Is the U.S. Dollar Being Intentionally Crushed?—and What That Means for You

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Are we about to witness the death of the US dollar and what it means for you? I keep thinking of that anchorman, Ron Burgundy, after they got into that fight with the other news networks, he’s back drinking a beer, he’s like, whoa, that escalated quickly. The movement in the dollar this past week was, how shall I put it? Parabolic. Parabolic. It usually, doesn’t move that quickly. Yesterday, Trump was asked about this late in the day and he was like, that’s all good. Yeah, it’s awesome. That’s fine. I’m paraphrasing. But the funny thing was when they were talking about the dollar was the little sycophants that were surrounding him. Where was he in Iowa? And they were all pointing the direction up like they thought that the dollar was going up again.

serenity now, you know, sometimes again, the stupidity, it’s just it’s overwhelming. It really is. Anyway, anyway, what what does this mean? Well, we did do a podcast on this a while ago. Kind of Steve Mirren philosophy. Steve Mirren, think is he’s up his dick is today’s his last day at the Fed. He’s there on some sort of emergency appointment.

He put together what they’re calling it the Mar-a-Lago Accords. It’s a kind of take off of the Plaza Accords, which we mentioned here on the program. This goes back to 1985, where we devalued our currency a great deal. Great deal. Deemed that we were getting taken advantage of in regards to…

exports in particular electronics, Japan, myriad of other things to mid 1980s. Their belief system, their belief system is that, well, we are going to lower this they want. So they want they want to basically crush the dollar. This is their thinking going to crush the dollar.

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And what it’s going to do is it’s going to make our exports, again, people are going to buy dollars to buy our stuff. This is the thinking. You got to follow along. It’s going to make our exports cheaper, which it would. They also happen to believe this weaker dollar will bring all sorts of manufacturing. But in quick back to the United States.

I don’t believe that.

I don’t believe that that’s going to happen at all. We’ve brought a lot of manufacturing has come to the United States certain fields, whatever it may be, but we’re not going to be making toys, trinkets sold at Walmart, stuff that they, a Chinese sell online at Sheen. That stuff’s not gonna be made in the United States anytime soon.

textile mills are not going to be coming back to the United States. I’m sorry. It’s not going to happen. This and again, I talked about devaluing our currency for some time here on the program. don’t not a fan, not a fan of what has been happening. And guys go back to when 1971 and

getting rid of the gold standard, which was kind of where the whole fire really got started, quite frankly, or if you want to go back to the beginning of the Federal Reserve, our purchasing power has dropped considerably. I know this, my clients know this because we’ve prepared them for that. How many times here on the program have I explained to people that you need to be an owner?

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Cash is trash. I’m here to tell you a much weaker dollar.

Great for me.

Great for me, I own stuff. I put money to work. My clients own company. This is great for, you talk about US tech companies? This is fantastic for them. Because they export.

They explore. There’s an Apple store or office in Italy. then Apple has repatriates those Apple products sold in euros, turns them back to dollars. Ching. It’s great for them, but it’s not great for all. And this is when we get into this bifurcated

economic system that we’re in at this point in time. Let’s backtrack a little bit here. The thesis, the Marlado Logo Cords is a strong dollar, strong dollar, again, is Trump’s buddy at flax business, Larry Kudlow, how many years? King dollar, king dollar, here, here.

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Well, it makes our exports more expensive. Weak dollar makes them cheaper. If we want to bring all these factories back to that, well, we got to have a very inexpensive currency. If we want to have an inexpensive currency, guess what? We have to devalue. And again, it’s been happening for some time, happening for some time.

but there is obviously a lot of tension paid to it as of late, but you take a look again. Take a look at where gold has gone, you take a look at where silver has gone, you take a look around the globe. The world is noticing what we’re up to and they’re moving things around. Now, one of the interesting things about what’s transpiring as well is, and again, the realization.

that line they were giving us about crypto.

That line they were giving us about crypto is, it’s a store of value. Yeah, it’s going to be a store of value. Yeah. If that was the case, why is crypto should be ripping right now? But it’s not. It’s not. OK, their plan. It’s it’s in place. Basically. Currency unit of measure, it’s a policy. This is.

This is what’s going to happen. everything, everything that we import into this country, everything we import into this country is going to go up in price and we have to import a lot. not just talking finished goods. The input costs. So, let’s say, for example, you’re a home builder. Your home builder and you’ve got to buy tile from. Italy or you got to buy

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you know siding from somewhere else not only are you dealing with tariffs but you’re also now dealing with a weaker dollar now again i don’t know if they’re they’re pushing this policy forward this this you know this has been in the back of my mind as well because they feel that the supreme court is going to rule against them when it comes to tariffs and if that’s the case this could be this essentially is another kind of tariff

if you will, it really is because again, devaluing currency inflation is a tax on you and I doesn’t show up on your check. You don’t see it there, but it’s there that it’s there. Okay. Our purchasing power is going to decline. We’re going to our savings. Forget about it. It’s going to buy you less. It’s why you better buy assets.

