage of owning the world’s reserve currency supply. The minute the U.S. no longer holds the world reserve currency, prices will inevitably skyrocket overnight. Prices will also increase as oil prices go up. It’s a natural process as the cost of gas and diesel rises for transporting goods and services across the nation. For example, first, our food prices could double or triple, which would spark unrest in highly populated areas. Even if you could access your money in the bank, would the grocery stores be open? And would they have any food for you to purchase with that now debunked and devalued dollar? We’ll revisit the run on banks later. I know what you’re thinking: hopefully this crazy theory and scenario will never happen. “Hopefully” is right, but hope by itself never helped anyone. To have hope, we must take action. Then we may avoid hopelessness.
This message was adapted from the World Economic Report.
You are invited to contact “The Money Doctor,” Mr. William F. Richardson, author, speaker, financial strategist, and retirement specialist for Citizens Financial Security and its affiliates. He is also the founder and director of The California Educational Institute of Wealth Enhancement. To learn more, please email William (at) MoneyDoctorAdvisor.com. This report is for educational informational purposes only. It is not designed or intended to offer tax, legal, investment advice, or an offer to sell. When making financial decisions, always seek the advice of a qualified professional. © 2006-2016 The Money Doctor. All rights reserved.