THE FINAL DAYS OF DOLLAR HEGEMONY

Or as Jim Rickards likes to call it “Currency Wars”.  In case you haven’t been paying attention (and why not with all the major news about the plane crash) you may not have noticed the recent spate of major currency moves within the East involving swap arrangements between Russia, China, Iran, and Brazil. These signal an acceleration in the move away from the dollar hegemony that has allowed the West to rule the East and developing nations with an iron fist. The U.S. alone has been able to run up trillions of dollars of deficits over the past three decades just by owning the World’s printing press. Imagine how you would feel if you were a sovereign country’s leader/peoples and saw a decaying empire simply buying your resources and your labor with a currency being printed out of thin air. Imagine being (even a corrupt leader) and being slapped publicly by the leader of this country and told to “behave or else”.

At some point if you are that empire, your moral authority begins to run out and the rest of the world recognizes you’re an emperor with no clothes. What is more disconcerting is there appears to be a very well planned and deliberately executed move afoot for a number of years to make sure that before this transition of power occurs the East is in the best position possible to carry that mantle and make it clear to the West they will NOT be subjects of the dollar hegemony any longer. That is why in my opinion the manipulation in gold prices has been allowed to be carried out. In concert with the Western Bankers, the East has through a variety of “agreements” and operatives accumulated thousands of tons of bullion. Much of this bullion at one time was their gold before the Japanese invaded in the 1930′s and 40′s. The ultimate control of the currencies is above my pay grade but rest assured Central Banks will continue to have a dominant role. The only question will be just how much dust will have to be created prior to the Great Reset. These supercycle events can by socially devastating before the great washout creates a more level playing field. 

As noted above there are human emotions that can never be completely controlled and it only takes one fuse (either accidentally or intentionally) to be lit that ignites a cascade of incendiary events that pushes the entire reset into an out of control inferno. Trying to predict the path the reset plays out is only a guess, but knowing the ultimate destination which is the end of dollar hegemony and what THAT entails remains paramount.