Has The Perfect Moment To Kill The Dollar Arrived?

Brandon Smith / Alt-Market.com

The idea of “collapse”, social and financial, comes with an incredible array of hypothetical consequences ranging from public dissent and martial law, to the complete disintegration of infrastructure and the devolution of mankind into a swarm of mindless arm chewing cannibals. In an age of television nirvana and cinema overload, I have found that the collective unconscious of our culture has now defined what collapse is based only on the most narrow of extremes. If they aren’t being hunted down by machete wielding looters or swastika wearing jackboots, then the average American dupe figures that the country is not in much danger. Hollywood fantasy has blinded us to the tangible crises at our doorstep.

Last month, the Fed announced that it was formulating a plan to “expand its tool kit”. This includes an openly admitted possibility of a third round of quantitative easing starting as early as September:

http://www.reuters.com/article/2012/07/24/us-usa-fed-tools-idUSBRE86N1G120120724

This timeline appears to coincide perfectly with the breakdown of the EU, which may also see a climax event in September. In that month, EU policymakers will return from summer holiday. German courts will make a ruling which could put an end to any chance that the country will support a eurozone rescue fund. The Dutch, which are anti-bailout, will vote in elections. Greece will be attempting to renegotiate its financial lifeline. And, the ECB will have to assess the impending chaos in Spain and Italy:

http://www.reuters.com/article/2012/07/29/us-eurozone-crisis-idUSBRE86S05J20120729

As far as the Fed’s ability to remedy the fiscal situation goes, let’s clear something up right here; the Fed has NO TOOLKIT. Sorry, but central banks have only two options when attempting to shift the tide of the economy: They can lower interest rates to zero, and, they can print-print-print. That is it. We’ve had TARP, numerous bailouts, QE1 and QE2, Operation Twist, and interests rates have been kept near zero for years! These so called solutions have been strapped like millstones around our necks and absolutely nothing has been accomplished since 2008.

The IMF has been consistently calling for the end of the dollar as the world’s reserve currency, and for its replacement by the SDR (Special Drawing Rights):

http://money.cnn.com/2011/02/10/markets/dollar/index.htm

http://www.imf.org/external/np/pp/eng/2011/010711.pdf

The new president of France, Francois Hollande, has recommended the expulsion of the dollar as the go-to reserve, a deeper relationship between France and the BRIC nations:

http://www.atimes.com/atimes/Global_Economy/NE08Dj06.html

China has been demanding an end to dollar primacy for years:

http://online.wsj.com/article/SB123780272456212885.html

And so has Russia…

http://news.xinhuanet.com/english/2009-04/01/content_11109506.htm

And so has the UN…

http://www.telegraph.co.uk/finance/currency/6152204/UN-wants-new-global-currency-to-replace-dollar.html

It’s not as if it’s a big secret that the dollar is on everyone’s hit list. Until recently, alternative economists could only point out circumstantial evidence that this sentiment was a product of collusion between the world’s central banks and elements of various governments. Suggesting that China, Russia, the UN, the IMF, and the Federal Reserve were working in tandem to devalue the dollar and replace it with a global currency has always elicited at least a few jeers and the ever present standby catch-all accusation of “conspiracy theory”. However, the times they are a’ changen’…

The collusion has become so brazen, central banks around the globe now institute policy initiatives within the same hour of each other:

http://www.reuters.com/article/2012/07/05/us-centralbanks-action-idUSBRE8640RN20120705

Years back, I wrote an article about the most important signs to watch for when facing a heightened state of collapse. One of those signs was the advent of openly admitted corruption on the part of the banks. When criminals become absolutely transparent and nonchalant about their criminality, it is usually because they no longer fear the threat of justice or reprisal. This is exactly the atmosphere we have in 2012. But, what could possibly have made the banksters so confident that they are willing to flaunt their racket to the world? I can only surmise that an event is on the horizon. One so distracting that the hucksters believe we will forget all about them.

The drought which has struck half of the U.S. agricultural centers and which has also hit Russian production is the perfect cover event for dollar devaluation. The full view of crop production and yields will be revealed this autumn, and according to the mainstream, the numbers will be dismal. Maybe they will be, maybe they won’t, but the likelihood of inflation in food prices all over the planet is high. If the Fed announces QE3 and sets an implosion of the dollar in motion, the price spikes this will cause in commodities, especially grains and other foodstuffs, can be easily blamed on drought, rather than the destruction of the greenback. At least for a time.

Syria And Iran Theater

If the UN pulls observers from Syria, expect an attack by either the U.S., Israel, or both is on the way. Expect Russia to be quite unhappy. Expect China to respond with financial warfare. Expect Iran to fulfill its mutual defense pact with Syria and come to their aid. Expect hard core catastrophe. I have been warning about Syria as a catalyst for global crisis for quite some time. Long before anyone ever heard the name “Assad”:

http://www.alt-market.com/neithercorp/press/2010/01/will-globalists-trigger-yet-another-world-war/

Every time I catch a glimpse of the MSM, whether it be MSNBC, CNN, or FOX, they are all spewing the same rhetoric: The U.S. should have invaded Syria months ago. It would seem that the American people are being psychologically prepped for a new war, but in reality, they are being prepped to be distracted from the banking sector’s primacy in the economic calamity that is about to unfold.

With the EU in shambles, and only getting worse, the ECB has been attempting to work around the rules of its own charter which forbid the infusion of capital directly into governments. The latest weapon in the fight against the financial stupidity of EU member countries? European stimulus! That’s right folks, the U.S. is not the only country that will be raping its own currency this year! Be sure to catch the euro-sized version of QE:

http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/08/03/maybe-draghis-speech-wasnt-a-disaster-after-all/

http://www.bloomberg.com/news/2012-06-01/berlusconi-says-ecb-must-print-euros-or-italy-may-say-ciao-1-.html

I believe, in keeping with the collusion central banks have already shown, that the Federal Reserve and the ECB will announce new stimulus measures very close to each other, if not in tandem. The continued devaluation of the Euro will help to hide the effect of the falling dollar as the two currencies seesaw back and forth, allowing for a delayed reaction from the public as well as investment markets. Investors looking for a safe haven currency will be scrambling in confusion.

I expect the event will be spectacular in some ways, but subdued and subversive in many other ways. Triggers may be swift and startling, but the reactions of the populace slow, uncertain, and presumptive. There will be fissures in our foundation, but the complete extent of the danger may take a few more years to become evident. While the public continues to maintain its fixation on some Mad Max nightmare scenario, the real collapse will be taking place right under their noses in the form of 25%-50% increases in food and fuel, tightened job availability with pensions swallowed by austerity, food lines hidden by food stamps until the government finally defaults and pulls the rug out from under entitlement programs, etc. For a time, it will look and feel like a slightly darker version of today, and not the cinematic melodrama that we have come to envision. The worst of times that we often find extolled in the pages of history books come at the cost of years of almost equal disparity, and usually, the lead up is far more difficult to handle than the finale…

http://www.alt-market.com/articles/954-has-the-perfect-moment-to-kill-the-dollar-arrived

You can contact Brandon Smith at: [email protected]

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