The David Lin Report Rick Rule: Dollar Purchasing Power To Decline ‘75%’ Over Next Decade
Jul 17, 2025
Rick Rule, Founder and CEO of Rule Investment Media, shares insights on the eroding purchasing power of the dollar, likening it to 1970s stagflation. He advocates for investing in gold, undervalued miners, and Canadian energy over bonds. Rule also discusses the increasing appeal of gold amid economic uncertainty, noting that central banks are boosting their reserves. Additionally, he reveals his plans for launching Battle Bank, which aims to offer innovative banking solutions, including precious metals as loan collateral.
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US Dollar Purchasing Power Decline
- The purchasing power of the US dollar is deteriorating at about 7.5% annually, while Treasury yields are at 4.5%.
- Investors lose about 3% real value annually, making gold a better store of value to preserve wealth.
CPI Understates Real Inflation
- Inflation measures like CPI significantly understate real cost increases experienced by consumers.
- Rising core prices amid economic softness signal dangerous stagflation ahead, similar to the 1970s.
Dollar Weakness: Relative vs Absolute
- The US dollar's relative weakness against other currencies is overdone due to political distrust.
- However, the US dollar's absolute purchasing power will likely continue its problematic decline.