Watch and listen to U.S. Money Reserve's Coy Wells talk about the American dollar in decline due to trade wars and how the U.S. is currently in a recession.
U.S. Dollar Declines: Retaliation on Trade Wars- Video Transcription
Coy Wells: 00:00
Good morning and thank you for watching daily market insights. Today we're going to talk about the U.S. dollar. The dollar again for its fifth straight quarter has gone down again. That means that the U.S. dollar gets 16 other currencies globally has continued to decline. This is one of the issues we talked about with treasury bonds and the long term implications against the U.S. economy. That also means that in the last 12 months the overall loss on the U.S. dollar is about seven point six percent. So when we talk about interest rates and the money that you may be getting additionally in your bank account, remember the U.S. dollar in the last twelve months has lost seven point six percent. That is a huge scale. Remember this is being measured against 16 other global currencies in the entire planet. And when you see the U.S. dollar decline by about seven point six percent on a 12 month span that is absolutely huge.
Coy Wells: 00:47
That means the U.S. dollar today is sitting at about eighty nine point six nine percent on the global scale. That's a pretty significant loss. If we've lost again, which it just was reported by The Wall Street Journal, a decline on the U.S. dollar has global implications significantly. And what we've talked about is a continuation of what you're seeing is is that the tax cuts that were done by the Trump administration was an effort to bring companies and corporations and businesses back to the United States. It also meant that would put more money back in our pocket but that has not increased the value of the U.S. dollar. It was done as an anticipation to spur on spending. So this is kind of a fancy stimulus program opposed to printing money. And remember right now we really can't print any additional money because if we print additional money it will spur on additional countries sending back U.S. Treasury bonds so we're kind of in between a catch 22 here with the U.S. economy.
Coy Wells: 01:38
The other things that we've talked about is right now you're seeing that we repeal the Dodd-Frank Act and then you're seeing trade wars that we talked about a couple of weeks ago. Trade wars is now a big and major issue and it will continue to drive the value of the U.S. dollar. Now not only is the Trump administration placing tariffs against China. China is now responding by playing tariffs against the United States. This is huge. This is the beginning of a currency war that started probably about 2014 and now we're starting to see it kind of crack and crumble underneath their very feet. What that means for us folks is that the U.S. dollar is going to continue to decline over the course of time and when that happens you're going to see inflation rise. That means the cost of goods or services here in the United States are gonna start costing you and I a lot more money.
Coy Wells: 02:20
How to protect yourself is the important question. Precious metals is the key element when we start seeing these inflationary rates happen and is also what happens when the dollar goes down. When the value of our money starts declining you will start seeing an increase in precious metals. And in 2008 you saw the stock market and precious metals as a whole come down. That's a consolidation within the market. And then you see precious metals start to skyrocket. You're going to start seeing those things take place. From October of 2007 through February of 2008 under the initial correction of the recession of 2008, the stock market lost twenty three hundred points and change. If you look at what we have done since January until now, the stock market in a three month time-frame has lost almost the exact point count. So six month time frame, the beginning of the 08 recession versus today we've lost almost the exact same point count.
Coy Wells: 03:17
This is due to the trade wars. And as we've talked about in the past, these are post recessionary numbers that are now taking place in this administration to try to not say that we're in a recession. What we're seeing guys is a seven point six loss in the U.S. dollar. We're in a recession whether people want to admit we're in one or not is a different story. They're not telling you that because if they come out and publicly say on national television we're in a recession what that's going to mean is you're going to see that stock market take a huge drop and a huge plummet almost at the snap of a finger. At some point in time you're going to see the media start talking about that. Our job is to be able to provide you the information, get you the information and the facts as they are in advance of the correction and that's what we're trying to do here.
Coy Wells: 03:58
Expect the U.S. dollar to continue to decline. Number two, expect inflation to start setting in. Expect the Federal Reserve to start raising interest rates over the next 12 months and you're going to see a continuation of the Trump administration and emerging nations outside the United States getting in a battle in regards to a trade war. Each one of them. When one does one move the other one will do another. This will be a retaliation maneuver by countries outside the United States. This is what's going to happen and ultimately those who are retired under this recession will be the ones who will bear the brunt of this crisis. That is where the remaining money lies inside the United States. The younger generation has not saved, they did not put money in the bank. They are not conservative like the older generation is. They have not done without and they have not been through a hard enough recession to set them back financially to put them in a position to understand the importance of saving your money or protecting your money.
Coy Wells: 04:55
In this crisis it is ultra crucial as you, a consumer to understand. Under this crisis when it sets in, as most of you know that is going to happen. This is no longer about the return on your money. This is about the return of your money, the money that you cannot afford to lose. Under this crisis, the United States is in the midst of a trade war which will be systemic like cancer running through the system automatically that cannot happen without a major correction stopping in its tracks and then reverting back the other direction. But it will be long. It will be hard. And you have to protect your money now. Those who deal in large amounts of money, when I say that I have consumers that I've dealt with in the past in precious metals that hold well over 3, 4, 5 million dollars in this market.
Coy Wells: 05:39
Those individuals are all starting to move money again into precious metals. When you see big money moving in this market it means that they are in fear of what's fixing to happen in markets. These individuals and companies or corporations understand, they have financial analysts that help protect them long term from a financial crisis. Look at what's happening. Wal-Mart is shutting doors. We know that took place about six or seven months ago. Macy's is shutting doors. Sears Roebuck. Some of the other large chains are struggling financially. They are cutting back. They're cutting back in anticipation of an offset of a pre-recessionary measure. We call it post but it is starting to happen now. Their analysts are watching it and telling them and advising them what to do. You need to be doing the same thing. As always, thank you for watching daily market insights.
Coy Wells: 06:29
In the past we've requested you to get a copy of the fiscal states of America. This is also ultra crucial, this talks about how the states inside the United States have started or have started borrowing money against the pension plans of the retirees with inside their states. At some point in time this is going to be a critical issue when the shortfall and the recession sets in. We know what happened in Chicago and we recently know that the state of Rhode Island and a court of appeals has now gave them the authority to go back to citizens back to the year of 1990 and start using that money to help bail out Rhode Island, which is a double a state. Other states are going to start doing the same thing as the financial panic starts coming in the course of time. As always click on the phone number below.
Coy Wells: 07:09
Click on the link or you're more than welcome to call in or put any questions or comments that you have in that section below. But we're in a post recessionary series right now and those are the things that you need to start watching. And as they continue to unfold, you'll see your money more at risk. Remember the dollar has lost about seven point three, seven point nine percent in 12 months and that's against 16 other currencies globally. That's a big deal. Trade wars is one of the spurring issues and continue to watch daily market insights for further information in the future. As always thank you for watching.