REAL WORLD EVENT DISCUSSIONS

The death of the dollar?

POSTED BY: SIGNYM
UPDATED: Tuesday, August 1, 2017 18:33
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Monday, July 31, 2017 9:45 PM

SIGNYM

I believe in solving problems, not sharing them. Pity would be no more, If we did not MAKE men poor - William Blake


I'm posting this here because I don't know what to make of it.

I'm used to ZeroHedge always posting about the end of the stock market, the end of the Fed, the end of the dollar, the end of financial system ... the end of something. Ditto gold bugs ... they have been saying (for years) that the dollar is way overvalued and is bound to crash.

But lately ... within the past month or so ... all of those "out there" analysts are only talking about ONE thing, and it's the (planned) end of the dollar. According to them, it's not Russia or China manipulating this, it's the IMF.

So, as best as I can gather, it's supposed to happen like something like this:

The Central Banks will start to sell the assets that they purchased as part of "quantitative easing". Our Fed is already reducing its "balance sheet".

There is going to be a period of debt settlements among nations ... old bonds, even defunct or fraudulent bonds being paid off to square the books. For some nations, there will be debt forgiveness.

The petrodollar will disappear from use. (It already is fading, as Russia, China and Iran are settling their oil and gas payments in yuan, rubles, gold, and rials. IF China insists on receiving yuan from Saudi Arabia, that will be the death knell of the petrodollar.)

The USA will be required to close many of its foreign military bases because it can no longer afford them.

Nations will be required to use the IMF "special drawing rights" (SDR) for international exchange. In other words, they will have to use their currency to purchase SDR from the IMF; the exchange rate will float.

Once the dollar is doesn't have special international significance as either the reserve currency or for oil purchases, demand for the dollar will drop, and so will its value relative to the SDR. There will still be the USD for national exchange, but not international exchange.

The result will be massive inflation in the USA for goods that are sold internationally, even if produced in the USA. I've heard that this will happen mostly in stages, not suddenly and catastrophically.

China will mostly be advantaged under this arrangement.

*****

Normally I would just kind of shrug my shoulders, but both Trump and Christine Lagarde (IMF) have made some strange out-of-place comments about this. Trump said that he would not accept this new currency. New currency?? Christine Lagarde hinted that the IMF might relocate to China because, as pointed out by someone else "China, unlike other nations, actually pays its pledges to the IMF".

I know that China has been hot to trot to be the next global currency. They lobbied mightily - and won- a place in the current IMF SDR basket (along with the USA, Japan, UK, and EU). China and Russia combined have set up a complete international alternate financial system - the Shanghai (and soon to be Hong Kong) gold exchange (London gold fix), the BRICS bank (World Bank), the AIIB (IMF), its place in the SDR basket.

Both China and Russia have been purchasing gold like crazy, and Putin supposedly just spoke with the person who developed the Ethereum model.

It seems to me that the dollar will be replaced as the world currency; it's inevitable. The only thing keeping the value of our USD up is our military- we literally have to bomb nations into using it by bombing those who attempt to avoid it (Iraq, Libya, Iran). If some nation were to come to us with a billion dollars, WHAT could we sell them for that money?? More Treasuries?? More weapons systems?? So, how much is our money really worth??

The question is really when (not if) that will happen, and how badly will our dollar be devalued? 1:3? 1:10? And what will the new world currency be? Will it be the IMF SDR?? Or will the world eventually settle on some alternate, like a gold-backed cryptocurrency?

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Monday, July 31, 2017 9:52 PM

1KIKI

Goodbye, kind world (George Monbiot) - In common with all those generations which have contemplated catastrophe, we appear to be incapable of understanding what confronts us.


Good thing I have gold. Not that gold has any intrinsic value. But as a matter of exchange, people have to agree to use something. If it ends up being gold - or if gold buys rubles or yuan - then it's good to have gold.




Trump is not the problem. He set himself against the Deep State's agenda. And the Deep State's been heading for WWIII for years.
As for you, you're just a Deep State useful idiot, furthering its agenda. So I hope you enjoy cesium in your coffee. You've earned it.

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Tuesday, August 1, 2017 12:04 AM

6STRINGJOKER


This kind of has been my reasoning behind not really killing myself to work. People say, "but yeah... that's great, but shouldn't you be saving for retirement now?".

I don't think money as we know it will be worth much by then. There is going to have to be some sort of replacement or there will be riots and war and (at least I don't think) anybody wants that.

I just think a lot of people who think they are doing pretty well now are in for a rude awakening in the not-so-distant future. I think there are really only going to be the rich and the poor and very little in the area of gray.

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Tuesday, August 1, 2017 1:31 AM

WISHIMAY

There will be fire and brimstone and Earth will be destroyed!... in several billion years!----------------------------------------- "Well, so long Earth. Thanks for the air... and what-not." -Philip J. Fry


Sooo much DERP in one thread.....


You know what Venezuelans have traded their life savings for?

