.png)
Four Signs of the Collapse of the American Dollar, and Why You Should Own Gold and Silver
Highlighted Topic Points:
The stock market more closely resembles a casino than a place of commerce.
147 countries in the BRICS nations, which amount to 90% of human population
In 2017 the German Bundesbank, the German Central Bank and central banks of Austria, Hungry, Turkey, Czeck Republic and the Netherlands also bought their Gold back from the US.
In April of 2019 the BIS quickly and secretly reclassified Gold from a Tier 3 asset to a Tier 1 Reserve Asset! This made Gold the only other Tier 1 Reserve Asset besides the US Dollar.
In 2020 the International Monetary Fund (IMF) 200 countries announced they wanted a new world reserve currency. What will become the new reserve currency?
We are into the final days of the great American Empire and your financial future depends on how well you accept this as fact and how you are prepared! I have no idea when it will happen, but it is growing more evident each day for anyone willing to do any modicum of research. Many are saying Red October and the charts would suggest this to be true. But in my world, we never speculate, we follow a set of rules. Currently we sit on 100% money market and cash like investments. The market is a virtual casino and the odds are stacked against you.
Since coming out of retirement last March and forming Preservation Capital, I have had the opportunity to speak candidly about where we are heading in these times in the world of finance. I have had the time to take in a lot of information from highly regarded investment professionals that have been around the block a few times. I read and listen to podcasts and generally find a wide variety of ideas on the topics I am looking for.
When you have the time to devour as much information as I have you are able to formulate an opinion that is backed by many that we are in the midst of a violent reshaping of the financial world we’ve known for centuries, and that is putting it politely. To be blunt, our system will collapse under the weight of decades of fiscal mismanagement and current actions that appear, at times to be intentional, by both the Central Banks and the governments of Western society. This system is ripe with corruption and with all the derivatives and other special options contracts the stock market more closely resembles a casino than a place of commerce. The system is broke. Broke financially, morally and intellectually. As mentioned, recent mismanagement of our economy is so absurdly bad that it appears intentional.
That is why I was so pleased to have a video shared with me by a client that really and truly busts it all down in four steps. What I have done is attempt to break out the key points and provide an overview for of the video, but I strongly recommend everyone watch the video themselves. The video is attached and the notes I have made below are from the video and the research done by Andy Schectman.
The four signs of the collapse of the American dollar cannot be discussed without some history.
After World War 2, in 1944 the US dollar was named the World’s Reserve Currency at Bretton Woods, Mass. It was the only Tier 1 currency in the world. Tier 1 alludes to something being risk free. The US currency was chosen due to the string economy of the USA and because it was a Gold backed currency, not a fiat currency which is backed by absolutely nothing.
Also, after the war the USA said they should store other countries Gold reserves because Europe seemed to always be at war, and it would be safer across the pond. The US bought other countries Gold at $35/ounce and promised to sell it back to them at the same price anytime they wanted it back.
In 2017 something odd started to happen. The German Bundesbank, the German Central Bank, asked the US for their gold back, they wanted to repatriate their gold reserves. At the same time the central banks of Austria, Hungry, Turkey, Czeck Republic and the Netherlands also bought their Gold back. That year as a group they bought more Gold, both on the open market and their own reserves stored in the USA than they had in the previous 60 years. Question, “What did they know that sparked this sudden hunger for Gold?”
By 2019 all the central banks had repatriated their Gold from the USA and added even more from the open market.
Another important point to make regarding the US Dollar is a deal they made with Saudi Arabia in 1974. In exchange for US military protection the Saudi’s would have OPEC price oil in US Dollars only. This made almost the entire world dependent on having the US Dollar and what gave the name of the currency, the Petro dollar. It also helped fuel the American economy as their currency was coveted and required worldwide.
It is vitally important to get used to the acronym “BRICS” It stands for Brazil, Russia, India, China, and South America. The BRICS were formed in 2000 as the BRIC with South Africa joining in 2010 to make the acronym BRICS. These countries formed an economic union that has grown in power and population over the past 12 years.
