US Dollar Losing Reserve Currency Status – amidst devaluation

The IMF recognizes eight major currencies: US dollar, Australian dollar, Canadian dollar, British pound, Chinese renminbi, Japanese yen, the euro, and the Swiss franc   All other currencies are measured against these to determine valuation.   The measurement is an illusion because its very means of measurement is flawed.   Historically the currency was based on its value as a commodity metal – today it is based on valueless paper that is backed by debt.

The US dollar is considered the dominant measurement for all other currencies. This allows the US to borrow at lower costs – given a ‘safe-haven’ clause.   The safe-haven clause states that determining factors include:   stability, reliability, level of corruption, long term, purchasing power, and – politics.

IF the US dollar was stable, reliable and secure then the dollar should be worth more than a dollar since the introduction of the Federal Reserve. Instead the dollar is now pegged at a value of 4cents since 1930.

There are multiple complications with these meandering valuations, including the fact that the Euro’s existence didn’t begin until 1983… therefore the maximum length of analysis begins at that point.   Today, the Euro is stronger than the dollar.   The Swiss Franc is stronger than the dollar.   The Japanese Yen and China’s Yuan are significantly weak against the dollar.  So why would weak currencies be tagged by the IMF as dominant reserves?

These monetary exchange rates really are rather arbitrary and insignificant because they don’t have any commodity value.   While the value of gold is highly manipulated and suppressed.   Why would western governments want to suppress the value of gold?   Because the western countries would be obligated to prove their reserves – reserves that have been depleted.   Canada sold all of its gold reserves some years ago.   Meaning the Canadian dollar is worthless.

This is why Russia, China, ASEAN nations, Saudi Arabia, UAE, and the BRICS want to return to the gold standard.   To bring back stability and a means to control federal debt.   IF global currencies are backed by a singular commodity the emotional devaluation and manipulations are removed.

In 1931, the British left the gold standard, and in 1932 the US followed suit.   The British government then increased their gold reserves on paper by 235% before diluting them to near zero today.   The vast majority of countries have been accumulating gold reserves since 1950 , including, Japan, India, France, Italy, Germany, etc…

What would be the point of a government to hoard gold reserves if gold is NOT tested against currency?  

In 1979, the US share of global reserve currencies peaked at 85% until the Carter administration’s contrived  inflation dropped that percentage to 45% by 1991.   By 2022, it had rebounded somewhat to 59%,   Currency in circulation of the Euro between 2021 and 2023 decreased from its peak of 16 to -2 based on M1 Monetary Aggregates.   Simultaneously, debt for Europe since 2000 increased by 275% to $13.5 trillion while the US National Debt now stands at $32.7 trillion.

The supposed deficits triggering the collapse of gold backed currencies according to economists and ‘bankers’ were:  – 1) it caused inflation.   2.   It reduced currency in circulation.   3) It hampered growth. 4)   It is volatile.

  • According to Ben Bernanke: When the central bank fixes the dollar price of gold, rather than the price of goods we consume, fluctuations in the dollar price of goods replace fluctuations in the market price of gold.

The obvious glaring problem with this Bernanke evaluation is the idea that the US Central Banks FIX the value of gold.   Historical accounts present a different picture:

Between 1833 and 1919, gold remained stable at $18.93 to $18.99.   AFTER Bretton Woods and the Federal Reserve Banks began manipulating gold, the price began to rise.   By 1978 gold had risen 1000%.   By 2023, gold had risen another 1000%.

During the same relative time frame  – from 1930 to 2023, the value of the US dollar had disintegrated to just 4cents.

The main deterrent to the gold standard is that it puts checks and balances on the government continually raising the ‘debt limit’.   When gold backs the dollar the government cannot create more debt than the value of gold reserves.  

This presented a problem for the Cartel to invoke global control over currencies.

The economic contention that currencies fluctuate dynamically against other currencies on foreign exchange markets assumes there is no fraud, no corruption, no manipulation, no short selling, no Soros.

Inflation is a direct result of this unstable fiat currency that has a ‘product end point’ wherein money is worthless.

The common denominators?

The formation of The Federal Reserve monetary policy manipulations – and the elimination of a value backing – gold.   In exchange for the promotion of ‘fiat paper money’ that is based on credit. Monopoly Money!   Asserting a Great RESET to crypto credit via the World Economic Forum is reminiscent of the era of the Dustbowl wherein greedy farmers issued credit against wages earned – with an attached fee to convert the credit to commodities or cash.

Why?  

Because soon the dollar will enter negative territory as to its worth and debt will surpass $40 trillion as interest balloons to $1.5 trillion.   America will be broke. And credit based production will involve even more emotional parameters – including religion, politics, race, gender, and whatever the Banking Cartel wants based on – “FEELINGS”.l

How The Gold Standard Elimination Led To: The Great RESET

The Great RESET in the making has a purpose, it just isn’t the purpose the World Economic Forum is spouting.   The collapse of our global financial institutions is eminent and has been an ongoing uncontrolled deviant spiral since its inception in 1913 with the creation of the Federal Reserve, and again in 1934 when FDR took the US off the gold standard.     FDR’s “Brain Trust” advisors at the time were Raymond Moley, Ruxford Tugwell, and Adolf Berle.  But it was an agricultural economist trimming FDR’s trees who told him to abandon the gold standard, George Warren.

