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The world is at the point of a massive paradigm shift in the global monetary system, and hardly anyone is \u00a0aware of it. \u00a0Businessmen are making plans and expending capital as though the world is in a recovery. \u00a0People continue to spend money and save little with the same expectations. \u00a0And investors continue to invest as though everything is perfectly fine. They have difficulty extracting the truth about the western world economy, which is mired in debt as possibly could be. The western world is so much in debt that the numbers are mind-boggling for humanity.<\/p>\n
Trillions of dollars in capital will be lost due to this and will enter the Western world into something that may be written about for centuries as one of the darkest periods in human history and labelled the Gigantic Fiat Money Collapse. \u00a0And yet not one in a hundred people are even aware of it nor even think it is possible.<\/p>\n
Those who are aware, however, and who have internationalized their assets and have the great majority of it in hard assets such as precious metals and also outside the financial system, preferably outside of their home country, stand the best chance to survive the coming changes.<\/p>\n
The days of the mighty \u201cpetrodollar\u201d are numbered;\u00a0and\u00a0the \u201cexorbitant privilege\u201d or\u00a0economic windfall that America has enjoyed\u00a0as the issuer of the\u00a0world\u2019s reserve currency has now been jeopardized\u00a0by the War Party\u2019s arrogant\u00a0over-reach and intervention\u00a0in Russia\u2019s backyard.<\/p>\n
When U.S. and EU politicians started slapping economic sanctions on Russia, they probably never even imagined that there might be serious consequences for the U.S. and the EU. But now the Russian media is reporting that the Russian Ministry of Finance is getting ready to pull the trigger on a \u201cde-dollarization\u201d plan.\u00a0For decades, virtually all oil and natural gas around the world has been bought and sold for U.S. dollars.<\/p>\n
Never before has it been more important to turn off your television, do your own research and take control of your financial affairs.<\/p>\n
\u201cWe have all of the major central banks printing staggering amounts of money. We’ve got this artificial ocean of liquidity out there and it has to end someday. When it does, it\u2019s going to be very difficult.\u201d Jim Rogers.<\/p>\n
The banking system is a fantastic business; they lend money they don\u2019t have and charge the lender interest on it, add to it the \u2018fractional reserve lending\u2019 that allows the banks to lend ten times more what they have on deposit. In other words they lend \u2018money\u2019 they don\u2019t have and doesn\u2019t exist, correctly called \u2013 credit money<\/strong>\u2013 while charging interest on it.<\/p>\nIn the depression of the 1930s it was the supply of money that mattered, but after Nixon in 1972 abolished the gold backing for the US dollar, he changed \u2018real money\u2019 into credit money<\/strong>. So now, it’s not the supply of money that matters, it’s the supply of credit. As long as credit is increasing at a healthy rate – <2% = inflation = theft – markets and GDP go up. When the usage<\/span> of credit<\/strong> doesn\u2019t increase; expect recession and bear markets. The idea behind the QE was to supply more credit money, but as there was no market for, QE became a worthless tool, as QE did not create lending capability.<\/p>\nChris Mayer explains this simple and clear. “QE does not create new lending capacity. Let me put it to you as simply as possible. Reserves are bank assets. Lending is constrained by capital. QE shifts assets but doesn’t alter capital. “If the Fed buys $2.6 trillion in Treasuries from the nongovernment sector\u2026 the nongovernment sector sells $2.6 trillion in Treasuries to the Fed. “Now, how is it that the Fed ‘injected’ $2.6 trillion in liquidity into the system? “The net effect is zero.<\/p>\n
“So to say that a bank can go to Goldman and lever up the $2.6 trillion as if it were something new is not correct. They could do that before using Treasury securities as collateral.<\/p>\n
“The idea that the excess reserves point to future hyperinflation is also absurd. The assumption is that the banking system will somehow ‘lend out’ those excess reserves. It can’t happen. It’s impossible. Banks in aggregate cannot lend reserves. Period. I never tire of pointing this out. Even very smart people get this wrong\u2026”<\/p>\n
But, “The Fed knows credit must expand, or we have a depression. And today, debt levels are so high that a depression would be catastrophic. The disaster would be worldwide, not just in the US. And people would die.<\/p>\n
“Because a depression in the US would mean tens of millions… maybe hundreds of millions… of people in China and Southeast Asia would lose their jobs. Businesses would go broke. Governments would go broke. People living at the margin \u2013 with no savings \u2013 would soon be desperate. Civilization would not survive. That’s why the Fed will not allow a real credit contraction.”<\/p>\n
The financial system is in a situation with many fingers in the dike, but it isn\u2019t known in advance, which one finger is being removed that might cause the dike to give way.\u00a0 But it does look more certain that the end of U.S. dollar hegemony is in sight.\u00a0 The only questions at this point are:\u00a0 When does it end, and when does the real panic begin?\u00a0 Regardless, the demise of the dollar is a certainty.<\/p>\n
The belief is sold; the US with fracking has sufficient oil for the future, and will recover on that premise. However Oil Fracking is a fraud, its pure misallocation of capital to produce nothing, it\u2019s a hoax, with Junk Economics, explained (first 12 min.) in footage below:<\/p>\n
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