The End of Dollar Hegemony Part 4 (of a 4 Part Series)

15th September, 2022

The Crash

Today, (Sept 2022), we have the biggest financial bubble in history. Every financial institution in the world is bankrupt, or close to it. Global financial turnover is about $6 trillion a day, with obligations based in this financial system. Most of these obligations are invisible, but they make themselves visible when somebody tries to collect. It’s like a gambling debt. It’s only when the guy comes to collect it, then it becomes visible. Only then is the family aware of what’s going on.

In a chain reaction, we find people rushing to try and collect, not because Wall Street is collapsing, but because the derivative market is collapsing. Banks and speculators are trying to save themselves.

Within a period of as short as 3 working days, the banks will not only collapse, but also the entire financial system will vaporize. It will be an implosion, because of the ratio of unpayable debts coming due at once, hitting the virtually non-existent margin of assets to cover it.

For example: Look at your wallet. How much of your money is in electronic form? How much of your money is actually cash? How many dollars/euros/pounds do you withdraw from the bank, and deposit – money- as opposed to electronic deposits and electronic withdrawals? How much credit that you rely upon, comes in the form of electronic credit as opposed to cash?

What does that electronic credit mean? It means you have a banking institution, which guarantees the conversion of that electronic credit into money. Now, what happens if that institution suddenly, no longer functions? You are there with a card; it is no good.

Now, what happens in about 3 or 5 days’ time at the local supermarket? They are functioning on electronic money. What happens when the current stock of groceries runs out – and there will be a rush for groceries? What happens?

They can’t get more groceries. The supply chain breaks down. Institutions break down. In modern economies, people do not realize how vulnerable they are. We no longer have local farms. We depend upon credit, especially electronic credit, and local stores and we get by through the week, largely on the basis of electronic credit.

What happens if that system of electronic credit breaks down? Then you actually get conditions of mass starvation throughout the world. The whole system of commerce comes to a standstill.  And that is what we are facing, unless something is done to deal with that.

The weakest part of the system lies in the interbank payment system (details of this will be explained in another issue) that, in turn, depends upon the extent of losses incurred by the major players in the market.

The End of the Petro-Dollar

Let us summarize all these points as to the reason why the global rule of the dollar is coming to an end:

  • The dollar is a paper currency lacking any gold backing.
  • The dollar’s financial domination has allowed the Rockefeller Empire to weaponize derivatives, currency wars, rating agencies, manipulating the LIBOR rate- all of which combined to enforce unfair terms of trade.
  • The ongoing theft of gold and money belonging to other nations.
  • The destruction of the physical economy in favor of a virtual economy- something which is not sustainable.
  • The absence of common sense and intellectual capacity, combined with a bankruptcy in the moral and spiritual domain.
  • US stock market losses since the beginning to March to the end of August have been estimated at some $ 7 trillion. In the EU, it is just as bad. US stocks have recorded their worst first half in more than 50 years after a rout triggered by the Federal Reserve’s attempt to curb persistent inflation and exacerbated by gathering concerns over global growth.

Starting in March, the Fed began to increase interest rates, NOT to fight inflation, but rather to hold onto dollars that were fleeing the dollar market.  Money began fleeing the dollar because Putin announced in March that the Ruble will be pegged to gold, and that Russian energy exports will no more be purchased with gold, but with rubles. This was like a “DEATH SENTENCE” for the dollar.

In order to avoid money fleeing the Euro, the ECB also raised interest rates, and this was followed by Britain, who feared a massive exodus of funds from the pound. THEN, the Fed increased rates yet again. Both the ECB and the BOE followed suit. Then, the Fed AGAIN raised rates for the third time! This time, both the ECB and the BOE threw the towel in, and thus, we see, in the last few weeks that both the Euro and the Pound are becoming WEAKER against the dollar. Talk about currency wars! This fierce completion is just beginning.

For these reasons cited above, the West is at the end of its shelf life. Washington has greatly underestimated its vulnerability to catastrophic geopolitical blowback that is about to bring the New American Century to a swift and excruciating end.

