Will A Struggling U.S. Dollar Impact Real Estate Investors?

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Will A Struggling U.S. Dollar Impact Real Estate Investors?

https://www.biggerpockets.com/blog/will-a-struggling-us-dollar-impact-real-estate-investors

BiggerPockets Team

Member since 2026 · 4k+ posts · 2 votes

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Susan Maneck
Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
3y
A very clear presentation. I agree that 3% is better target for inflation than 2%. And as much as I love my 3.5% interests rates, 5% is more rationale. And as us boomers switch to safer investments we want our bonds to have better returns.
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- Andrew SyriosPro Member
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  Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
  3y
  Thank you and yes, I love my 3% mortgage but it makes no sense that they ever were giving those out. I doubt we'll ever see anything like that again in our lifetimes.
  Podcast Guest on Show #121
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- BiggerPockets Team
  OP
  Member since 2026 · 4k+ posts · 2 votes
  3y
  If you have any pull with BP, you might want to get them to ban a guy who is polluting your article about LLPA.
  
  Originally posted by Lucas.
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- Andrew SyriosPro Member
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  Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
  3y
  LOL, that guy really has it out for me. Who would have thought trying to correct some hyperbolic reactions to a rule change I oppose would get me labeled a communist? Oh well comrade, looks like he already got suspended.
  Podcast Guest on Show #121
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- BiggerPockets Team
  OP
  Member since 2026 · 4k+ posts · 2 votes
  3y
  Some of those guys would rather have a problem than solve a problem. Outrage is just so much more gratifying, donchaknow. The worst decision BP ever made was to switch to discus. Now the BP forum is infested with 10-ish comment spam trolls.
  
  Originally posted by Lucas.
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Michael Casile
Benson, NC · Member since 2019 · 133 posts · 3 votes
3y
Some of that gold history had escaped me. Thanks for the nice summary. Favorite line in the article:
"despite fiscal recklessness spanning multiple administrations by both Republicans and Democrats" ... anyone who thinks "our guys" are doing everything right and "their guys" are screwing everything up is just delusional. One side wants all spending cuts and one side wants all tax increases (and that's if they're not bluffing and they really don't care about the debt). If we don't get serious about the debt (which likely makes you unelectable) ... I believe bad things are coming.
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- BiggerPockets Team
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  Member since 2026 · 4k+ posts · 2 votes
  3y
  More accurately, the side that wants all spending cuts wants them only when the other side has the presidency. Otherwise, they don't really don't care. And the other side does not want all tax increases. They simply want spending cuts that do not fall disproportionately on those who already have less.
  
  Originally posted by Lucas.
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David Calhoun
Investor · Pennington, NJ · Member since 2017 · 18 posts · 4 votes
3y
I think the writer is missing some things:
1. The US military unfortunately is getting a lot weaker. Some of the services are concerned with using pronouns and have stress cards when things get tough. Meanwhile, the Chinese military is teaching children how to assemble and disassemble a firearm under a certain time limit. Physical test standards are getting harder in the US to obtain. Obesity in the US is getting worse. Chinese teenagers are practicing martial arts on a daily basis. Additionally, what is not helping is the weak leadership located at 1600 Pennsylvania Avenue.
2. The many alliances around the world (i.e. BRICS) is beginning to take a toll on the petrodollar system. Just recently Chinese surveillance ships were docked in a South Africa port. Also...Russia, China and South Africa just recently participated in military drills. China is brokering deals around the world (Belt & Road Initiative). China has stepped in to buy more of Russia's goods and services...so much for those "sanctions" issued by the WH.
3. The USD sitting overseas will come back to the US as the world moves away from the world's reserve currency. As that fiat currency comes back to the US, the competition for the goods & services in the US will cause hyperinflation.
4. Not sure what the writer references in "inflation is cooling"? According to whom? I wouldn't look to the Federal Reserve's definition.
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- Russell Miller
  Member since 2023 · 2 posts · 0 votes
  3y
  Real estate seems like a good investment when these dollars return home they will keep real estate prices rising and rental rates increasing.
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- BiggerPockets Team
  OP
  Member since 2026 · 4k+ posts · 2 votes
  3y
  1) The US military is NOT getting weaker. And you don't really want the US to emulate what you believe about the Chinese military. Or maybe you do. There are a lot of people who share your "information" sources who want to remake America into a right wing authoritarian state.
  It is true that obesity is increasing. This is also true in China. Furthermore, Chinese children, especially urban children, tend to be quite unhealthy. They breathe bad air from the moment of birth, and schools rarely give them proper opportunities for exercise because the air is so bad. they don't even get proper recesses in elementary school. They are prone to frequent illness. I can agree the self defense courses would be great as part of PE class. I would also like to see personal finance become part of the standard curriculum.
  2) These sorts of activities have been going on for decades. If the US wants to beat China in the soft power department, instead of complaining the US should broker deals around the world. PS. Lots of the of the non-Chinese parties to those brokered deals end up unhappy with the result.
  3) Not likely. The only currency competitor is the Chinese yuan, and it is a far distant second.
  4) Inflation HAS been cooling--from a high of 9.1% in June 2022 to 5% now.
  Maybe you should step away from the fear-mongering sites you regularly consume.
  
