The Devaluation of the dollar has been happening for the last 70 years or so, especially after 1971. The devaluation of the dollar is a monetary phenomenon and typically driven by lowering interest rates by the federal reserve to increase credit and liquidity. From the moment of the launch of quantitative easing (QE), worried investors have asked, will the U.S. dollar collapse? There are some probable scenarios that might cause a precipitous crisis for the dollar. The most authentic is the dual-threat of high inflation and high debt, a scenario in which increasing consumer prices force the Fed to raise interest rates sharply. Much of the national debt is made up of relatively short-term instruments, so a spike in rates would act like an adjustable-rate mortgage after the teaser period ends. If the U.S. government struggled to afford its interest payments, foreign creditors could dump the dollar and trigger a collapse. A reset means the banksters will have to increase the price of the gold. They own tons of it so that they can cover their derivative positions … This reset is needed to hinder the most significant and fastest increase in global debt in half a century from exploding … But for the average middle-class family or pensioner on Social Security, it will mean “huge inflation”… As the reset will imply “an exponential increase in the quantity of money” by the Fed (meaning high inflation in the prices of everything) … Excluding for maybe “some food items” that are subsidized by the government to impede people “with pensions linked to the chained CPI” from literally starving!!
When you weaponize a reserve currency for personal gain such as what Wall Street and The Fed have done, on behalf of corporate interests that provide little-to-no benefit to even your own population?
Your days are numbered.
The only thing that could ever threaten the dollar would be a sound medium of value – aka GOLD!
Third world garbage countries no doubt dislike being pushed around by the US. They also don’t like the continuous devaluation caused by printed the FAKE money that is the USD.
The only thing more unbearable for the other 140+ odd countries in the world would be to have their own budgets constrained by real money!
So maybe the US is an abusive parent. But no country can EVER return to sound money. Not unless they abandon ALL social gibs budgetary black holes. And ask the French how easy that is to do.
As Mr. Rickards points out, “Expectations of a Global Monetary Reset emanate from the fact that monetary policies across the globe are unstable and unsustainable.”
That is an absolute fact, but one has to be impressed with how long the system has lasted so far without collapsing. One of these days, the whole thing will crumble… it literally has to… but the bankers will obviously prolong it for as long as they can because their entire empire depends on it. This is the main point Jim Rickards keeps making, and he’s not wrong. My guess is that the longer they keep suppressing the price of gold and especially silver, the more likely it is that the reset will be an absolute mind-blower, a mega-shock probably happening so fast that the majority of people will never get the chance to ‘get back into gold or silver. 99% of people on the planet are going to get broadsided because they’re not even close to being the slightest bit knowledgable about the monetary system.
For the 1% of people on the planet who do understand what’s going on… I’ll bet 95% of those people aren’t even holding metals or miners right now, even though they correctly realize that gold simply cannot go to zero. And by golly, at the rate the criminals are trying to drive it down, gold will be free for everyone by about the end of 2020. But obviously, that ain’t gonna happen. I suspect that when the big event happens, even though we can’t even envision exactly what form it will take, it will probably occur over a long weekend or during some sort of bank holiday (emergency). We’ll wake up the next day to find out that the US dollar will be ‘re-attached’ to gold at the rate of $25,000 to the ounce. Or maybe the US Dollar will take the second seat to SDRs… it won’t really matter. Gold goes from $1200 to $25,000 in an instant and silver to $1,000 per ounce. Once that happens, 99.95% of people on this planet will have missed the boat (at least regarding physical).
Mining companies will be the biggest play of all because they will probably rise in value non-stop for a full decade. If anybody doesn’t understand why JPM has amassed the most massive hoard of pure silver in the entire history of the world, they’re not realizing that JPM is verifying what I just told you. The Fed and their puppets (congress) have refused to allow a full independent audit of all US gold reserves, including leasing and all encumbrances… last legit audit was during the Eisenhower administration. Any of you gold-haters wonder why? HINT: the USA has no gold left, and Munuchin, like all Goldmanites, is a stone LIAR. If/When China and/or Russia introduces a gold-backed currency… the dollar will collapse. So hang on to your dollars, you gold-hating douche-bags… it will be fun to hear your screams.
SDR’s are nothing more than absolutely valueless paper just like any other fiat currency. Before they would be accepted by ‘the world,’ they would have to be something ‘special,’ and that can only mean one thing. They must be backed by gold… otherwise, they are no better than the US Dollar or any other currency.
And as far as acceptance is concerned, at this point, I don’t think Russia and China could give a damn since they have both taken steps to free themselves from the slavery of having to use the SWIFT banking system. Russia was threatened that they ‘might be’ banned from the SWIFT system, and they basically said: “FU, we’ll put our own systems in place.” Not only did they do that, but they also did it in partnership with China. They are now trading between each other in their own currencies and/or in physical gold, and at this point, they’re not the slightest bit interested in jumping right back into the shackles of enslavement to the BIS. Why in hell would they do that? They won’t! But they ‘might’ accept using SDRs under that one condition… that they are backed by gold… big time. Actually, this seems perfectly reasonable and a genius insight.
Every fiat in the SDR basket will blow up soon without an anchor. And none of them can consider backing their fiat with gold: it’s way too late. So, with the IMF pegging the SDR to gold (behind the scenes and informally), the SDR will be the anchor with gold as its real support. Gold’s value will still spike significantly to keep up with the highly inflated fiats in the SDR basket. And this price will be evident in the gold markets. And in the meantime, Russia keeps on buying more gold: Do you see any central bank (notably Russia and China) who are critical on the Petrodollar system buying crypto’s as well? The collapse of the US Dollar will IMHO come from another nation, or a block of countries, during a (trade)war, and not from a bunch of Pump& Dump computer nerds peddling their fictitious ‘currency.’
The USA came to power when England, France, Spain, Europe had no money and were at war. – The USA had the power to enlist the world into its vision. It’s a doctrine, and it’s good since it had money – The USA no longer has the money. It is the world’s most singular debtor nation, financed by China, Russia, Japan, Middle East Oil Countries, etc… the world has changed and is no longer unilateral rule by the US. Neoliberal Policies are now being set aside globally since protectionism, and industrial policy must make strategic use of the money they have to invest. Finance Capitalism is being displaced by pragmatism. The US must make sure that foreign capital does not buy up strategic industry and that our innovation is protected, our copyrights, our patents, our change must be strategically managed to make use of our assets, our ability, our skills, our value…
All nations face this now after the 2007-2019 global financial crisis… Part of this will be Lemon Socialism, bailouts for Steel, Autos, and other national security industries… part will be state-sponsored technology, state capitalism – We now must consider that we are at an end to privatization after 85 years from national industries for WWII… strategic industrial policy is the way to go Gold is a store of wealth. It will come out the “other side” any economic collapse much better than anything else…but can you make it through..especially if the hordes know you’re sitting on a pile of gold, guns, and ammo?