For decades, the US dollar has held esteem as the world’s primary reserve currency. But according to Lynette Zang, senior market analyst at ITM Trading, this long-standing dominance is on shaky ground.
“The days of the dollar as the global reserve currency are rapidly drawing to a close,” she said in a recent interview with Stansberry Research.
Zhang explained that the shift began in 2002 when the Fed “first had to buy” US debt. This bill indicates that the world is either “saturated with it” or unwilling to buy “enough of the debt of the United States that we have been trying to please everyone.”
Many experts were concerned about America’s mounting debt. Fitch Ratings recently downgraded the US long-term foreign exchange issuer’s default rating from AAA to AA+. The credit rating agency cited “expected financial deterioration over the next three years”, “high and increasing general government debt burden” and “erosion of governance” as the reasons behind the decision.
But the dollar’s status isn’t Zang’s only concern.
House of lies
In March, the collapse of the Silicon Valley bank made headlines. After the bank sold its Treasury bond portfolio, it incurred a large loss, causing depositors to question liquidity, which put the bank into a run. Amidst this market turmoil, Silvergate Bank, First Republic Bank, and Signature Bank also failed.
Although bank failures now seem like old news, Zhang believes the crisis is here to stay.
“This banking crisis is not over yet,” she said. “Maybe they could write it down, and so everybody’s calm, consumer confidence goes up and all that other kind of rubbish. But it’s built on a house of lies.”
Zhang then pointed to US Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell.
She did not hold back when discussing these notable figures: “That’s Yellen’s job, that’s Powell’s job… Their job is to maintain public calm and keep them inside the system—because it’s easier to steal wealth that way.”
If you’re looking for ways to protect yourself from this disorder, it’s worth noting that Zang has long advocated gold as a protective medium.
The gold market has not seen any explosive moves lately. When asked about her message to those on the sidelines, Zhang’s response was blunt.
“I say take advantage of that and take advantage of everything,” she said, “because we’re inside a big hurricane. There’s no question about that.” “It is not just the death of the dollar. It is the death of the entire financial, monetary and social system.”
Moreover, many countries are developing central bank digital currencies (CBDCs). Zang warned that with the introduction of CBDCs, there may be restrictions on buying gold.
She explained, “Because what gold is doing, is it competing with the dollar or the euro or the yen or something else, so it will be a competition with the digital central bank currencies.”
Gold has served as a store of value for thousands of years.
Unlike fiat money, which can be produced in unlimited quantities, the precious metal has an inherent scarcity, which makes it a hedge against inflation.
At the same time, gold has historically been recognized as a safe-haven asset, providing investors with a hedge against economic uncertainty and geopolitical risks. In times of political turmoil, wars, and other crises, the yellow metal is often sought as a haven, due to its global recognition and value.
If you share Zang offer, you can invest in gold by buying coins and bars from your local bullion shop or even Explore unlock gold ira. You can also access the metal through exchange-traded funds (ETFs) such as SPDR Gold Shares (GLD). Gold mining stocks provide another method of exposure to the sector.
While gold does not offer a return, new companies have created ways for investors to earn passive income from inflation-proof assets. Here’s how to do it Invest in rental properties for less than $100 While staying completely out of hands.
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This article “It is the death of the entire financial, monetary and social system”: warns this market expert that the US dollar is rapidly losing its reserve status. Here’s what to love for protection appeared in the original Benzinga.com
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