US Dollar Collapse Predictions
The United States Dollar is currently a global reserve currency, meaning it's used as the basis of all international transactions. However, it's increasingly losing its status and is on the verge of collapsing.
A sudden crash could cause a lot of chaos in the world economy. It could also lead to a loss of value in your investments and drive inflation.
1. Rising Inflation
Rising inflation is a concern because it reduces the purchasing power of dollars and makes it more expensive to buy goods or services. This can be particularly harmful for lower-income households that are more likely to have a high percentage of their income go toward daily necessities.
Inflation also causes higher borrowing costs, which can crimp economic growth and raise the risk of a recession. And if the Federal Reserve raises interest rates too much, it can exacerbate the effects of entrenched inflation.
A number of factors can cause inflation to rise, including a booming economy, more employment and wage growth, higher demand for products and a lack of supply. But the most important driver is increasing prices of commodities and goods.
The Federal Reserve's recent decision to pause its rate hikes could help curb the rising inflation. The Fed expects inflation to drop modestly this year, allowing the central bank to begin easing its policy later on. But even if the Fed succeeds in controlling inflation, it's unlikely to put the economy on a path to full employment.
2. The Rich Buying Survival Gear
The rich are taking their apocalyptic preparations to the next level. They’re buying all the latest fads in survival gear, like five star nuclear blast proof bunkers fitted with wine cellars and swimming pools.
The super rich are also investing in gold, a safe haven asset that will hold its value should the dollar collapse. They are also stockpiling the goods, including clean water and ammunition.
Surprisingly, the biggest buzz on survivalism isn’t from the average Joe, but from celebrities and business moguls. They are preparing for the zombie apocalypse in the most stylish way. And for those in the market, there is an entire industry devoted to creating and marketing the best survival products in the country. The best part is that you don’t have to be a billionaire to take advantage of this trend. You just need to know when to buy the best product for your budget. It’s a small price to pay for being prepared for the worst.
3. The Housing Market Collapse
When the housing market collapses, it often causes the economy to go into a recession. The economy generally rebounds, although it's not easy to predict how long a recession will last.
Home prices may also drop during a recession, which makes it easier for people to get a home loan. Typically, the Federal Reserve will cut interest rates during a recession, making it more affordable to purchase a home.
There are several indicators that suggest the housing market may be headed for a crash. Among them are a decrease in demand, rising inflation and high mortgage rates.
A prolonged period of stagnation in the market can also be a sign that a potential crash is near. This is because people are becoming cautious about purchasing a property before the market crash, which leads to slow price declines.
Many experts think the housing market will slow down, but they don't expect a massive collapse. Even so, it's important to watch for signs of a possible crash before you decide to buy a home.
4. The Rich Buying Gold
Central banks and billionaires are buying gold and holding onto it as a safe haven asset. They know that Gold is the only asset to protect their wealth from inflation and the corroding effects of a stock market collapse.
Over the past 12 months, gold has outperformed every major asset class. It’s up 25 percent, while silver is up 16 percent.
During some of the biggest stock market crashes in history, gold rose more than the broader indices did. Its long-term performance is a solid indicator that gold is a safe haven when other assets are crashing.
