Dollar collapse is upon us

Dollar collapse is upon us:

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Dollar collapse is upon us.

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The US dollar.

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Fiat currencies as we know them.

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We are watching the collapse of the global monetary system in real time.

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It starts with the US dollar.

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All hail king dollar, as I wrote a few years ago.

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Only now, the emperor might not have clothes.

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People are moving away from the dollar.

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Have been for years, but really ramped up in 2022.

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Why?

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Joe Biden and his cabinet.

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Made one of the stupidest US geopolitical mistakes in generations.

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He seized Russia’s foreign central bank reserves.

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He made the US dollar political.

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The reason the dollar system worked well for so long was the US dollar was apolitical.

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Didn’t matter what you did as a country.

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Everyone used the dollar as their preferred currency.

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It became the world’s global reserve currency for a reason.

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Why?

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Everyone was transacting with it.

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But more particularly because of two instances.

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The Bretton Woods conference in 1944.

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And the petrodollar deal with Saudi in the 70s.

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The Bretton Woods conference at the end of World War 2 was the day Britain lost their status as the leading empire and America was crowned.

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Why?

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Because the Europeans sent a lot of their gold to America.

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While Europe was being destroyed in World War 2, America was untouched.

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So countries sent their gold to American vaults.

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Because America had the most gold at the time, it was decided to use their currency as the gold standard (pun intended).

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Fast forward to 1971 and because of the guns and butter era of LBJ and Nixon, America started spending too much money, especially with Vietnam.

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So Charles De Gaulle called America’s bluff and asked for his gold back.

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The ones that were sent to America during World War 2.

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All of a sudden, there was a run on the bank.

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So in 1971, Nixon created the fiat monetary system.

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No longer was the dollar linked to gold.

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It was linked to nothing.

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To trust.

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To specifically, the US government and US military.

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So for 50 years, the dollar reigned supreme.

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But now, it’s shifting.

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Especially since 2014 when the US led a coup in Ukraine.

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Russia all of a sudden shifted.

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Their central bank started slowly accumulating less US treasuries and buying gold.

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Same with China.

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Then they really ramped it up the last few years, especially since 2022.

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Not only them but the rest of the world.

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Foreign central bank buying of gold is starting to massively increase, while US treasury holdings are starting to decrease.

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For years America could sell the world its debt.

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That world is gone.

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No one is buying it, at least not internationally.

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So what are people buying instead?

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Gold.

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Lots of it.

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Doesn’t matter the price.

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Central banks don’t care about that.

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It’s about reserves.

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About holding pristine quality assets that don’t lose money.

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If you have a US 30 year treasury today, do you really think you’re gonna make 4% in 30 years when America has trillions upon trillions in debt, whereby it’s printing money to pay the interest while not raising taxes?

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You’d be a fool to take that bet.

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So people are asking for a better return.

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Hence US treasury yields going up.

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Hence the dollar losing its status as the world reserve currency.

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But it’s not just that.

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It’s this small change that will be looked upon in history as a MASSIVE geopolitical move.

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China has flipped the world on its head.

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It’s creating the infrastructure for the new world order.

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How?

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It’s putting the Shanghai gold exchange vaults all over the world. 

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Let me explain.

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For years, the US was trusted ally.

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Trusted source.

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Especially post World War 2.

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Even during it.

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Hence why a lot of Europeans sent them their gold.

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They knew they wouldn’t confiscate it.

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So now China needs to prove to the world they can do the same thing.

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And what better way to do it than to give its biggest countries/customers their own gold vaults that sit in their own countries.

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That’s what they’re doing.

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That’s what they're planning.

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Watch this video to understand (here).

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They’re planning to have vaults in Saudi, the UAE, Russia and maybe even India.

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Why does this matter?

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Because the Yuan might all of a sudden be adopted as a currency to trade with.

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Let me give an example.

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Let’s say your Saudi.

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Your biggest customer is China.

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Why not use Chinese Yuan to trade oil?

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Why would you use dollars?

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They used to, because of the petrodollar deal, but now they’re not.

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They’re starting to use the Yuan to transact.

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But instead of the Yuan maintaining it’s value or Saudi holding tons of Chinese treasuries, they settle their differences in gold.

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Specifically, gold that’s in their own country.

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That’s how China wins.

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It’s building the infrastructure for the new currency world we’re entering.

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But it’s not just that.

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As mentioned in the video, they're creating a new financing structure.

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No more IMF.

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Instead it’s the Chinese-led monetary fund.

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Here’s how.

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Let’s say you’re an African country that needs to build infrastructure like roads, buildings and an airport.

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How have you done that before?

You went to the IMF, gave your gold, they gave you money, you bought treasuries then used that money to buy supplies to build your infrastructure.

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But that was complicated and cumbersome, plus the US interfered.

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If they didn’t like you or you didn’t give them your resources, they would give you shitty deals or overthrow your leader.

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So how is China changing this?

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If you’re an African country with a bunch of gold, instead of going to the IMF, you put the gold into your own vaults, which is being connected to the Shanghai gold exchange system.

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Once it’s connected, China gives you the value of the gold in yuan as a loan and you use that yuan to buy supplies from China to help you build your infrastructure.

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It’s genius.

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They’re literally setting up the gold exchange such that they’re using old school accounting methods where instead of people trusting a central country like America, they are keeping the gold where it is.

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In your own country.

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Not in China or the US, but where you are.

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This vault is connected to a digital gold exchange system, where gold will be the neutral net settlement asset between countries, instead of the US dollar.

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We are living through history.

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Moments that will be discussed for 100 years.

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People will write textbooks about this.

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The collapse of a currency.

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The world's reserve currency.

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The US dollar.

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The rise of real money aka gold.

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Led by China building the new currency system.

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What a time to be alive.

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The US dollar collapse is upon us.

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