Investment manager Larry Lepard warns that the US dollar could lose most of its value within five to ten years. After the war between Russia and Ukraine began, “the U.S. did something that I felt was very foolish. It seized $600 billion in Russian currency reserves and sent a message to every other country in the world, ‘If the US doesn’t like what you are doing, they can take your money,'” this executive explained.
Investment managers expect the U.S. dollar to lose most of its value in 5-10 years
Larry Lepard, investment manager and founder of Equity Management Associates (EMA), shared his predictions for the demise of the US dollar in an interview with Kitco News published Wednesday. He says:
I think it is safe to say that the dollar will effectively restructure or lose most of its value within 10 years, and frankly, it could even be shorter than that. My estimate is that the median is about 5 years.
And this executive explained how he came up with his prediction: “I look at history and other countries’ currency events and see patterns in how long it takes and base it on that.”
After the war between Russia and Ukraine began, Leppard said, “The U.S. did something that I felt was very stupid, and that was to take a long time to get a realistic estimate of how long it would take to get a realistic estimate of how long it would take. He added,
And now we are seeing every bubble slowly but surely deflating.
The investment manager went on to talk about inflation. He stressed, “We have a lot of inflation, and sadly it is only going to get worse.” As safe assets, he recommended gold and bitcoin, both of which he sees as “sound money.”
Leppard continued: the average U.S. investor has been told, ‘Buy stocks, buy bonds, don’t worry about currencies.’ I think this is a huge blind spot. Because currencies are at great risk of serious declines in value, and I think the average investor with a 60/40 portfolio is going to really suffer in the next 10 or 15 years if they don’t own gold and they don’t own bitcoin.” He further warned: “If they hold a lot of bonds, they are going to get wiped out because I think the odds of bonds retaining any real purchasing power are extremely low.”
Leppard noted that politicians change the rules to suit themselves, as they did in bailing out the failed Silicon Valley Bank and Signature Bank, and warned that “you can’t trust a word” of what those who control fiat money say. ‘Because everything they do is designed to keep them in power and maintain the system.