Jay Powell’s Punch In The Face For The American People-The Dollar Is No Longer The Preeminent World Currency

By Stan Szymanski

On June 17, 2022 at a Federal Reserve research conference,  Jerome Powell stood and admitted to the world that the United States Dollar was no longer the preeminent world currency:

…’Looking forward, rapid changes are taking place in the global monetary system that may affect the international role of the dollar in the future. Most major economies already have or are in the process of developing instant, 24/7 payments. Our own FedNow service will be coming online in 2023. And in light of the tremendous growth in crypto-assets and stablecoins, the Federal Reserve is examining whether a U.S. central bank digital currency (CBDC) would improve on an already safe and efficient domestic payments system. As the Fed’s white paper on this topic notes, a U.S. CBDC could also potentially help maintain the dollar’s international standing.’…

As I outlined a day before the Ukraine war kicked off..‘The Ukraine Is The Financial Waterloo Of The West’ this was going to happen. This has now been evidenced by the fact that after the initial drop in its value after the American sanctions were implemented, the Russian Ruble went back to where it was before the war started and is now above that level. The day the war started it took 85 Rubles to buy a US Dollar. On March 9th, 2022 it was 138 Rubles to a Dollar. As of this morning it only takes 56 Rubles to purchase a ‘Buck’. That means the strength of the Russian currency relative to the US currency has increased approximately 34 percent in just under four months. Is it any wonder that the Fed is fishing for something to supplant the financial strength it sees diminishing in the markets every day?

Why did Putin’s medium of exchange get stronger while that of the U. S. weakened? It’s simple. In March 2022, Russia pegged the Ruble to GOLD. In the new age of inflation the Rubles’ link to GOLD gave it a floor, an inflation hedge. In contrast, the Dollar, since it is pure fiat, is only backed by the confidence that other nations have in it. The Buck lost value when in the marketplace it was weighed in the balance and found wanting when compared to an asset backed currency.

When Jerome Powell says…’As the Fed’s white paper on this topic notes, a U.S. CBDC could also potentially help maintain the dollar’s international standing’…he is stating that if the US just had a digital currency (its’ own cryptocurrency) that it might maintain its hegemonic stature in the world. Nothing could be further from the truth. All a national crypto would do is to to relentlessly and perfectly track the financial transactions of those who used it, mainly US citizens. It has nothing to do with why the nations of the world resent the predominance of the dollar. First, that is the resentment that stems from being financially under the thumb of the United States. Secondly, as the potency of a world power wanes (like that of a 79 year old falling over when he stops his bike), the countries of the world wish to transact business in a medium that is backed by something they can count on and not the empty promises of a government who left 9,000 of its own people to rot in a hostile country. On top of that, the rotters left 85 billion dollars of aid for the benefit of its enemy in Afghanistan. A Central Bank Digital Currency (CBDC) will not cure these ills. And if you use a debit card or a credit card the US dollar already has a digital system it has operated in for many years so a CBDC will not be a beneficial advance for the user. Mr. Powell has just told you that you may want to grab some jam and butter because The Dollar is TOAST.

Oh, the ‘dollar index’ (the ‘DXY’) has gone from 90 at the beginning of 2021 to over 104 today. There is a big problem with thinking that the dollar is strong when you look at that metric. The DXY does -not- include the Ruble, or the Chinese currency. It only measures the dollar against the Euro, the Yen, the Pound Sterling, the Canadian dollar, the Swedish Krona and the Swiss Franc. It’s kind of like a bully feeling good about his standing in the neighborhood without considering that a bully in an adjoining hamlet is beating the daylights out of a friend and is coming for you (the bully) next.

The Federal Reserve has printed too much money. The old, world controlling relationships that the U.S. has depended on have been abused (like with the Saudis who won’t even take a call from Joe Biden) and now are frayed, worn out and broken. The fortitude of the currency of the USA is crumbling. The world now is being presented with a viable, asset backed alternative to the dollar. The standing of the dollar is like the supposed President of the United States standing upright just before he face planted in the asphalt when he fell off his two wheeler. The dollar is upright and Jerome Powell just told you that the toe of the US is stuck in the bikes’ toe trap and we just lost our balance.

For the people of the US you must trade your fiat for hard assets if you want to have anything when the dust settles. Inflation is stealing what you have worked your whole life for. Consider holding -physical- gold, silver and other precious metals while they still may be found. Inflation and shortages are pushing the price and availability of food out of the reach of many families. Stock up on bulk food if you can find it. Have a way to store and purify water. Consider alternative energy, and a means of protection. Powell and the financial ‘masters of the universe’ have told you that you will own nothing and be happy. I assure you one thing-what they have planned for you will not make you happy. If you have laurels, do not rest on them. Like the ant, make provision now because the winter of our discontent has been planned for us. The admission of Jay Powell that the Dollar is no longer the worlds’ preeminent currency is like the telegraphing of a punch in the face that is smashing into our collective countenance.

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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.