From the Petro-Dollar to the Petro-Gold

The End Is Nearing: A World Slowly/Openly Turning Away From The USD. With the USD losing influence, it would be the understatement of the year to say that we live in interesting times, for we certainly do.

One clear sign that there’s more pain ahead, and hence more reasons for the Fed to pivot from temporary hawk to permanent dove, is the credit tightening now taking place in the US.  The credit—and bond—market is the most important market and economic indicator of all. Earlier this month, the Fed came out with  news, namely that the credit markets are tightening. It’s important to know that in the last 30 years, a tightening of credit has always preceded a recession,

 The US can’t afford a sustained rate policy as the Fed’s only job is to keep Washington’s IOUs from drowning. The only way to keep US Treasuries from tanking (and hence bond yields and interest rates from fatally spiking), is for the Fed to print more money to buy U S government debt.

Of course, money created with a mouse-click is inherently inflationary and fatal to the purchasing power of the USD, which is why gold is inherently poised to out-perform every fiat currency in play today, including the world reserve currency. But as for gold’s rise, there’s a lot going on outside the US which further points to gold’s pending rise.

Investors may have noticed that money is fleeing China in droves. Capital outflows are reaching levels not seen since 2015, which sent the Yuan to the basement by 2016. In fact, the CNY is holding its own despite massive capital outflows. The openly back-firing, financially-inept and politically-arrogant Western sanctions against Putin’s war amounted to the biggest game-changer in the global currency system since Nixon closed the gold window in 71. More to the point, and despite massive capital outflows, the CNY is remaining strong because its FX reserves (i.e., its national savings account denominated in foreign assets) are actually rising not falling. And the money is coming from just about everywhere except for the dollar-led West.

That is, nations like China and Russia, who have been chomping at the bit for the last decade to de-dollarize, are now doing precisely that in the wake of recent moves by the West to weaponize the USD by freezing Russia’s FX reserves.

Sanction chest-puffing by the West has given the East the perfect pretext to fight back financially and monetarily, and they are fighting to win a heating currency war. Specifically, countries wishing to purchase Chinese imports (i.e., commodities) now have to pre-convert and/or settle those purchases from local currencies into CNY rather than the once SWIFT-and-world-dominated USD.

In short, the USD is no longer the toughest guy in the neither room nor prettiest girl at the dance.

This is becoming more evident as headlines confirm Indian companies swapping USDs for Asian currencies, China and Saudi Arabia concluding energy deals outside the slowly dying (and forewarned) petrodollar, and the Russian Central Bank considering buying the currencies of friendly nations like Turkey, India and China.

As commodities like oil (priced-up 30% since 2018) leave places like China and Russia, they can now be purchased with local national currencies (Indian, Brazilian, Turkish) which are then converted into CNY. This procedure adds massively to China’s FX reserves (especially when oil prices have been rising), thereby allowing its currency to stay strong despite massive capital outflows.

Transition to Multi-Currency & Alt Payment Systems

Russia started developing its own national payment system when the US targeted the country with sanctions in 2014. Back then clients of several Russian banks were temporarily unable to use Visa and Mastercard due to the restrictions. Since the introduction of the new payment system, Russian banks have already issued more than 129 million Mir cards. They are currently accepted in Turkey, Vietnam, Armenia, South Korea, Uzbekistan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, South Ossetia and Abkhazia. Moreover, Indian ATMs and terminals may soon start accepting Mir debit and credit cards, while Russia is planning to reciprocate and begin accepting India’s Rupee. In July, the head of the economic department of the UAE Embassy in Moscow, Ahmed Al-Ketb, said the nations had started negotiating an agreement that would allow the use of the Mir payment system in the Gulf state. Nicaragua is ready to explore the use of the Mir payment system, developed by Moscow in response to Western sanctions, and allow the use of Russian credit and debit cards in the country.  This is only the start, as a snowball effect is taking place. Many countries are now beginning to make changes in their financial systems.

