Big news today regarding the collapsing US dollar. While the spinmeisters on the financial game shows tout the dollar’s “strength” it is only when compared to even more inferior currencies that one can make that observation.
The rising cost of goods is the real sign that the dollar’s purchasing power is collapsing. I believe it is only going to accelerate from here.
Recently, I have expressed my concern about the relentless adding of debt to the national ledger. On September 18th we crossed over $33 TRILLION in debt. I have already talked about the fact that it took from 1776-1980 to amass the first TRILLION in debt and that it took only 8 weeks for the last trillion. In the meantime, I have revealed that we are on pace for the next trillion in just 6 weeks. I have a snapshot from USDebtclock.org which shows $33 TRILLION in debt on 9-18-2023. ONE MONTH LATER (30 DAYS) we are at $33,653,000,000,000.00 AND CLIMBING.
The trajectory of this is extremely concerning since all of this new debt is being issued with a LOT higher interest being owed. In addition, there is a lot of short-term debt maturing at higher rates. This is putting pressure on bonds, stocks and is also making real estate the most unaffordable it has ever been.
Add to this the fact that other countries are tired of being bullied and sanctioned as well as being told what to believe and how to live and we have a toxic cocktail for the dollar.
So, what is the big news?
This is not a CBCD. This is not crypto. It is a payment mechanism that allows easy and seamless trade amongst anyone on the system. This system bypasses SWIFT, which some countries have been banned from, and allows all of these countries to avoid being sanctioned. Keep in mind that ALL transactions here are done in local currencies and NOT in the US dollar.
Supply and demand appears to suggest that the dollar is now in imminent danger. The supply of dollars and debt are skyrocketing, and the demand is being reduced and could collapse. This is, in my opinion, most likely after January 1, 2024, when MAJOR oil producers officially join the BRICS family.
I would not be surprised to see major weakness before this time because many entities have already signed on.
While I am not surprised by the State Bank of India, Sberbank (Russia), VTB Bank (Russia), Bank of China, ICBC (China), Petrobras (Brazil) and many others who have signed on I was quite surprised to see that Standard Chartered of the UK has also signed on.
This appears to be a parallel universe that will take a LOT of action away from the use of US dollars.
In January Saudi Arabia, UAE, Argentina, Egypt, Ethiopia, and Iran will officially join the BRICS and 40 other nations have applied for membership. While this is important it is also likely just as important to understand that since Standard Chartered Bank from the UK has signed up for BRICS PAY it appears you don’t have to be an official member to participate.
The relevance of this is that, as I have been writing about for years, the reason we have been able to have the lifestyles that we have had is because of the US dollar’s dominance in world trade. It created unprecedented demand for dollars and allowed us to “print” more “money” than anyone could have imagined without totally gutting its perceived value.
When this shift hits critical mass I really think most people will be stunned to see what basic necessities will cost. Those who are unprepared are likely to be in for a world of hurt.
The central banks all know that they are debasing their currencies and, as a measure to keep VALUE, they have been buying gold in record amounts.
I believe they see the writing on the wall and are taking steps to mitigate the damage.
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