Offshore Investing: Why I Don't Hold U.S. Dollars—The Gold Maxi's 100% Gold Portfolio

The Collapse of American Wealth: How Inflation Fuels Poverty, Drives Credit Card Debt, and Sparked the Rise of the Gold Maximalist

"Inflation, as this term was always used everywhere and especially in this country, means increasing the quantity of money and bank notes in circulation and the quantity of bank deposits subject to check.” — Ludwig von Mises (1881–1973), Austrian-American economist, Inflation: An Unworkable Fiscal Policy.

America by the Numbers: In November 2024, the average personal saving rate in the United States stood at 4.40%, according to the U.S. Bureau of Economic Analysis. The personal saving rate is defined as the percentage of disposable income that people save.

How does America's personal savings rate stack up against its global peers? Here's the data:

• South Korea: 35.2%

• Sweden: 25.36%

• Slovenia: 22.49%

• Spain: 21.17%

• Austria: 19.47%

• France: 17.9%

• Germany: 11.3%

• Italy: 10.2%

Ludwig von Mises, renowned Austrian-American economist, a prominent figure in the study of monetary theory and inflation.

Call me unconventional—or even contrarian—but I don’t want U.S. dollars.

Not digital bank dollars. Not paper currency dollars. Not any kind of dollars, for any reason.

What would I do if you deposited digital dollars into my bank account or handed me a briefcase full of crisp $100 dollar bills?

I would get rid of them—immediately—and convert them into precious metals.

By now, you've likely heard the term “Bitcoin Maxi”, short for Bitcoin Maximalist—a person who believes that Bitcoin, the world’s most popular cryptocurrency, is the only digital asset humanity will need in the future. Bitcoin Maxis argue that all other digital currencies (including U.S. dollars) are inferior to Bitcoin.

One prominent American Bitcoin Maxi, Jack Mallers, has publicly shared that he avoids using or holding U.S. dollars altogether, opting to hold only Bitcoin. As a side-note, I don’t get involved in the gold-versus-crypto debate and hold no negative views toward Bitcoin or other cryptocurrencies. I do want to clarify that I don’t own any Bitcoin or other crypto coins of any kind nor do I advocate investing in them. I remain completely neutral on the topic.

With that said, think of me as the gold equivalent of 'Bitcoin Maxi' Jack Mallers—or what I have dubbed a 'Gold Maxi.' Like Jack, I believe there is a superior asset—one that stands as the ultimate store of value and will remain the only one truly needed in the future. For me, that one singular asset is gold. All other currencies, in my view, are merely imitations or credit, inferior to the only timeless asset: gold.

A collection of gold coins featuring various designs from around the world, symbolizing wealth and stability.

So, back to the original question. If you gave me U.S. dollars, why would I immediately get rid of them and trade them for gold?

Well, it really boils down to one singular word, inflation:

The decline of the U.S. dollar's purchasing power over the past century, showcasing the impact of inflation.

I’ve already covered the inflation data in great detail in a separate article, so I won't dive too far into the inflationary weeds here. By now, I’m sure you’re more than familiar with the history of the broader inflation debacle in America: the creation of the not-so-federal Federal Reserve in 1913, the "Nixon Shock" taking the dollar off the gold standard in 1971, the modern obsession with unsustainable government debt, and so on.

This isn’t the History Channel, so I am not going to take that historical detour and trust that you already have or are independently capable of doing your own research. But let me say this: by holding on to U.S. dollars in any form, Americans are effectively making themselves poorer year after year.

Masochism and ignorance aside, why on earth would anyone willingly do this to themselves?

U.S. currency featuring $100 bills, representing the dominance of the dollar in global trade.

But don’t just take my word for it—this poverty for the masses doctrine comes directly from the U.S. Federal Reserve, the institution effectively responsible for setting U.S. monetary policy. Astonishingly, they not only acknowledge that the dollars you hold are inflationary—publicly quantifying and reporting that very figure—but they also try to convince you that these inflationary forces are somehow beneficial for you!

I'm not kidding.

Here is the Federal Reserve's annual inflation target, straight from the horses mouth, "The Federal Reserve seeks to achieve inflation at the rate of 2 percent over the longer run as measured by the annual change in the price index for personal consumption expenditures (PCE)." And there it is! The not-so-federal Federal Reserve, wants, inflation.

