As regular readers understand only too well, America has a huge advantage over the rest of the world because the dollar is the reserve currency. The advantage comes from the fact that only America can print dollars. What a great way to pay your debts eh? You simply print the money you need. It’s like playing Monopoly and when one of the players lands on your property they simply print some more money to pay your bill. You would be furious – and that’s just a game. Now translate that into the real world and you can see why countries outside of the US are pretty hacked off with the current arrangement.
The dollar as the reserve currency will soon end.
You may be tempted to say “Hey, but we can print our own currencies too, so it’s not all one sided”.
Er, yes it is because the US has also come up with another cunning wheeze whereby you can only buy oil in dollars. Since pretty much every country needs oil, every country needs dollars. Clever eh?
So how do you break that monopoly? (see what I did there?).
The answer is you find a way of NOT using dollars and that’s exactly what’s happening even as you read this blog.
Russia has just delivered a massive blow to the “petrodollar” by announcing a monster $20 BILLION oil deal with Iran which bypasses western sanctions and the dollar based monetary system. Every barrel of oil that flows without the need for a dollar exchange further loosens the dollars grip on the global monetary system. The dam is fractured and the flow will only increase.
America’s days of having the biggest unfair advantage of any country in the history of the world will soon come to an end and carnage will follow.
Gold and silver will rise in value as paper currencies revert to their true worth – which is the value of the paper they are printed on. How can I be sure? Easy!Every single currency in the history of the world has been devalued to 1% of its original value – and the dollar is no different. It has already lost 90% of its value in 90 years – what more proof do you need?