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The Almighty Dollar Is In Peril As The Global ‘De-Dollarization’ Trend Accelerates

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50 Dollars - Public DomainAs the Obama administration continues to alienate almost everyone else around the entire planet, an increasing number of prominent international voices are starting to question why the U.S. dollar should be so overwhelmingly dominant in global trade.  In previous articles, I have discussed Russia’s “de-dollarization strategy” and the fact that Gazprom is now asking their large customers to start paying in currencies other than the dollar.  But this is not just a story about Russia any longer.  As you will read about below, China and South Korea have just signed a major agreement to facilitate trade with one another using their own national currencies, and even prominent French officials are now talking about the need to use the dollar less and the euro more.  John Williams of recently said that things have never “been more negative” for the U.S. dollar, and he was right on the mark.  The power of the almighty dollar has allowed all of us living in the United States to enjoy an extremely high standard of living for decades, but as that power now fades it is going to have profound implications for the U.S. economy.  In future years the value of the dollar will go down substantially, all of the imported goods filling our stores will become much more expensive, and it is going to cost the federal government a lot more to borrow money.  Unfortunately, with the stock market hitting all-time record highs and with the mainstream media endlessly touting an “economic recovery”, most Americans are not paying any attention to these things.

French oil giant Total is one of the largest energy companies in the entire world.  On Saturday, Total’s CEO made an absolutely stunning statement.  According to Reuters, he told reporters that there “is no reason to pay for oil in dollars”…

“Doing without the (U.S.) dollar, that wouldn’t be realistic, but it would be good if the euro was used more,” he told reporters.

There is no reason to pay for oil in dollars,” he said. He said the fact that oil prices are quoted in dollars per barrel did not mean that payments actually had to be made in that currency.

If Gazprom’s CEO had made such a statement, it would not have really surprised anyone.  But this came from a high profile French CEO.  A decade ago, it would have been unthinkable for him to say such a thing.  Wars have been started over less.  Virtually all oil and natural gas around the planet has been bought and sold for U.S. dollars since the 1970s, and this is an arrangement that the U.S. government has traditionally guarded very zealously.  But now that Russia has broken the petrodollar monopoly, the fear of questioning the almighty dollar appears to be dissipating.

And at this point even French government officials are not afraid to publicly discuss moving away from the U.S. dollar.  Just check out what French finance minister Michel Sapin said to the press this weekend

French finance minister Michel Sapin says “now is the right time to bolster the use of the euro” adding, more ominously for the dollar, “we sell ourselves aircraft in dollars. Is that really necessary? I don’t think so.” Careful to avoid upsetting his ‘allies’ across the pond, Sapin followed up with the slam-dunk diplomacy, “This is not a fight against dollar imperialism,” except, of course – that’s exactly what it is… just as it was over 40 years ago when the French challenged Nixon.

So why are the French suddenly so upset?

Could it be the fact that we just slapped the largest bank in France with a nearly 9 billion dollar fine?

The remarks come a week after Paris-based bank BNP Paribas (BNP) SA was slapped with a $8.97 billion fine by U.S. authorities for transactions carried out in dollars in countries facing American sanctions. The fine spurred debate in France about the right of the U.S. in extending its regulatory reach beyond its borders.

This is yet another example of how the Obama administration is alienating friends all over the globe.

In fact, there doesn’t seem to be anyone that the Obama administration is afraid of crossing.  Just a couple of days ago, the German press exploded in outrage when Germany arrested a U.S. spy.  Why we feel the need to spy on our friends is something that I will never figure out.

And of course our relations with Russia are probably the worst that they have been since the end of the Cold War at this point.  And as the Russians now rapidly move away from the U.S. dollar, they seem intent on bringing the rest of “the BRICS” with them.  The following is a short excerpt from a recent Voice of Russia article entitled “BRICS morphing into anti-dollar alliance“…

However, in her discussion with Vladimir Putin, the head of the Russian central bank unveiled an elegant technical solution for this problem and left a clear hint regarding the members of the anti-dollar alliance that is being created by the efforts of Moscow and Beijing:

“We’ve done a lot of work on the ruble-yuan swap deal in order to facilitate trade financing. I have a meeting next week in Beijing,” she said casually and then dropped the bomb: We are discussing with China and our BRICS parters the establishment of a system of multilateral swaps that will allow to transfer resources to one or another country, if needed. A part of the currency reserves can be directed to [the new system].” (source of the quote: Prime news agency)

It seems that the Kremlin chose the all-in-one approach for establishing its anti-dollar alliance. Currency swaps between the BRICS central banks will facilitate trade financing while completely bypassing the dollar. At the same time, the new system will also act as a de facto replacement of the IMF, because it will allow the members of the alliance to direct resources to finance the weaker countries. As an important bonus, derived from this “quasi-IMF” system, the BRICS will use a part (most likely the “dollar part”) of their currency reserves to support it, thus drastically reducing the amount of dollar-based instruments bought by some of the biggest foreign creditors of the US.

