The demise of the dollar has been planned for a very long time and if not stopped, will lead to a one world cashless, digital, financial system.
We are about to smash head first into a stone wall of economic reality purposefully built by Central Bankers across our originally gold backed yellow brick road.
Was our economic demise pre-planned, and did it have to happen? Most certainly it was planned, but just as certainly it would not need to have happened were we less inclined to live on credit, did not expect others to finance our lavish lifestyles, and were willing to live within our productive means.
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Prior to August 15th, 1971, the U.S. Dollar was backed by gold, and was the Reserve Currency of the world, which meant that virtually all international trade was transacted in dollars, making the dollar universally accepted and indispensable in international commerce.
President Richard Nixon decoupled the Dollar and gold in August 1971, but shortly thereafter negotiated a deal with the Saudis and other OPEC countries to back the dollar with oil in exchange for military aid and guarantees of protection from their regional enemies.
This substitute for gold backing was known as the Petro Dollar. Although this allowed the dollar to remain the international reserve currency, decades of deficit spending and living well beyond our means has reduced the dollar's value by nearly 97%, making a 1970 dollar worth 3 cents today in real purchasing power.
The US government has deficit spent, and Federal Reserve System has loaned into existence so many trillions of unbacked fiat dollars that trust in the reliability of the U.S. dollar is in serious doubt.
Many countries are looking for other alternatives including crypto currencies and sound money options that provide backing with something other than “faith & credit”.
Despite 100+ years of Central Banker derision of gold and silver as arcane relics of a bygone era, five thousand years of history has consistently proved otherwise. In fact, until 50 years ago, it was considered unthinkable to blindly trust bankers without demanding at least partial gold backing for any national currency, because of a repeated history of kiting funds or printing/loaning money into infinity.
The day of the dollar is beginning to wane, much faster than many would have envisioned, but then there are many of us with a basic understanding of economics that are amazed that the completely fiat dollar has managed to survive as long as it has.
I reported over 10 years ago that a coalition of countries, know as the BRICS nations were forging ahead with a very carefully orchestrated plan to challenge the hegemony of the dollar with a new basket of currencies at least partially backed by gold and other hard assets. Brazil, Russia, India, China and South Africa constitute the core backers of this alternative system, but recently have been joined by Saudi Arabia, Iran, Kuwait, Venezuela, and many of the OPEC nations that gave the “Petro”Dollar credability after President Nixon decoupled the dollar from gold.
With OPEC out of the equation, the dollar will be flying on wings built from astronomical levels of debt and nothing backing our currency but the “faith and credit” of a nation of people who have been living beyond their means for decades. Moreover, our longtime allies Japan, Germany, and South Korea recently announced their willingness to consider trading in something besides dollars.
To make matters worse, Joe Obiden has weaponized the dollar for political leverage against those unwilling to acquiesce to his schizophrenic political demands. This worked much better when the dollar was strong and the U.S. was an economic behemoth; but decades of feckless leadership, political intrigues, and economic malfeasance has left us in a very poor position to try to strongarm others into accepting vacillating political demands.
Congress, recognizing the decline of the dollar, is looking for ways to prevent unwanted competition as they move the failing U.S. Dollar into a new realm of sophisticated larceny.
By eliminating cash and promoting a totally digital cashless society (CBDCs) tied to a Chinese style social credit system; they can control all financial transactions, demand political subservience, and control resource use & consumption along UN Agenda 2030/Green New Deal parameters.
Considering a track record of 100+ years of political malfeasance, blackmail, treason, intrigue at the highest levels, Federal Reserve corruption, and inconceivable debt creation, “what could possibly go wrong” with a totally unaccountable monetary system?
Some see crypto currencies as a legitimate alternative to Central Banker hijinks, but this is an idea that will need time to mature. Meanwhile, Central Bankers and their bought and paid for political toadies work feverishly to coopt or outlaw the technology before an independent crypto financial space can be perfected.