Is the US Dollar Headed For a Collapse? Gold Prices Seem to Indicate Just That

There is an elephant in the room that no one in Washington or the media wants to talk about these days; that of the impeding collapse of the US Dollar. While Ben Bernanke and the Federal Reserve continues to assure investors that the dollar is a safe investment, while printing money like madmen, several indicators seem to suggest otherwise. It isn’t just an academical discussion either. The future of the dollar is of great importance to all Americans, particularly those with savings.

It used to be that the US Dollar was the strongest currency in the world. Those that traveled abroad would experience this first hand as their hard earned money would be highly appreciated by the locals. This just isn’t the case anymore. Several countries now prefer the Euro and many have taken steps to replace their dollar reserves with Euros. The average American citizen may not have felt the impact yet. After all, domestic prices stay the same whether or not the dollar fluctuates, but they will eventually feel the impact as rampant inflation inevitably sets in. As the dollar weakens in purchasing power, it becomes more expensive to import goods, and since much of the US production has been outsourced, this will result in higher prices, which will be passed on to consumers.

Those with savings for retirement invested in American stocks and bonds will be hit the worst. Since their savings are in fixed dollar amounts, once inflation sets in, it’s highly likely that the result will be a net loss as returns struggle to keep up with rise in prices. This is a common scenario and one that has happened many times over the world.