Of course the key economic player in the BRICS alliance is China.

So will China actually go along with a “de-dollarization” strategy?

Well, the truth is that China has been making moves to become more independent of the dollar for a long time, and it has just been announced that China and South Korea have signed an agreement which will mean more direct trade between the two nations using their own national currencies

China’s central bank has authorized the Bank of Communications, the country’s fifth largest lender, to undertake yuan clearing business in the South Korean capital, the People’s Bank of China (PBoC) said in a statement.

The announcement came as Chinese President Xi Jinping wrapped up a state visit to South Korea on Friday. China is seeking to make the yuan – also known as the renminbi – used more internationally in keeping with the country’s status as the world’s second biggest economy behind the United States.

Unfortunately, most Americans don’t care about any of this at all.

They don’t understand that more U.S. dollars are actually used outside the United States than are used inside the United States.  Because most of the rest of the world uses U.S. dollars to trade with one another, this has created a tremendous amount of artificial demand for our currency.  In other words, the value of the U.S. dollar is much higher than it otherwise would be, and this has enabled us to import trillions of dollars of products at ridiculously low prices.  The standard of living that we enjoy today is highly dependent on this arrangement continuing.

And our ability to fund the federal government and our state and local governments is heavily dependent on the rest of the planet loaning our dollars back to us for next to nothing.  If we actually had to pay realistic market rates to borrow money, the finances of the federal government would have already collapsed long ago.

So it is absolutely imperative for our own economic well-being that this “de-dollarization” trend not accelerate any further.  The rest of the world could actually severely hurt us by deciding to stop using the almighty dollar, and the more that the Obama administration antagonizes both our friends and our foes around the globe the more likely that is to happen.

We live in very perilous times, and the almighty dollar is more vulnerable now than it has been in decades.

If it starts collapsing, it will take down the entire U.S. financial system with it.

Let us hope that we still have a bit more time before that happens, because once the U.S. dollar collapses it will be exceedingly painful for all of us.

  • Rodster

    This is all being done on purpose as the world moves towards a global currency and global governance.

    • FortuneSeek3rz

      The global currency will be Bitcoin.

      • Rodster

        IMF SDR

        • FortuneSeek3rz

          IMF SDR is too inflationary. It will fail like all fiat.

      • alan

        I doubt anyone could agree on a global currency. Everyone wants there cut.

        • Sven

          ^ This is more the truth. It is true they were angling for it but there are too many “personalities” and conflicts of interest/culture.

          It’s all falling apart, which has its pros and cons.

  • K

    Also remember how many things like cars, even the ones made in the U.S., rely on many foreign parts. As the dollar drops and those foreign parts go up. I would expect cars to increase by 3 to 4 thousand, in the next couple years. Perhaps even worse.

    • steve

      Man imagine how many cars will be left unsold when this happens..I think literally every US auto maker will go under. Heck I don’t know if anyone is even buying cars now as it is. I never see anyone at the car lots when I drive by.

      • A Dodgy Bloke

        Truths all best me to it. Click on the Zero Hedge link truth has. It’s amazing!!!

      • III

        Direct 103-289 will fix that.

  • Irina

    I read some of the comments to my posts. First of all, I was playing Devil’s advocate. I really don’t want to believe that the U.S economy and social infrastructure is in decline. But there is overwhelming evidence that the economy is dying. I apologize for offending anyone. I wanted to present an argument that the economy was okay. Also, I wanted people to refute my assertions that the economy was fine.

    • K

      Perhaps you did not make it clear you were playing devil’s advocate? If so you were most likely mistaken for a troll. That is something we have problems with from time to time. I find most people here respond well, if you make your intentions clear.

    • Irina

      No I most certainly did not make it clear I was playing Devil’s advocate. It is hard for me to believe that our manufacturing base has been decimated, student loan debt is over $1 Trillion dollars, unfunded liabilities are in the hundreds of Trillions of dollars, etc etc. But that is the case

      • K

        Indeed, that is the case. Like many things in life, the truth is uncomfortable. It is why so many refuse to see it. Welcome to those who are awake. Not a very happy group. But the truth is its’ own reward.

  • Mudpie

    I wish people understood what this means. But they do not. As a nation we richly deserve what is coming. Sadly, a lot of good people will be mowed down in the process.

    Seriously, probably time to get out while possible. Emigration is not easy but consider what many of our ancestors were able to do. Dig deep people.