Toilet paper. Ammo for thieves. Flour. Eggs.

You know what a mountain of gold won't buy when there is no food?

FOOD.



You really think you'll have more gold than others when it comes to bidding for the last...whatever...?

If you do, good for you...but, yeah...I doubt that. Seriously.





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Tuesday, August 1, 2017 1:55 AM

1KIKI

Goodbye, kind world (George Monbiot) - In common with all those generations which have contemplated catastrophe, we appear to be incapable of understanding what confronts us.


Quote:

You really think you'll have more gold than others when it comes to bidding for the last...whatever...?
It depends. If there is literally nothing left to buy ... anywhere on the planet ... then no amount of anything remotely resembling money will be enough. But we're not talking about that. We're talking about the fall of the USD specifically. It's a whole different topic.




Trump is not the problem. He set himself against the Deep State's agenda. And the Deep State's been heading for WWIII for years.
As for you, you're just a Deep State useful idiot, furthering its agenda. So I hope you enjoy cesium in your coffee. You've earned it.

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Tuesday, August 1, 2017 3:34 AM

6STRINGJOKER


I don't think gold is really going to help anybody out. When the shit hits the fan it's going to be a buyer's market. When they know that wheelbarrows of USD can't put food on the table and you're not eating they'll get that gold pretty cheap.

Then there's always other people wondering how you're getting food when they're starving. Won't take long for them to put two and two together and now you have people coming for you.

I think in the new economy the skills you have will be much more valuable than shiny trinkets.

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Tuesday, August 1, 2017 6:33 PM

JEWELSTAITEFAN


Quote:

Originally posted by SIGNYM:
I'm posting this here because I don't know what to make of it.

I'm used to ZeroHedge always posting about the end of the stock market, the end of the Fed, the end of the dollar, the end of financial system ... the end of something. Ditto gold bugs ... they have been saying (for years) that the dollar is way overvalued and is bound to crash.

But lately ... within the past month or so ... all of those "out there" analysts are only talking about ONE thing, and it's the (planned) end of the dollar. According to them, it's not Russia or China manipulating this, it's the IMF.

So, as best as I can gather, it's supposed to happen like something like this:

The Central Banks will start to sell the assets that they purchased as part of "quantitative easing". Our Fed is already reducing its "balance sheet".

There is going to be a period of debt settlements among nations ... old bonds, even defunct or fraudulent bonds being paid off to square the books. For some nations, there will be debt forgiveness.

The petrodollar will disappear from use. (It already is fading, as Russia, China and Iran are settling their oil and gas payments in yuan, rubles, gold, and rials. IF China insists on receiving yuan from Saudi Arabia, that will be the death knell of the petrodollar.)

The USA will be required to close many of its foreign military bases because it can no longer afford them.

Nations will be required to use the IMF "special drawing rights" (SDR) for international exchange. In other words, they will have to use their currency to purchase SDR from the IMF; the exchange rate will float.

Once the dollar is doesn't have special international significance as either the reserve currency or for oil purchases, demand for the dollar will drop, and so will its value relative to the SDR. There will still be the USD for national exchange, but not international exchange.

The result will be massive inflation in the USA for goods that are sold internationally, even if produced in the USA. I've heard that this will happen mostly in stages, not suddenly and catastrophically.

China will mostly be advantaged under this arrangement.

*****

Normally I would just kind of shrug my shoulders, but both Trump and Christine Lagarde (IMF) have made some strange out-of-place comments about this. Trump said that he would not accept this new currency. New currency?? Christine Lagarde hinted that the IMF might relocate to China because, as pointed out by someone else "China, unlike other nations, actually pays its pledges to the IMF".

I know that China has been hot to trot to be the next global currency. They lobbied mightily - and won- a place in the current IMF SDR basket (along with the USA, Japan, UK, and EU). China and Russia combined have set up a complete international alternate financial system - the Shanghai (and soon to be Hong Kong) gold exchange (London gold fix), the BRICS bank (World Bank), the AIIB (IMF), its place in the SDR basket.

Both China and Russia have been purchasing gold like crazy, and Putin supposedly just spoke with the person who developed the Ethereum model.

It seems to me that the dollar will be replaced as the world currency; it's inevitable. The only thing keeping the value of our USD up is our military- we literally have to bomb nations into using it by bombing those who attempt to avoid it (Iraq, Libya, Iran). If some nation were to come to us with a billion dollars, WHAT could we sell them for that money?? More Treasuries?? More weapons systems?? So, how much is our money really worth??

The question is really when (not if) that will happen, and how badly will our dollar be devalued? 1:3? 1:10? And what will the new world currency be? Will it be the IMF SDR?? Or will the world eventually settle on some alternate, like a gold-backed cryptocurrency?


I don't see anything here that is news. This was already known before Obama did it. Once the petrodollar switched off of the U.S. Dollar as result of Bobo, then it was already known it would be difficult to reverse, or impossible. But Trump might be able to, if he wants to try.

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