Dollar Collapse Scenario Possible

Written by Staff Writer

dollar 1362243 640How the U.S. Dollar Could Lose Its "King" Status -Lombardi Letter
"The U.S. dollar, as it stands, remains the king of currency. However, its status could be challenged in the coming years. Don’t take the greenback for granted, as it may lose a lot of value. In fact, a scenario not unlike a collapse could be possible....

The U.S. dollar is king because there's a global demand for it. But right now, that demand is being challenged. One of the biggest rivals of the U.S. dollar currently is the Chinese yuan....At the end of 2017, central banks held $123.5 billion worth of the Chinese yuan. At the end of 2018, it was $202.8 billion. That means that in a matter of a few quarters, the yuan holdings at central banks increased over 64%....The greenback's value is highly dependent on what the U.S. government does. Unfortunately, as it stands, the government continues to spend without remorse....The Federal Reserve's behavior is suggesting that it wants the U.S. dollar to go lower...Long-term, I think the value of the U.S. dollar could be much lower in the next five years than it is currently."