The US Dollar COLLAPSE Is Happening Now - podcast episode cover

The US Dollar COLLAPSE Is Happening Now

Oct 11, 202417 min
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Episode description

Imagine waking up one day, grabbing your morning coffee, checking your bank balance, and realizing that everything you thought you knew about your money has changed, and it’s all… suddenly crashing. Recent changes from the Federal Reserve in the US dollar monetary policy are shifting this and this future reality could be coming soon. Because… The US Dollar, the world’s reserve currency, the backbone of global trade, and the very symbol of financial stability... is in trouble. But what if I told you...the collapse isn’t just a fear for the future. It’s not coming but in fact… It’s happening right now, right under our noses.  The signs that show us the US Dollar is already collapsing? -How will the collapse of the US Dollar impact the global economy and financial systems? -Why should you care and what specific steps we can take to protect and grow our wealth during this collapse?

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Transcript

Speaker 1

Imagine waking up one day, grabbing your morning coffee and checking your bank balance and realizing that everything you thought you knew about your money has changed and it's all suddenly crashing. Now, recent changes from the Federal Reserve in the US dollar monetary policy are shifting this and this future reality could be coming soon because the US dollar, the world's reserve currency, the backbone of global trade, and

the very symbol of financial stability, is in trouble. But what if I told you the collapse isn't just a fear for the future, it's not coming, but in fact, it's happening right now, right under our noses. So in this video, we're going to take a look at the signs that show us the US dollar is already collapsing.

How the collapse of the US dollar will impact the global economy and the financial systems, what you and I should be doing and caring about, and specific steps we should be taking to protect and grow our wealth during this collapse. Now, real quick. If you're new to the channel, my name is Mark Moss. I've been making these videos for I don't know more than five years to help

you understand these changes monetary policy. So you don't make the same mistakes that I made early in my investing career. I've been investing through now five federal Reserve policy regime shifts, and I can tell you from experience, these can be and they have been for me, both painful and costly or huge opportunities. It depends on how you position yourself with the strategies that you use. All right, So let's

jump right in. All right, So I want to jump right into this, but I do want to say that this video was inspired because I just got home from Dallas. I was speaking at a pretty big investor conference there, a couple thousand people, and I gave a keynote talking about investing in the new economy. But I was also part of a panel, and the part of the panel was one that I'm on all the time, which is

talking about the end of the dollar. And we talked about inflation, we talked about the bricks and all of these things. And I have a very different opinion about the end of the dollar, and so I wanted to bring that to you today so we can change your perspective, just like I tried to help all those people thousands of people that we were talking to at that conference. Of course, you don't have to travel for an expensive ticket.

So let's break this down. Okay, Now, right now we are witnessing the US Federal Reserve, the most important central bank in the world, have a what we call a policy regime, meaning they're going from a tightening policy back to an easing They're shifting their policy. Now we know this.

I've already done videos on this, so I'm not going to go super deep, but basically they're going from tightening, which is raising rates at the fastest rate in history, as well as letting that roll off their books, to now going back into easing, which part of that is rate cuts. The rate cuts are coming really really fast.

And I've talked about at the intro how I have personally been investing through now five of these and so we can see here in the two thousand dot com we change the regime from tightening right here to an easing. Then we tightened again, crash the markets, and then in two thousand and eight we dropped them to zero. Number two here we raised them again. Of course, we dropped them in twenty twenty, and now we raised them again,

and we're dropping them again. Now I've learned some very important lessons, some very painful lessons to me you probably know my stories, but also some very very helpful policies. And what we're seeing is that rates are dropping, well, they're about to drop, Brobe, by the time you see this video, they'll be dropping. And we're seeing other rates starting to respond. So this right here is mortgage rates, and we can see the direction right here. Look how

quickly those things are coming down. We would expect mortgage rates to continue to come down further and further and further. And what we're seeing is really the dollar as measured by the Dixie. The Dollar Index is sitting on about five year support. So we can see it was really strong right here, it's dropped all the way down and you can see this line sitting all the way back

