Read this.
…we believe the dollar could lose its status as the world’s dominant currency (which could see it depreciate over the medium term) due to structural reasons as well as cyclical impediments
As such, diversifying dollar exposure by placing a higher weighting on other currencies in developed markets and in Asia, as well as precious metals makes sense today.
… Being the world’s unit of account has given the United States what former French Finance Minister Valery d’Estaing called an “exorbitant privilege” by being able to purchase imports and issue debt in its own currency and run persistent deficits seemingly without consequence…There is nothing to suggest that the dollar dominance should remain in perpetuity. In fact, the dominant international currency has changed many times throughout history going back thousands of years as the world’s economic center has shifted.
… In other words, in the coming decades we think the world economy will transition from U.S. and USD dominance toward a system where Asia wields greater power. In currency space, this means the USD will likely lose value compared to a basket of other currencies, including precious commodities like gold.… Central banks across the globe are also adding to gold reserves at their strongest pace on record. 2018 saw the strongest demand for gold from central banks since 1971 and a rolling four-quarter sum of gold purchases is the strongest on record.2 To us, this makes sense: gold is a stable source of value with thousands of years of trust among humans supporting it.
Given the persistent—and rising—deficits in the United States (in both fiscal and trade), we believe the U.S. dollar could become vulnerable to a loss of value relative to a more diversified basket of currencies, including gold. As we scan client portfolios, we see that many of them have far more U.S. dollar exposure than we feel is prudent.
My interpretation: Jim Sinclair was right that the central banks intend to do a “soft landing” inflatory move, devaluing the Dollar (and Euro will, in my opinion, devalue even more since the EU has an even worse internal crisis on top of Euro being essentially a Dollar-derivative). According to Sinclair, this first controlled inflatory attempt will fail, and as a result there will be a second, “natural” inflatory event that will balance the world economy on actual values.
So, nobody can say they haven’t been warned. According to some rumors, JP Morgan has been accumulating immensely large amounts of silver recently, so you can’t say they aren’t backing up their talk with money.
As for crypto, I agree with Peter Schiff that crypto will be the first thing to collapse, and that will actually make fiat currencies look good. Everybody invested in crypto will be wiped out. The exception are the blockchain-based technologies backed by actual assets, like the Russian crypto-Ruble. After that, everybody holding significant portion of their assets in fiat currencies or their derivatives such as dollar and euro denominated bonds will be wiped out. The current rise of gold and silver is just a precursory warning shot, and I still recommend buying.
The disclaimer is that this only applies to people who actually have significant savings. If you reduce your cash supply below one month’s needs, you are actually putting yourself in harm’s way. Instead, stock up on canned and other long-lasting food (pasta, flour, sugar, beans), because in a hyperinflatory environment food supply might get disrupted. I don’t know how long this might last, so there’s no harm in assuming it might last long enough for everybody who didn’t prepare to regret it. Have in mind that I’m following my own advice, which means I’m taking this shit very seriously.