  Originally posted by Lucas.
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- Andrew SyriosPro Member
  Moderator
  Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
  3y
  I agree with most of these points to one degree or another (other than 4, yes I do think the Fed understates inflation, but there metrics correlate with the actual level and I can just see prices aren't rising anywhere near as fast as they were last year). The military has certainly gotten more inept over the years, but despite that, it is still comparatively quite powerful.
  But one of the major things is that despite many countries trading directly with each other and forgoing the dollar as an intermediary, they are still holding huge numbers of dollars in reserve. Furthermore, there is no currency available that can truly challenge it. Yes, the Yuan is gaining strength, but it is still a long, long way behind.
  Which is why I think we'll continue to see a gradual erosion of the dollar over the coming years as the United States declines as the sole world power, but won't fall off a cliff.
  Podcast Guest on Show #121
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- BiggerPockets Team
  OP
  Member since 2026 · 4k+ posts · 2 votes
  3y
  You are feeding a 2-comment spam troll from Discus who is parroting fear-monger sites. It is not a good faith comment.
  
  Originally posted by Lucas.
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- Andrew SyriosPro Member
  Moderator
  Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
  3y
  I was only replying to one person, the other who's comment was deleted I wasn't referencing. And while I think the comment is fueled by a bit of over zealous conspiratorialism, it appears to be in good faith
  Podcast Guest on Show #121
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- BiggerPockets Team
  OP
  Member since 2026 · 4k+ posts · 2 votes
  3y
  It is fueled by conspiracies because the writer is in an information silo. I used to think such people were simply misled, but otherwise in good faith. Not anymore.
  
  Originally posted by Lucas.
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- Andrew SyriosPro Member
  Moderator
  Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
  3y
  I don't know, just because someone's wrong doesn't mean they're arguing in bad faith. And some conspiracies are true after all. Our government doesn't have a particularly good track record with being honest. Like, I'm gonna go out on a limb and just say I don't think Epstein killed himself. That being said, many people take reasonable skepticism like that and then overdose on it hard.
  Podcast Guest on Show #121
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- BiggerPockets Team
  OP
  Member since 2026 · 4k+ posts · 2 votes
  3y
  True, just because someone is wrong does not mean they are arguing bad faith. BUT if they continue spreading wrong information or misleading conclusions even after they have been corrected umpteen times, they are arguing in bad faith. Skepticism is fine and an essential part of critical thinking.
  
  Originally posted by Lucas.
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AJ WongBusiness Member
Real Estate Broker · Oregon & California Coast · Member since 2022 · 834 posts · 696 votes
2y
The dollar is in decline and that trend will accelerate. Prime real estate will increase in REAL value along with income producing real estate. Gold will outperform all asset classes.
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