The U.S. Dollar: A Victim of Its Own Success

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America’s most powerful weapon of war does not shoot, fly or explode. It’s not a submarine, plane, tank or laser. America’s most powerful strategic weapon today is the dollar.

The U.S. uses the dollar strategically to reward friends and punish enemies. The use of the dollar as a weapon is not limited to trade wars and currency wars, although the dollar is used tactically in those disputes. The dollar is much more powerful than that.

The dollar can be used for regime change by creating hyperinflation, bank runs and domestic dissent in countries targeted by the U.S. The U.S. can depose the governments of its adversaries, or at least blunt their policies without firing a shot. Continue reading

Another Step Towards Collapse of Petrodollar

Note: Please see the source for currency swap agreements chart.

 

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For the past year and half a major topic throughout the alternative press has been the new Chinese oil futures contract settled/priced in yuan. The fact that China is directly challenging the Federal Reserve Note, U.S. dollar, is quiet a significant change. For those that have been paying attention this new futures oil contract is nothing more than the next step in China moving completely away from the Federal Reserve Note, and the “world reserve currency” system and towards a multi-polar world with several currencies being used for international trade. Continue reading

Maduro to Create Venezuelan Cryptocurrency ‘To Overcome the Financial Blockade’

Venezuelan President Nicolas Maduro / Getty Images

 

Venezuelan President Nicolas Maduro wants his own version of Bitcoin, announcing Sunday that his socialist government will create a cryptocurrency.

Maduro said on his television show that the new “petrocurrency” will be backed by reserves in oil, gas, gold, and diamonds, Bloomberg reports. Bitcoin, the world’s largest digital currency, hit new highs last week, and Maduro declared that his plan will counteract the economic disaster that is befalling the Venezuelan bolivar, which has experienced hyperinflation as the country’s economy has collapsed. Continue reading

Venezuela Demonstrates Why Socialism Always Fails

Venezuela had the greatest oil reserves of any country. The country was ruled for 14 years with the iron fist of Hugo Chavez. Then anti-capitalism wiped out the country and sent it into hyperinflation. “Socialism fails when you run out of other people’s money,” as Margaret Thatcher said. It is human nature for people to work less if the state is robbing them. What is the point of producing if the state just takes it away? Every socialist system has sent capital fleeing and caused investment to decline, yet politicians never see this. They just assume everyone will continue to work and pay whatever they demand in taxes. Venezuela is in a meltdown and people are starving. Continue reading

Dollar Reality – End of Petro Dollars

All economies are in freefall, however the U.S. is the safe haven (for the moment) because of a rising currency and still having the world’s ‘strongest’ economy, which is now in all reality propped up by hot air. The U.S. Dollar’s rise, as the article states, will wreck the rest of the world economy before its own demise comes around the corner. Pay attention to the signs. We’re riding the roller coaster to the top before the steep drop.

It’s also true that the Petrodollar is dead. It’s no longer a factor in what keeps the U.S. Dollar alive. It’s already on the chopping block now that this anchor has been removed and is only a matter of time before the axe comes down. That was the last foundation keeping the USD secure.

Because of the wealth of the information found in this article, most of the source will remain archived here.

 

 

QUESTION: Dear Mr. Armstrong,

(a) You say that the world is losing confidence in governments and I do not question that for a minute.

(b) BUT you also say that the dollar will strengthen for various probable sounding reasons, which it is presently doing. (whereas many think it will collapse).

For the collapse theory: it appears the petro dollar is being dumped which bodes ill for the dollar remaining the prime reserve currency. ——– does not think it will and that SDR’s will replace it. Surely as this eminent position of the petro dollar declines, there will be further debasement? (loss of purchasing power) – the opposite of a stronger dollar. Continue reading

Merkel: ‘I have no plan B’ on migrant crisis strategy – Deutsche Welle

Speaking on German public television on Sunday, Chancellor Angela Merkel said the policy of open borders for migrants would remain. Merkel dismissed a “rigid limit,” saying, “There is no point in believing that I can solve the problem through the unilateral closure of borders,” according to Deutsche Welle.