    • topgun

      Mudpie. “Sadly, good people will be mowed down”..I might have believed that 30 years ago. Today, people are so obnoxious and self centered that I don’t care if they get mowed. They will be pissed and dangerous when TSHTF. The government can see it too. They are preparing for it. Do you know anything about the real story of what happened with Katrina? The people tried to shoot down the helicopters bringing aid. The ruthless took over very quickly, and they were armed. A contractor friend of mine had to hire security to get jobs done. And that was ‘just a hurricane’. They were warned. Just as now the people are warned. Sites like this and extreme sites like Alex Jones basically have the same message, a warning. It doesn’t matter what the motives are of the people who run these sites, the truth is out there, few care. The United States of Katrina is on the horizon. Yeah, if you can get out, go. If not, NEVER, EVER, give up your guns…

      • Mudpie

        I agree 100%

        • kathrynddaniels

          like Jacqueline implied I’m
          taken by surprise that a mom can earn $8130 in 1 month on the computer . see
          post F­i­s­c­a­l­p­o­s­t­.­C­O­M­

        • dorothywjenkins

          as Thelma
          explained I cannot believe that a stay at home mom can make $7420 in four weeks
          on the internet . more info here C­a­s­h­f­i­g­.­C­O­M­

          • Mudpie

            Shut up.

      • kenyattagward

        classmate’s aunt makes $68 every hour on the computer . She has been fired for
        7 months but last month her paycheck was $15495 just working on the computer
        for a few hours. visit the site C­a­s­h­f­i­g­.­C­O­M

      • Cherilynn Hansen

        Yes! A lot of people are not even prepared or ready for what is about to unfold! I pray for them because they r in for a surprise!!

        • krystal

          What do u think will unfold?

    • Proud America

      Emigrate where?….
      No one wants an American. We are the most reviled nation on the planet.

      • Mudpie

        There is a lot of truth to your statement.

      • RichieV

        Thats why i’m immigrating to Guam. still a US territory but away from the states.

    • pattilderrick

      Jacqueline implied I’m taken by surprise that a mom can earn $8130 in 1 month
      on the computer . see post C­a­s­h­f­i­g­.­C­O­M­

  • Bill

    We have not even seen the tip of the iceberg yet. Very few people realize the coming devastation. Even fewer people realize we as a country elected a imposter president who has been chipping away at the ice sheet creating the pending disaster.

    • topgun

      Not elected. Electorial college votes the president. In this case, ushered in…invited, methodically planned. Why? Why him? What is it we are not seeing? Or know? And that my dear Watson is the question…

      • Bill

        Read the inscription on his ring—–

        • krystal

          What does it say

    • Cherilynn Hansen


  • Peter

    Get your food, guns, bullets, gold & silver now. Stay away from bitcoin, it is not real money.

    • mistywindow

      Yes bitcoin is just digital money. Unfortunately, so is all the other fiat money in the world. The US dollar included.

      Read Michael’s old post about fractional reserve banking or watch the YouTube video “Money as Debt”.

      The money creation machine is at the root of all our problems.

      • Chikugunya

        understood, but at least I can feel a dollar bill…the net goes down, your bitcoins go the way of the dodo

  • 59LesPaul

    “Let us hope that we have a bit more time before that happens, because once the US dollar collapses it will be exceedingly painful for all of us.”

    I’m afraid time has run out. You need to move some of your wealth overseas, sell paper assets and accumulate tangibles as soon as possible.

  • art simpson

    The collapse of the dollar is exactly what the U.S. gov. has been working so hard for. It will collapse everything, start marshal law, so the new world order can begin.

    • Rex

      Marial, not marshal.

      • Rex

        Martial, not marshal.

        • CharlesH

          No…that’s martial, not Marial or Marshal. LOL

          • topgun

            we need a good laugh…

          • bob cratchette

            who cares how it is spelled the end result will be the same


      It’s all baked in the cake.

    • Sven

      Maybe it’s about a NWO but it’s also called “debt management”.

  • MeMadMax

    Arrogant, narcissistic leader.
    Arrogant, narcissistic government…

    • TooLittleTooLate

      lawless… criminal…. abusive…. obstructive… making so many laws that it makes criminals of all of us while it picks who to condemn….

  • Richard

    It is not at all a foregone conclusion that the dollar will collapse. Very simply put: when any commodity’s supply is withdrawn, its value increases. With all the defaults, bankruptcies and foreclosures about to slam the dollar, there is good reason to suppose that the dollars that remain will gain value as the dollar becomes in shorter and shorter supply. In fact there is a very good case to be made that the more unpopular the United States becomes internationally, the more valuable will become the dollar. The value of a currency has nothing necessarily to do with the power of the underlying economy or the size of the country. Look at Sweden or Norway, small countries with tiny populations with the world’s strongest currencies.
    Word to the wise…

    • Tim

      “Unfortunately, most Americans don’t care about any of this at all. They don’t understand that more U.S. dollars are actually used outside the United States than are used inside the United States.”

      If foreigners begin dumping the dollar, those dollars will come flooding back to the U.S. which will mean MORE dollars here, not less.

