A word of advice to my fellow American: Be afraid. Be very, very afraid of the consequences of the soon-to-happen inevitable collapse of the American dollar as the benchmark international reserve currency.
Given that very soon the Russian ruble (which is backed by gold) and the Chinese yuan (which is backed by a basket of precious metals and commodities) will replace the U.S. dollar (which is merely a fiat currency – backed by NOTHING!), it would be worthwhile to briefly outline the force-able economic consequences for us Americans.
The American dollar is a fiat debt-currency. For each and every dollar that is created by the Federal Reserve (FED) a corresponding and equivalent debt is created. If all debt in this country were paid off completely, there would be no dollars in circulation. But it gets worse – in order to avoid and economic recession – it is necessary for the FED to continuously inflate the money supply.
The consequence of this is that the value of the dollar is constantly and inexorably being eroded. The value of the dollar has fallen 86% since it was taken off of the gold standard by President Richard Nixon in 1971.
NOTE: Look back much further to the days of Franklin Delano Roosevelt in 1933. Due to the damage initially caused by Roosevelt, Nixon was given no choice, as every nation outside of the United States who was holding U.S. currency, was able to demand payment through the Federal Reserve – in U.S. Gold! Hence – Nixon had no choice but to do what he did. ~ Jeffrey Bennett, Editor
The U.S. dollar can be likened to a gigantic international Ponzi scheme. In order to maintain its value, it is in need of constant and continuous investment by domestic and foreign interests. This is no better seen than in the present employment of the U.S. dollar as the international reserve currency for the purchase of oil and gas. The current demand for the dollar is high because foreign nations that want to trade in gas or oil use the U.S. dollar as the benchmark currency
Were the dollar to lose its status as the benchmark international reserve currency, very dire consequences in deed would follow – especially for Americans.
For example – if the dollar were replaced as the sole benchmark international reserve currency by the BRICS nations (Brazil, Russia, India, China and South Africa), the demand for U.S. dollars would drop precipitously. As a consequence of this, no one would want to purchase U.S. government debt in the form of bonds and, if government bonds cannot be financed, there would be no money to finance the running of the government – especially government programs and agencies.
Welfare, Social Security, housing subsidies – as well as local services (garbage pick-up, streetlights, police protection etc.) would have to be cut. Unemployment would skyrocket, people would not be able to afford their mortgages and widespread crime, looting and rioting would most likely follow in its wake. REVOLUTION would almost certainly ensue.
Since the dollar is a fiat currency built on a gigantic Ponzi scheme, the dire consequences outlined above are inevitable. The U.S. can postpone the inevitable by punishing and isolating the looming international replacement currency nations of Russia (hence our funding of Ukraine it its US orchestrated war versus Russia) and China (by saber-rattling U.S. support for an independent Taiwan), and by going so far as to covertly threaten nuclear Armageddon should the U.S. dollar be supplanted as the international reserve currency.
So what can we do?
No much!
Of course, if you have money – now you could invest in gold and silver or – for that matter – in rubles and yuans – but what about those who do do not have such disposable, investment income or wealth?
What can they do?
Not much!
I fear disaster for the 90% of us who do not have the financial wherewithal to protect ourselves from the inevitable collapse.
Vaughn Klingenberg
Barnes Review
January 2023
