Why the Dollar is at risk in 2021

I’m starting to see a lot of conservative media activity regarding “the coming coup,” expected to take place between November and January.

As I warned Early Warning subscribers earlier this year, the Left — liberals and Leftists, alike — are planning sustained, mass mobilization protests in the vein of Tahrir Square or the Euromaidan.

Protests at Cairo’s Tahrir Square turned into an Egyptian revolution that toppled Mubarak in 2011. In Kyiv, Ukraine, months-long protests and violence led to the ouster of Yanukovich in 2013.

Meanwhile, mass protests in Belarus are aimed at removing Lukashenko from office right now.

This whole idea of an American Spring or Lafayette Square began back during the Impeachment process, where left wing activists hoped to organize mass mobilization protests that would eventually lead to the toppling of the Trump “regime”.

New York Times columnists Michelle Goldberg and Jamelle Bouie gave the idea widespread coverage, imploring the Left to mobilize. They tried to convince the country that turning out was an imperative to combating fascism and demanding the Senate convict President Trump. Those efforts fizzled, likely because an American Spring was better suited for the election.

And here we are with just 48 days and some change to go. The current protests, riots, and unrest could well serve as a warm-up for November.

Any illusion of unity in this country has disappeared. Society is increasingly tribal, most presidential polls are split within five or ten points, the economy is separated between the haves and have-nots. One thing most in the mainstream can agree on is ‘free and fair elections’ that decide the country’s political future.

If we can’t agree on free and fair elections after 2020, then societal, political, and economic conditions are likely to deteriorate, maybe rapidly.

One of the most overlooked threats to a failed or contested election is the value of the dollar.

During ramp up to the COVID crisis, international investors sought refuge in the dollar because that was the safest and highest liquidity place to store their value.

We’ve enjoyed some incredible benefits of having a society and political system that supported a relatively stable dollar. Even with massive devaluation and theft from inflation, the dollar has historically been a refuge during times of international crisis. That won’t always be the case, though.

In a previous email I sent to Dispatch readers, I cited a JP Morgan study that found world reserve currency status lasts between 80-100 years; meaning that the U.S. Dollar is approaching its historical expiration date somewhere between 2024-2054, if the past 400 years of monetary history holds up. A failed or contested election will likely accelerate this timeline.

I received a response to that email, from a dismissive accountant who condescendingly asked where would international investors seek refuge. The obvious answer is same place they always do, and even more so with the dollar under duress: GOLD. We’ve also seen a lot of diversification into cryptocurrency. Globalists have wanted a global currency for decades — this likely becomes their opportunity for the IMF to issue a stable global reserve currency. Even if there’s not a viable alternative right now, the world’s a big place — given weeks or months, international investors can find places to put money. But maybe there’s no good solution and no where to hide. The real risk in that case is that international investors are stuck because no one wants to accept the USD in these trades. What happens to the value of a currency no one wants?

So, it’s serious question time.

If international demand for the dollar does begin to erode as a result of political, social, and economic instability, are the string pullers on the Left and Right willing to risk monetary collapse over election results?

If U.S. markets crash and the dollar does start to lose value rapidly, how much longer will the Left push the unrest? How long would the Right be willing hang on?

This may be considered an outlier scenario, but it’s certainly one risk we’ll face over the next three to six months.

If you’d like our daily analysis of how this scenario and others are shaping up, subscribe to our Early Warning service here: https://www.forwardobserver.com/subscribe

 

Always Out Front,

Samuel Culper

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6 Comments

  1. Sam Culper September 15, 2020 at 09:50

    4.5

  2. Frank Pinelander September 15, 2020 at 10:21

    Some points.
    The Federal Reserve note is NOT a “dollar” as defined by US Code. (Yes, it matters, when one reads the 7th Amendment)

    The Fed is the fiduciary agent of the IMF. So the Federal Reserve funds Globalism.

    The competitor as a reserve currency has been in the making for some time, and has a foundation. BRICS/New Development Bank. They also have a competing international system to SWIFT.

    Collapse of the Petrodollar was being engineered. Climate Change was/is designed to shift towards a global Carbondollar, eliminating the need for a reserve currency.

    The biggest shift that has occurred, and we need to know more about, is what happened under a Covid stimulus bill, where The Fed allegedly combined with The Treasury?

    During his campaign, Trump made many “off the cuff” remarks that indicated he was rather familiar with the true nature of The Fed, not to mention other “conspiracy theories”. I’m certain he or someone advising him had read The Resister.

    One side of the equation – The Establishment, will do whatever it can to prop things up. Of course the Bolsheviks will continue to accelerate “unrest”.

    “If there was hope, it must lie in the proles because only there, in those swarming disregarded masses, 85 percent of the population of Oceania, could the force to destroy the Party ever be generated.”

    • mike September 15, 2020 at 18:56

      “I’m certain he or someone advising him had read …”

      It was brilliant really. Most of the work was so well researched and expressed that it managed to completely illuminate any given specific subject matter with a literate and factual clarity that left no room for argument about it’s correctness. The delivery of that analysis with an undertone of utter contempt for the enemy made it a true joy to read and read again. Many of the phrases and expressions used to drive the point home are pure gold and when borrowed for use in office or bar room political talk , they are like kryptonite to the enemy and unfathomable wisdom to the uninitiated neutral person. I have never heard or read any of these nuggets anywhere else myself, but when encountered there would certainly be no mistaking the source.

  3. Anonymous September 15, 2020 at 11:24

    5

  4. Frank Pinelander September 15, 2020 at 23:21

    “but when encountered there would certainly be no mistaking the source.”

    Exactly.

  5. vyt1az September 16, 2020 at 08:48

    ————-
    “If international demand for the dollar does begin to erode as a result of political, social, and economic instability, are the string pullers on the Left and Right willing to risk monetary collapse over election results?”
    ————-

    Hell yes they will.

    People in the world of finance have known for years that the IMF has moved to diversify away from the USD to a basket of currencies. Well connected politicians know this. They’re already well diversified for this kind of thing including lots of investment in China, land in South America, New Zealand, etc. China is heavily invested in Gold and Crypto in preparation for this along with investments in Africa and South America.

    The left and the con-servative pals will be sitting pretty.

    ————-
    “If U.S. markets crash and the dollar does start to lose value rapidly, how much longer will the Left push the unrest? How long would the Right be willing hang on?”
    ————-

    The right will hang on far longer they they should as always and the Left will push as far as they can go as always.

    The Left’s major financial backer – Soros – may not be moral but he’s a financial genius at using chaos to make money. He engineered one of the most epic financial catastrophes in modern times to his benefit. https://theeconreview.com/2018/10/16/how-soros-broke-the-british-pound/

    Even his old business partner, Jim Rodgers, has said as much. They made absolutely insane amounts of money running the Quantum Fund before they parted ways due to Soros’ lack of morals.

    People like Soros and other wealthy lefties buy when there’s “blood in the streets” and then fix their position with regulations to prevent competition.They’ll tell us the lack of regulation is what caused the problem and so we’ll need it to prevent another disaster. That’s code for preventing them from having too much competition.

    Gold, Silver, and a little Bitcoin is a very good bet. Physical cash will still be very handy too for a time. Anything that governments and string-pullers can’t control is on the menu. :-)

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