The US dollar is collapsing:

The US dollar is collapsing.

It’s losing its purchasing power every day.

Saw this comment on my favourite sub-reddit, superstonk.

A single dollar today buys you less than it did pre-Covid.

You could buy 3 shares of the S&P 500 pre-covid and now you can only buy 2.

The companies are not producing 30% value year over year but the dollar is losing value rapidly.

An economist would say ‘Congrats Anish, that’s basic inflation.’

What you bought with one dollar in the 50s and 60s is very different than today.

The currency continues to get printed so things cost more.

That’s how the government can seemingly pay for everything.

Just print more money.

As a global reserve currency, you can do that.

But for how long?

Because as soon as foreign investors start massively dumping US treasury bonds, people will move away from the dollar.

It’s already happening.

The dollar will collapse.

All currencies do.

What happens then?

The US loses its seat as the leading superpower of the world.

There will likely be a war that occurs b/w now and then.

To assume we’ll never have another war in history is stupid.

Violence is a part of history.

Only now it looks very different.

Nuclear.

Cyber.

Biological.

Drones.

We’ve never seen so many countries have the ability to do all of this.

That’s very scary to think about.

But it’ll happen.

Reminds me of a concept the ancient roman philosophers used to love.

‘Memento mori.’

‘Remember you must die.’

Evolution is the truest law of the universe.

We need to get the companies and businesses not producing as much to die out so new ones can come through.

That’s not good for a lot of people

It also means opportunity.

The rest of the world’s powers are salivating at the thought of the US dollar collapsing.

The US loses its ability to decide geo-politics.

That’s potentially a very scary time for people in the West but will present a lot of opportunity to people on other sides of the world.

The reason China is beating the US is that China builds things.

The manpower and scale they have, plus the investment in long-term factors that are important to a country like infrastructure, real estate, universities, and global trade.

They don’t need America.

They already trade more with the rest of the world.

America now has its own problems.

Too many people are quitting.

Getting a cheque from the government is way easier than showing up for a job.

The middle class has been eroded in America.

Wealth inequality hasn’t been this bad in America since before the Great Depression.

Eroding the middle class does not bring peace to society.

When more people can’t afford the basic necessities compared to the few as their dollar gets eroded every day, the closer we get to a revolution.

America will go through a revolution at some point.

The next crisis could be the one.

Or it could be decades from now.

But it’s coming.

That’s scary.

Has happened many times in history and will continue to happen.

When a country goes through a crisis where most of the population can’t afford the basics, people have nothing else worth fighting for.

I hope it’s peaceful.

Probably won’t be.

But that’ll be one of potentially many around the world.

Turkey is probably the next country.

Hyperinflation is there and all their president does is lower interest rates and print.

Print even more money.

That’ll get inflation under control.

The problem is there’s no going back.

Once you get a hyperinflated currency that can’t be controlled on the foreign reserve markets, you’re toast.

Lira will collapse soon.

Then what?

Kazakhstan is going through its own crisis.

People are revolting.

Why? Because oil prices are too high.

When most of the population can no longer afford to live the life they have, they revolt.

What if multiple countries have the same thing?

Oh yikes.

A lot of these thoughts I hope never happen.

I truly do.

This is a terrible time for a lot of society.

But you could argue right now is a terrible time for society.

People are hurting.

Lockdowns don’t work. Not this late into this pandemic.

You’re interrupting so many people’s lives, especially those that can’t afford the luxuries that most of the elite class has.

My life has barely changed.

I’m super privileged to be in my position right now.

But so many people are not around the world.

Their stories are not getting told.

According to Oxfam, Billions of people will fall into poverty in the next decade while the super rich recovered their pandemic losses in 9 months.

The world’s 10 richest added $402 billion to their fortunes. 

For doing what?

Owning assets.

Meanwhile billions of people have had their lives pushed into poverty.

You’re telling me revolutions won’t happen around the world?

All it takes is some crazy event like a market crash to have everything shift.

Let’s see.

The future is uncertain.

But writing about this now gives me credibility if what happens comes true.

If it doesn’t, and I hope it doesn’t, all for the better.

But if it does, woah boy.

It’s a risk worth taking.