Various sources have been discussing that the United States could lose its rank as one of the largest economies going into the year 2020. On this episode of Market Insights, Coy Wells discusses why this doesn't forecast doom for the U.S. dollar.
Why The Dollar Won't Drop To Zero- Video Transcription
Coy Wells: 00:00
Last week we talked about several events that had been taking place outside of the United States, specifically a report that was issued by Christina LaGarde. Yesterday, we got additional confirmation from Christine LaGarde and we also got it from Ray Dalio, the gentleman that's head of Bridgewater and associates, talking about the u.s. Economy and a global staggering economy worldwide. Specifically, the key element here is they're talking about the United States. And the element they're talking about is United States, b,y the end of 2019 going into 2020 that United States could lose its rank as one of the largest economies in the entire world. The second part of that problem is, is that right now they're also talking about downgrading the credit rating of the United States, which we talked about last week as well. When this type of information comes out and it starts being discussed, it starts to instill panic to a certain extent or uncertainty among the American people and around the world.
Coy Wells: 00:51
When that starts happening, people start getting out of US dollars and that is one of the reasons why we're starting to see the stock market kind of come off a level and start to see the volatility that it has been seeing over the course of the past few months. Coming off the additional information that China and the United States are back into negotiations and China is not happy with the deal. When this happens, consumers will call and they'll talk about the u.s. Dollar and one of the common threads is is that the dollar is going to go to zero. It's very important for you as a consumer to understand that it just doesn't happen that way. The reason for that is a three letter word, and that three letter word is tax. The government of the United States understands that the value of the dollar has to have some value established to it and anyone who has ever taken a trip or gone to a foreign country knows that there is an exchange rate that has to take place between each country and the value of the money that sits inside them and that's no different inside the United States. We understand how important the great depression was and how impactful it was to so many Americans with a loss up to about 80% at one point in time. 2008, we lost around 33%. under this scenario, the dollar just doesn't go to zero.
Coy Wells: 01:38
Every time you and I spend money, whether it's on a loaf of bread or buying a car, buying a home or services or goods of any capacity- the most important for you to understand is that the government gets a cut of the pie. And if there is no value to the money, then there is no taxes. And if there is no taxes, that means there would be no public schools and there'd be no police department, no fire department, there would be no military. These are entities that are funded by taxpayers dollars. The value of the dollar can be impacted significantly, but it just doesn't go to zero. It just doesn't happen that way. So please call the number on your screen to get your copy of our brand new report, 25 reasons to own gold. It is completely updated with the data and facts for 2019. be sure to subscribe to our youtube channel, so you don't miss a single episode. I'm coy wells with u.s. Money Reserve market insights.