Lately, I’ve heard a lot of nonsense fueled by apathy, misinformation, inflated egos, willful blindness, propaganda, and distractions galore. So here’s my attempt to empower you with some facts I know about history, so that you can read and interpret current events from a new and improved perspective, and you can maybe help finish the story. You can choose to be a “partisan” or you can chose to be an active participant in what comes next in a world that is not as it appears. These facts are built on an understanding of the history of money that dates back to the hunter gatherers. They represent only a very small modern piece of the great big picture, in the last century of money’s evolution through currency and the ages.
1934 – Roosevelt forced every US citizen to turn their gold over to the US government under Executive Order 6102. Then he changed the price from $20.67 to $35 per ounce. By increasing the amount and value of gold held by the Federal Reserve, he could increase its power to inflate the money supply, and that’s exactly what he did. There was a time when money supply was really important data to people, but now they don’t care because they’ve been dumbed down by the media to focus on political cat fights, blame games, and other things that actually affect them right here and now. They haven’t seen or felt anything other than invincible US world power in almost one hundred years. Is this grounded in facts or fiction? Let’s see.
1944 – At the Bretton Woods United Nations Monetary and Financial Conference, world leaders made the dollar as good as gold. They made every $35 dollars redeemable for one ounce of gold at anytime, for other nations holding IOUs, otherwise known as US dollars. The world currencies were pegged to the dollar and the dollar was pegged to gold at a fixed price. It had to be this way because the US had the most gold, as a result of Europe who had paid them in gold for war goods. This is how the US became the world’s empire, it produced 185K airplanes, 120K tanks, 55K anti-aircraft guns, etc. The US was paid in gold and had accumulated the most gold of all the countries in the world. War was business and money for the US, and poverty for everyone else. War is what made the dollar the world’s reserve currency and what gave Americans extraordinary lifestyle and wealth. But is what we have now real wealth? A permanent gig? Something we can take for granted and rely on? Can the USA print as much money out of thin air as it pleases and never face any consequences? Can they borrow from the world forever?
1971 – Nixon detached the dollar from gold because other countries had caught on to the fact that the USA was printing many more dollars than they had gold in its vaults. The IOUs (dollars) were losing value, so other countries decided they didn’t want to store their wealth in dollars and started redeeming their dollars for gold. Had Nixon not closed the gold window, we would have lost all our gold. So it was a defense mechanism to protect what we had left, not a statement to suggest that gold was antiquated or a pet rock. After all, gold had been money for 5000 years. From this point forward the dollar and all currencies became fiat.
The gold standard was replaced by the oil standard. In other words, the Saudis agreed to only use dollars in the oil trade (the petrodollar). This assured the dollar strength and stability as all countries around the world had to hold and use dollars for oil trade. Remember, the world’s “use” of dollars in trade is what gives it value now, not gold or any backing. Just the faith and credit of the US government. A big part of that faith is assured by the 800 US military bases around the world whose job is to make certain the US and its dollar stays on the throne.
1995 – The World Trade Organization was created and from that point forward we have seen many big US corporations that produce things all move overseas. They sacrificed American jobs to exploit people from other developing countries whom they could pay very little with inflated US dollars supported by global trade. Meanwhile, China quietly became the world’s producer of goods. That’s a big reason why we have a trade deficit. It worked before because China was buying US treasuries with their surplus, but when they stopped funding the US deficit, the trade war surfaced, which I’ll get into more later.
2008 – The Great Financial Crisis happened from too much debt and too many defaults, and came the beginning of quantitative easing (QE). Obama created more debt than all the previous presidents combined. Then Trump even more than Obama! Meanwhile China has for a long time now been quietly buying up gold and other commodities, still selling its US treasuries. Russia sold all its US treasuries a few years ago. And they created the petroyuan to trade oil. This was right before Trump started the trade war.
2019 – In September, the repo (reposition) market broke. Interest rates in the repo market spiked like never before. This is the heart of the financial system, where banks go to borrow and lend real assets for highly leveraged currency often just fabricated out of thin air to make good on their transactions. Money is supposed to come from production, but now it comes from the Fed. Gold soared and a series of events followed that assured the necessary money printing to keep the system (the patient) alive.
Today 100+ countries still keep their sovereign wealth in gold behind vaults while people play with stocks and cryptos, play casino games in the market and print currency like toilet paper. Pay attention to what they have and hold on to, not what they do and give away freely. The Secretary of the US Treasury is really the Secretary of the soon-to-be 30 trillion in US national debt. And why is it different this time? Because the interest rate is now zero. That’s the game changer, folks. Why will foreign countries buy treasuries for nothing in return? Why will anyone want to lend more money to a borrower with $30T who will never repay, for exactly nothing but currency that’s worth less in the future?
Is it different this time or will the world go along with this dollar-centric system forever? While the USA was once the world’s bank for gold, it is now the world’s burden for debt. The world is now the bank of the USA, lending to us, and we essentially force them to continue with a powerful military fueled by that credit they lend us. Can you see? The serpent is eating its own tail.
If you look at the trillion dollar companies or our recently formed corporatocracy, they either don’t produce anything or they don’t make profits anymore producing things. Maybe that’s why Apple is getting into EVs and every other car company as well. It’s the only real vision for the future of the economy right now. EVs are the new war goods in a world that is shifting away from oil. Meanwhile debt is growing exponentially and prices will follow. What’s valuable today are big huge companies that sell your private information, so that other companies can use it to sell you real stuff. Again, the serpent is eating its own tail, don’t you think?
2021?????? Well, the East is rising, and the West is falling. China is rising as the new empire, the producer and the holder of real tangible things including gold. But how will this all play out? I don’t really know other than a great reset is coming, Biden is a part of that plan, and major changes are evolving towards that goal every single day. Covid19 is not the cause as much as it is the excuse to print money, destroy the old system on life support, and reset things in a new way which involves losing freedoms and property for all the people bound to and dependent on debt. China is leading the way and there’s really no stopping the unwind of this process of our own making. There are more questions than answers but awareness can only help us refocus and pull together in a positive productive way.