Without taking a deep dive into the specifics of the PCE, the Federal Reserve uses it as a tool to track consumer spending patterns and measure price changes, serving as a benchmark to determine whether they are hitting that annual inflation rate of 2%.

Translation: the Federal Reserve's publicly stated "target" is literally to make Americans poorer through inflation.

Even in the best-case scenario, holding U.S. dollars guarantees that your purchasing power erodes by that "targeted" 2% every year. But what about inflation in a particularly bad year, like 2021? Well, that was a 4.7% loss, over double the target, according to official CPI data. In 2022, inflation spiked to 8%, a staggering four times the target. And in 2023, another 4.12% was shaved off—again, more than double their supposed goal.

A reasonable person reviewing this data might logically ask: If the Federal Reserve consistently misses its 2% inflation target by such a wide margin year after year, is 2% even a realistic goal?

If they’re repeatedly failing to achieve this target, does it indicate they’re actually incapable of keeping inflation at 2%?

And if we’re repeatedly seeing inflation rates at 2x or even 4x the target, what does that mean for the average American consumer?

Without accounting for the compounding effect of inflation over time, just looking at the aggregate impact: if you had $1,000 at the start of 2021, by the end of 2023, your purchasing power would have dropped to $831.80—a loss of $168.20 in just three short years.

Those numbers are genuinely alarming in their own right, and this is using the official data of the US government. Many independent American economists argue that the real inflation numbers are significantly worse than those reported. But we don’t need to dive into those estimates here—the official figures alone paint a frightening enough picture.

So, where does the average American turn to survive this terrifying inflationary armageddon?

A stunning aerial view of a vibrant city skyline at night, symbolizing economic activity and global commerce.

Well, to avoid getting poorer in the U.S., American financial advisers will generally recommend investing their client's money in financial products—like CDs, money market accounts, high-yield savings accounts, stocks, bonds, ETFs, or mutual funds—hoping that their annualized returns are sufficient to offset these inflationary losses and generate a net positive gain.

Unfortunately, major institutions like Goldman Sachs and JPMorgan are now projecting weaker S&P 500 returns, falling short of their historical benchmarks. This signals a challenging environment for investors relying on traditional markets for growth.

Based on my interpretation of U.S. economic data, I fully agree with their forecast and also believe that financial outlook for the average American is painfully bleak and will continue to deteriorate significantly. This belief stems from a combination of factors: a global economy increasingly shifting toward multipolarity with the rise of BRICS nations and the relentless growth of the American government’s unsustainable debt.

Furthemore, it is my firm belief that these compounding inflationary losses have fundamentally eroded the ability of the average American to afford a home, a car, and to support a family on a single income, as was achievable in the 1980s and 1990s. In 2024, even with dual incomes, full-time jobs, and advanced degrees, many Americans are still living in conditions that resemble poverty.

Again, don't take my word for it, here are the national headlines:

1. Survey: 50% of American cardholders now carry credit card debt, many with no plan to pay it off (2024)

2. Only 44% of Americans can afford a $1,000 emergency expense (2024)

3. Nearly 50% of U.S. Households Can’t Afford a $250,000 Home (2024)

4. Nearly 36 percent of Americans said they aren't making consistent student loan payments (2024)

5. 15 Million Americans — including those making more than $100K — buy groceries with ‘buy now, pay later’ apps as inflation rages (2024)

So, what is the average American to do if they hold most of their money in U.S. dollars in an economy plagued by stagnant wages and rampant inflation, watching their purchasing power collapse annually? You guessed it—most have turned to crippling credit card debt:

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America's Peacetime Hyperinflation: Why I Disagree with Phillip Cagan's 50% Hyperinflation Benchmark

What is hyperinflation? Who defined it? And is America currently experiencing it?

To answer the first two questions, we need to turn back the clock and examine the work of a brilliant professor at Columbia University.

Phillip Cagan, a renowned American economist, is widely regarded as one of the foremost authorities on hyperinflation. His groundbreaking 1956 work, The Monetary Dynamics of Hyperinflation, established the now-famous benchmark of hyperinflation as a monthly inflation rate of 50% or more. This definition has since become a standard reference in economic discussions, shaping the way policymakers and academics approach extreme inflationary events.

