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Trump and a New Gold-Backed Dollar

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by Nick Giambruno, International Man:

On August 15, 1971, President Nixon killed the last remnants of the gold standard.

Since then, the dollar has been a pure fiat currency, allowing the Fed to print as many dollars as it pleases.

Removing the US dollar’s last link to gold eliminated the main motivation for foreign countries to store large dollar reserves and to use the dollar for international trade.

At this point, demand for dollars was set to fall… along with the dollar’s purchasing power. So the US government concocted a new arrangement to give foreign countries another compelling reason to hold and use the dollar.

The new arrangement, called the petrodollar system, preserved the dollar’s special status as the world’s reserve currency.

In short, the US government made a series of agreements with Saudi Arabia between 1972 and 1974, which created the petrodollar.

The Saudis would use their dominant position in OPEC to ensure that all oil transactions would only happen in US dollars. And the US would guarantee the House of Saud’s survival.

It worked… for a while.

The petrodollar filled the void after the US severed the dollar’s last link to gold as the main prop to the dollar’s status as the world’ premier reserve currency.

So far, the petrodollar has lasted over 40 years. However, the glue is losing its stick.

I think we’re on the cusp of another paradigm shift in the international financial system, a change at least as fundamental as what happened in 1971 when Nixon severed the dollar’s last link to gold.

The relationship between Saudi Arabia and the US hit historic lows in 2016. I only expect it to get worse. Trump is the first president since the petrodollar system was enacted to be openly hostile toward the Saudis.

The death of the petrodollar system is my No. 1 black swan event for 2017.

It raises the question: What will fill the void when the petrodollar inevitably dies?

When that happens—and it may be imminent—something has to replace it. I think there are only two options.

Naturally, the global elite want to centralize more power into global institutions. In this case, that means the International Monetary Fund (IMF).

The IMF issues a type of international currency called the “Special Drawing Right,” or SDR.

The SDR is nothing new. The globalists have been slowly building it up since 1969. In the near future, it could be used as the premier international currency—the role the dollar has played since the end of World War 2.

The SDR is simply a basket of other fiat currencies. The US dollar makes up 42%, the euro 31%, the Chinese renminbi 11%, the Japanese yen 8%, and the British pound 8%.

It’s a fiat currency based on other fiat currencies… a floating abstraction based on other floating abstractions.

The SDR is not based on sound economics or the interests of the common man. It’s just another cockamamie invention of the economic witch doctors in academia and government.

The SDR is dangerous. It gives the government—in this case, a global government—more power. It’s a bridge to a powerful global monetary authority, and eventually a global currency.

Most decent people would consider this a bad thing. That’s why the global elite cloud their scheme with dull and opaque names like “Special Drawing Right.”

It’s an old trick. Governments have used it for eons.

The Federal Reserve is an excellent example. After two failed central banking experiments in the 1800s, anything associated with a central bank became deeply unpopular with the American public. So, central bank advocates tried a fresh branding strategy.

Rather than call their new central bank the Third Bank of the United States (the previous two were the First and Second Banks of the United States), they gave it a vague and boring name. They called it “the Federal Reserve” and managed to hide it in plain sight from the average person.

Nearly 100 years later, most Americans don’t have the slightest clue what the Federal Reserve is, what it does, or how it has eroded their standard of living.

I think the same dynamic is at work with the IMF’s “Special Drawing Right.”

The breakdown of the petrodollar is the perfect excuse for the globalists to usher in their SDR solution.

So that’s the first option. It’s the global elites’ preferred outcome. It would be a very bad thing for personal and economic freedom. It means more fiat currency, more centralization, and less freedom for the individual.

The second option is to simply return to gold as the premier international money. Here’s how it could happen…

Trump might play along with the globalists’ schemes, but I doubt it. He’s the first president who’s openly and sincerely hostile toward globalism. He’s denounced it repeatedly.

Trump recently said, “We will no longer surrender this country, or its people, to the false song of globalism.”

Read More @ InternationalMan.com



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    Total 10 comments
    • F16Hoser

      Trump should drive right up to the door of Fort Knox. Tell the Army guards to stand down and unlock the vault. Then we’ll know the truth and can hunt down those who stold our Gold…. Bush/Clinton’s/Rockefellers/Rothschilds. :twisted:

      • BungalowBud

        Even better, scrap the paint off to see if they are real?

    • Judge Roy Bean

      Draining the swamp is a dangerous business when it is full of vipers and alligators.

      • petebin

        Poison the water well ….

