How long before the US Dollar is worthless?
What can we even do about it?
We are used to seeing currency take a dive, such as the Zimbabwe dollar shown here where you need a large sack to carry enough money to do your groceries, but until now the US dollar has been the worlds favorite currency. Surely worries about devaluation are unfounded?
While the specter of the valueless dollar is not imminent, there are signs it could happen. For example, if the trend of the world oil suppliers towards selling oil in Euros rather than dollars continues, and if the fed keeps printing more and more paper money, while the previously stable investments keep going south.
We are even seeing USA businesses favor purchases in non-US currency.
In the latest example that the U.S. dollar just ain’t what it used to be, some shops in New York City have begun accepting euros and other foreign currency as payment for merchandise.
It might seems strange that I am worried about this, seeing as I do not live in the USA, but unfortunately I do get paid mostly in USD because that is the defacto currency of the Internet.
If you are stuck in the depreciating dollar trap, what can be done?
Unfortunately as individuals we have little control over the currency value, but we can protect our own assets.
- Diversify investments away from those tied to US currency or economy
- Buy gold and other assets
- Reduce cash holding
- Find ways to earn in foreign currencies
- Carefully monitor your buying power and buy in bulk items that will not perish but seem to be going up in price (relatively speaking as your dollar goes down in value)
- Spread your savings so not all in one bank, preferably with at least one foreign account
- If you live in the US take in-land vacations, anyone else take advantage of the low prices