The decision by FDR caused such a riff within his closest advisors that many quit.  Some even declared that the move was the beginning of the Fall of America!

The 1933 New Deal wasn’t having the impact FDR sought.   Unemployment refused to budge.  Thus FDR began creating jobs that hadn’t previously existed within infrastructure construction.    But the jobs were temporary as was FDR’s ‘fix’.

Warren was adamant that the shift away from gold would fix the economy – and derail inflation, and despite objections from the Brain Trust, FDR forged ahead with two allies, BIS and The Bank of England.   The decision has been cited as the principle cause of the 1937 recession which saw a 10% contraction, industrial production falling 32% and 20% unemployment.

The Federal Reserve reactionary policies have also been cited as a primary contributing factor.

As a direct result, the now consolidated banks rose to prominence with excess reserves rising 600% to $3.3 billion. In 1938, the Feds reversed the vast majority of their restrictive policies and the economy expanded significantly.   Simultaneously BIS, which controlled the European economies, began shipping Europe’s gold to the US.   Over the course of two years, BIS managed to ship 140 tonnes of gold to New York – for safe keeping.

In 1938 and 1939 BIS transferred gold reserves to the Reichsbank from the Bank of England. At the time, the Director of BIS was also the Director of the Bank of England, Otto Niemeyer, – eliminating any obstacles in directives. In essence Europe was eliminating its physical reserves while giving Hitler an important value commodity with which to wage war while European citizens were stripped of their gold and bombed.

As the US was confiscating gold from citizens under FDR’s newly minted directive, the global banking cartels were propping up Hitler’s invasion.   Not with the minted paper money, but with what was still revered as the best monetary backing in value – gold.   Hitler was the favored winner by both England and the US.

Placing a price cap on gold at $35 per ounce, FDR managed to remove an appreciating asset from the mainstream and transfer complete control and liquidity to the US government and Federal Reserve.

It was the prelude to the US declaration of WWII.   Rockefeller was cashing in on another commodity – oil.   As Japan began making inroads on the resource, Rockefeller sought various means of curtailing Japan’s competition.   Pushing Japan to extremes financially, a secondary war erupted.   Somewhat similar to the proxy war against Russia while stoking dissension in China over Taiwan stoking WWIII.

Oil and gold became the two largest sources of market wealth for the industrialists during WWII.

Thus it can be said that the banking cartel knew exactly what the implications would be in the gold confiscation scheme which would ultimately become the first massive transfer of wealth while slowly impoverishing the middle class.

These monetary and fiscal policies implemented by FDR in expanding governmental control and manipulation within the banking cartel are the basis of the failed system in the US – and the source of most major depressions and recessions.  These Markets were built on a finite timeline giving America the preeminent position of world power.

The power is diminishing rapidly.   Using the BRICS as a distraction, the Western industrialists are divesting with a pre-orchestrated end timeline of 2030.  The smaller banks will be absorbed or allowed to fold.   The survivors will emerge as the RESET stakeholders.   Winner take all mentality.

Eliminating the gold standard allowed the US government to continually ‘overspend’ leaving the citizens with insurmountable debt.   Each year the budget became more untenable causing Congress to raise the debt ceiling and print more paper money.     Federal debt held by the public rose from 16% to over 100% as FDR led America into Europe’s WWII.   Government spending clicked into ‘on’ mode and taxpayers were tagged for more money further eliminating the class system from upper, middle, lower, poverty to upper and a lower/poverty.

Reinstituting the gold standard would be problematic.   The least of which is Canada which has divested itself of all gold inventory.   But there are questions as to the accuracy of accounting in the US – with audits failing to occur.   By comparison, both Russia and China have been stockpiling gold for a decade.

According to Mises, banks are not inclined to make the divestiture because a monetary backed gold is much more stable and reserves earn interest for the bank.   In addition, creatively raising interest rates, as they are doing now, creates more income for the banks while tightening the grip on lending to entrepreneurs and smaller businesses.  A calamity.

Given the artificial system, the US still maintains its teetering place on the global stage. However, a return to gold when the inventory is disbursed among BRICS nations would mean relinquishing Power.   Two intertwined Cartels the Banking and Military industrialists, have no intention of leaving their assets or their power on the table.

Thus they devised the RESET and the fiat currency CBDC’s – still operating under the tutelage of central powers including BIS and the Federal Reserve.   This is their solution.   A new system of governing.  A system of corporate stakeholder rulers, aka bankers.   But in a global one world government, the military industrialists would be left behind…   And the schism of power is fighting itself.