    • zero

      September 2016

      PROBLEMS UNSOLVED AND A NATION DIVIDED
      The State of U.S. Competitiveness 2016

      Including findings from Harvard Business School’s 2016 surveys on U.S. competitiveness

      Michael E. Porter
      Jan W. Rivkin
      Mihir A. Desai
      With Manjari Rama

      Harvard Business School

      Key Findings

      The U.S. economy in an era of political paralysis

      • Addressing America’s economic challenges requires a common understanding of competitiveness and the true underpinnings of prosperity. We define competitiveness as follows: A nation is competitive to the extent that firms operating there can compete successfully in domestic and international markets while also lifting the living standards of the average citizen. Competitiveness must lead to shared prosperity, in which all Americans have the opportunity to advance economically.

      • U.S. competitiveness has been eroding since well before the Great Recession. America’s economic challenges are structural, not cyclical. The weak recovery reflects the erosion of competitiveness, as well as the inability to take the steps necessary to address growing U.S. weaknesses.

      • Our failure to make progress reflects an unrealistic and ineffective national discourse on the reality of the challenges facing the U.S. economy and the steps needed to restore shared prosperity. Business has too often failed to play its part in recent decades, and a flawed U.S. political system has led to an absence of progress in government, especially in Washington.

      Faltering U.S. economic performance

      • America’s economic performance peaked in the late 1990s, and erosion in crucial economic indicators such as the rate of economic growth, productivity growth, job growth, and investment began well before the Great Recession.

      • Workforce participation, the proportion of Americans in the productive workforce, peaked in 1997. With fewer working-age men and women in the workforce, per-capita income for the U.S. is reduced

      • Median real household income has declined since 1999, with incomes stagnating across virtually all income levels. Despite a welcome jump in 2015, median household income remains below the peak attained in 1999, 17 years ago. Moreover, stagnating income and limited job prospects have disproportionately affected lower-income and lower-skilled Americans, leading inequality to rise.

      • A similar divergence of performance has also occurred between large companies and small businesses. While large firms have been able to prosper, small companies are struggling, startups are lagging, and small business is no longer the leading job generator.

      • Overall prosperity is growing slowly, but the benefits are increasingly not flowing to middle and lower-income Americans. This puts the American Dream, or the ability of any American to advance and prosper, at risk.
      An eroding U.S. business environment

      • The U.S. economy retains critical strengths. Business leaders (including HBS students) perceive strengths in areas such as higher education, entrepreneurship, communications infrastructure, innovation, capital markets, strong industry clusters, and sophisticated firm management. However, these strengths are being offset by weaknesses such as the corporate tax code, the K–12 education system, transportation infrastructure, the healthcare system, and the U.S. political system. Skills have also been eroding and becoming a weakness. Many of the greatest weaknesses are in areas driven by federal policy.

      • Alumni working in smaller firms have more negative views of the U.S. business environment than alumni working in larger firms. Members of the general public see the same U.S. competitive weaknesses as HBS alumni but, unlike alumni, perceive far fewer strengths.

      • This pattern of strengths and weaknesses helps explain why the U.S. economy is no longer delivering shared prosperity. Large companies, the skilled individuals who run them, and those who invest in them benefit from America’s greatest strengths and are prospering. However, workers and small businesses are captives of the nation’s major weaknesses.

      • Pessimism about the trajectory of U.S. competitiveness deepened in 2016, for the first time since we started surveying alumni in 2011. Fifty percent of the business leaders surveyed expect U.S. competitiveness to decline in the coming three years, while 30% foresee improvement and 20% no change.• Business leaders and the general public are particularly concerned about the future of American workers: respondents who expect lower pay and fewer employment opportunities for the average American in the future far outnumber those who expect improving worker outcomes.

      • Inadequate investment in those parts of the business environment on which middle-class Americans depend (areas like K–12 education and skills), together with lack of policy improvement in areas on which small businesses depend (tax policy, regulations, infrastructure), has undermined overall productivity and shared prosperity.

      The pressing need for a national economic strategy

      • Given the significant challenges facing the American economy, the U.S. needs a national economic strategy more than at any other time in recent history. A strategy is an integrated set of priorities that builds on strengths while acknowledging and tackling weaknesses. It identifies the sequence of steps needed to achieve the priorities.

      • The U.S. lacks an economic strategy, especially at the federal level. The implicit strategy has been to trust the Federal Reserve to solve our problems through monetary policy.

      • A national economic strategy for the U.S. will require action by business, state and local governments, and the federal government. All three levels have a crucial role to play in restoring competitiveness.