A side note on this point: The two families hatred of cash in favor of card payments begat a new gimmick to increase the use of credit and debit cards. In many countries within the Zone A nations, and some of its more advanced economies in Zone B, a new marketing campaign was launched. This was about “earning points” and “cash-back” bonus system. These two families dominance within the global financial systems, plus the 1000s of global companies within their orbit, enabled the “subsidy” over a long term in this program. If VISA and MasterCard, etc. are being replaced by Chinese, Indian and Russian debit/credit card systems, then it means that soon, about 40-60% of the Global South will no longer be using Western card systems.

The aim of the 2 families in this is closely tied to the Rockefeller Agenda 2030/the Great Reset/Digital ID, through the increase use of Western card systems. Billions of dollars in “subsidies” is going down the drain. Good for humanity. This is bad for these evil families.

In short, and despite Western attempts to flex its currency muscle via USD-driven sanctions, nations like Russia and China are now leading the charge from a one-currency world to a multi-currency world of import payments. And this process is accelerating at the moment, with Russia, India, China, and many countries in the Global South are determined to move away from the tyranny of dollar dominance. The future will be global trade in multiple currencies. Plus, no nation wants their hard-earned savings and assets in Western financial systems to be “stolen”.

With its FX reserves frozen by the West, Russia, for example, can take its energy profits and Rubbles to purchase the currencies of friendly countries like China, India and Turkey to rebuild its reserves outside of the USD. In this manner, since February of 2022, the West has shot itself and the world reserve currency in the foot. The old world is slowly but surely turning irreversibly away from a USD-dominated currency system toward a multi-currency and multi-FX pricing model.

And as we head into winter, nations like the UK, Japan, Austria and Germany, who blindly towed the US line, will be feeling the cold pinch of backing the wrong policy as other nations stay warm/heated with oil and gas that can be bought outside of the old, USD-led system.

Either way, the USD is the open loser over time, and will never be trusted as neutral currency again. But agree or disagree, you may still be asking: What does any of this have to do with gold?

It has everything to do with Gold. As more nations turn away from the West (and the USD) and closer to the East (i.e., Russia) to meet their energy needs, how will they find the Rubles or Yuan to buy their oil, gas and other commodities?

After all, in the new, post-sanction, multi-FX importing model described above, Turkey can’t just buy Russian oil in Lira; it needs to first settle the trade in Rubles. So, again, what currency will Turkey use?

From Petro-Dollar to Petro-Gold

 YTD Turkish gold imports are up 44% to nearly 70 tons, and can easily reach prior levels of 300 tons per annum. In other words, Turkey could be dumping US dollars to buy gold at what we all know is a deliberately rigged (i.e., low) COMEX/LBMA price. Turkey can then sell that gold to Russia’s central bank in exchange for Rubles “at a negotiated price” otherwise needed to purchase Putin’s oil.

Given that the physical oil market is nearly 15X the physical gold market, one can only imagine what further oil-for-gold transactions as per above will do for the rising price of a scarce asset like gold.

See why the BIS/COMEX/OTC price fixing of gold earlier this year was the perfect (and artificial, legalized fraud) timing needed to keep gold cheap for other nations to buy?

Perhaps all this interest in gold rather than the USD explains Saudi Arabia’s recent push to refine gold within its own borders? Perhaps this also explains why less-favored nations to the US (i.e., Nigeria and India) are launching a bullion exchange and opening gold trading?

Perhaps gold’s new roles are why the BIS, the biggest player (legalized scammer) in the paper price fixing of gold, have unwound nearly 90% of its gold swaps over the course of a year (from 502 to 56 tons)?

And perhaps gold’s stubborn significance further explains why the two biggest US gold price manipulators in the futures pits, JP Morgan and Citi, have been grotesquely expanding their gold derivative book (they own 90% of all US derivative bank gold) at the same time the BIS was unwinding their swaps? Why?