This brings us to Andy Schectman’s Mile Marker # 1
The Bank of International Settlements (BIS) is the Central Bank of all Central Banks and is in Basel, Switzerland. I guess one might say the Head Office.
In April of 2019 the BIS quickly and secretly reclassified Gold from a Tier 3 asset to a Tier 1 Reserve Asset! This made Gold the only other Tier 1 Reserve Asset besides the US Dollar. Since 1944 the only Tier 1 Reserve Asset was the US Dollar and with absolutely no media coverage Gold became equal to the US Dollar in status. As Schectman points out, hardly anyone knows this and that is including many if not most of the so-called experts and large money managers. This is huge news.
So now we have to wonder, were the central banks somehow tipped off in 2017 that this was going down and that is why they went on and continue to be on a Gold buying binge?
Schectman Mile Marker # 2.
The foundation of the Chinese Belt Road Rail Initiative. It is the most ambitious infrastructure project ever attempted in human history. It connects Asia, Africa, parts of Europe and even some of South America. It represents over 75% of the human population and 45% of the world GDP.
The Belt Road is a series of channels, bridges, railways, and roads and is only used for commerce and military. Trade is done predominantly in the Chinese Yuan Central Bank Digital Currency. They use ZERO of the world’s reserve currency. Completely snubbing the US Dollar and indoctrinating 75% of the worlds population into using the Chinese Digital Yuan. This ignoring of the US Dollar paves the way for massive de- dollarization. Not good for the USA or the Western world including Canada.
Also, in 2020
At a meeting of the International Monetary Fund (IMF) 200 countries announced they wanted a new world reserve currency. Obviously, the US Dollar is not well liked.
The BRICS countries, continued to amass billions of Gold, and still are today.
Private Wealth companies also started to buy copious amounts of physical gold and physical silver. They bought more in 2020 than they had purchased in the past 10 years! Hmmm…
Mile Marker # 3
August 30, 2021. The US military fled Afghanistan abandoning fellow American’s, innocent Afghanistan supporters and billions of dollars of high-powered military equipment. It is hard to believe that the world’s largest military really had to flee from a third world rag tag army, the Taliban, but nonetheless it goes down in history as one of America’s most embarrassing moments. However, under Biden and the Democrats, American’s are used to being embarrassed.
This perceived weakness was all that was needed by Saudi Arabia, or maybe it was the straw the broke the camels back because the very next day Russia and Saudi Arabia signed a military agreement. Russia, not the USA is now protecting Saudi Arabia.
Then the very next day, Russia and Nigeria, the world’s 10 largest oil reserve signed a similar military agreement. Russia is now in control of much of the world’s oil from a military perspective of both Africa and the Middle East. Meanwhile in North America our brilliant leaders stifle expansion of oil, shit down coal plants and push the ludicrous and farcical Green agenda. Once again, it seems intentional to destroy Western society.
Another major development has been the deals between oil producing nations and China to sell their oil in Yuan and not the US Dollar. Hence, the famous 1974 “Petro dollar” agreement that helped make America into an economic powerhouse appears dead.
Mile Marker # 4
The US sanctioning of Russia using the world’s reserve currency as a weapon by blocking trade in US Dollars with Russia. It is one thing to sanction a country, it is another to use the world reserve currency against them. This would come with consequences, and you wonder again, was this on purpose to make Putin out as a bad guy or are they all really that stupid?
BRICS is growing
Sixteen countries have since applied to join the BRICS including Saudi Arabia. This is easily overshadowing the Western G-7 in population and GDP. Already their power is overwhelming and is a threat to Western economies that have been run into the ground lately by woke left idealogues that are either really a thoughtless bunch or intentionally crashing our economies. The BRICS nations want nothing to do with this western arrogance and are going about creating their own trading rules and currencies.
