Death Of The Dollar – Ask a Prepper

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Despite what our government’s actions would have you believe, the war in Ukraine is just a distracting sideshow, and of no real significance to America.

But there is another war going on, that may change our country forever. It began the day the last American military plane flew out of Kabul two years ago, leaving thousands of Americans behind enemy lines.

Strange as it may sound, this has nothing to do with the Taliban or the war on terror.

It is far more deadly but also almost completely hidden from the American public. And while the mass media does not report on it, this new global conflict poses the biggest threat to the US economy and the American way of life as we’ve known it for decades.

By my calculations, this crisis will reach its climax in late 2023, and if we are not on the winning side by then, America will simply stop being a world superpower.

Inflation will turn to hyperinflation and very soon years’ worth of savings will barely cover your next few meals and bills. “Too big to fail” companies and banks will go bankrupt, with millions of “secure jobs” vanishing overnight.

If you lose yours don’t hope you’ll find another one soon. If you are retired don’t think your pension will help you survive what’s coming. Homes will be foreclosed and flood the market causing a real estate crash worse than anything we saw back in 2008.

And the homeless and hungry will replace the well-off and prosperous. America will descend into a debt spiral, but unlike today, nobody will want to lend us any money. Our way of life will collapse, and the country might never recover.

I don’t make this prediction lightly. It is based on years of extensive research and recent economic facts, which I will lay out in the following paragraphs.

You can decide for yourself if I’m wrong, or if this is indeed the worst crisis we will likely face in our lifetime. And if you do reach my same conclusions, I’ll tell you how to take advantage of the small window of time we’re still afforded to prepare.

While this crisis entered its critical and final phase two years ago, its seeds were planted much earlier than that, just as World War II was ending.

Death Of The Dollar

In 1944 much of Europe and Asia, as well as parts of Africa, lay in ruins.

The cost of the war had been very high both in lives lost and industrial production capacity destroyed.

What was needed was money and lots of it.

But not the war-torn currencies of European countries plagued by hyperinflation. And there wasn’t enough solid gold to go around for the kind of massive rebuilding that had to be undertaken.

What was needed was a new kind of global money, that everyone could trust.

So, in July of 1944, over 700 delegates representing 44 countries met in Bretton Woods, New Hampshire to decide on a new world reserve currency pegged to gold, which would become the yardstick for all other currencies and the bedrock of international trade.

As America was the largest holder of gold, and practically the only economic superpower left at the time that currency could only be the dollar.

It was agreed at Bretton Woods that 1 ounce of gold would always be worth $35. You could go to the New York Fed and exchange your dollars for gold directly.

Related: Quick Trick to See if You Have Gold on Your Property

Any currency is only as strong as the demand for it, and this agreement created an enormous demand for dollars all around the world. Every central bank wanted them to keep in reserve to strengthen their own currency, minimize exchange risks, conduct foreign trade, and pay off debt.

Death Of The DollarThe dollar was now just as good as gold only a lot more practical to use.

Following Bretton Woods, a lot of countries also sent their national gold reserves to Fort Knox, to be kept in custody and help enforce the new standard, receiving dollars to keep in their vaults back home instead.

By 1947, the United States had accumulated over 70% of the world’s existing gold reserves.

With the dollar in extremely high demand, the American economy, which was already strong after the war, started to really take off during the 1950s. And the United States became the lender of choice for many countries that wanted to buy dollar-denominated U.S. bonds.

The world ran on dollars.

America enjoyed what the French president De Gaulle called “an exorbitant privilege”. We were the only country in the world that could print debt without a ceiling. And we could pay all that debt with the money we made out of thin air, and nobody would be able to refuse it.

Related: 6 Warning Signs Before An Economic Collapse That Most People Miss

But with great power comes even greater responsibility – and our leaders proved anything but responsible.

They printed too much and ran the debt tab too high fighting in Korea and Vietnam, giving billions in foreign aid, and splurging on projects back home.

The rest of the world started to wonder if the US dollar was still covered one to one in gold reserves.

By 1971 the French had lost faith that this was the case and sent the French navy across the ocean to exchange dollars back into gold. The FED complied but the damage was done.

The great gold bank run had begun.

Realizing he would not be able to redeem all the dollars for gold, President Nixon shocked the world as he abandoned the gold standard that same year.

The dollar was now backed by thin air, faith, and trust in the US Government. Unsurprisingly, its value quickly started to plummet.

As an immediate result, there was high inflation in the early 1970s, putting the US economy in serious danger.

We had to figure out a way to stabilize the dollar and solidify it as the world’s reserve currency. This was not easy, because a currency backed by nothing is not very attractive.

And things would have turned ugly for the US, had Henry Kissinger not been dispatched to the Middle East to negotiate a deal that would force the dollar on everyone else.

In 1974—The United States and Saudi Arabia signed a wide‐ranging military and economic agreement that both countries declared “heralded an era of increasingly close cooperation.”

