“Major movers” such as China, Russia and the European Union have a strong “motivation to de-dollarize,” said Korin, co-director at the energy and security think tank, on Wednesday.
“We don’t know what’s going to come next, but what we do know is that the current situation is unsustainable.”
– Anne Korin, Institute for the Analysis of Global Security.
Irrespective of where you reside in the world, chances are you feel some sense of unease, a nagging concern for the future and a deep instinctual understanding that an era you knew and navigated your entire life is slipping away and won’t be coming back.
We’ve been witnessing widespread protest and unrest across countries with distinct political and economic systems, such as Hong Kong, France, Chile, Spain, Ecuador, Lebanon and Venezuela just to name a few. Those with vested interests and an ideological solution to sell insist it’s all because of socialism, capitalism or some other ism, but the truth is this goes far deeper than that. What’s actually happening is the geopolitical and economic paradigm that’s dominated the planet for decades is failing, and rather than address the failure in any real sense, elites globally have decided to loot everything they possibly can until the house of cards comes crashing down.
This chart is almost as disturbing as the charts of negative yielding debt.
The entire financial system is a farce and a fraud. It’s all smoke and mirrors, a coverup machine for elitist looting.Despite people with vested interests reassuring you this is normal, it is not. https://t.co/UWbQjB32Ss
— Michael Krieger (@LibertyBlitz) October 31, 2019
You can’t properly discuss the entrenched global paradigm without addressing the American empire, and you can’t have a conversation about empire without discussing the monetary and financial system that keeps it all in place. The last time I discussed this in any detail was last year in the post, The Road to 2025 (Part 3) – USD Dominated Financial System Will Fall Apart. Today’s post should be seen as an update to that piece, taking stock of where we stand a year and a half later.
Several assumptions were made in last year’s article that must be recognized in order to understand how I see the situation. The first is a view that we’re already transitioning into a multi-polar world, in other words, the U.S. no longer holds a position of total planetary geopolitical dominance similar to what it enjoyed in the mid-to-late 1990s. Despite proclamations to the contrary, history did not in fact end.
U.S. leadership became accustomed to getting virtually whatever it wanted around the world via overt violence, covert intelligence operations or economic coercion, but this is no longer the case in 2019. Although this doesn’t sit well with much of the foreign policy establishment, it’s nevertheless reality. The most recent evidence came just last week with Denmark’s decision to approve the Nord Stream 2 gas pipeline, something the U.S. was adamantly opposed to.
Tom Luongo offered an interesting analysis of why this is so significant:
For the past three years the U.S. has fought the construction of the Nordstream 2 pipeline from Russia to Germany every inch of the way.
The battle came down to the last few miles, literally, as Denmark has been withholding the final environmental permit on Nordstream 2 for months.
The U.S., especially under Trump, have committed themselves to a ‘whole of government approach‘ to stop the 55 bcm natural gas pipeline from making landfall in Germany…
In a sense, this pipeline is Germany’s declaration of independence from seventy-plus years of U.S. policy setting.
The fact the U.S. foreign policy establishment sees it as our business to determine which country the EU should buy natural gas from and how offers a glimpse into the imperial mindset. It’s the same mindset that maintains Iran shouldn’t be able to sell oil to anyone without U.S. permission. It represents an attachment to total global control, a view that the world consists of little more than the U.S. hegemon and its client states.
Which gets us to the key point surrounding the unsustainable nature of the world’s monetary and financial system. Specifically, we already live in a world where several powers (namely China and Russia) have very publicly and clearly elucidated they will not function as U.S. client states going forward. They appear to be on the winning side of history because it’s much harder to maintain global empire than to frustrate it at this point, but the U.S. maintains an enormous advantage when making moves on the geopolitical chessboard. It’s not the ubiquitous military bases or advanced technology, but a more esoteric and stealth weapon — the U.S. dollar.
The USD continues to dominate global financial transactions, which means the world can never truly be multi-polar unless this lopsided structural reality is dealt with. None of this is new of course, though there’s now a heightened sense of urgency for those countries unwilling to serve as U.S. client states given the Trump administration’s increasingly aggressive and blunt usage of the financial system as a geopolitical weapon.
The significance of the USD as a weapon was put into plain view a couple of weeks ago during Congressional hearings on Facebook’s Libra project. See the clip below.
Please allow this to be a wakeup call for those who don't understand.
Congressman admits the U.S. dollar is the most significant tool of imperialism available to the state (it is).
Zuckerberg then admits he gets it and Libra will also be wielded as a weapon of empire. https://t.co/4uqhSUOYw5— Michael Krieger (@LibertyBlitz) October 23, 2019
As such, nations committed to functioning as sovereign states have a clear choice. Figure out a way to transact smoothly on the world stage without touching the USD, or submit to being a client state. Since the latter is seen as unacceptable for an increasing number of nations, I believe the former will be figured out, and that it’ll happen by 2025 at the latest.