Because they don’t like the way the West has handled things. So, they’re all coalescing, 147 countries on the Belt Road along with the countries in the BRICS coalition amount to 90% of human population They truly are all in this together.
And think of the fallacy of composition, all these countries, one by one, can’t stand up to the U.S. But you put them all together and they will dominate the USA.
Wrap up
China has sold over $100 billion US Bonds in the past 7 months
The USA has been understating inflation. According to the National Bureau of Research using 1980 inflation calculations the real inflation rate in the USA in July was 16.5% not 9.1% as they state.
The sanctions never worked, 85% of the world is still dealing with Russia and paying them in Rubles or Gold.
Turkey has been the largest accumulator of Gold the past 7 months in the world amassing 75 tonnes, more than any central bank.
Russia and China recently announced they are introducing a “new world reserve currency.”
Let’s think about the Great Reset. How do you get a great reset? Well, first you blow up asset prices to all time highs (accomplished by the end of 2021!) and then at the lowest interest rates in human history (Yup, almost zero), and then you incentivize the world to find a back door because you watch what just happened to the Russians who 85% of the world is saying “well you’re still okay to trade with.”
So how does it all blow up?
Why do you own gold and silver? Why? Remember gold was classified the only Tier 1 asset in the world next to U.S. dollars. Remember the biggest money in the world, they central banks, the commercial banks, the sovereign wealth funds, the family offices, they’re all buying it, they’re all taking it off the exchanges or moving counterparty risk. You can see the draw down from all the major exchanges.
How does the end of the US Dollar begin?
It may look something like this.
“Saudi Arabia joins the BRICS nations, every OPEC producing country, all 13 of them are on the Belt Road, they all sit on a stage with their arms around each other on a Sunday night here in the states. Monday morning, somewhere in China or in Russia, or where wherever this meeting is, and Saudi Arabia says, “Hey U.S. Thank you. It’s been a hell of a ride. We appreciate it. As you know, we are being now protected by China and Russia. In fact, we struck a join military cooperation agreement the day you idiots pulled out of Afghanistan the way you did. And we realized that maybe you weren’t the best partners to tie our wagon to. You know you sent over President Biden to beg for oil, he didn’t beg for oil, he hasn’t even gone to Mexico or the Texas-Mexico border, he came and asked us to not join the BRICs nations, but we’ve decided after contemplation that, Hey you know what it’s in our best interest, and all of OPEC who was on the Belt Road, that we are going to open up energy purchases in other currencies, including the Yuan and the Rupee, the Ruble, Maybe Euro, Gold and Dollars.”
And just like that, it’s over. Because what happens is every country on the planet who has had to own dollars since 1974, dumps them.
When everyone dumps dollars and Saudi Arabia and OPEC say, “Thanks for the memories folks,” and then is when you get hyper inflation, interest rates spike; stocks, bonds, real estate, all at the same time collapse, along with the dollar. The four pillars of wealth in this country; stocks, bonds, dollars, and real estate will all collapse as interest rates spike as the dollar is globally dumped. And this is your Great Reset.
Why do you own gold and silver? Why? Remember gold was classified the only Tier 1 asset in the world next to U.S. dollars. Remember the biggest money in the world, they central banks, the commercial banks, the sovereign wealth funds, the family offices, they’re all buying GOLD, they’re all taking it off the exchanges or moving counterparty risk. You can see the draw down from all the major exchanges.
And this is why you own precious metals. When the dollar collapses you want real assets, not the paper kind like ETFs, but the physical metals that are Tier 1 assets and will be much more valuable than the other Tier 1 asset. In fact, the US Dollar will likely lose its Tier! standing. You also own because we are on the cusp of a massive change being called by many as the greatest transfer of wealth in history. You might get rich, in fact, there is a good chance you will be wealthier than holding paper assets as they will get destroyed.
Here is the clip to the entire video. I urge you to watch it. 4 Signs the U.S. Dollar May Be Toast - Robert Kiyosaki, Kim Kiyosaki, Andy Schectman - YouTube