“I have no plan B,” Merkel said, adding that she was convinced she was on the right track with efforts to redistribute refugees within Europe, while addressing the problems causing people to flee to the continent: “I am fighting for this approach,” Deutsche Welle wrote. Continue reading

USA Losing Sovereignty to World Fiscal Mismanagement

The IMF and many economists (domestic and foreign) are now warning that a rate hike by the U.S. Federal Reserve, no matter when, will spark a major economic crisis in the emerging markets. They see this crisis being ripe for countries with high budget deficits, such as Turkey, as well as commodity-based economies. This includes the oil exporters such as Russia and even Saudi Arabia who has now begun to issue debt. Continue reading

Who’s Got the Gold?

In 1971, the US abruptly went off the gold standard, and in making the public announcement, US President Richard Nixon looked into the television camera and said, “We’re all Keynesians now.”

I was a young man at the time and had previously bought gold, albeit on a very small scale, but I recall looking into the face of this delusional man and thinking, “This is not good.”

However, the world at large apparently agreed with Mister Nixon, and within a few years, the other countries also went off the gold standard, which meant that, from that point on, no currency was backed by anything other than a promise.

Party Time Continue reading

The Swiss Franc Will Collapse

I have worked to keep this piece readable, and as brief as possible. My grave diagnosis demands the evidence and reasoning to support it. One cannot explain the collapse of this currency with the conventional view. “They will print money to infinity,” may be popular but it’s not accurate. The coming destruction has nothing to do with the quantity of money. It is a story of what happens when interest rates fall into a black hole.

Yields Have Fallen Beyond Zero

The Swiss yield curve looks like nothing so much as a sinking ship. All but the 20- and 30-year bonds are now below the water line.

Look at how much it’s submerged in just one week. The top line (yellow) is January 16, and the one below it was taken just a week later on January 23. It’s terrifying how fast the whole interest rate structure sank. Here is a graph of the 10-year bond since September. For comparison, the 10-year Treasury bond would not fit on this chart. The US bond currently pays 1.8%. Continue reading

“Now There’s Not Even Soap” Maduro Heads To China To ‘Save’ Socialist Utopia Venezuela

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Social media is awash with striking images of #EmptyShelvesInVenezuela (#AnaquelesVaciosEnVenezuela) as the evaporation of basic human staples such as toilet paper has now been hyperinflated to total chaos at warehouses and supermarkets. As President Maduro decries the loss of $100 oil “stability”, vowing to return oil prices to their rightful places (and heads to China for help), lines reach for miles for milk and soap… and the people defy governmental bans on photographing empty market shelves“We couldn’t find shampoo, so we washed our hair with soap. Now there’s not even soap.” Continue reading

Preparing For A Reset Of The World’s Reserve Currency

The eventual death of the U.S. Dollar is a given and not up for debate. This will, however,  sound alien and come as a shock to most living in the west who continue to go on living while turning a blind eye to current events.

Willem Middelkoop and Terence van der Hout of the Netherlands-based Commodity Discovery Fund believe that when the world’s reserve currency is reset away from the U.S. dollar in the next decade, gold prices will rise and mining equities will follow. Van der Hout and Middelkoop tell The Gold Report that by focusing on producers, near-producers ,and turnaround stories, they plan to capitalize on the opportunities in North America, Africa and beyond.

The Gold Report: Willem, your first book predicted the collapse of the global financial system a year before the 2008 fall of Lehman Bros. In your new book “The Big Reset: War on Gold and the Financial Endgame,” you’re predicting the demise of the dollar as the reserve currency by 2020. You said it can occur as a carefully planned event or as the result of a crisis. What would these two scenarios look like?

Willem Middelkoop: Authorities always prefer to act within a well-planned scenario. The U.S. and the International Monetary Fund (IMF) understand that the U.S. dollar has to be replaced one day. It could be 2020. It could be 2018. It could be 2023. It has to be replaced by another anchor to support the worldwide monetary system. Continue reading