Everything is going to cost more. Okay, but they’re putting it as okay. Well, that’s going to make the United States more competitive. Hey, let me tell you something. It’s gonna look great in a GDP report. yeah, you’re gonna look great. Your trade deficit reports, GDP reports are gonna look great and they’re gonna tout the hell out of those things.

It’s a great piece that put together. Actually, Peter Journes put this together and he actually goes back and does some numbers on Nixon. 1971, Nixon ended the gold standard. He said it was temporary.

55 years ago.

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Temporary, still temporary, right? Back then, $1 bought $1 worth of goods. Today, that very same dollar buys 12 and a half cents worth. So that’s 87.5 % has been devalued over the past 55 years. That’s 3.85 % a year compounded.

talk about the magic of compounding and how it can work for you and it can work against you. That’s 700 % cumulative inflation by design. Now, the government’s taking a look at our debt and they’re saying, well, guess what? Our debt is priced in dollars. So if we devalue

dollars, we’re going to be paying back this $38 trillion with something that is worth less, even though it’s the same thing.

This is making sense to you. Okay, maybe I’ll put it this way. You remember that movie, Honey, I Shrunk the Kids? And he had the machine that could shrink stuff. let’s pretend that, okay, somebody bought you a hamburger and you had to buy them a hamburger back.

Yet you have instead you’re paying them back with a tiny little hamburger. You paid them back with a hamburger. It’s still a hamburger, but it’s not the same. It’s worth less. You get it? Debt becomes cheaper to pay back, but wages will continue to lag. Again, assets are gonna go up.

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If you own stuff, you’re going to You own stuff, you’re going to win. Earning money better put it to work. Your dollars are not going to go as far. This is some. This is this is the plan right now. Again, you get the people on TV are going to run it hot. They’re running hot. And again, I you know, I don’t like.

how the Fed does monetary policy, and that’s a entirely different podcast, we’re going to talk about that as well. I think that they should quite frankly, run it high. I don’t like the things that they do. I want to see more growth out there. But weakening the dollar, you fail to understand. You think these people that lend us money, you think that they’re not going to be aware of this, what we’re doing?

You think that they’re going to be more apt to lend us money? Let me just put it to your perspective. We’ve got $10 trillion in debt that we have to roll over this year. $10 trillion. Think about that. Get your arms around that number. Now, that’s going to call for much, much higher rates. Is it not?

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I mean, wouldn’t you if you say, well, know, Scott Besson calls up XYZ country or pension fund, we need, you buying some of our debt. You know, this is the rates we’re going to give you. And only wait a second, man. OK, I’m sorry. You’re devaluing your currency. I got to price this into the rate. You got to you got to give me a higher rate. Markets will basically force this upon us.

This is where we’re at right now. And quite frankly, I think.

I think they’re playing with fire to some degree. I often talk about not letting risk lead to ruin. I guess they have decided that, again, I don’t mind running an economy hot. I don’t agree when the Fed says, hey, growth is too strong. We’re going to have to raise rates out there. We’ve got to put a tap. Now, I don’t agree with that at all because, to me, that’s

Not inflation. Inflation is when we continue to print more money and devalue the currencies, which we’re doing now.

Can’t have both. mean, both are going to be extraordinarily inflationary. Tariffs and this. Again, I don’t know if they’re doing this rather than the tariffs. Who knows?

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Congresses want to do their part there, you know, they’re unwilling to cut any sort of spending whatsoever. So this is the plan.

This is the plan as it stands right now. I do think we’ll probably see probably see a bit of a you know, the dollar probably bounce a little bit because it’s very much oversold at this point in time, but Do I think the dollars trend to the downside? Absolutely Absolutely, and you know people ask me where I think I could land again. It’s very very difficult to call but I dollar 35 to a dollar 50

And I think they would be more than happy having it there. And again, it’ll show up. It’ll show up in GDP numbers. yeah, well, trade, all sorts of stuff. And it’ll say, look everybody, everything is awesome. And we’ve had these numbers. We keep being told. Charles Payne told everybody on Sean Hannity’s program that nobody has any idea how awesome everything is.

yet consumer confidence is in the toilet.

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People at some point in time, you have to be your own do it yourself, economists. try as hard as I can here on the program to kind of give you the fundamentals, the groundwork of what’s truly taking place, explaining the terrain. You have to understand with these people on TV, what their motivations are, how they go about getting paid, how they go about getting compensated. Yeah, I’m here telling you, I’m here telling you that.

great for my portfolios. Fantastic. But do I think it’s great for the country? No. Watchdog on wall street.com