The iconic library at Columbia University, a hub of learning and innovation.

With Cagan’s definition in hand, we can answer the first two questions—and seemingly the third as well. If hyperinflation is defined as a monthly inflation rate exceeding 50%, then by that standard, America is not experiencing hyperinflation.

Case closed, right?

Well, not so fast. In my opinion, Cagan’s work is spot on—with the exception of one key aspect that I fundamentally disagree with.

No, I’m not questioning his math, nor have I reviewed it in detail—I’m happy to take it at face value. My disagreement lies instead with the context: the specific countries Cagan examined to define his 50% benchmark for hyperinflation.

Much of Cagan’s research focused on war-ravaged nations recovering from World War I, such as Germany, Austria, and Hungary, or rebuilding after World War II, like Greece. These were extreme cases where economies had been utterly devastated, and monthly inflation rates of 50% or more became a grim norm. To me, these scenarios go beyond what could be considered hyperinflation under normal, peacetime circumstances. Instead, they represent something far more catastrophic thany "hyperinflation"—perhaps better described as “collapse-flation” or “war-flation.”

The illuminated Hungarian Parliament Building reflecting on the Danube River at night.

I believe the benchmark for hyperinflation in a stable, peacetime economy should not be based on war-torn nations experiencing total economic collapse. Cagan’s definition, while valuable for understanding historical extremes, feels disconnected from the realities of modern, peacetime economies.

If Cagan's 50% "warflation" benchmark is rooted in wartime data and arguably divorced from the context of modern economics, then how do we define hyperinflation during a relative period of peace?

In my personal opinion, the best benchmark for defining hyperinflation in the U.S. is to examine wage annualized wage growth. This metric provides a more grounded perspective by reflecting how inflation impacts the average worker's income and purchasing power over time. Stated another way, I have shifted the perspective of hyperinflation to focus on the consumer as opposed to anything else.

Now, I’m not an economist, and this is purely my personal perspective. But if the Federal Reserve argues that inflation is a byproduct of a healthy and growing economy, then that growth should be reflected across the board, most prominently evident in wage data.

Let's zoom out for just a moment and see how U.S. wages in 2024 have kept up since the 1980s:

Yikes! The data reveals a catastrophic collapse in U.S. wages, which have utterly failed to keep pace with inflation over the decades.

Let’s zoom in on more recent data. According to the U.S. Social Security Administration's Average Wage Index (AWI) for 2022, year-over-year wage growth was 5.32%. In contrast, the U.S. Bureau of Labor Statistics (BLS) reported an inflation rate of 8.0% for the same year. That’s a staggering 33.5% gap, where wages failed to keep pace with inflation.

If economic growth is supposed to reflect a vibrant and expanding economy, why does that same growth consistently fail to translate into wage parity, yet remains clearly evident in inflationary benchmarks—those very indicators often tied to a so-called 'healthy' and 'growing' economy?

If the argument is that growth is simply not equitably distributed, then we would expect to see years in a healthy, growing economy where wage growth outpaces inflation. And yet, mysteriously, such occurrences are conspicuously non-existent. This persistent imbalance raises critical questions about the mechanisms driving inflation and growth—and why the benefits of economic expansion consistently seem to bypass wage earners.

This raises any number of critical questions, like: can we still call it economic growth when workers are getting consistently poorer?

Setting aside that American wages were largely outstripped by inflation, there were shockingly larger double-digit inflation rates seen across nearly every sector of essential goods and services in 2022:

• Eggs surged 59.9%

• Airline fares rose 28.5%

• Dairy products jumped 15.3%

• Fuel oil climbed 41.5%

• Natural gas increased 19.3%

• Cereals and bakery products rose 16.1%

• Electricity surged 14.3%

When countless essential items like food, travel, and heating outpace wages by orders of magnitude—for instance, eggs surging 59.9% in price, which is 1025.94% larger than wage growth at 5.32%—what do we call that, exactly? What do we call it when nearly all essential goods and services across a broad range of sectors are soaring at double digit percentages over the inflation rate itself?

Well, personally, I've dubbed it peacetime hyperinflation or 'peaceflation'.

