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In this video, we are going to discuss the many disastrous consequences of a weak US dollar. We’ll give you the expert predictions on what’s ahead for our currency, and tell you how to prepare for the coming economic collapse.
As the United States flounders in its handling of the pandemic, with its case count approaching a staggering 4 million, investors are rapidly losing interest in the once mighty US dollar. Recently, analysts at Bank of America Global Research noticed a disturbing trend that signals an extended downturn in the value of the American currency.
A “death cross” occurs when the 50 day moving average crosses below the 200 day moving average. Eight of the nine times that a death cross has been observed since 1980, the period that followed saw the dollar grow increasingly weak. And this time around, the trend will be even further exacerbated by the ongoing health crisis, record rates of unemployment, and widespread failures of US businesses. In fact, such a perfect storm of negative indicators could push the dollar over the edge into total dollar collapse.
As the economic collapse rolls on, we also recommends leaving large, congested cities in favor of more rural areas. In fact, it seems Americans have already picked up on this trend. A staggering 34.7 of rentals in New York City were listed with discounts during the second quarter of this year as demand for property dried up. In March, lease agreements in the city saw a 38 percent drop off year over year, the second largest decline in over a decade. The median asking price dropped by 6 percent, which represents a loss of $221 per month for landlords, or $2652 annually. This marks the first time since the Great Recession of 2007-2009 that New York City has experienced a cut in rent prices from the same time period last year.
There are several major reasons for the shift out of urban areas. For one, many Americans are working entirely from home rather than commuting into an office, which still carries significant risk. Furthermore, the tremendous number of job losses experienced during the pandemic means that much of the public can no longer afford their old housing and have been forced to downsize to smaller spaces or neighborhoods farther outside city centers.
It is becoming increasingly common that Americans are unable to keep up with monthly rent payments. When economic activity was at dangerously low levels in April, approximately one third of the 110 million people that rent property in the US were no longer making rent payments. With eviction moratoriums expiring at the end of the week, the number of coming rent evictions in the months ahead could climb as high as 28 million if people can’t find new income streams or if the government does not extend emergency aid measures
So the bleak future holds long term trends in the devaluation of the US dollar, if not a total dollar collapse. Moreover, the economic stress of the pandemic and the uncertainty surrounding the financial future of the country has pushed many Americans to head out of cities, in turn generating a rent crisis for landlords. And the pain is felt all around, as renters also struggle to pay even reduced rent rates.
Somehow, people continue to deny that the US and global economy have already entered a second Great Recession. They argue that the 2007-2009 crash and subsequent recession was caused by a banking and financial crash, while the present crisis has not yet seen a significant financial crash, despite many indicators that point to the fact that we are teetering on the edge of one.
But this conclusion is incorrect. Great Recessions historically bring along with them a severe financial crisis, but there is no hard and fast rule that the crisis can’t come before the contraction of the real, non-financial economy. The pandemic has indeed facilitated a financial crash, pushing the US economy into a deep recession that will hit the country far harder than a typical event, since it has built on previous areas of instability and exacerbated underlying issues in the labor market, housing market, and healthcare system. Even though we have not yet seen a one-two punch of a banking system-financial crash yet, there is no reason to believe that it is not still on its way.
The best thing to do now is make the most of the short window of time we have left before things really collapse, a breakdown that will be kicked into high gear when federal aid expires within the week. Then, tens of millions of Americans will face the reality of their country’s crumbling systems, and the economic strain that has been largely delayed thus far will hit with full force.
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