With the Death of the Dollar Comes the Death of America
We’re So F***ked
It’s not aircraft carriers and nuclear missiles that make the U.S. one of the most feared countries in the world.
It’s our currency.
And this country has a long history of weaponzing the dollar in an effort to make its enemies crumble.
But this practice is about to backfire. Because if you threaten folks long enough and screw with their money, they’ll eventually strike back. And there is mounting evidence that this is what’s happening right now.
The Death of the Dollar
The U.S. dollar is the foundation on which the United States has built its superpower status. And this nation has never been afraid of wielding this power to call the shots on an international stage.
We’ve used it countless times to bring our adversaries to their knees. And we’ve continued to use it even more aggressively over the past 20 years. But this trend is starting to put the U.S. at risk of losing everything, as other nations are now starting to join forces to strip the U.S. of its power by seeking alternatives to the U.S. dollar.
If such a thing were to happen on a large scale, the U.S. would lose much of its power — and wealth.
Analyst Patrick Lawrence opined on this very issue and really hit the nail on the head when he noted that as the U.S. continues to weaponize the dollar, it is prompting many other nations to find alternatives to the U.S. currency as the default medium of exchange.
The impulse to de-dollarize international trade and financial transactions has been evident for some time. Russia has actively encouraged its trading partners to avoid the dollar in favor of local currencies since Washington imposed sanctions against Russia following the U.S.–cultivated coup in Ukraine five years ago. Russia is now recruiting other nations to participate in its alternative to the U.S.–controlled SWIFT bank-messaging system. China has set up a parallel mechanism, the Cross–Border Interbank Payments System.
China launched an oil-futures market denominated in yuan little more than a year ago. Its annual turnover is already the equivalent of $2.5 trillion. The Shanghai Futures Exchange, where oil futures are traded, recently announced plans to offer forward contracts in rubber, nonferrous metals, and other commodities — all to be transacted in yuan.
The G–20 gathering marked an important step for these de-dollarization efforts. France, Germany, and Britain announced on the opening day that a trading system developed over the past year to circumvent U.S. sanctions against Iran — and any entity transacting with it — is now operational.
I know there are plenty of folks who love to chant U-S-A... U-S-A... U-S-A... But the reality is that the U.S. is a bully nation that many other countries would love to see taken down a few notches.
This, by the way, is not an anti-American comment. It’s simply an observation of truth.
And here’s another truth that’s likely to piss a lot of people off...
While plenty of other countries are actively seeking to derail the dollar as the default medium of exchange, we continue to disregard the many small cuts that are bleeding the health of our economy.
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The Perfect Time to Strike
In the past two and a half years, the U.S. trade deficit has increased by 25%, the budget deficit has increased by 33%, and the U.S. continues to consume more than it produces, which is resulting in increased imports at a time when we’re knee-deep in a trade war.
But the S&P just hit 3,000 for the first time ever, so everything must be fine, right?
The bobbleheads in Washington are taking victory laps, Wall Street’s doubling its orders for hookers and coke, and most folks in this country have no savings, mountains of credit card and student loan debt, and far too much knowledge of what’s new with the Kardashians.
If I were an enemy of the U.S., I would certainly consider this a perfect time to strike.
So here’s what I suggest...
Make the most you can from this bull market right now because it’s not going to last. When it ends, it’s going to hit us with all the subtlety of a brick to the face. Because it’s very likely to be intensified by an attack on U.S. currency.
I don’t mean to sound like a fear monger, but being silent about this stuff won’t do any of us any good.
So for now, continue making that money.
Make as much as you can while you still can.
Eliminate your debt and build your own empire now, so when the rug gets pulled out from under the blind arrogance of this nation’s leaders, you and your family will be safe.
To a new way of life and a new generation of wealth...
@JeffSiegel on Twitter
Jeff is the founder and managing editor of Green Chip Stocks, a private investment community that capitalizes on opportunities in alternative energy, organic food markets, legal cannabis, and socially responsible investing. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.
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