Specifically, I would argue that peacetime hyperinflation occurs when year-over-year price increases in two or more essential sectors—such as food, travel, and energy—outpace wage growth by at least 10 percentage points. For instance, in 2022, U.S. wages grew by 5.32%, while essentials like eggs surged 59.9% and fuel oil climbed 41.5%, showcasing a clear and significant disconnect.

In my humble opinion, 2022 America was a clear example of the country experiencing a distinct form of hyperinflation—one that Cagan's The Monetary Dynamics of Hyperinflation simply doesn’t account for. This modern manifestation challenges traditional definitions by emphasizing the disparity between inflation and wage growth, highlighting an economic reality that extends beyond the confines of Cagan’s entire framework.

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How Does the Average American Survive Peacetime Hyperinflation? Why Conventional Financial Solutions Are Failing

We’ve seen how the US dollar is steadily collapsing in value, 'peacetime hyperinflation' is becoming the new normal, and Americans are resorting to unsustainable credit card debt just to survive as wages fail to keep pace with rising inflation. But again, don’t just take my word for it—I’m just one person. Let’s hear from average Americans across the country:

Double yikes! None of this paints the picture of a healthy or vibrant economy, and based on everything we’ve seen—and my interpretation of the data—I predict that the economy will deteriorate further, with inflation set to worsen significantly.

As I’ve reported, many financial advisors in the U.S. remain hopelessly out of touch, relying on outdated systems that are either failing to keep pace with inflation or are unlikely to deliver the historic market-beating returns they’ve provided in years past. Shockingly, nearly 50% of Americans don’t invest at all, leaving them to endure historically severe losses in purchasing power by simply holding dollars. With an average personal savings rate of just 4%, inflation relentlessly erodes their wealth, compounding the financial challenges they face.

Where are the other 50% of Americans, who do invest, putting their money? Here’s a quick breakdown of the most common investment choices:

	Investment Type	Benchmark Return (Annual)
1	CD's	5%
2	Money Market Accounts	5%
3	High-Yield Savings Account	5%
4	Bonds	2-6%
5	Treasury Bills (T-Bills)	3-5%
6	S&P Index Funds	7-10%

For the half of Americans who do invest their money, over the past three years (2021 to 2023), they've needed to surpass an average annualized U.S. inflation rate of 5.6% just to avoid losing purchasing power. Even at their best, most investments—aside from S&P 500 Index Funds—simply keep pace with inflation, rather than generating positive returns. Sadly, among all these options, the S&P 500 has been the only true investment-grade option with a consistent track record of outpacing inflation.

However, as I’ve reported, analysts are now predicting an end to the market-beating S&P 500 returns we’ve seen in years past.

U.S. real estate, too, is no longer the cash cow it once was. Home prices are dropping in previously red-hot markets like the San Francisco Bay Area, Austin, and Miami. To make matters worse, international buyers are pulling back too, with foreign purchases of U.S. real estate collapsing by 36% in recent years with that money now being pumped into superior global alternatives.

And why would international investors still invest in American real estate? What does nearly $3 million get you in the San Francisco Bay Area?

A 752 sq. ft. house in California priced at $2.7 million underscores the rising cost of living in the U.S.

Why? Just, why?

For a fraction of the price, you could live in Dubai:

Dubai offers unparalleled luxury and value, making it a top choice for global investors seeking premium real estate.

Or Japan...

Escape the chaos—Japanese mountain villages combine tradition, tranquility, and value for discerning investors.

Or Montenegro...

Historic charm and natural beauty—Kotor, Montenegro, offers unbeatable value in Mediterranean real estate.

Whether it’s buying a peaceful life on Mediterranean real estate along the Adriatic or experiencing the height of urban sophistication in cities like Dubai or Tokyo, foreign buyers are getting significantly better quality of life, superior amenities, and more value for their investment. Compared to the United States, these global markets offer higher quality real estate at a fraction of the price.

As foreign investors turn their backs on American real estate, why do Americans continue to overlook the world’s most sought-after properties—whether in cosmopolitan Asian cities or along scenic Mediterranean landscapes in Europe—choosing instead to pour their hard-earned dollars into overpriced, cookie-cutter suburban boxes in the middle of nowhere?