Effectively the US promised to keep the Saudi Kingdom safe from its neighbors, as long as the Saudis agreed to price and trade their oil in US dollars. This led many other important oil-producing OPEC countries to standardize their oil prices in US dollars – and so, the petrodollar system was born.

Related: The First Thing You Need To Do When The Gas Price Rises Above $5 Per Gallon

From that moment on any country that wanted to purchase oil would need to hold and use dollars.

Soon after the Saudi deal, the entire world was trading oil in dollars, even the Soviet Union!

The dollar might not have been backed by gold anymore, but it was now pegged to something just as precious – energy. This created a huge demand for US dollars around the world and the greenback was rescued as the world reserve currency.

Again, any currency is only as strong as the demand for it.

Since then, there have been a few threats to the Petro-dollar system most notably by Iraq and Libya that the US has dealt with accordingly.

America is the middleman for the most lucrative trade in the world and much of our prosperity depends on keeping it that way. With a high demand for dollars, we can keep our inflation under control, because all other countries subsidize our growing money supply when they buy oil. Effectively we are exporting our inflation to them. It has truly worked like a charm so far.

The US issued debt like crazy, and despite that, we have had super cheap debt, because everyone out there wants those precious dollars.

Related: Why Is The Dollar Losing Its Power? And Should We Be Concerned?

This has gone on for 50 years now. 50 years of fiscal deficits, continuous military interventions, artificially cheap debt, and manufactured dollar demand.

But the music must stop at some point.

And now, a much bigger threat to US hegemony is in play, and this one won’t be easily contained, if at all.

If you’ve been watching the news, it’s probably no secret that China and Russia have recently pledged a friendship “without limits”. Weeks after that Russia invaded Ukraine, but their friendship is not about that war. They’re aiming much…much higher.

As you may also know, both countries are part of something called the BRICS, which is an increasingly cohesive geopolitical bloc that also contains India, Brazil, and South Africa. Their governments meet annually at formal summits and coordinate multilateral policies.Death Of The Dollar

The BRICS already accounts for 25% of the world’s GDP, so they matter. And that GDP figure is expected to increase to 50% by 2030, even if they don’t take on new members.

Expanding BRICS will immediately accelerate the process, and expanding they are.Death Of The Dollar

In the wake of the latest BRICS summit held in June 2022, Algeria, Argentina, and Iran have applied to join the organization, and in the following month, we learned that Egypt, Saudi Arabia, and Turkey also expressed interest in becoming members.

Now when a country says it expresses interest in something like this, it’s usually a done deal.

All those countries can prove important new members of the BRICS, but one will prove key – Saudi Arabia.

The Saudi Kingdom has been vital in creating and maintaining the petro-dollar system ever since the 1970s.

They were and officially still are our allies in the middle east.

But this ally is about to be a turncoat, and it will spell disaster for the dollar.

Make no mistake: the dollar is the biggest economic bubble there’s ever been. When it implodes, it will be terrible beyond words for the US. The dollar supply would far and away exceed demand. And all that inflation we’ve been exporting for decades will come back with a vengeance.

Everything – everywhere is connected to the dollar.

The way it starts is with the US losing control of the oil markets.

Death Of The DollarJust as America was retreating from Afghanistan, the Saudis signed a new military agreement that did not involve the US. This deal was made with Russia on the 24th of august 2021.

Saudi Arabia has grown tired of what they perceive as US disengagement from the Middle East.

They have repeatedly accused us of failing to hold up our end of the security bargain.

In 2019 rebel attacks temporarily cut their crude output in half. And America did nothing about it. But it was the way in which we left Afghanistan that probably pushed them over the edge.

They did not trust us after that and went on to find someone else to protect them.

China has also been heavily courting the Saudi Kingdom, investing more than in any other Arab country, and giving them everything they want from weapons to technology. When President Xi visited the country last year, he was received with the greatest fanfare, unlike President Biden whose pleas for higher oil production fell on deaf ears.Death Of The Dollar

As the biggest importer of Saudi oil, China has already gotten them to sell part of their oil in yuan instead of dollars. Nigeria, another OPEC country is doing the same with more to follow.

And this is just the beginning. If things were not bad enough, something else happened which I’m sure you have heard about but may underestimate the full consequence of – the war in Ukraine.

Now, this should not matter for the dollar’s reserve status. Only it does, because of something the US decided to do.

When America and its allies froze over $300 billion dollars of the Russian central bank’s foreign reserve, it was seen as an unprecedented move.

It is also a very dangerous move.

Russia is not Iran or North Korea.

It is a major world power. And if you change the rules for Russia, no country is safe.

The rest of the world quickly took notice.

Other BRICS members and their central banks started to wonder if perhaps they’re not next on the U.S. economic hit list, and it will be their dollar reserves that get confiscated or frozen.

Faith that the dollar was a safe asset began to erode at an accelerated pace.

