Currency crisis, economic crisis, then global solution.

 CURRENT FINANCIAL SYSTEM MAY BE COMING TO AN END

DRAMATIC SOLUTIONS IN THE WORKS

It seems the financial system is about to be tested as never before. We see that many nations are now seriously moving to end the use of dollar as the world reserve currency. While we hear that this will be difficult and likely to take years, it seems that it is moving much faster than anyone is willing to admit.

We must take note that the move away from the dollar is actually a natural result of uncontrolled deficit spending by the United States government. It is no coincidence that the last balanced budget in the United States was 1969 and  that the decoupling of the dollar from gold and silver occurred in 1971, this happened in reaction to foreign entities wanting to exchange their dollars for actual metal. This allowed the government to take on ever growing massive debt and also the devaluation of the buying power of the dollar. One simple statement sums up the results, the things we buy, whether real estate, gas or food have not increased in price, but the value of dollars has been steadily eroded by government policy.

While that is a simplistic analysis, it is a fact. This trend has been going on ever since 1969, slowly at first, due to increased socialist spending and the Vietnam war, then followed by papering over numerous financial crisis. The last financial crisis that was allowed to run its course was in 1981 to 1983, caused by runaway inflation and debasement of the currency corrected somewhat by 17% interest rates and severe economic downturn. Since that time, every break in the economic growth has been papered over with more spending, more debt.

With a present debt of $33 trillion and growing daily it is now at the end of the road. Raising interest rates will squeeze borrowing, real estate and major purchases, but will also make the debt service unsustainable. It will not lower the cost of fuel, energy and food which are now experiencing shortages and supply chain problems, so we will see higher prices, lower economic activity and an inability to service debt in an escalating decline of sustainability. 

When we see foreign countries fleeing the dollar it is not necessarily because they want to damage the United States, but more because of their objective analysis of the current financial situation. While at home we are bombarded with propaganda and misinformation that all is well.

It has recently been reported that major banks at present have $1.7 trillion in unrealized losses. More than $1 trillion in deposits have been withdrawn since the fall of the SV bank. so even the domestic population is becoming apprehensive to what is coming.

For 50 years the U.S. federal government has been able to create a continually escalating number of dollars with no restraint by any coupling to a real asset. It is really fake money that has been accepted on faith in the U.S. government. As that faith deteriorates so will the faith in the dollar as the worlds reserve currency. That is already happening ,because it is a reality not a plot, just plain financial objective reality. It is the fault of the United States government by its incompetent policies. 

For years our trading partners whether for oil or manufactured goods have sustained the U.S. debt by purchasing U.S. debt with the money it received for these goods. They were unable to actually buy U.S. products which became increasingly uncompetitive, except for food, some technology and some raw materials. This coupled with an aggressive policy of sanctions and control of the internal policies of these countries has now resulted in what appears to be a rush to decrease their ownership of U.S. debt and to buying commodities, or precious metals.

As these Dollar holdings are reduced, that money will be in effect coming home, the inflation that the U.S. has been able to spread around the world will in effect be concentrated in the United States with the increasing possibility of hyper inflation, a rise in all prices and the collapse of the value of the dollar and possible economic collapse.

We hear talk of the coming, "Great Reset" Something that has been simmering for some time without a clear explanation of that would entail. If the dollar collapses and the debt is unpayable, how can it all be salvaged?  Some would say, as some other countries are attempting to do, a return to an asset based system were all currencies are backed by some commodity like oil or gold. Then there are those who see this an opportunity to move to the next level of government control on a global basis. 

We see that the U.S. Treasury has now began a digital currency on April 1. It is expected to be implemented in June of this year. It is to be controlled by a cooperative arrangement with certain banks and the government. I suspect that this is just a bridge arrangement to allow a move to the next step. That solution is also being coordinated by western governments and international bankers to create a "International trading unit" This would be a digital currency and would be accepted in the western world as payment for commerce without the need for exchange rates or other complications. 

So, this may be the scenario, a currency crisis, a collapse of the dollar value, an economic crisis. Then much like what happened in the 1930's, where people were forced to trade their gold for paper,  people will be given a window of 90 days or such to exchange all their cash for trading units. No force will be necessary because after this date paper currency will be worthless and just so much paper..

So how will this work, it will likely be implemented with a card at first with a transaction fee to cover the banks costs and a transaction fee or tax to the government. Eventually to solve the problem of stolen or lost cards and other fraud, it would be much simpler to have chip implanted to make it all so easy and convenient.