    • TruthIsAll

      How did you even get an upvote? You underderstand nothing about basic economics Richard. Other people valuing your currency and using
      it to trade is what makes it worth more. Fiat money itself is not
      wealth. Having more dollars flood back into the US would be no different
      than if they decide to print more- in other words, inflation, but this
      time the flow will be determined by foreign sellers, not the Treasury. The only way to make the dollar worth more is for them to start removing dollars from existence. Good luck getting the Treasury to do that. Inflation is power for the debtors.

    • Drud

      The question of whether financial collapse will be deflationary or hyper-inflationary or some sequential hybrid of the tow is still totally unknown. Historically, empires do not collapse in a hyper-inflation, but no empire in history has ever collapsed in that age of computers/electronic banking. This is a total game-changer and makes it even more difficult to predict what will happen. I personally believe deflation is more likely, as money supplies/derivatives/hypothicated paper assets simply dry up when there is a realization that it is ALL just debt. This is what happened in 1929. Most people believe the government is the strongest player in economic events, but this is simply not true; it is always about the masses and the herd mentality that drives them. Even hyperinflation–always thought of as “money printing”–is not due solely to government policy, it is driven by a lack of confidence in the currency by the masses. Again, anything I (or anyone) may guess about future events will almost certainly be wrong. Yogi Berra nailed it: “It’s tough to male predictions, especially about the future.”

      • TooLittleTooLate

        Hard to say if it will be inflation or deflation but, as you say… the world has never seen a reserve currency collapse… it’s hard to think it will be deflation when all those dollars come rushing home when folks quit trading with them though.

        • Syrin

          Deflation is GREAT for the consumer, but bad for the banksters.

        • Drud

          Yes, the money starts pouring back into the country and the Fed starts up the printing presses (it is the only trick they know, after all) an that points to hyperinflation, BUT, if you start looking at private and public debt numbers and they make the currency supply numbers look, puny. If the default train really gets rolling, it won’t matter what the Fed does. deflation will come quickly and surely. There are WAY to many variables in play to predict any details, I am only sure that collapse is both inevitable and absolutely necessary.;

    • Jimbo

      The world is flooded with Dollars due to its reserve status. However, the Dollar is ultimately only redeemable for tangible assets or services in its country of origin (The USA). So if (or rather when), other countries stop using the Dollar to trade with each other, holders of Dollars will spend them in The USA. This will force up prices as more Dollars chase the same number of assets. This is not an economic theory. It is a simple mathematical fact.

  • chilller

    When hasn’t Obama administration antagonizes both our friends and our foes around the globe? It’s obvious to most that his only contributions to the people of America and our allies is lying, cheating, corruption, scandal and treasonous disregard for our constitution and it’s laws.
    I for one am glad to see other countries making moves against this tyrannical gubermint as the collection of spineless jellyfish in congress do nothing but suck water in one end and blow it back out the other…

  • Angry Jesus

    All countries are using fiat currency and all face the same set of problems that the USD does. Other types of synthetic money like Bitcoin, frequent flier miles, reward points, cash back, gas points, grocery points etc. are just as problematic as any currency that has no weight or measure and is produced outside the realm of the tangible. The money changers are reveling in their drunken Babylonian stupor while gaming the masses. And yes, I’m still angry.

    • TooLittleTooLate

      What scares me is that because of the new police state… any talk in the near future may be considered sedition…. after all.. in 1983 there were about 3000 or so SWAT raids/year….. now, it’s upward of 80,000/yr… we’ve changed but, not that much…. watching the news today… so it seems we’re so upside down, troops have been deployed to stop the protesters from protesting the illegals being bussed into our cities…. this is simply insanity.

  • Kent Harris

    Most people on here know that our government is treating our friends and allies with contempt. The military should bring charges against the CINC under the UCMJ for treason. I am not an attorney but I think we have enough to justify it.

    I think the states should immediately have a convention and some of the amendments we could make abolish the 16th, 17th amendment, and the federal reserve, and have a balance budget amendment and finally states using the national guard would be in charge of border patrol.

    • TooLittleTooLate

      Those are all thing most could agree on… Sadly, the people don’t run the govt…. money and power do and both of those things will never allow the kind of common sense you propose.

      I’m afraid we’re in for a hard landing…. I was lucky enough to be able to move to the country but, I don’t know how much that will help if it gets really bad. I have some supplies… I have supplies for security, which I would never list here… lol… I raise animals and have a garden but, will that even be enough?

      I’m hoping for a reset and and a new currency…. Have no idea how this will turn out but, I do know that our current system is doomed.

