The World Is Ganging up Against the Dollar

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The U.S. has been highly successful at pursuing financial warfare, including sanctions. But for every action, there is an equal and opposite reaction.

As the U.S. wields the dollar weapon more frequently, the rest of the world works harder to shun the dollar completely.

I’ve been warning for years about efforts of nations like Russia and China to escape what they call “dollar hegemony” and create a new financial system that does not depend on the dollar and helps them get out from under dollar-based economic sanctions.

These efforts are only increasing. Continue reading

US dollar era could end: Nobel laureate Thomas Sargent

Nobel Prize laureate Thomas Sargent says the era of the US dollar as the world’s largest trade currency could come to an end, China Entrepreneur magazine reports.

The United States was a poor country after it was founded in the 18th century but its economy improved dramatically after it “imported” many highly educated academics and was willing to admit to policy mistakes and rectify them, Sargent said. Continue reading

BRICS Nations Plan New Bank to Bypass World Bank, IMF

The leaders of the so-called BRICS nations — Brazil, Russia, India, China and South Africa — are set to approve the establishment of a new development bank during an annual summit that starts today in the eastern South African city of Durban, officials from all five nations say. They will also discuss pooling foreign-currency reserves to ward off balance of payments or currency crises. Continue reading

America Is Looking a Lot Like Ancient Rome — or Is It Modern Greece?

In 1935, one U.S. dollar would buy you 1/20th of an ounce of gold. By 1968, it was down to 1/35th of an ounce of gold. Today, one dollar will buy you only 1/1,750th of an ounce. The same thing happened against silver. In 1968, one dollar would buy an ounce of the silver metal. Today it will only buy you a mere 1/32 of an ounce.

Talk about debasement.

And the dollar hasn’t plunged just against precious metals. Against copper, nickel and zinc—the metals found in pennies and nickels—it is in free fall too. In fact, the dollar has plummeted against orange juice, whiskey, beans, bullets, pork bellies, single family houses, automobiles, coal, oil, good suits, healthcare, tuition, labor costs—and virtually every measurable commodity. If you can name it, it probably cost more today than it did 30, 10, or five years ago—probably more than it cost last year.

The mint reports that if it replaced the copper-coated zinc penny (it took the copper out of the penny in 1982 because it was too expensive) with a steel one, it would still not be profitable. What’s cheaper than steel? Tin? Nope a penny’s weight of tin would cost more than a nickel. A penny’s weight of aluminum would cost 2 cents. Lead is little cheaper. See the problem?

How about plastic? Anyone for a plastic penny? Clay? Asbestos?

Calls to just get rid of the penny altogether are growing louder. But that will only hide the danger to the dollar for a little longer.

And don’t be fooled. The dollar is in grave danger.

Full article: America Is Looking a Lot Like Ancient Rome — or Is It Modern Greece? (The Trumpet)