An entire generation is starting to panic.
Americans in their 20s and 30s are realizing the American dream is dying.
You know the dream I’m talking about: a three-bedroom house behind a white picket fence along tree-lined streets in the quiet suburbs.
Today, 1 in 5 Americans believe they’ll never afford to buy that home. They fear they’ll be renters for life.
Another 40% believe their best shot at home ownership is marrying someone rich… inheriting the money… or winning the lottery.
This is the sad reality most Americans find themselves in today.
But this financial panic isn’t just about housing affordability…
It’s buying that luxury car… purchasing that dream boat… or going on that vacation of a lifetime.
And this isn’t just a problem for younger people. Most Americans are feeling the pinch, including those who are in or near retirement.
This group (ages 55 and up) is at even greater risk because they don’t have time on their side like young people do.
So what’s deferring all those dreams? The declining value of the U.S. dollar.
Today, I’ll show you why the declining purchasing power of the dollar is delaying so many dreams… and what you can do about it in 2024.
The New Rat Race
Since the outbreak of the COVID-19 pandemic in 2020, the purchasing power of your dollar has evaporated.
That house you were looking to buy before the pandemic? According to the Federal Reserve, the price of the average U.S. home is up 47% since then.
Or that used car you told yourself you’d get because you can’t afford a new one? The average used car price is up 40%.
How about that vacation you wanted to take? According to the financial website NerdWallet, it’s 20% more expensive to travel today than it was in 2019.
Even if you’re not buying these big-ticket items, you’re probably feeling the pinch from day-to-day expenses.
Just look at the number of groceries you can buy with $100 at the supermarket.
A few years ago, you might’ve filled an entire cart. Today, you’d be lucky to fill up a basket.
This new reality is why 62% of Americans are living paycheck to paycheck, according to LendingClub.
Today, the American dream for most people is living in a shoebox-size apartment and qualifying for a seven-year loan to buy a 2008 Honda Civic with 200,000 miles on it.
That’s the new standard Americans are coming to terms with.
Over the last four years, most Americans saw their income go up… only to be able to afford less.
You make 10% more. But the goods and services you need cost 20% more.
This is the new rat race.
The Dollar’s Death Spiral
The reason the American dream is dying for so many people is simple: the erosion of the dollar’s purchasing power.
Just take a look at the chart below. It tells the entire story…
Source: Bureau of Labor Statistics
As you can see, the dollar has lost 97% of its value since 1913.
One of the biggest reasons for this is the surge in government spending.
Take a look at the next chart. It shows the government is spending more than ever compared to what it brings in. This means it needs to print even more dollars.
As you can see, we’re on track for the third largest deficit in history.
And the bill is coming due. As the Federal Reserve inevitably prints more money to cover these deficits… The value of the U.S. dollars in your pockets and bank accounts will sink.
Look, the speed at which the dollar is losing its value is unprecedented.
It’s forcing Americans like you to move out of their homes and into something smaller and more affordable.
It’s forcing you to postpone that vacation you thought you had enough money for.
It’s forcing you to tell your kids Santa won’t be bringing as many presents this year.
The politicians in Washington will blame it on supply chain disruptions… Russia’s war on Ukraine… or the previous administration.
There’s always a finger to point elsewhere. But the truth is, they are the problem.
Their spending addiction is the problem.
Since the turn of the century, we’ve added roughly $28 trillion in new debt because of our government’s spending addiction.
If you think there’s a chance that the government is going to tighten its belt, forget about it. So in 2024, you have to take your financial situation into your own hands.
The 2024 Dollar Collapse Escape Plan
The dollar is a ship in the middle of the ocean that’s taking on water.
Most passengers don’t realize what’s about to happen. But those who do are fighting over the lifeboats to escape.
The lifeboats I’m talking about are real estate, stocks, commodities, and even crypto. These are “hard” assets the government can’t print out of thin air.
As soon as the money printer goes on again, the value of these assets goes up… just like they did in 2020 and 2021.
If you didn’t store the bulk of your wealth in these assets prior to 2020, odds are you feel 30% poorer today.
That’s a rough average of how much less you can buy with your dollars (from real estate to groceries to cars, etc.).
If you’re looking to outpace the dollar’s decline, I recommend you allocate a small portion of your wealth to cryptocurrency.
Here’s why…
Daily editor Teeka Tiwari is paying close attention to a tiny subsector of the crypto market that could see explosive gains from what could be the biggest trend of the year: the development of a digital dollar.
You see, the Fed recently launched a program that could lead to a mandatory recall on the U.S. dollar.
According to Teeka, this program could replace the dollar with a new digital version that will be radically different from what you have in your bank account right now.
He’s put together a briefing to explain what this new digital dollar regime means for you and your money… including the name of a crypto project also set to profit from its rollout.
Plus, he’ll also show you the one move you must make when your bank tells you it’s moving all your cash into this new digital dollar. You can watch it for free right here.
If you’re looking to grow and protect your wealth in 2024, make sure to allocate a portion of your portfolio to crypto.
In the next bull market, you’ll see prices surge much higher than other asset classes.
Houston Molnar
Analyst, Palm Beach Daily