We've spoken before about the danger of the US dollar losing its status as the world's reserve currency. Now Tucker Carlson provides the best description I've yet heard of the growing danger that this will happen, and not in the long term - soon. What's even worse is that it's happening because of deliberate US government policies.
I can only urge my readers to take the time to listen to this excerpt in full. If de-dollarization happens, it will be a body blow to the US economy, and may have dramatic long-term consequences for all of us that are not predictable as yet.
(EDITED TO ADD: If you'd rather read his comments, Fox has published a transcript of his remarks.)
I can only suggest we all plan accordingly, and brace ourselves.
Peter
3 comments:
There's lots of examples of what happens when the currency undergoes a drastic devaluation. Here's a few Weimar Germany, Sri Lanka, Zimbabwe, Chile in the 70s, Russia at the end of the Soviet Union, Argentina in 2000 and at present. That's what we have to look forward to. With manufacturing off shore and in Mexico, our oil production squeexed down, and the only thing we have to export being food, a bunch of which is currently controlled by China, fun times. If you think precious metals are expensive now, wait six months.
I had a supervisor in the early 70s who had been in the German Army in the war and immigrated in the 50's. He described how in 1948 the government decided to change out the old mark for a new one, each new mark was equal to ten old ones. The rich and connected learned about this early and bought up every asset they could before the switch, which was supposedly secret until the day it happened.His advice was to hold things and not money in bad economic times.
I think this would have happened eventually as we have abused the privlage.
Biden's policies - especally after the the Russian SMO - have accellerated it. Other countries are also noticing: 1 That Russia is Ok after they were cut off and, 2 they want tye commodities they have to offer. The only thing the US is currently offering is a kind of vasselage, and degenerate social exports
A possible look at the future of the USA where the dollar has lost its reserve status is documented in “The Mandibles: A Family, 2029-2047” by Lionel Shriver.
https://www.amazon.com/MANDIBLES-FAMILY-2029-47_PB-171-POCHE/dp/000756077X/
From my review which is the top review on Amazon: “The book covers four generations of a family in the near future. The family consists of about twenty people of whom I mostly did not like due to their overall craziness and attitudes about life. If there was anyone who came close, it was Florence Mandible who even as a single mother managed to buy a house in East Flatbush, NYC on a low income salary. But even she makes a lot of bad decisions that lead to a tough life. And I mostly liked Enola Mandible who was a successful author living in Europe but evacuated back to the USA due to supposed discrimination in Paris. Plus I liked Jarred Mandible who managed to get his patriarch grandfather to give him the money to buy a small farm in upper state New York."
"The conditions leading up to the beginning of the financial apocalypse in the USA in 2029 had their roots in Social Security, Medicare, and Medicaid, basically the Great Society federal and state programs. And in the continual wars and police actions started or participating in by the USA from WWI onward. One might exempt WWII from that list as WWII was supposedly actually good for the economics of the country but I have not researched that accepted fact for truthfulness.”
"In 2029, the rest of the world changes from using the USA Dollar as the world reserve currency to the new Bancor, a basket of world currencies. The USA Treasury Bills, of which there are $40 trillion outstanding, immediately double their interest rates in the next sale. The USA President and Congress pass legislation that holding Bancors is illegal for any USA citizen. Under further financial pressure, the USA repudiates the entire $40 trillion debt and starts seizing all the gold across the country from both citizens and businesses. Even gold wedding rings are seized as China has demanded that their tbills be redeemed immediately with non USA Dollars."
"The patriarch of the Mandible family is a 97 year man with a fortune inherited from his grandparents who owned a steel mill. The patriarch has his fortune invested in gold stocks, stocks of gold bullion in central repositories, tbills, and the stock market. With the crash of the stock market, seizure of gold, and repudiation of all tbills, he is wiped out and he and his Alzheimer afflicted second wife move in with his son and his wife. And then the entire family ends up moving in with Florence in her tiny three bedroom house. But that quickly goes away also as the remaining family members are soon homeless and living in a park."
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