Little Book of the Shrinking Dollar
Introduction: What If the Power of Money Were in YOUR Hands?
Why am I so sure about the ultimate fate of the U.S. dollar? One simple fact: It’s just paper. Every paper currency in the history of civilization has eventually lost its entire value.
We review why this is so. It’s a simple matter of supply and demand; supply being way out of whack.
Chapter 1: Dollar Decline: How Did We Get Here?
Think the dollar hasn’t declined? Back in 1970, if you just stashed a dollar coin under the mattress, today you’d find it buys you less than two dimes worth of goods. That doesn’t even cover the price of a postage stamp or a can of Coke. It’s practically worthless.
We look at a few tremors we’ve tracked, that predict a big earthquake ahead for the U.S. dollar.
Chapter 2: Who Controls Our Economic Destiny?
The shrinking dollar is a modern problem. The U.S. dollar has been shrinking since the inception of the Federal Reserve—the very crew assigned the task of maintaining its value.
We detail how the Fed works and its bubblicious intentions. We explore what happens when the magic of money printing wears off—and its bag of tricks is emptied.
Chapter 3: America’s Consumption Can’t Save It
We’re sorry to say it, but we have to face it: there’s no such thing as bringing the economy “back to where it was.”
We examine American consumers for signs of strength to back the economy, the results may be discouraging but we offer portfolio antidotes to help.
Chapter 4: Debts Do Matter
Uncle Sam borrows 42 cents for every dollar it spends. We borrow about $4 billion dollars a day. How did it come to this? We detail the steps in the destructive debt cycle, and cite examples from the cities and states of the U.S. to the bigger problems in European debt. The era of sovereign default is now.
Chapter 5: When Savers Get Punished: Inflation
By doing “the right thing” and saving, you’re actually losing money. Inflation’s ugly work is quiet at first. Putting your cash in a bank at zero percent interest is like leaving an ice cube out on a picnic table. The longer you wait, the more it melts. If every year you’re losing 3% or more thanks to inflation, that loss compounds.
You won’t see it, of course, but that’s what’s happening. Find out exactly what you’re up against, why deflation isn’t the boogey man the Feds tell you it is. Plus, 5 Quick Inflation-Proofing Moves for Your Portfolio
Chapter 6: Maintain Your Standard of Living
Wages are falling—the real income of a typical American household is now below the level it was in 1997. Since 2007, Americans’ collective net worth has lost $5.5 trillion. We cover CPI tricks. And we offer Phase III Retirement Investing—for those that got hit by the dot.com and housing bubbles. Plus, we consider what it takes to keep your standard of living sure by going abroad.
Chapter 7: Basket Case Studies: Two Paths for the U.S. (or A Tale of Two Deficits: Answers for the U.S.)
Consider the myth of the Yen miracle revealed in two-decade long stagnation as compared to “the Wisdom of Dr. No”—the economic reform Canada enacted in the mid-1990s.
Now that the U.S. lost its AAA credit rating, which path will we take?
Chapter 8: Dollar Co-Dependents
We’d love to say protecting yourself right now is as simple as cashing out of U.S. dollars. But that’s not going to cut it. Things are far from simple. Just take the euro. You certainly wouldn’t feel too confident putting your life savings in something whose dissolution is called for in daily headlines… but you would probably consider taking a European vacation sometime soon. We explore the hazards of currency pegs and the destruction of traditional safe havens.
Consider these eight signs to watch for as currencies come unpegged.
Chapter 9: What the Gold Market Tells Me
Many of the market experts we interviewed for this book might think the dollar has a way to go yet, but whether they think it has five years or several decades… they ALL say that the gold market has spoken! They believe the gold market tells us that the dollar’s days are numbered.
We dispel gold myths and talk about the possibility of returning to the gold standard. Features commentary from Nathan Lewis, Lew Lehrman and Ron Paul.
Chapter 10: Currency Winners: Forward Thinking Moves from Smart Investors
Rick Rule bets on the Chilean peso; trend follower Michael Covel gives a total strategy. Chuck Butler and Bill Bonner talk China strength as Jim Rogers commends the Singapore dollar. Peter Cooper says avoid the British pound, but consider these two currencies… and much more. These currencies—while all paper—stand a chance to gain ground against the U.S. dollar. Here are some simple ways to get in on the game.
Chapter 11: Dollar Apocalypse
We and our favorite experts outline several scenarios for dollar collapse. While we can’t pinpoint the year, we list the main problems that can and will take out the dollar down the road. All the same, we end on a note of optimism about stocks and investments in general.
Chapter 12: Tips on Surviving the Next Crisis
Where should you stash a million dollars right now? Is it time to buy a Picasso? How do I buy gold? Plus, we offer seven simple steps to follow to create a total dollar-proofing game plan for the next ten years, and beyond.