The reality of American suburban living: cookie-cutter houses in endless rows, offering little value for soaring prices.

It’s no surprise that foreign real estate investors have largely turned away from the U.S. market in favor of these rapidly emerging global alternatives—markets that provide better quality of life and greater value for their money.

So, what else is there to invest in to slay the relentless inflationary dragon devouring everyone’s purchasing power?

A self-described Bitcoin Maxi, like Jack Mallers, might argue that this leaves the average American with crypto as a final alternative. While crypto has become more popularity in recent years, it still suffers from the challenge of not being a trusted asset.

According to the Federal Reserve, only 7% of Americans owned or used cryptocurrencies in 2023. Reinforcing this discovery, a 2024 Pew Research study found that only 5% of U.S. adults felt extremely or very confident in using crypto, while 63% expressed little to no confidence in its reliability or safety. Whether Bitcoin or another cryptocurrency will prove successful in the future remains uncertain, but the reality is clear: people simply don’t trust it enough at this point in time.

Golden bull and bear statues symbolizing the financial market's ups and downs.

So, if the U.S. stock market is running on fumes, real estate is losing its luster, and crypto is mistrusted by the majority of Americans…what final investment vehicle does that leave us with to battle the relentless inflation monster stealing your money?

Well, there is one last thing that has withstood the test of time—enduring through all of humanity’s great empires, religions, languages, cultures, and economies, boasting an extraordinary 6,000 years of recorded history alongside humanity:

Gold!

A collection of gold bars and coins, showcasing timeless value and investment security.

Remember how I started by saying I don’t want dollars unless absolutely necessary—like paying bills—or that I’d immediately cycle them into gold? Well, it turns out that’s exactly what most non-G7 governments, central banks, and even ordinary people are doing around the world: exchanging billions of U.S. fiat inflationary dollars for, you guessed it, gold:

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Gold: Nature’s Timeless Hedge Against Inflation with a Proven 6,000-Year Global Track Record of Success

While the U.S. government spends its time racking up endless, unsustainable debt and debating utterly useless policies—like $8,395 for a lobster tank (yes, really) or opening a congressional liquor store— the rest of the world, led by BRICS, has been laser-focused on one thing. You guessed it: buying historically unprecedented, record-breaking amounts of gold.

Entrance to the congressional liquor store, a unique feature within the Capitol.

India, China, Russia—every one of these nations, representing billions of people—are pouring countless billions of dollars into a single, common asset: gold.

As of the time of writing this article, 18 BRICS members and partner nations account for roughly 3.3 billion people, or approximately 41% of the world's population. Together, they now represent 43.8% of global GDP when measured at purchasing power parity (PPP), following the recent addition of Indonesia. Indonesia, newly included in BRICS, contributes 2.44% of global GDP (PPP), surpassing the UK and France, which each account for just 2.2% of global GDP (PPP).

These BRICS+ nations are pouring billions of dollars into gold annually, while Western G7 countries sit idly by, twiddling their thumbs in apathy, seemingly content to watch from the sidelines. This raises an intriguing question:

What do BRICS+ nations know that Western G7 countries seem to be completely missing?

Gold is taking the world by storm, with BRICS+ nations leading the charge and non-BRICS countries following suit. Its rising demand, coupled with annualized returns outpacing the S&P 500 in 2024, underscores gold’s growing appeal as a universally trusted safe-haven asset:

1. Saudi Arabia: Analyst Claims Saudi Arabia Has Covertly Bought 160 Tonnes of Gold Since 2022

2. China: China has built up a $170bn (£135bn) stockpile of gold

3. India: India’s central bank boosts gold reserves by the most in 2 years after moving 100 tons from the UK to domestic vaults

4. Russia: Russia ramps up daily gold purchases by 700% beginning today

5. Poland: Poland buys 100 tonnes of gold, becoming largest buyer

6. Singapore: Singapore’s Central Bank Quietly Boosts Its Gold Reserves By 30%

7. United Arab Emirates: The Central Bank of the UAE has increased its gold reserves by 19.7 percent year on year, reaching AED20.6 billion ($5.6 billion)

8. Kazakhstan: Kazakhstan turns into the second biggest purchaser of gold in the world

9. Turkey: Turkey rapidly expands its gold reserves to all-time high

10. Thailand: Bank of Thailand Boosts Gold Reserves to Push De-Dollarized Trading System

The global trend is abundantly clear: both BRICS+ and non-BRICS nations are racing to secure gold reserves. Yet, for some inexplicable reason, the United States remains notably absent from this global movement, leaving us to ask once again:

What do BRICS+ nations know that Western G7 countries seem to be completely missing?