      • Taking leadership in improving U.S. competitiveness is a pressing imperative for business leaders. Many companies have failed to invest enough in improving the business environments in the regions in which they operate. Companies can have a major impact on restoring U.S. competitiveness through internal steps such as training and improving opportunities and compensation for lower-income employees. Companies must also step up their role to enhance the business environment in their communities by investing in workforce skills, supporting public education, restoring a local supplier base, and participating in collaborative economic development programs in their regions. We find growing evidence that company attitudes toward investing in competitiveness are improving and this is a welcome development.

      https://www.scribd.com/document/324137454/Harvard-Study-on-US-Economy-Under-Obama#from_embed

    • coveredlikeatent

      I read Zero’s breakdown and if they stop the fluoride the vaccines and the chemtrails this would go an awful long way into righting the apple cart, and now it will get worse with increase of vaccinations our smallest of the small are forced to ingest into their little bodies this some sick shit, there PHD’s PILED HIGH AND DEEP. When the supposedly educated has been manipulated by MONEY their finds are shit! GLOBAL WARMING, then CLIMATE CHANGE MONEY MONEY MONEY and now it’s over LMAO wonder where Al and the weather channel is going to get there climate change info from now SOROS will be in jail, Clinton foundation OH Yeah that’s getting ready to close, Al gorge his daddy would be proud of how his son SCREWED America as long as he did.

    • concernedaboutpeople

      Re: “Zero” ‘s dissertation (down below from Sept. 2016): That is entirely too much information for this situation. This is for “Comments” not dissertations. For example, “I’m really looking forward to going back on the gold standard so our country can get all it’s “ducks in order” so to speak.

    • jknbt

      why does the Buddy Holly song, “that’ll be the day!” start playing in my head when I read this?

    • without prejudice

      I’m going to tell you why a gold-backed currency will not work.

      When they took measured gold and silver specie out of the currency as lawful legal tender as an exchange of substance for substance: You buy steaks for 1 ounce of measured silver, the exchange for real (steaks) for real (silver) created mutual consideration. When they moved to this fiat, I-Owe-You “Promissory Notes” currency, no longer is it backed upon anything of value other than the productive energies of the people (i.e. taxes, fees, etc) to underwrite that system which means the private bankers, courts, and corporate governments make all the money from that system at the expense of the people. This is the reason why taxes keep increasing to pay for sports stadiums, increased education costs, court cases that are securities (CUSIP #s) and traded on the Court Registry Investment System (CRIS) to pay into judges retirement accounts, pay raises for politicians, and the spreading of monies out to professional corporate bureaucrats who thrive off that system.

      What had transpired started around 1913 when the Federal Reserve Act was passed and where the people were given 20 years to object to a whole new system known as a Legislative Democracy was introduced to replace the Constitutional Republic and where in 1933, Franklin D. Roosevelt declared a national emergency, ordered all “U.S. citizens” to turn in their gold or else be penalized (HJR-192), then came about the Erie Railroad Co v. Thompkins (1938) case which converted the federal side of the Supreme Court to ignore stare decisis (prior case law) in making decisions which was based upon common law and equity to observing all cases as commercial cases adjudicated in an international system known as Admiralty/Maritime laws (Laws of the Seas) which is outside of the original vision and purpose of the People and where the Uniform Commercial Code (UCC) provisions take precedence. the Erie Railroad case, above, set forth new precedents to observe law and if you look at all court decisions as of today, you will never see them refer back to any case law prior to A.D. 1938.

      This is why these courts are also practicing what is known as the Doctrine of Constitutional Avoidance in their courts which means that they are operating in a completely different system and have rules set forth in the courts to bypass constitutional de jure law and this is why so many people are being thrown in jail for “contempt of court” when they enter those foreign commercial courts, that were reorganized under the Judiciary Acts of A.D. 1948 known as Title 28 of the US Code, for they have taken a privilege or benefit of that system and thus, have abandoned the Constitutional Republican form of government, then they try to claim they have rights and then cause a dishonor in those courts.

      The only way to overcome what’s going on is to drop everything you’re doing and start learning how these two systems work and the only place I’ve found that seems to have a clear understanding of these systems is the website known as http://www.NativeBornCitizen.com which is absolutely amazing! In fact, I have tested many ideas from that knowledge and have proven that this works, but I must suggest to you that prior to testing anything, that you must be fully versed in how these systems work, which means: you must research. This is not a youtube channel page so you’re not going to be entertained unless you’re like me and you love to learn. :)

      This is not legal advice here for I do not consent to any trust indenture relationship between us. You must do your own due diligence and take full responsibility for your conduct for you, alone, are the one who has control over your political and legal rights.

      Without Prejudice

    • Anonymous

      Then you need 2 currencies one internal used by the federal gov. And one external gold backed. Otherwise not enough money in circulation. Food-stamps is one, alt currencies used by states another form of it, community backed worth hours of labor. Best is Green backs own created money at no interest (int Banking crime syndicate)

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