Whenever I say stuff like this people insist there’s nothing ready to replace the USD as a global reserve currency. On this front I agree, but my argument isn’t that another nation-state fiat is going to totally usurp the USD on the world stage in the years ahead (nor should anyone want that). Rather, my view is competing powers will figure out a way to avoid the dollar in an increasing percentage of global transactions simply because they have no other option in a world where the dollar’s been fully weaponized to achieve U.S. geopolitical goals.
I don’t need to know the specifics of how this transitions unfolds, just that it will. This is why it makes sense to own bitcoin and gold, two politically neutral alternative global monetary instruments that’ll likely trade multiples higher from here in the years ahead as people come to recognize the importance of such assets in the historical transition period we’re in.
Ultimately, I hope humanity learns from the experience of recent decades and never again permits one country to control monetary policy for the entire planet. A reserve currency controlled by a single nation is effectively the most potent geopolitical weapon ever invented. No country or institution should ever have such power, now or in the future.
A global reserve currency must be politically neutral otherwise it's just a weapon.
— Michael Krieger (@LibertyBlitz) October 23, 2019
I hope we can finally learn this lesson.
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Would like to hear your thoughts on Carneys Green Crypto currency and as it could relate to agenda 21.
Sorry if this question betrays my ignorance about international finance, but why is it so hard to conduct transactions between any two currencies? Like if somebody in Japan wants to buy something from somebody in Russia can’t they just exchange Yen for Rubles and do it? Doesn’t seem like there should be much need for gold or bitcoin to make that transaction possible.
This typifies the thinking of too many pundits who don’t realize that the world has already moved on and that what they are commenting on is the past system left in place as a fill in before the next iteration is suddenly introduced and everything switched over. Both the Bank of England and the Fed with the blessings of the Bank of International Settlements, or everyone else, are conducting extensive modeling and tests for the likely introduction of Central Bank Crypto Currency on distributed ledger technology for ALL payments world wide. It looks like the introduction date is scheduled for somewhere around 2025 for the initial trials. This is the start of the one world currency to rule them all. Which great power, the lesser, like Denmark having no power whatsoever, can buck its central bank? The USA can’t. Russia and China ditto. They’re all controlled corporate entities masquerading as sovereign states with the last vestiges swept away over the last 20 years. Only the people themselves retain any power to buck (pun intended) the power of the bankers and their corporate entourage..
“The state exists to enforce the dominance of elites, all the rest is propaganda, misdirection, obfuscation and/or terrorism up to and including total war.”
I think you’re right, something big is coming and things are going to be a lot different in the future. Buy gold and bitcoin and you should be okay!
Crypto currencies will never replace the dollar , far to easy for governments to seize … if they really wanted to .
I would suspect “ a basket of currencies “ would be a pragmatic solution .
Such a shame we as a species have “ THE SEVEN DEADLY SINS “ ingrained in our collective phyce, ! As such we are doomed to repeat this prophetic play ..over & over…& over again .
Zulu, A CBCC would need to backed by something for confidence sake and your basket of currencies might just be it. What is the real plan is to further centralize control over everything with a one world distributed ledger that could track all interactions in real time.For this they need 5G, quantum computing speed, Strong AI and the building of an internet of things. Want to have a bank account or do any business whatsoever other than begging on a street corner then climb aboard and be prepared to eventually get chipped.
https://stevenguinness2.wordpress.com/2019/10/30/boe-and-fed-continue-to-advance-digital-currency-agenda/
Yes, I completely agree with this policy and even though Trump is still using the same financial tools that his predecessors have wielded for the last 50 years, I think he is acutely aware of the UD dollar entering it’s last gasp. I always liked him because one of the first things he did was put up a portrait of Andrew Jackson – who took on the central banks.
I voted for Trump because I hoped he would come through with his promises to drain the swamp, stand up to Wall Street, plus get us out of endless wars. I don’t think he is remotely aware that the power of the US dollar is fading. He seems to actually enjoy threatening other countries with tariffs if they won’t bend to his will. Remember early trade talks with Canada? One of his staff was quoted as saying “We’re America… deal with it Bitch!” If he’s re-elected, he will be surprised to find that what he a is wielding is a Nerf Bat instead of a Louisville Slugger.
I agree , Central Banks , under this insanity of negative interest rates have destroyed our free market system .
The only currency which affords any safety at the moment , is the American Dollar, and keeping these-ridiculous low interest rates in place is only to save the European ( Federal ) Union from blowing up !
At some point America will have to save itself & cut the Scocialists in Europe adrift .
Europe will have to learn the hard way that at some point Socialism will run out of other people’s money & the whole system will implode …… !
Once we sign on to a one world currency…. that’s it game over ….stick a fork in them …..their ours for the taking !!!
