US dollar collapse will happen this year, gold fund manager tells RT’s Keiser Report.
They’ve been saying this for USD and EUR forever. Also, FYI, the USD interest rates in other dollarised economies are often independent from what you get in the US. Nonetheless, I would suggest dumping some of your USD into property outside the US if you’re holding a lot of USD rn. Part of that is due to the favourable forex on some USD currency pairs ATM.
Psychology is what gives the US dollar its power but for psychology to change we need a big event. I mean a real military territory loss. Like the US being driven out of Europe or the Japanese, Koreans and Chinese saying…yankees go home and forcing them out. I don’t see this for decades. It will happen and I hope I am alive to see it. But I doubt it.
It certainly won’t take decades. We’re already in a Calhoun mouse utopia experiment with the unbacked US dollar. Jeremiah Babe did a good YouTube video yesterday about all the foreclosures in the States.
Nations are having all their productive assets stolen from them with all this unaudited central banking, printing up dollars and stealing real-world products and corporations. It’s got another 2-3 years, tops, before a new system is installed.
The Fed has been printing a trillion new dollars since the liquidity crisis started rolling out of control back in August.
The Fed prints nothing.
Congress authorizes spending and the debt level and the treasury sells the instruments to sell to the world.
The fed simply adjusts the interest rates.
What are you talking about? The Fed literally prints fiat currency out of thin air.
He’s being unnecessarily technical. The treasury operates the printing presses that print worthless fiat Fed notes.
The “Federal Reserve” is as federal as Federal Express. Nor does it have anything in reserve. The ten banks that comprise the Fed are privately controlled/owned so the nation’s finances are under a banking cartel not the Treasury.
But can the Treasury create debits out of thin air, ahemm, aka “quantitative easing”?
No, quantitative easing is just exchanging a bank’s Treasury Bill holdings for the equivalent amount of cash to make the bank’s assets more liquid. The dollar value of the bank’s assets on the bottom line stays the same. You commit the allegedly horrible crime of QE when you take your savings bond to the bank and cash it in.
Actually, according to Modern Monetary Theory, QE removes income from the economy because bonds earn more money in interest than cash.
Yeah with fiat currency. Thin. Air.
That’s how money has always been made. Money doesn’t exist metaphysically or as a fact of nature; it has to be politically constructed. That’s the consensus of modern archaeology about the origins of money.
It’s funny to me how libertarians don’t have a problem with the fact that patents, titles to property and passports are created by states out of “thin air.” They want to accumulate those whenever possible, especially passports for the ones who game the laws in different countries to evade taxes, like in those schemes about becoming a Sovereign Individual or a perpetual traveler. These documents don’t exist metaphysically or as facts of nature, either, but require political construction.
But then they say it’s somehow bad when the state creates fiat money out of “thin air.”
Fiat money is just as real as the title to your car, if you have one. The DMV in your state just spookily created that title out of “thin air.”
And that was extraordinary as it had never been done before.
The Fed accumulated over 4 trillion in assets and began reducing the assets, mid 2018, 3.7 trillion.
The recent repurchase of unsold treasuries is a bit bothersome as the treasury is offering minimal interest on debt and selling treasuries has become more difficult. The issue the Fed faces, if they do not purchase the excess treasuries, 60 billions a month how will the country finance the excessive spending congress continues month after month?
Does the Fed actually print money? Does the money supply increase?
In this case no.
The Fed creates money and buys treasuries.
-$60 billion dollars (liability)
+$60 billion dollars in treasuries. (asset)
Net is zero.
+$60 billion dollars (asset)
-$60 billion in treasuries (liabilities)
Interest payments from the treasury are returned to the treasury so the net loss/gain is near zero.
One day soon, the reality of debt will hit home How will they manage the debt?
Massive tax increases?
Massive spending cuts?
A risk premium for treasuries of investors will look elsewhere?
What would you suggest?
The real issue is when will congress address the debt and climbing deficit?
Currency is printed. The treasury prints that currency.
The rest is all electronic transfers.
It is an interesting problem.
How would the nation amaze the money supply without the Fed?
They haven’t been able to agree on the day of the week for 8 years.
Someone who actually knows about this has something to say…
Nothing matters more than growing the debt-fueIIed economy, this is why we need MORE peopIe we can pay LESS to, and seII MORE to, who eat aII the animaIs whose habitats we need to exterminate to make room for MORE indebted peopIe who must be LESS educated so they cause LESS troubIe, in the interest of the growing economy which gobbIes up the ecophere, turning it into pIastic junk inside IandfiIIs. Makes sense to me. China is aIready geneticaIIy engineering humans who can digest pIastic waste and have a reduced set of emotions, so they don’t feeI unhappy Iiving in dystopia. It wiII be NORMAL for them. AII is reIative, and humans are - they keep gibbering at each other - an INTELLIGENT scavenger SPECIES that can even create its own gods, with an average gIobaI IQ of 84 - but unfortunateIy, nothing eIse. AII eIse, it can onIy destroy, dreaming of bizarre, irreIevant concepts Iike ‘equaIity.’
He knows that. And the cartel unashamedly has stated it along the way in various ways as Rothschild did during the early gilded… Permit me to issue and control the money of a nation, and I care not who makes its laws !
That and his knowledge and position on war and peace is why the RNC gave him no quarters in his presidential bid.