What’s Next For The US Dollar???

What’s Next For The US Dollar???
January 15 17:09 2019

Almost a year ago, I made a bold statement that the US dollar would never see $100 every again.

Over half of all foreign currency reserves in the world are in US dollars. China, Russia and other countries have been making agreements to move away from the US dollar in international trade. At some point in the near future, China will become the world’s largest economy. In 2009, China became Africa’s biggest trading partner and China is seeking to expand the use of Chinese currency in Africa. The United Nations continues to talk about an alternative to the US dollar as the reserve currency of the world. Last, but not least, within the next 20-30 months, the Great Depression of the 21st Century will be among us all.

The writing is on the wall. The US dollar as we all know it, will fade in the backdrop at some point. I believe we have seen the last time the US dollar ever reaches the $100 level. This might be a great time to start acquiring Bitcoin and other crypto currencies for your portfolio.

Why Does The US Dollar Continue To Drop

In 2015, China became the largest oil importer in the world. China has been looking to reduce the US dollar’s status and internationalize the Yuan to boost its economic power for quite some time. Thus, in early 2018, China will launch the Petro-Yuan oil futures on the Shanghai and Hong Kong exchanges.

The Petro-Yuan…The Beginning Of The End Of The US Dollar

This past week, Russia shifts $100bn of its US dollar reserves into yuan, yen & euro decreasing their reserve portfolio in terms of US dollars from 43.7% to 21.9% in the first half of 2018. And Russia isn’t the only country moving away from the US dollar, other countries include China and Iran.


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And Russia isn’t the only country moving away from the US dollar, other countries include China and Iran.

Speaking to an audience in Washington last week, Fed Powell reiterated that they have the ability to be patient and watch patiently to see the economy evolve. Meaning, they are going to reduce the number of hikes or pause all together in 2019. Thus, the US dollar will be in less demand and should decline as a result.

Longer term, the chart suggest the US dollar will continue to decline over time. A picture is worth a 1000 words, so I think this monthly chart says it all.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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