The harsh reality that may shed light on this complex issue is that America’s current economic landscape is far from stable. With official U.S. inflation data painting a grim picture and government debt skyrocketing, I believe the nation is on the brink of an era where inflation will not only persist but significantly worsen in the decades ahead.

As a self-described gold maxi, let me clarify a few things upfront. Do I own assets other than gold? 100%. I own various items like a car, real estate, and other essentials—not as inflation hedges or investments, but purely for their utility. These are fundamental, Maslow-level necessities: shelter, transportation, and the like.

And yes, I also own silver. In my younger years, gold was out of reach financially, so I began by investing in silver. I still hold that silver today and occasionally add to it—not as a primary strategy, but mostly for sentimental reasons or to collect coins that I simply find cool.

From an investment perspective, though, gold is my sole focus. It’s the only asset I consistently buy and hold—and I’ve been doing so for over a decade. I should also clarify that I don’t hold any gold in my private residence, nor do I keep any of it in America. In fact, I avoid keeping any of my assets in the U.S. because, frankly, I don’t trust American financial institutions or regulators. But that’s a story for another day…

And how has gold performed amidst America’s evolving inflationary nightmare? It has thrived. While gold hasn’t consistently outperformed the S&P 500 year over year, the trend now shows it starting to overtake the index in annualized returns since 1995, as our research reveals. In 2024, gold delivered an impressive 26% year-over-year return, once again outpacing the S&P 500, even during one of the index's strongest years.

Given America’s relentless inflation, unsustainable borrowing, and mounting debt, this economic landscape continues to strain businesses within the S&P 500. From rising taxes to debt-strapped consumers, margins and profitability are under pressure. Without a fundamental course correction, forecasts from major U.S. financial institutions like Goldman Sachs and JPMorgan predicting a decline in S&P 500 returns are likely to be correct in the years ahead.

Who do I trust for offshore gold buying, vaulting, and shipping?

For me, the answer is clear—BullionStar. With a seamless online platform, ultra-secure vaulting facilities in Singapore, and direct ownership of allocated gold, BullionStar makes offshore gold ownership simple and transparent. Unlike the convoluted mechanisms of the financial industry—riddled with hidden fees, counterparty risks, and unnecessary complexity—BullionStar operates with integrity, ensuring that what I buy is what I own. Whether I need to purchase, store, or ship my holdings internationally, BullionStar offers the ideal solution for those who see gold as a safeguard against financial uncertainty.

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The Final Nail in the Coffin: BRICS+ and Their Billion-Dollar Gold Strategy

So, what exactly do BRICS+ nations understand?

They understand this: there is no political will in America to address these systemic issues. No U.S. politician is willing to upset the apple cart and tackle the deep-rooted rot by redirecting U.S. funds into direct gold investments.

Acknowledging and addressing them would require cutting economic spending, a move that would trigger an economic crash overnight. Instead, the U.S. has chosen the path of least resistance—kicking the can down the road and sustaining a debt-fueled, inflationary status quo. This, in essence, amounts to an inflationary default, leaving gold prices poised to soar against the U.S. dollar.

The key insight driving BRICS+ nations is clear: America has simply run out of options. When the inflationary house of cards inevitably collapses, gold will remain the only universally trusted and enduring global asset.

A dramatic lightning strike over Hong Kong's skyline, highlighting the city's vibrant energy and unpredictable nature.

BRICS+ nations recognize the writing on the wall—a global shift from a century of American hegemony to a new era where U.S. power fades, and the rest of the world not only catches up but surpasses it across all measurable metrics. This transition to a multipolar world underscores one undeniable truth: throughout recorded history, gold has always been—and will always remain—the ultimate store of trust and value.

Bitcoin, dollars, stocks—everything else is just credit.

That is why I am, and will always remain, a gold maximalist.

Disclaimer: This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always do your own research and consult a professional before making decisions.