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DJ: DID YOU KNOW?
For those out there that question the relevance and legitimacy of the imminent GCR/RV, you only have to pay attention to the facts to determine the unquestionable and absolute necessity for it to happen. And sooner not later applies.
The Federal Reserve, America’s central bank, has lowered interest rates and printed nearly 4 trillion new dollars out of thin air since the economic crisis in 2008. That’s equivalent to nearly one quarter the size of the entire U.S. economy.
Total U.S. debt, across all private sectors, has risen to nearly $75 Trillion. That’s over three times as big as the entire U.S. economy. If you add the federal debt to that number, you get $97 trillion! That’s more than four times the size of the U.S. economy. The dollar is getting dumped around the globe because of our debt, spending, and money printing.
Many countries are relentlessly abandoning the dollar. Typically, most foreign governments invest their surplus or savings in U.S. financial assets. Global trade is typically conducted in U.S. dollars, what’s called the “world’s reserve currency.”
The U.S. dollar has lost 96% of its value since the Federal Reserve was created in 1913. Meanwhile, the national debt has skyrocketed! The dollar and debt are two sides of the same coin.
Countries aren’t sticking around to figure out whether the U.S. can really pay back its debt or wait to see if their dollar reserves are going to keep losing their value.
Excerpts taken from a Jim Rickards post:
Here is a look at how we’re being betrayed by our closest allies and attacked by our sworn enemies…
THERE HAVE BEEN $1.4 TRILLION IN ATTACKS ON THE DOLLAR
The United Kingdom ($18.7 Billion Betrayal): Joined China’s Foreign Exchange Trade System to bypass the U.S. dollar and trade directly in sterling and yuan.
China ($100 Billion Attack): The Chinese official sector sold almost $100 billion of U.S. stocks over the past year. They've been reducing their Treasury holdings. And they've secretly been stockpiling hundreds of tons of high-purity gold bullion bars.
Iran ($1.2 Billion Attack): Has used gold to avoid U.S. sanctions and the dollar-based payments system called SWIFT.
South Africa ($2.5 Billion Attack): Has joined with the BRICS nations to create a bank that will extend at least $2.5 billion so far in 2017 in non-dollar credit to the world.
Hong Kong Monetary Authority and South Korea ($83 Billion Betrayal): Both have joined and expanded their roles in the CMI, or Chiang Mai Initiative, which is a non-dollar currency swap agreement with the 10 countries that comprise the ASEAN nations, including Indonesia, Cambodia, Brunei, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
India ($8.2 Billion Betrayal): Has made agreements with Japan to receive yen for internal development projects, instead of turning to U.S. development institutions like the World Bank for dollars or going to the U.S. government itself.
Japan ($69 Billion Betrayal): Has agreed to circumvent the dollar and trade directly with China in billions worth of yuan and yen. One news outlet says the move aims to “hedge the risk of the dollar’s fall in the long run as the world’s key settlement currency.”
Switzerland ($24.17 Billion Betrayal): Agreed to help China develop its offshore yuan market so more countries can diversify away from dollars into yuan. According to Bloomberg, the Swiss franc makes “the seventh major currency that can bypass a conversion into the U.S. dollar and be directly exchanged for yuan.”
Sweden, Norway and Denmark ($2.5 Billion Betrayal): Created a Euro currency-beeline to Iceland that doesn’t require dollars.
South Korea ($20 Billion Betrayal): Has created bilateral currency swap agreements with Australia, China, Malaysia and Indonesia that last until 2020. They’ve renewed a multibillion won-yen currency swap with Japan. And they’re also actively trying to forge a direct currency swap deal with the United Arab Emirates.
Russia ($7.8 Billion Attack): Is actively recruiting nations to trade oil in rubles instead of dollars and having its largest state-owned oil company issue its corporate debt in Asian currencies instead of privileging dollars. Bloomberg says its “aim is to move away from quoting petroleum in U.S. dollars.”
United Arab Emirates ($55 Billion Attack): Created a bilateral trade deal with China to trade in dirhams and renminbi. One expert said the Chinese are “trying to shoot for an alternative currency to the dollar.”
Saudi Arabia ($750 Billion Attack): Threatening to take a $750 billion prop out from under the U.S. dollar if America doesn’t meet its demands.
The International Monetary Fund’s Betrayal: Added the Chinese yuan to its supranational currency, the Special Drawing Right. One millionaire commodity investor remarked upon the news, saying, “The U.S. dollar is a very flawed currency [the yuan] will challenge the U.S. dollar.”
The total amount of “de-dollarization” is at least: $1.14 TRILLION. And the list of dollar backstabbers you just read isn’t all of them. The true amount of dollar dumping is likely much higher than that.
From the year 1450 to roughly 1925, from Portugal to the British Empire, the world’s superpowers have risen and fallen on the strength and acceptance of their currencies. Based on centuries of data analyzed, the average lifespan for a world reserve currency like the U.S. dollar is a little bit more than 90 years. The dollar has been the world reserve’s currency for 90 plus years. Are we ready for a GCR? At least the math says so.
I have always questioned how the world can go back to a Gold Standard considering the total gold production capacity is about 1000 tons per/year less than the demand for monetary backing.
So either we find more gold or the values have to raise. It’s a chicken and the egg thing. The value has to go up to get the gold and we have to get the gold for the values to come up. If the values rise, it will allow deeper and remote location exploration of mining to get to the deposits that, with current values, has not been economically sound to mine. Gold will need to rise to $10,000
As economist Jim Rickards calculates:
“It starts with the “global M1 money supply”, that’s the total amount of money around the world. It will roughly be $26.5 trillion by the time this happens. Then use a 40% gold backing for our money, since that’s what the original Federal Reserve Act passed by Congress mandated.
Take global M1 money supply and multiply it by 40%, our gold backing.
Then take that number, and divide it by the official amount (declared) of gold in the world, which is about 33,245 tons or roughly 1 billion ounces of gold.
($26.5 trillion x 40%) ÷ 1 billion oz. of gold = $10,000 per ounce
You can see in the end, you’ll get about $10,000 an ounce. Now if the numbers used fluctuate, that exact $10,000 per ounce may vary slightly. But the truth is, the gold math is the gold math no matter if the stock markets go up, down or sideways.
To go from today’s price of about $1,300 to $10,000 in 15 minutes would be a 669% revaluation of the dollar.”
Some estimate the real amount of above ground gold reserves are in excess of 120,000 tons not the 33,000 plus ton official number. It is just not declared.
So raise the value (which stimulates more production) and declare what is already there (feed it into the monetary system), establish a global Gold Standard for currencies, which will stabilize the U.S. dollar, thus rebuilding the confidence in the global arena that the U.S. will make good its debts and maintain the dollar’s value as a settlement currency and stop the global attack against it.
For further information and education on the topic send a request subject line “De-dollarization” to firstname.lastname@example.org.
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