to where it was here on five year support. But all eyes are on the Dixie now, I want to point out, and we'll get into in the rest of this video. The Dixie the Dollar Index is the dollar measured against other currencies. So when you hear about like the dollar milkshake theory and is the dollar going to be strong the dollar gonna be weak, they're measuring against other currencies it's the very key piece for us we'll

be coming back to. Okay, But we also have to understand that the balance of the dollar is very delicate, as we saw with Japan where their recent rate increase all of a sudden, it through the entire international markets into turmoil, including the United States, and so it's very delicate. The central banks all need to be working together. So Japan sort of tried to force the US's hand. China's been patiently waiting. But now that the Fed's pivoted, everyone

is going to start pivoting together. Okay, So now that you understand that, let's just keep going. So the first thing is there are massive pressures against the dollar. This is why I was on this panel at this last conference this weekend. It's what you hear about all the time, the rise of the bricks, Right, everybody wants to deed all the rise. Russia is not going to use the dollar, China's not going to use the dollar, the rise of

the bricks. They're going to create their own currency. We hear that over and over and over, their own currency. And as they do that, it's going to take away, it's going to bring the end of the dollar. What about China. China's trading in you on right, we see China trading with Saudi Arabian oil for your wand and all these different things. And so every time these news stories pop up, the rise of the bricks currency, China trading Wan, things like that, I get phone calls from friends.

What's going to happen? Is the dollar going to crash? Am I going to wake up one day to see this? We'll come back to that. We see the treasury markets as more and more countries are moving out of the US dollar, Who's going to buy the US treasuries. We're starting to see a lot of dysfunction in the US treasury markets. And then we can ultimately see it here. So what we can see is that those are all true. I'm not saying those as something being rhetorical or trying

to be funny. Here, this is actually happenings. What we can see here is thirty years of central bank gold demand. And what we're actually seeing is now central banks sold gold during the late nineties from ninety to two thousand and four. Since two thousand and eight, they have been buying a lot of gold. And as a matter of fact, when I say a lot of gold. I'm talking about a crazy amount of gold. And we're at the point now where central banks own more gold than any other

assets except for the US dollar. So it's now the let's call it, maybe the second largest currency is the second largest reserve asset. This is a big deal. Okay. So we're seeing that these gold moves. Now in this article, it kind of breaks this down that this unprecedented shift in the global currency hierarchy, not that gold is really a currency, but it's a reserve currency. Gold has ascended

to the position of the world's second most held reserve asset. Okay, So that's a pretty big deal, trailing only behind the ominip person US dollar of course. But here's the kicker. More than a decade of significant gold acquisition by central banks worldwide since two thousand and eight. So has been going on for a while, since the point where everything changed. I talk about this quite off in two thousand and eight, a remarkable one to eighth of all gold, mind has

been purchased by these institutions. That's a massive trend shift, as you could see in that chart. Okay, Now now that we understand that, then what about this coming crash The dollar's going to crash. Lots of YouTube videos are about this. Like I said, I was just on this panel talking about it. But here's the point that I want to make. It's not that you're going to wake up one day and, as I said of the intro, get your cup of coffee and check your bincount and

realize that your money buys you half as much. That's what most people think. When the dollar crashes, then what well it buys us half as months. Well, the thing is, is a fifty percent drop it buys you half as much. Is that going to happen over one day, one day you'll open it up? Or is it already happening? But over a course of a couple of years. Now, let's take a look at this. Now, as I showed you, the Dollar Index, the Dixie, measured in other currencies, is

at a five year low. However, that's measured against other currencies. Let's look at the dollar from a couple different ways, all right, So, and then of course we'll look at what to do about it. So right here we have the US median home price in the United States since twenty twenty, the last four years, and we can see that the median US real estate is up forty nine point eight, so fifty percent. So homes are up fifty

percent priced in US dollars. What does that mean? That also means that the US dollar is down fifty percent homes. So the biggest fear that everybody has, the crash of the dollar, is gonna come and they're gonna wake up and realize they buy they can buy half as much goods and services. But the fact is that already that's happened. You already buy fifty percent less home than you did

four years ago. Okay, that's homes. What about the S and P five hundred, Well, the S and P five hundred is up in the same four year period one hundred and forty six percent, which means that your dollars have also crashed against the S and P five hundred. So the dollars strong against other currencies, but it's crashing against everything else. Your worst fears are actually being played out right now before your very eyes. What about bitcoin?