Simple: To keep a boot to the neck of the natural gold price just a bit longer as they accumulate more of the same before the very currency system they helped ruin finally implodes? The big boys are now net-short US Equity futures.  After Nixon’s debacle in 1971, between 1973 and 1974 gold surged 400% in just one yea. Ironically, however, it is fair to say that even these banks will be hoarding more physical gold (at currently repressed/rigged prices) as the world they created implodes under its own systemic sins. And if the Rockefeller banks such as JP Morgan or Citi is getting prepared, shouldn’t you?

The Impending Food Crisis

  Over the past few months facts that show that global food production is going to be way down in 2022.  Unfortunately, most people out there don’t seem to understand that the food that isn’t being grown in 2022 won’t be on our store shelves in 2023.  We are potentially facing an absolutely unprecedented worldwide food crisis next year, but the vast majority of the population doesn’t seem very alarmed about thisAs you will see below, we now have so many data points that it is impossible to deny what are coming.

The following is a list of things we know about the coming food shortages…

  • The hard red winter wheat crop in the United States this year “was the smallest since 1963”.  But in 1963, there were only 182 million people living in this nation.  Today, our population has grown to 329 million.
  • Year-to-date shipments of carrots, sweet corn, tomatoes, peaches, rice   in the United States are down.
  • Almost three-fourths of all U.S. farmers say that this year’s drought is hurting their harvests.
  • Thanks to the endless drought, the total number of cattle in Oregon, New Mexico, Rexas and other areas are down by half.
  • At least 40 percent of the United States has been suffering from drought conditions for 101 consecutive weeks.
  • Overall, this is the worst multi-year mega-drought in the United States in 1,200 years.
  • The prices of some fertilizers have tripled since 2021, while the prices of some other fertilizers have actually quadrupled.
  • To add to these, over the past year, many food production and processing plants within the US have been burnt down and destroyed.
  • One Payment Company is reporting that the number of Americans using their app to take out short-term loans for groceries has risen by 95 percent.
  • Europe is currently experiencing the worst drought that it has seen in 500 years.  In some parts of central Europe, river levels have fallen so low that “hunger stones” are being revealed for the first time in centuries. Corn, grain and other foodstuff  production for the entire EU could be down by a third, or more.  

In 2022:

  • Agricultural production in Somalia will be down about 80 percent this year.
  • In eastern Africa, the endless drought has already resulted in the deaths of at least seven million animals.
  • In China, they are facing the worst drought that they have ever experienced in recorded history.
  • India normally accounts for 40 percent of the global rice trade, but we are being warned that production in that country will be way down in 2022 due to “considerable rainfall deficits in key rice producing states”.
  • A third of the entire nation of Pakistan was under water after recent floods absolutely devastated that nation, and agricultural areas were hit particularly hard.  As a result, the vast majority of the crops in the country have been “washed away”….It has also been estimated that roughly 65 per cent of the country’s food basket — particularly crops like rice, cotton, wheat and onion — have been washed away. Pakistan Foreign Minister offered an even starker outlook by saying that “about 80 to 90 per cent” of the country’s crops have been damaged by the floods.

828 million people around the world go to bed hungry each night. Needless to say, that number will soon be much higher. As global food supplies get tighter and tighter, so will the risk of civil unrest. The risk of civil unrest has surged this year in more than half of the world’s countries, signaling a coming period of heightened global instability fueled by inflation, war, and shortages of essentials. 101 of the 198 countries tracked on its Civil Unrest Index saw an increase in their risk of civil unrest between the second and third quarters of this year. In recent weeks, we have seen absolutely massive protests in cities all over the planet. But conditions aren’t even that bad yet. So what will things be like in 2023 when it finally becomes exceedingly clear that there simply will not be enough food for everyone? Wealthy countries will have the resources to buy up much of what is available on the market, and that means that many poor countries will deeply suffer. In 2023, there will be famines and civil unrest all over the globe.

The world is undergoing a tectonic shift – the end of one civilization and the beginning of another.

Are You Prepared?

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