How Long? I believe it is not a question of “if” but when the US dollar will be replaced as the world’s reserve currency. Since 1971 we have been OPEC’s protector in the Middle East. After going off of the gold standard in August of 1971 the Petrodollar was born. This allowed the US dollar to remain as the world’s reserve currency. Basically, we offered protection- mainly to the Saudi regime- if they would accept ONLY dollars in payment for their oil. This created massive demand for the US dollar.

Anyone who has had the audacity to challenge this (Saddam Hussein (would accept Euros for oil), Mu’ammar Quadhafi (proposed Gold-backed African Dinar), etc. ) all met an early and violent end.

In the past few years there have been major players- namely Russia and China that have been moving away from the US dollar. Russia has pretty much divorced itself from the dollar because of the threat of sanctions officially, but in my opinion, they probably realize that the dollar is a dead man walking. I am sure that Mr. Putin is well aware of the reported $140 Trillion “missing” dollars and even if he only sees what we are allowed to see it doesn’t take a rocket scientist to figure out that we have far more debts than we could ever pay off with our “money” keeping anywhere near its perceived value. I believe this is THE major reason Russian and many other central banks are buying gold in record amounts. (Central Bank Reporting)

China has also allowed oil to be purchased with their Yuan. Of course, the same actions taken to keep the small country dictators under control cannot be taken against the likes of Russia and China.

I have written about this in the past, but I believe it is important that I bring it up now because of current events.

Saudi Arabia is the lynchpin of this current system. In the past few years they have seen first hand that Russia has better weapons systems than the US has- at least those that they are willing to share with others. Or maybe they actually DO have better systems. Even Turkey (A NATO member) has chosen the Russian anti-missile systems over ours.

The final nail in the coffin may be the disaster in Afghanistan. First of all, the loss of life because of a lack of planning and execution is a true tragedy. Those left behind are in extreme danger. That includes US citizens and those who were helping us over the years.

I am hoping that I am wrong but we may be seeing hostage situations in the near future.

If I were ANYONE counting on the USA for “protection” I would be looking for another protector. Those who helped us in Afghanistan are now sitting ducks. The Taliban has all of their information, they have biometric information and IDs that we left behind with our military hardware to determine who it is they should kill next.

It appears that China is becoming far more belligerent towards Taiwan since the USA looks weak.

North Korea has been emboldened to start producing plutonium again. These are signs that the fear of the US military is waning. The most important sign that things may be changing- and quickly- is that Saudi Arabia and Russia have signed a military cooperation agreement. This was done a little over a week ago and few details have actually been released but it appears to me that our staunchest allies in the Middle East are starting to question whether our promises of protection are to be trusted.

Can you blame them? When we witness what is happening to those who were on our side and are now abandoned to fend for themselves all of our allies now have to question what our level of engagement would be if they themselves were actually in need of our help.

This also begs the question : If the Fed left the “markets” to their own device with no support what might that look like?

In looking at the data it has appeared to me for some time that the ONLY asset holding this monetary regime together was the threat of military force. It appears that many other countries are more than willing to stand up to the neighborhood bully- the US.

In addition, if I were looking at this country from afar, I would see a deeply divided populous and I would be seeing insane practices pretty much everywhere, but California has to take the cake. Criminals are allowed back on the streets moments after they are booked.(Same in NYC where criminals are typically treated better than law-abiding citizens).

If you steal less than $900.00 worth of goods in San Francisco there will likely be no consequences- I actually saw a video where store security watched as a hoodlum ransacked the store and rode his bike away. Any sane person would likely wonder why right? Because if the security guard intervenes it is HIM who gets in trouble. Also, they are paying people $100,000.00 + salaries to clean up the excrement being left behind by the massively growing homeless population. (Ever heard of porta-potties?) In the latest attack on common sense, they are paying “high risk” people $300.00 per month to not shoot anyone. HUH? How does that work? Do you walk in and say I was gonna shoot Donnie down the street but I didn’t? I want my $300.00? (Fox News Thursday Morning)

What a joke! Similar ridiculousness is taking place in many other areas. Too bad the joke is on us.

The situation out west in regards to the drought are becoming catastrophic as the drought is called a once in 1200 year event. Of course, the idiotic policies of California have the water that is left pouring into the Pacific Ocean which is greatly exacerbating this problem. Why would they do this? To save a certain kind of fish. So, it is ok if the farmers can’t grow crops or are killing off their cattle but heaven forbid that fish be impacted. By the way, it is not only farmers that will be affected. The Hoover dam is getting so low that there may not be enough water to produce electricity soon. Lake Mead is at its lowest level EVER since it was filled in the 1930s. It’s the same with the wildfires. It is not climate change but a change in the way the forests were previously protected by clearing out all of the old dead trees and brush. Now, because they have environmental wackos calling the shots a lot of the tinder has not been cleaned up and the wildfires are getting more and more intense year after year. By the way anyone who thinks this is ok- you are trying to save animals- which is a commendable objective and I support it. How does that work when you are BURNING hundreds of thousands of acres of their habitat? I guess you didn’t think that one through!

It is painfully obvious that the USA is officially a 3rd world country. Our schools are indoctrination centers rather than purveyors of real education. In Oregon the Governor signed a bill last month that makes it ok to graduate high school whether you can read or not. No need to be able to be able to do math either. Another BIG HUH??? ( 8-10-2021)

I could go on with the insanity taking place across this once-great nation that has obviously lost its way. It appears to me that this is the Nazi playbook. Instead of burning books they are suppressing or eliminating all dissent on the internet. The destruction of their currency led to the rise of Adolph Hitler after an old and ailing President Paul von Hindenberg passed away. The populace was so eager to get back their national pride and Hitler had a good line of BS- even though his true intentions were revealed for all to see in Mein Kompf but most didn’t bother looking at it. Kind of like “You will own nothing and be happy”, “we want to reduce the world’s population”, $140 TRILLION has been conjured up out of nowhere and is unaccounted for and much, much more that is out there but most don’t bother to look.

We also appear to have full-blown fascism where corporations are doing the enforcing where the governments can’t- at governments behest of course. Think about no jab- no job. You will Learn CRT., etc.

I believe the world is going to be a VERY unkind place for those putting their faith in the paper promises that are being made by many, if not most, countries, cities, states, companies and individuals. The likelihood that the promise to repay is kept is likely to be more of an exception rather than the rule. When? I don’t know. However, it appears that it would be better to be years early than a second late. That one second could be the difference of potentially preserving your assets or watching them crash and burn in a frenzy of selling that could lead to limit-down stop for days in a row.

Gold, silver and hard assets are the only assets that I believe will help to save many because if you own an asset, you are not counting on someone else’s word- which doesn’t appear to hold as much weight as it did when I was growing up.

Have a Great end of Summer weekend but …

Be Prepared!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results.

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