We can see that bitcoin is up one thousand percent in the same four year period, which basically means the exact same thing. The dollar is crashing hard one thousand percent, right to homes one thousand percent to bitcoin. We can see it's crashing pretty big. What about oil? This is the big one, because of course the price of oil sets the price of everything in our world. Now, for this, just to be a little bit more conservative, I didn't go down to this twenty twenty low because that was

pretty abnormal. So I sort of took this baseline right here, and we can still see that in this four year period, oil is up seventy five percent. So again the dollar is crashing. Everything that you're afraid of is actually happening right before your very eyes. And of course we want to take a look at gold. Gold has sort of been that barometer for the US dollar for the thousands

of years. So I kind of drew a box right here to kind of show you this trend line since twenty eleven, obviously down up, down, up, but right here this year it started to break out the pretty big break, as you can see right here, and year to date in twenty twenty four, the price of gold is up twenty four point three percent twenty five percent, which means, yes, again the dollar is crashing. Your worst fears are happening right now. The dollar is losing half of its purchasing power. Okay,

that's how we have to look at that. Now in this type of a situation. What's going on again, Like I said, your worst fears that you're afraid of one day, the rise of the bricks, all those things, they're happening. It's happening right now, we're living through it. It's like I can't see the force for the trees kind of thing. So this is why we're seeing hard assets boom. This is why you see all over the news. I've talked about for a couple of years now what we call

the commodity super cycle. So commodities are hard, real tangible things, and they move in cycles, right, because the dollar moves in cycles, and of course you watch my videos, you know, everything moves in cycles. And so we're seeing this commodity cycle and really we're out with the fake financial engineering and we're in with the real, the gold, the silver,

the tangible things like that. As a matter of fact, it was Vladimir Putin called out sort of the United States when they started doing economic sanctions against them, and they said, what are you going to do each your

technology stocks, your social media stocks? Right, engineering is kind of going out and instead we're seeing people buy real assets, and this is why the rich are getting richer, because they're buying these assets that are going up as we're seeing this, all right, and so I want you to understand the perspective here. That's your biggest fear, the one that gets you to clickbait on all these videos and click on them, which is the end of the dollar.

It's here, we're witnessing it, we're living through it. But instead of being fearful of that coming, understand that it's here now and it's setting a path. History shows us the way and we can take advantage of it. What is the path that history shows us? Well, we can look back through any period in time. We can go back to the hyperinflation of Wymar Republic Germany and can

see how fast gold shot up. We can understand that borrowing in those currencies and buying productive businesses, buying other things, metals, real estates that are worked really well. We can see it in the current times. Look at what's going into Argentina or Venezuela. And of course back in the United States, you could have bought bitcoin and be up one thousand percent. Gold's up twenty five percent. So gold and digital gold is killing it right now. All right, so hopefully this

makes sense. I really want to calm your brain, but really let you know that your worst fears are coming true and we can take advantage of it. Now, I want to take a second real quick before we end this video, just tell you about today's show sponsor, which I believe is actually kind of perfectly positioned to benefit from this dollars continued crash. And it's one that I've actually mentioned a couple of times before, and that's Gold Mining Inc. You can find them on the New York