Some food for thought:
“Give me control of a nation’s money supply and I care not who makes it’s laws …” – Rothschild
“We will have a world government whether you like it or not. The only question is whether that government will be achieved by conquest or consent.” – Banker Paul Warburg, Feb 15, 1950 testifies before US Senate
“The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.” – Lord Acton
“Banking was conceived in iniquity, and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen, they will create enough deposits, to buy it back again.” – Sir Josiah Stamp, Former President of the Bank of England
“Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile.” – William Lyon Mackenzie King
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency first by inflation then by deflation the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people to whom it properly belongs.” – Thomas Jefferson
“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” – Napoleon Bonaparte
Yes indeed food for thought. All these men from different times in history seem to be trying to warn the people of something to do with bankers and the right to ownership over the issuance of money.
“I set to work to read the Act of Parliament by which the Bank of England was created [1694]. The investors knew what they were about. Their design was mortgage by degrees the whole of the country [now the world], lands…houses…property…labour. The scheme has produced what the world never saw before…starvation in the midst of abundance.”
William Cobett, July14, 1810 in the “Political Register.”
“The powers of financial capitalism have another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system is to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences.”
Carroll Quigley from “Tragedy and Hope.”
CDN Banker David Lang on implementing the Global Environment Facility Bank : “I suggest therefore that this not be sold not through a democratic process – that would take too long and devour far to much of the funds – to educate the cannon fodder, unfortunately, which populates our earth…”
I think Michael is right, and change is in the wind for the “world financial market”. The Sun is setting on the American Empire, but the U.S. defense budget is still the single biggest expenditure ever made, and we do it yearly. Much good in the near future could come from a radically cut defense budget, such as infrastructure, health care for all, or simply an enhanced “social services net”. I know this sounds all “pie in the sky” – but we have been wickedly propagandized by false notion that we have to spend 750 billion dollars a year on American defense.
The huge American military also promulgates the pervasive use of the dollar. Remember! The U.S. military uses 12,600,000 gallons of fuel per day, at a rough cost of $31,5 million dollars a day of your tax money. Clearly, this is unsustainable. Yet, no one in Congress talks about this.
Two more quotes that might shed light on the endless war dilemma, with its $Trillion budgets. Both are from speeches given by U.S. Major General Smedley Butler:
“War is just a racket. A racket is best described, I believe, as something that is not what it seems to the majority of people. Only a small inside group knows what it is about. It is conducted for the benefit of the very few at the expense of the masses.”
“I spent thirty-three years and four months in active military service as a member of this country’s most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high class muscle-man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism.”
These two quotes, when seen in the context of the previous quotes about the evils of private banking, would seem to imply that the U.S. MIC with its global network of bases and black sites is used not for national security, but for the projection of hard power throughout the world in order to bring other nations under the control of the global banking cartel. If this is correct then I would not expect to see military budgets shrink any time soon.
Gold – Price is totally manipulated by the same banksters than own the Fed.
Bitcoin – The same banksters that own the Fed, invested in the creation of Bitcoin. The whole monetary system is a scam. The populace are kept ignorant of whom controls money, and how it is created, deliberately.
Gold was also stolen from the populace by the government in the 1930’s, and likely will be again. The real problem is the private gangster cartel that owns the Fed.
The Euro is likely the next world reserve currency. The same gangsters that own the Fed, likely own the national central banks that own and control the ECB.
The next global monetary system will be composed of two types of currency and one form of money.
Physical gold (money) exchanged inside and outside a nation/currency zone will be the standard reference point for all other things of value. Its relative value will be viewed as stable while everything else floats relative to gold. This reference point of gold will act as both a brake or spur to any nation/currency zone attempting to run perpetual surpluses or deficits respectively.
Within a nation/currency zone will be a digital only currency issued by the central bank that circulates primary within the zone and not outside of it. This currency will be used for day to day domestic transactions and for paying taxes. Taxes will be taken in real time at the point/nature of transaction based upon the % required by domestic law. In the US about 10% of the value of our tax-base is consumed in its compliance.
What about reserves in other currency zones for trade, which is the very heart of the dollar system? Their will no longer be need a for a ‘reserve’ currency or pre-funded reserve accounts in other nations we trade with. A method of instantly and definitively clearing global transactions between zones is already up and running with more than enough speed/capacity to handle the entirety of global trade. That currency is XRP. It is already compliant with banking laws and is actively engaged with the BIS (physical global gold flow) and other Central Bank authorities.
Day to day global transaction are cleared via this digital only supra-national currency, with domestic currency imbalances settled with the flow of physical gold from time to time. Nations that consume more value than the produce in a given year will see gold within their borders deplete causing its price to rise, those who do the opposite will see the price of physical gold fall. A significant difference in the purchasing price of like things in physical gold terms between nations/currency zones will then reverse trade flows re-balancing the trade flows globally periodically.