      • bob cratchette

        sad thing about it living in the country will not be enough the city people will be going to the country to take what others have and yeah they can only kill so many before they are over run by sheer numbers or you will be worn down by having to stay up 24/7 to guard what you have and they will clean a garden out in no time

        • TooLittleTooLate

          Agree totally. The more property you have, the more you have to guard and keep safe…. the harder it becomes. I’ve seen this lately as things are already bad… even out in the country…. there have been a rash of burglars in the area… I have signs up that let them know if they’re caught, they’ll be shot…. ( and that’s ok to do in Texas )… I have fences and locked gates and have been lucky so far but, if things go all the way off the rail…. 24/7 guarding will have to happen. At least it’s so quiet out here, I can hear anything going on outside… in the barn… you can’t break the locks and get the door open without me knowing… or the shop… be prepared to take fire if I catch you out past the signs and the locked gate…. you’ll be bought and paid for….

  • alan

    Another cut and a little more blood. Mr. Yellen will make it right.


    This has been the Game Plan from the Git-Go by this Administration IMHO. If Obama’s objective is to take America down a peg or two, you can’t beat knocking America off its Reserve Currency perch. Everything else is child’s play by comparison.

  • Cal Wayback

    They will be throwing their gold and silver coins into the streets. So I wonder what currency will be used in the end days when the Mark is introduced.

  • It is time for you yankees to experience the pain and suffering that you have inflicted upon hundreds of millions of people around the world because of your dollar hegemony and financial and economic terrorism.

    • TooLittleTooLate

      I can’t say disagree with you. Yes, we have earned it…. The U.S. hasn’t fought a just war since WWII…

      • You didn’t even fight a just war during WW2. Read Thomas Goodrich’s Hellstorm to get a reality check of what your good old GI boys were really doing back then . . . to get an idea of what’s happening in Ukraine, what happened to Yugoslavia, Iraq, Afghanistan, Libya, etc. Everywhere you AmeriCANTs go, Death, Disease and Destruction follows.

        • Syrin

          Bitter much? Enjoying your modern tech and medicine developed in the US? I assume you use a car, plane, iPhone, PC and all those other evil things we developed. It’s no co-incidence everything took a turn after the creation of the Federal Reserve. Why do you let your fecal matter do your thinking for you?

          • Not at all. I am just sitting back and enjoying watching your Genocidal Empire kill itself including sheeple like you.

          • rushLIMBAUGHurinatesONliberals

            ^licker of the maletesticle

          • rushLIMBAUGHurinatesONliberals

            chu – lmao at your name, chu chu , bwahaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

          • TruthIsAll

            It’s best not to take personal offense to the bitterness of non-americans. There are plenty of just reasons to hate the historical actions that led the US to become powerful. Heck, the western world. If there’s one thing that the western world is good at, it’s waging clandestine wars and benefiting at the cost of other peoples. So yeah, the US created many technologies and innovations. A lot of modern tech came from German scientists who were essentially kidnapped. (It was either us or the USSR). We wouldn’t even have our lands if the US govt did not lie, cheat, and genocide others out of it.

            China was once a superpower before the Opium wars. One could argue that the pacific war might have never gotten as bad as it did if they had fought off the Japanese.

            The European theater could have been mitigated if it wasn’t for Churchill turning it into a total war. There’s a lot history people didn’t learn about or will try to outright deny. TPTB know… you must rewrite history to control the future. Demonize the enemy and tell your own they are exceptional- you’re guaranteed to have war.

        • TooLittleTooLate

          The alternative to not fighting WWII should be obvious why that was a, “just” war…. Sadly though, since then, they’ve all had political goals other than survival…. and IMO, unjust. It’s not hard to see why the world hates the U.S….. But keep in mind, David… not all that live here agree with our country’s actions….ln fact, most are too stupid to pay any attention to what it is that their political leaders are doing.

          • Agreed. But the people of your country are ultimately responsible for your country’s actions. Call it returning sins or karma, or whatever. Your citizens have not been paying any attention for a long long time, and those acts of omission are coming back with a vengeance.

          • TooLittleTooLate

            Agreed… the U.S. has a lot of debts to pay…. to a lot of folks it’s hurt…. Even now… we helped install a bogus leader in Ukraine who is committing genocide and yet, they’re called terrorist on the news and nobody questions any of it….. What they really are as folks with another political view….Yes, we deserve whatever we get and, we have earned it, sadly.

          • robert h siddell, jr

            The NYC banksters and the welfare/warfare crowd should get their just dessert but may God have mercy on the rest of US.

        • rushLIMBAUGHurinatesONliberals

          chu – bwaaaaaaaaaaaaaaaaaaaaaahahahaha

  • A Dodgy Bloke

    People don’t care about this because they are watching madness like “Naked and Afraid, “Dancing with the Stars” and other prime time distractions. Lets face it most people or at lest those in my part of the world are doing pretty good, but that wont last. Anybody looked at food process lately? That’s the result of QE finally showing up in prices. Anybody looked at China’s housing bubble? China has over forty million (Yes Million Virginia) empty apartments. With China’s on going demographic problems there is no way any of those are ever going to be used.
    I the use of the Dollar was based on three things the Breton Woods, Petro Dollar (if you don’t know what either of those are look them up if you’re reading this blog I’m assuming a base of understanding), and NATO. One is dead the other to are dying. You see the results.
    Oh BTW any of out over seas readers think you’re going to walk out of the coming train wreck obviously are not paying attention. Look around you!!!!!!!

