Written by Bryan Lutz, Editor at Dollarcollapse.com:
So, every Sunday morning I sit down to write a few short thoughts.
Sometimes these thoughts end up being about life, other times they are on gold, geopolitical issues affecting the markets, or the economy.
Here are three thoughts for this morning:
1. The Dollar’s breakdown will only be obvious in hindsight.
The DXY sits at 98.09, resting on a 15-year trendline after rolling over from the 2022 highs.
Nothing dramatic yet. Yet, that is exactly how major breakdowns begin.
Meanwhile, offshore dollar liabilities just hit a record $14 trillion-plus. The world has never owed more dollars.
A falling DXY raises the real cost of servicing those obligations, which will most likely force scrambles for the same dollars losing their value.
Dominance and weakness, simultaneously. The dollar’s breakdown will only be obvious in hindsight.
We’ll keep watching to see exactly how that turns out.
2. The fiscal point of no return is here. They’ll have no choice but to print the money.
Publicly held federal debt just crossed 100% of GDP, headed for the 1946 record with no postwar boom to bail us out. The government now spends $1.33 for every dollar collected.
Notice the difference between then and now.
After 1946, debt fell because growth roared, inflation eroded the real burden, and military spending collapsed. None of that is on offer today.
The deficit drivers are structural: aging demographics, entitlements, and interest payments consuming one in seven federal dollars. CBO projects 175% by 2056. The math no longer works without the printing press.
3. Remember, since 2020, the US dollar has lost 25% of its purchasing power. Use this Dollar Collapse Tool to find out in real terms what your money would buy you today… if you had placed it in gold or silver.
Over the last five years, cash in your savings account has quietly bled a quarter of its value. Gold and silver, meanwhile, have done what they have done for 5,000 years: held the line against the USD.
Plug in any dollar amount and any year.
The Dollar Purchasing Power Calculator shows what those dollars would be worth today had you converted them to ounces instead of leaving them in the bank. The results show you just how much it is worth it to hold savings in gold.
If you have savings, stop measuring your wealth in the unit that is shrinking.