And instead of it, central banks are now diversifying their reserves into gold and other currencies, and some are cutting their existing dollar stockpiles drastically.Death Of The Dollar Just take a look at how their purchases of gold have accelerated recently. And most of the gold is being bought by BRICS members like Russia and China, or candidate countries such as Turkey.

In 2022, gold has been leaving metal exchanges at the fastest rate in recorded history. This was an absolutely massive accumulation of gold by central banks.Death Of The Dollar

And it’s not random at all.

That brings us to today and the biggest piece of news that was not reported by the mainstream media.

Russia and China have just announced the creation of a new BRICS currency that will be backed by all that gold they’ve been buying in a frenzy as well as other commodities like oil, gas, and other precious metals.

Related: Investing For Preppers – 12 Things That Won’t Lose Value In A Crisis

Death of the dollar

These countries and their ever-increasing number of allies are returning to hard money based on tangible assets. Foreign minister Lavrov of Russia confirmed just the other day that this new BRICS currency will be discussed (and probably adopted shortly after) at the BRICS summit that will take place in august 2023. (Source)

Right now, the US still has the petro-dollar to rely on, but when Saudi Arabia turns, that will quickly collapse. Once it happens, you’ll have a currency backed by nothing and held by the country with the largest foreign debt in the world, versus a new currency backed by gold and a basket of commodities.

So, let’s put all of this together and see how things might play out.

One day later this year, you’ll turn on your TV and you’ll see the crown prince of the Saudi Kingdom, Mohammed bin Salman, flanked by Putin, Xi Jinping, and the other BRICS presidents, welcoming Saudi Arabia into the fold.

Related: Could An EMP Be Putin’s Revenge Against America?

He’ll make a nice speech saying thank you to the US, it’s been a great ride and we appreciate it but as you know we’re now being protected by China and Russia. In fact, we struck that deal the day you pulled out of Afghanistan because we realized that maybe you’re not the best ones to provide us with security.

So, we’ve now decided to open up our energy exports in yuan, rubles, euros, BRICS currency, and yes also dollars. The other OPEC countries, heavily indebted to China and reliant, on their investments will follow along shortly.

And just like that, it’s over for America.

It begins with the dollar. Every country that has had to own dollars since the 1970s to purchase oil begins to dump them. This is a downward spiral because as the dollar’s value collapses, it forces more people and more countries to convert their dollars to other currencies, gold, or commodities to preserve value.

Most US Dollars are NOT in the US Once all those dollars being dumped hit the US shores this “historic inflation” we’re dealing with right now will seem like a walk in the park. America will experience true hyperinflation.

We’re talking multiple percentage points per day, not per year. Your money will soon become worthless, and a bag of cash will be traded for a piece of bread.Death Of The Dollar So, what else happens because of this hyperinflation? The FED will spike interest rates through the roof! There is no other way, you need to have high-interest rates to compensate for that kind of rabid inflation.

Death Of The DollarWhen that happens stocks, bonds, and real estate, the other 3 pillars of American wealth all collapse at the same time.

The economic crisis that follows will be unlike anything this country has ever experienced in its entire history. It will probably make The Great Depression look like a time of plenty!

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There will be no safe haven asset anymore or anyone to bail us out.

As the dollar is globally dumped your way of life as you know it will cease to exist.

And tens of millions of Americans will be thrown over the poverty line and into a bitter fight for survival.

Our irresponsible leaders have led us down a one-way road from which there is no turning back at this point.

As the curtain falls on the dollar, American primacy will also become a thing of the past. The world will move to a multipolar dangerous new order, where the main reserve currency will be the BRICS currency.

It will be China and its allies calling the shots from now on, not the US.

No more printing money to pay off debt for us. No more demand for dollars. No more overvaluation of the US economy.

Total Collapse

For decades and decades, we’ve lived on cheap debt and borrowed time, way above our means and productivity levels only because of the dollar’s reserve status.

And now it’s time to pay the piper, but we can’t cover the tab.

China knows what’s going to happen and that’s probably why they’ve been on an absolute fire sale of US treasury bonds recently, shedding their exposure from $1.3 trillion to just $870 billion in the last few months.

These bonds once considered as good as gold are now being dumped by other countries as well.

Death Of The Dollar

Meanwhile, the BRICS countries are pushing ahead with their plan to kill the dollar.

The US might never again recover, just as was the case with Great Britain once the pound lost world reserve status. And looking even further back in history, losing reserve status seems to largely coincide with the fall of empires.

The writing is on the wall, but there is still a little bit of time to prepare. The question is will you do it now or wait until it’s too late like most other Americans?

You cannot hope to stop the dollar from collapsing but what you can do is become less dependent on it. Saving soon-to-be worthless paper won’t help you or your family survive. But using your dollars to become self-sufficient just might. Let me show you 70+ DIY Projects That Will Help You Survive the Death of the Dollar. These ingenious projects do not cost much or involve hard work, but they will cover every one of your survival needs: food, water, electricity, security, medicine, communication, waste management, etc.

Select the ones you need the most and start building.

We don’t have a lot of time left.

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