    • Such a typical yankee response. I bet you haven’t even left your own state let alone your country to see what the rest of the world is like. You are living on ground-zero of WW3 and GD2, buddy. You guys are not even AmeriCANs, but AmeriCANTs.

      • rushLIMBAUGHurinatesONliberals

        hi racist!

      • A Dodgy Bloke

        Normally I don’t reply to immature comments, hateful comments. Because as a wise woman once said you never know if they’re written by a 9 year old or a dog. I’m curious why such hate for people you’ve never met? Is your life that empty that you have to fall back on a false narrative of nationalism to make your self feel good? Oh BTW take some time to crack open a book, you wont survive WW3 either and if you do you’ll envy the dead. I have traveled quite a bit you should try it. Maybe your hate for people who don’t come from your part of the would will be put in some perspective. I really do pity you.

        • Normally I don’t response to comments such as yours. I have never meet yankees? I have lived in your “wondrous” country for over 20 years, so I understand completely what you guys are all about. Hateful? Try utter disdain. As to WW3, we shall see if the rest of the world will survive WW3 and if the US/UK/Israel will not. Pity me? Hahaha! You are the typical western sheeple that should be pitied.

      • J

        David wake up. You might not like our govt and neither do we. Fine, call us Yankees, if it wasn’t for the Americans you either would be speaking German , a slave, or dead. When america finally wakes up, you will be the first one on your knees praising her! Because as history has shown us most of the worlds population is a bunch of sheep and cowards. I am tired of your comments, if we go down, so do you friend!

  • Cal Wayback

    Since the Federal Reserve took power in 1913 the dollar has depreciated by 98%. JFK figured it out and signed an Executive Order on 6/4/63 ordering the government to print debt free US Treasury Notes in lieu of debt ridden Federal Reserve Notes, the amount printed equivalent to the value of silver in US vaults. Of course when Kennedy died the printing stopped and the US Treasury Notes were taken out of circulation. Don’t fight the FED they say but JFK did and it cost him his life.

  • jakartaman

    At 50,000 feet looking down, I can not help but think this is all predestined. 2015-2016 is the 70th jubilee – the predicted end of the world as we know it. The speed and the severity of the world implosion and our Federal government being WELL prepared for whats coming is no coincidence.

  • AvidReader

    A dollar collapse would collapse the worldwide financial system as well, as both dollars and dollarbonds are spread around countless balance sheets of banks and investment- and retirement funds. So in fact, anyone in the world should be aware of these developments. But let’s wait and see if those talking heads actually DO something against the dollar, instead of only talking about it.

  • piccadillybabe

    Just a few short years ago, the DOW was at its peak 2006-2007 and then bam! Remember Obama saying, we will do our best to help those who lost recover some of their losses (401K). So, if you have been lucky enough to recover your losses, might be a good time to get out now while the gettin is good or move your assets to something stable (if anything exists like that anymore).

  • TooLittleTooLate

    I do believe that we’re on the last leg of our journey now… A friend of mine shared some youtube videos that Jonathan Cahn made on the Harbingers… The U.S. is about to experience some hard knocks, I’m afraid…. and, we’ve earned it…. If I were to make a prediction ( educated guess )… I’d say that by late Sept 2015… The U.S. will be hit VERY hard by then.

  • Tim

    “Unfortunately, most Americans don’t care about any of this at all.”

    That’s true, Michael. I recently went to Costco, and I saw a car in the parking lot with a bumper sticker that said “We’re Not Here For a Long Time; We’re Here For a Good Time.” Sadly, I think that exemplifies the mentality of a large portion of society. Such people had better wake up. I’ll admit that in some parts of America things are still pretty good. But that is going to change. The standard of living that we’ve had for so many years is going to drop drastically as the rest of the world rightfully rejects the dollar.

    • Mike Smithy

      A few years ago, I saw a comparable bumper sticker that read “I am spending my children’s inheritance”. I am not sure about the context or what that means. Is the bumper sticker owner giddy at the prospect of handing his children and grandchildren trillion dollar deficits as a result of government over-reach or is it referring to his/her personal wealth?

      • Tim

        Hi Mike,

        I’ve seen that one, too. When I lived in Maryland, I had neighbors–an older couple–who had a big motor home with that saying on the bumper. I took it to mean that they were living it up during their “golden years” and that there wouldn’t be much to leave to their children.