Stock Exchange at GLDG. Now, in my view, they're one of the better run mining operations companies in North America, and they've been pretty beaten down by the markets along with all the other mining companies. So even though gold has done really well, the gold mining companies have been absolutely getting crushed. Right. Gold's been ripping, and as we can see right now, gold's ripping. As a matter of fact, Bank of America is predicting a three thousand dollars gold

price in the next eighteen months. And of course, you know the old investing adage, which is buy low, sell high, and of course it's impossible for us to know when the bottoms or tops are until we look backwards. So rather than trying to tie markets, we look for things when they're cheap or when they're expensive. And so we can see right now that gold mining eque is super cheap. In fact, it's sitting at a support of their five year low right now, while gold is at an all

time high. Now. Not only that, but we can look at a basket of gold mining stocks represented by the GDXJ, and it's traded at a fifty two week high right now, while gold mining isn't at previous highs. As a matter of fact, the gold market's rallying. GDXG is rallying, and we can see that gold mining hasn't caught up, but

when it does, it moves explosive. So we can look back like twenty fifteen to twenty sixteen, we can see that GDLG was up about five hundred and twenty five percent compared to the gdxj's one hundred and fifty percent. In more recent time, we can see in twenty nineteen to twenty twenty, we can see that GDLG went up four hundred percent compared to the gdxj's only one hundred and twelve percent, and so it's continuing to look really

cheap right now. Effect right now, at the time of this recording, Gold Mining Inc. GLDG, the market CAP's about one hundred and seventy million, and they have no debt. They have about twelve and a half million in cash and cash equivalents. And when the company originally acquired their all their gold projects, the peak combined market gap at that time was about eight hundred and fifty million when they got all those projects. Today the gap is about

one hundred and seventy million. Now. At that time, the gold spot price was about nineteen hundred. Today it's about twenty five hundred. So again it looks pretty clear like it's cheap. We don't know tops or bottoms, we know when they're cheap, and this looks cheap to me. Now. That's just comparing, of course the previous company valuations. A few other ways that I like to look at it that make it even seem more cheap is that the evaluation is one hundred and seventy million, again with no debt.

Now they have about twelve million in cash and cash equivalents. They also have an eighty percent ownership of another public company called US Gold Mining Inc. USGO, which is worth about fifty million, and then they own another twelve point seven percent of another public company called Gold Royalty Corp. GROY,

worth about twenty eight million. So if we do some back of the napkin math here, we can see the current market gaps about one hundred and seventy million minus the cash and cash equivalents of twelve point six million, minus the ownership of the two other companies, we get

about eighty million dollars left over. So for that eighty million, we get exposure to the company's dozen gold properties with twelve point five million ounces of gold equivalent estimated mineral resources and measured in indicated category, and additional nine point seven million ounces of gold equivalent estimated mineral resources in the inferred category. So that's kind of how I look at it, right. This is this is sort of the breakdown one golds trading at an all time high while

Gold Mining Inc. Is near its five year lows. Gold Mining Inc. Owns eighty percent of USGO, which is also trading near an all time low. It also owns twelve point seven percent of g ROY, which is down seventy seven percent from its all time time high, and it's also trading near it's all time low. Rate cuts are coming as we just looked at, and gold is completely soaring right now. So, like I said, I've mentioned this

one three times before. It's worked out really good every time we've put an eye on it, and so I think it might be one that you'd want to keep your eyes on. All right. It's an easy name to remember. I'd still write it down. It's gold Mining Ink. The symbol is GLDG. Just keep your eyes on it and

maybe put it on your watch list. Keep it on your list because as gold continues to go higher and their gold stocks move up and catch up, just remember that you're seeing this on five year support right now. But of course, do your own due diligence. All right now, Gold's going up, Bitcoin's going up, hard assets are going up, real estate's going up, and the dollar is sitting on five year support about to go down. So do you

understand what happens on this monetary regime change? It means that asset prices are about to go higher than we could imagine, probably over the next twelve to fifteen months, and you just need to choose which boat you want to get into to ride this liqui. What do you wait? Back up? All right now, let me know what you think about this video. Go ahead and leave me a comment down below and like this video. Otherwise, if you don't like it, you can be thumbs down. That's okay.

At least tell me why in the comments and subscribe while you're at it. And that's what I got, all right, to your success. I'm out

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