I haven’t seen too many (if any) charts that show clearly how, why and most importantly, when the dollar is going to die. My view – no later than 2033. It appears to me that the dollar will fail during its next cycle. Either the dollar is dead by then, or it will be reborn. The status quo cannot continue (and I’m not talking about the quirky British rock group who had their heyday back in the ’70s).

As I’ve said before, cycles are all around us. Some are relatively stable (for now), like the seasons and the tides. All are terminal though, eventually. What often happens is that a cycle becomes unstable, breaks down, collapses the system, and a new one is reborn out of the ashes. There are too many to mention, but think volcanoes, earthquakes and hurricanes. Pressures build up, a cycle starts and builds towards a massive release of energy and destruction, and the whole thing goes into a quieter phase until the cycle builds again. A human life is also a cycle. Birth, growth, maturity, decay and death.

Now that I’ve cheered you all up, consider the mighty dollar. It certainly isn’t the worlds first reserve currency, so why should it be the last ? There are multiple signs that its dominance is drawing to an end. This is obviously a massive deal for investors. Knowing when this is going to happen puts you one step ahead. I think it’s becoming clear where the power is shifting. The petroyuan is now trading, and gold backed currencies are highly likely in China and Russia – just look at how they’ve been accumulating gold in recent years. If reserve status moves east, the implications for PM’s are beyond anything we’ve seen in the last 100 years. Sounds dramatic doesn’t it ? But just think for a moment…For holders of gold/silver in the west, what do you think will happen to the value of your holdings when measured in your local currency if the dollar loses reserve status and global trade deals are no longer settled in dollars. What would be the implications for US debt/inflation ? That’s a whole different discussion. For now, lets just look at what the chart is telling us, and let it sink in.