Where to Put Your Money Before the Dollar Collapses – Episode 1198

Did you know that the dollar has lost 97% of its purchasing power since 1913? And the people managing your money, your financial advisor, your 401k provider, your bank, none of them will ever tell you that. That’s because the moment you understand what’s actually happening to the dollar, you’re going to change your strategy, and they will stop making money off of you. 

On this episode of Investing in Real Estate, we’re going to unpack what’s happening with the decline of the US dollar. We’re going to discuss the national debt, the state of inflation, and how geopolitical tensions are impacting the dollar. Most importantly, you’ll learn about where to put your money before the dollar collapses. 

In this episode you’ll learn: 

• The link between the national debt and inflation
• Why you should reduce your exposure to dollar-based assets
• How investing in real estate can help you when the dollar loses power

The Link Between the National Debt and Inflation

A big reason why we’re in this situation is because the United States is carrying over $39 trillion in debt right now. Thirty-nine trillion dollars. This is a number far beyond what most people can even conceptualize. And the interest on that debt, just the interest, just crossed $1 trillion per year. 

This debt has created immense inflationary pressure, as I’m sure you have felt intensify over the last several years. And every time the government decides to print more dollars, the value of the dollar in your pocket goes down. 

Why You Should Reduce Your Exposure to Dollar-Based Assets 

The average high-yield savings account today is paying somewhere around 4 to 5%. Sounds good, right? But here’s what a lot of people don’t consider: if inflation is running at around 3-4%, you’re kind of just treading water. If the dollar continues to debase, that 4.5% yield is actually negative in real terms. And that’s a high yield account, not the run-of-the-mill 0.1% that most banks today will offer you. 

Savings accounts, money market accounts, long-duration bonds — these are all dollar traps. A 30-year Treasury bond loses roughly 18% of its value for every one percentage point rise in interest rates. People who put their retirement savings into safe bonds got absolutely wrecked. Here is the single most important financial concept I want you to understand today. Wealthy people do not build wealth by saving money. They build wealth through ownership of cash-flowing assets.

This means they own things that produce income regardless of what the dollar does. And the king of that category, the one and only asset class that has preserved wealth through every currency collapse, every recession, every financial crisis in recorded history, is real estate.

How Investing in Real Estate Can Help You When the Dollar Loses Power 

When the dollar loses purchasing power, what happens to rents? They go up. Because rental rates are directly tied to the cost of living. When inflation rises, rents rise accordingly. When construction costs go up because of tariffs, fewer new units get built, which means rental demand increases. When mortgage rates stay high, which they will as long as the debt crisis continues, fewer people can buy homes, which means more people rent. In every single scenario where the dollar is under pressure, owning real estate helps you come out on top.