    • robert h siddell, jr

      Well, the 51% darn sure are a host of grasshoppers.

  • arby

    Yves Smith has a less urgent take at nakedcapitalism. Her viewpoint seems well reasoned.

  • topgun

    Stupefied is the new normal..

  • Bob

    Maybe we all should plant gardens and fruit trees. We will have an abundance of food which everyone will need if the economy collapses.

    • rushLIMBAUGHurinatesONliberals

      and people like gary will attempt to steal it

  • Mike Smithy

    Burn baby, burn!!!!! Let’s get it on and over with already.

    • Tim

      It reminds me of that commercial for Pepcid Complete from about 5 years ago. A customer walks into a greasy fast food joint, walks up to the counter and orders something from the menu board. The cashier asks the customer “Do you want that to hurt now or later?” The customer, with a puzzled look on his face, says “Uh, what?” Then another employee, who appears to be a manager, says “Sir, it’s a simple question. Do you want heartburn now or later?”

    • TooLittleTooLate

      I’m not ready….

      I have prepared some … I even moved out of town and raise animals and have a garden and land…. plenty of supplies and security… not ready… nope… not ready.

      I hope I’m insane and that all this is a bad dream…. I love land and animals so, no loss there…. always wanted a small farm….

      No dreams of a harem of wayward women needing things… no… it’s going to suck…. we already have to worry about theft out where I’m at… all my friends have been broken into…. I have gates and fences and I have not been hit… yet but, I already have to think about what it would be like to defend my property…… in Texas, you can defend your property with lethal force but, I don’t want to ever have to…. so, I put up signs… so, they’ve been warned… when the bottom drops… can’t imagine what it will be like and, I live 7mi from just about anything except just a very few folks out here. I can only imagine what true desperation looks like.

      • Mike Smithy

        I share your concerns. I live on a small farm here in Kansas that I affectionately call the Alamo. I have a pond with fish and use the water to irrigate my garden. Have been prepping for a while now, but always looking to tweak it. I have a nice supply of guns, ammo and medical supplies. I have a a few defendable positions and fall back positions. I like my odds but only providence knows for sure.

        • TooLittleTooLate

          I think was has hit me like a brick in the forehead lately is how vulnerable we are…. Sure, have plenty of guns and ammo but, when you have a small farm and all the things that go with that… you have a detached shop with things in it… a barn with all those things in it… a garden and pasture with animals in it… a coop with all the chickens in it.. you can’t be everywhere at once and you have to sleep sometime. lol… with all the folks out here having break ins…. Hell, I never want to have to shoot somebody but, I lose sleep over all of that now….. You’d really have to have something wrong with you to attempt to steal from here…. Sure, you can get over the fence but, the gates stay locked and you have to pass the signs saying that you will be shot…. but, the burglars out here are breaking into houses…. so how would this look if the bottom drops all the way out??? I don’t know but, I do know just how vulnerable it will likely feel.

          • Scared Economist

            You guys are looking at it all wrong — Individual Preppers are going to be #1 stategic targets. Security will only be in organized numbers.
            You guys better get with the program and start QUIETLY organizing mil—tias like many communities around the country are already doing. Arms and defense are a small part of it.

      • robert h siddell, jr

        What is a safe distance from an urban area? Farther than a stolen car with a tank of gas can go. Seriously, I believe the government will be the worst thief. No sense having more than a couple animals and bury all canned food…

  • tacoma

    Money of course is just a representation of wealth, not wealth itself. Is gold wealth? Of course it is not because you can’t eat it, you can’t live inside it, you can’t fly on it, etc. But it can be used to represent wealth and thus facilitate trading of real wealth. Further, if you issue ‘papers’ to represent gold the money, then the paper is called currency, not money. The reason nations issue currency instead of money is because you can issue all the currency you want by defining its relationship with money. But wait, it is also possible to remove the middleman money altogether, so that currency represents not money, but some definition of economic activity. This is what most of the world use today. They issue currency whose value represent economic activity – domestic plus international. This is the fiat currency, where by definition it has no relationship with gold.

    Before WW2, the U.S. currency was at an all-time low due to the Great Depression and due to its official backing by real gold. But the War left most of the world in destruction, and therefore the dollar was just about the only currency that can be issued to any amount to finance reconstruction. Before long it has become a global currency of trade and reserve. This is all legitimate and sound.

    70 years later the world is a very different place – a sign of the great success of post-War reconstruction. Other currencies have gained in real value because other great countries now exist. It is therefore appropriate that the U.S. dollar returns to one that represents today’s reality – a value based mostly on U.S. domestic activities, and far less to finance world activities. This too is legitimate and sound.

    The trouble came from U.S. own national policies – it now has an economy and a wealth base that is far less able to handle today’s world wealth order and re-dollarization. The nation wants to maintain a high standard of living, and aggressive economic and military policies of a superpower – all will be at risk.

