Among many commentators, intellectuals, and other pundits, especially among the conservative and libertarian ones, it is believed that the U.S. Dollar, what is today the world’s reserve currency, will eventually collapse and be supplanted by another foreign currency, such as the Chinese Yuan, the new BRICS currency, or the Special Drawing Right from the International Monetary Fund. They believe this primarily because of highly inflated the U.S. Dollar has been since the end of the Bretton Woods agreement in 1971, along with the loss of domestic manufacturing, such as factories, in the U.S. While the logic for this belief is generally sound, it is mistaken, as it fails to consider the following factors, which thereby explain why the U.S. Dollar will not collapse or lose its reserve currency…..until World War 3.
That leads to the forecast of this post; the U.S. Dollar will neither collapse or lose its reserve currency status until the joint and pre-emptive EMP and nuclear strikes by Russia and China on the United States, which will ignite World War 3 and thereby, the end of all remaining vestiges of liberty and Western civilization.
So why won’t the U.S. Dollar collapse or lose its reserve currency prior to World War 3? Joel Skousen explains it best, as the following excerpt from the April 7, 2023 of Skousen’s World Affairs Brief explains:
IS THE DOLLAR ON THE VERGE OF COLLAPSE?
“Jim Rickards has been predicting this since 2010 and it still hasn’t happened. Tucker Carlson picked up the hype this week in a monologue entitled, “Dollars are looking much less Appealing,” but his idea that the dollar would cease as a world currency is also wrong.
The Dollar simply cannot be overthrown because it is at least ten times larger in quantity than any other currency. Don’t try to use the FED numbers on the money supply because they don’t count all of the trillions the US has exported secretly in past decades. Remember the multiple pallets stacked 5 feet high with $100 dollar bills sent to Iraq to buy off the opposition tribal leaders so we could “win” the insurgency? The same thing happened in Afghanistan, and elsewhere.
In the days after the phony fall of the Soviet Union, we shipped suitcases of $100 bills weekly over to Russia, which all ended up in the hands of the Communist Oligarchs who pretended now to be capitalists. That’s why when they went to Europe on vacation spots they had no small change to give for tips, only $100 bills. Those unaccounted trillions are still circulating or stashed away as people all over the world trust the dollar more than their own fiat currencies.
What could possibly replace that quantity of dollars? Nothing. You would have to inflate the Pound or the Euro at least 10x to compensate, and what would that do to their economies? Nobody trusts the Chinese Yuan, much less the Ruble, to become a world currency.
The reason the dollar is king is because even before going off the gold standard, The FED has been flooding world markets gradually with billions of dollars in foreign aid, military spending, and secret bailouts for foreign banks and loans.
There are so many trillions of dollars outstanding outside the US that the FED can inflate almost at will and it only shows up as moderate inflation here. The pool of oil dollars is no longer the biggest pool of US dollars in the world. And that’s why when Libya and Iran went off the dollar, it didn’t have much effect at all on the dollar’s value. And neither will any other country who claims they are “going off the dollar.” In reality, they still have to use dollars for a lot of things.
There are also billions of American bills in cash tucked away in people’s hiding places all over the world. That’s also why it will take time to wean people off of cash. Yes, the digital currency is coming, but it will have to run concurrently with cash—not replace it completely.
And, the US isn’t the only one inflating their currency. Every other EU nation is inflating under the cover of US inflation, since as long as their currency remains relatively even with the dollar on the FOREX markets, their inflation isn’t obvious–except to their poor citizens who, like us, must deal with paying for rapidly increasing prices.
The only exception to the US being able to hide their inflation by spreading it around the world, was in 2008 when the government gave everyone a couple of $500 cash payments to every citizen during the mortgage crisis and the resulting glut brought on the highest period of inflation the US had heretofore known. It just happened again on an even larger scale when the US Treasury gave everyone several thousand in Covid payments. That has turned out to be hugely inflationary—upwards of 15% per annum and inflation has still not come back down in sectors other than housing due the FED’s high interest rate policies.
So forget about the dollar becoming worthless all at once. Yes, it’s declining in value due to heavy inflation, but so is every other currency. There’s no relief in switching to other currences except for brief speculatory trades. They are all fiat money and all inflating.
And don’t buy into the old claim that Russia or any other country is going to back their currency with gold. Gold in their reserves does nothing for you, unless the actually currency is redeemable in a fixed amount of gold, like the dollar used to be. And no nation is going to do that because it would cause a run on their gold reserves as they continue to create new money.
The state of Tennessee can now stockpile gold, but it won’t do residents any good–just the state. And even then it won’t protect the state from inflation. Gold and silver are both so highly manipulated that their value in the commodity markets has barely been rising with inflation—not dramatically upward in price as historically should happen during high inflation. Gold and silver haven’t appreciable risen in prices since October 2021 despite double digit inflation.
In the State of Utah, one company is printing legal currency with small amounts of actual metallic gold in the bills. Depending on the amount of gold, the bills are denominated in $1, $5, $10, $25, or $50. They are called “GoldBacks,” but once you convert your paper USD to Goldback dollars, you don’t dare spend them even though a few businesses in Utah will accept them.
These ARE legal tender in Utah, so you can spend them, but you won’t want to. They are only useful when US cash is outlawed and replaced by digital currency only. You definitely won’t want to use your Goldbacks to buy things now as they claim. Here’s why:
The Goldback $1 bill is 1/1000 of an ounce of gold, so that’s about $2 in gold value at today’s prices. And they cost you $3.66 to buy at one site, or $4 for Utah Goldbacks at the main website.
They have a video showing a member offering to pay for small items with Goldbacks instead of dollars. This was done to show it can be done, for promotional purposes. But that is stupid to do in real life. The gold dollar is worth $4 bucks and he’s giving it to them as if it was worth the same as the US $1 bill. Sure people will take it. I would too. But if you paid $4 for that pretty gold bill, I’ll bet you wouldn’t be so eager to part with it at a 1:1 exchange rate with paper dollars.
Don’t forget the old adage: “Bad money drives out Good.” That means you don’t want to spend valuable real money when people will take paper dollars instead, which are worth less.
I like Goldbacks as a real store of value and a small denomination potential barter item, but for daily use, US cash is better, not Goldbacks at their face value or you will be losing almost 4x your value.
They have a phone app to help calculate purchases according to the Goldback’s current cost (they call it an exchange rate). A $50 Goldback bill is worth about $204 in US cash, so don’t spend them as you would a $50 bill. But when or if cash is outlawed, that’s the time to use Goldbacks to buy privately, to avoid digital currency and tracking, or when there is no electricity and digital currency or banking won’t be available. They are impressive and have real gold embedded.
Even in a crisis I would still use what paper cash I had stockpiled first, because you’re going to have a tough time convincing people of the excess value of a Goldback, due to unfamiliarity and because at the time of the crisis, your 1/20 oz Goldback will be compared to the last known price of Goldbanks or gold, which will be artificially low. The same goes for silver and gold coins.”
So as explained before, the U.S. Dollar collapse won’t happen until World War 3. Of course, World War 3 will also bring out the end of electricity, modern infrastructure, and nearly all other assets of Western Civilization along with the end of the U.S. Dollar.