Investment Manager Larry Lepard has warned that the U.S. Dollar could lose its value within the next five to ten years. Following the start of the Russia-Ukraine war, “the U.S. did something which I perceived to be very stupid, which is it seized $600 billion of Russian currency reserves, and that sent the message to every other country in the world that ‘Hey if the U.S. doesn’t like what you’re doing, they can grab your money,’” The executive was quoted.
Investment Manager Says U.S. Dollar Could Lose Most of Its Value in 5-10 Years
Larry Lepard, Investment manager and founder of Equity Management Associates (EMA), shared his predictions about the U.S. dollar’s fate in an interview with Kitco News that was published Wednesday. He said:
I’m quite comfortable saying that the dollar will effectively be restructured or have lost most of its value within 10 years, and I think, frankly, it could even be shorter than that. My median guess is approximately five years.
The executive then explained the basis for his prediction. “I base that on looking at history and other currency events in other countries and kind of watching the patterns of how long it takes.”
Lepard went on to recount the incident that may have set this series of events in motion. “The U.S. did something which I perceived to be very stupid, which is it seized $600 billion of Russian currency reserves, and that sent the message to every other country in the world that ‘Hey if the U.S. doesn’t like what you’re doing, they can grab your money.’” He added:
That kind of started us on what I view as the next round of currency debasement … and we’re now seeing the everything bubble slowly but surely deflate.
The investment manager then discussed inflation. “We have a lot of inflation and sadly it’s only going to get worse,” He stressed. He recommends gold or bitcoin as safe haven assets, as he views them both as “sound money.”
Lepard continued: “The average investor in the United States has been told: ‘Buy stocks, buy bonds, don’t worry about the currency.’ I think that’s a big blind spot because I think the currency has a great, great risk of serious debasement, and that the average investor who’s in a 60-40 portfolio, if they don’t hold gold and they don’t hold bitcoin, they’re going to really suffer in the next 10 or 15 years.” He further cautioned that “if they hold a lot of bonds, they’re going to get wiped out because I think the odds of the bonds maintaining their real purchasing power are extremely low.”
Noting that politicians can change rules to suit their own needs, as they did when they were bailed out. Silicon Valley Bank Signature Bank, Lepard warned that “you can’t trust a word” those in control of fiat currency have to say “because everything they do is crafted to keep themselves in power, to keep the system which puts money in their pocket running.” However, he also stressed that when those in power change the rules it is a violation of human rights. “More and more people are waking up” to alternatives to the U.S. Dollar.
What do you think of Larry Lepard’s warnings or predictions? Let us know what you think in the comments below.
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