    America now faced the same questions as the British people faced after WW2 with impending end of empire – heavily in debt to the U.S.A.. But of course, British empire cannot be maintained simply by printing money, nor the post-War U.S. superpower. Today America as Britain was in the 1950’s, it is heavily in debt. U.S. president Eisenhower withdrew support of the Pound Stirling and the end of the British Empire became real. The ‘Eisenhower’ of today consists of those who use the U.S. dollar as trade and reserve outside of the U.S. That the new ‘Eisenhower’ will make the same decision is a certainty as these great powers became convinced that the US government has failed to manage an economy that can justify its lofty dollar value.

    So don’t blame the fiat currency system that much. If an economic power decline, then its currency will decline. There is no way around it. A representation is not the real thing, after all.

  • grumpyhillbilly

    Try explaining to people about the world abandoning the dollar. Their eyes glaze over, and yet I think this may be the most important news story out there. We’ve killed our industrial base, and have lived vicariously off the dollar trading. Its about to end at a very inopportune time with the other serious problems that are currently facing the country. Oh well … guess we’re about to learn what it is to run out of other people’s money.

  • TooLittleTooLate

    Yeah… I’m afraid we’re toast… we’re so corrupt and utterly devoid of morals or rule of law that it’s not going to end well…

    When our govt. sends federal agents with riot gear to stop the protests that are happening because an illegal president not only fails to uphold his oath as president but also redefines law as he goes to run us off the rails…… while he does all of this… bus loads of illegals breaking our border laws get the air conditioner and the protesters that want the rule of law upheld get either beat, shot or gassed…….. This is NOT the country I grew up in.

    • Cherilynn Hansen


  • disqus_cczHVJhqgY

    It’s the greed. Americans want more by printing endless money they don’t have when in fact they have already enjoyed the privilege that other countries don’t have.

  • Crying Wolf Again

    I’ll log in July 2017 & Michael will be posting the same articles like this since he has since 2011.

  • El mico

    I’m always amused how Obama gets the blame for all your woes. Like he is personally responsible. This is a result of decades of crap foreign policy with the USA imposing it’s will on the rest of the world.
    You should make sure you own lawn is cut and tidy before you tell you neighbors to clean up their yard.
    We had Joseph Stiglitz on Australian tv last night saying do not head down the path of the USA.

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  • davidmpark

    We’ll be alright. Just finished building the bases for the lathe and milling machines, rabbits are established, Utah is fighting back, and the Church is still working to improve the lives of members and non-members alike. Wife is doing better, kids are less stressed, and helping out the wife’s family more. The usurper US Socialist Democracy is dying; the Constitutional Representative Republic will survive and then thrive – spreading to all points of the America’s. The dollar was corrupted decades ago; no surprise this is happening. Good luck all 🙂

  • bob cratchette

    can no one see where this is going ? it is all going towards a one world currency and a cashless society and do you think for a moment that the govts of the world will let the common people trade in gold and silver for goods and services all the govts have to do is outlaw the use of gold and silver as a means of payment for anything and impose prison sentences if someone is caught using it. yeah the govt may put up with it for a short while but they will not lose that control over the people, this is all about control and the govts of the world will do whatever necessary to maintain that control. once they have their cashless society they can monitor your every move and that is their ultimate goal is total control, you think obama would have any qualms about killing the citizens of this country, well let me answer that for you ummm no he and a majority of the politicians that so many think so much of would not either

    • Rob W

      Ain’t gonna happen. Peak oil = broke governments. Fragmentation will be the order of the day, warlords are a more probable outcome than a strong central government.

  • aedelaossa

    Time to lower our expectations! Good luck to you all!

  • Guest

    Guess it’s time to jump ship…

  • Kenington

    The article fails to point out that China is abiding by America’s demands to stop accumulating Treasuries and henceforth the dollar. The loss of reserve status will be a boost to the American economy and raise employment as the dollar is devalued!

  • TimeHasCome

    This financial horseplay will cost millions their lives around the world including right here at home. Only God can help us now.

    • Cherilynn Hansen

      Yep! So right u are!! Praise the good Lord because we r in for a major awakening and this one doesn’t look very good!!

  • Stefan

    That’s not necessarily cognitive dissonance. Have you considered that he may wish for a different solution to this empire, other than inflation? Not only that, but he didn’t exactly lay out an opinion of our empire being genocidal and super “evil”. I suspect you’re a very superstitious lad.

  • Julian Donkey

    Kyle Bass not exactly a fringe type had an interesting converso with a flunkey of the regime a while back. Would be nice if there was a real media but the only way you’d get attention is if Kyle Bass were a Sprayed HAr Pretty Boy Evangelist or a Anderson Cooper CNN CIA boy talking earnestly to them.
    Hard logic…not so much.

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