I hate the idea that hardworking people like you might see their life’s work go down the drain. So I feel forced to make a Cassandra-like warning.
Brother, the petrodollar is likely to end soon.
When/if it happens, this means a lot of foreign-held dollars are going to come home.
The Fed cannot, cannot use its printing magic to buy these dollars, because they would just be swapping dollars for dollars.
All of this is just a roundabout way of saying: please make sure you’re ready for a large dollar devaluation. Protection of principal is not the same as protection of purchasing power.
Hope this proves helpful.
You are wise.
What is your advice to prepare for the coming hard times?
I see the end also, and constantly harangue folks to buy staple dry foods and meds. Am I off base? What if the end does not come in the predicted 3 years? Because then I am stuck with these enormous cans of dried blueberries.
I have been wary of petrodollar and Eurodollars for some time now. There are what? Trillions of dollars out there beyond the control of the United States. They have a life of their own. If the world loses faith in the dollar, and starts dumping them, the Fed will have to severely raise interest rates to slow it down. (who knows if that would even work). This would probably push us into a depression. It is a scary scenario.
I appreciate your reply - unless we have a lot of inflation, we will be OK. In fact we can handle a good deal of it just by being more selective with our disposable income.