The dollars in Decline and not even gold Can save it and we know the Dollarization is accelerating fast and Lots of big moves happen over just the Last two weeks we had Russia committing To using the Yuan as an international Currency for their global trade and France just saw the huge LNG cargo Outside of the US dollar and these are Just two examples of the world the Dollar Rising and obviously the United States they have done a lot of damage to The Dollar's reputation sanctioning away Russian assets was a crazy move 100 but A more egregious scene is the Federal Reserve constantly putting tons of money Debasing the value of the dollar and This is how bad things are the Purchasing power of a dollar in 2022 was About 92.6 of the purchasing power of a 2021 dollar and let me repeat that in Just one year the dollar has lost 7.4 Percent of purchasing power and over the Last 100 years the dollar has lost Almost 97 of its origin you know value And this is one of the core reasons why Countries they are deteriorizing they Don't trust the Federal Reserve or the U.S government to act responsibly Anymore when another crisis comes the Whole world knows that the FED is going To print its way out of recession power Is going to fire up the printing press And inflate the money supply once again
To save the U.S economy and because the Majority of Central Bank Reserves are in Dollars it leeches away the value of Their Holdings the world's reserves Effectively gets debates to solve America's economic problems and no one Signed up for that now there's a lot of Talk about a great reset where the United States could use gold to back up The dollar once again to restore trust We even have Texas lawmakers proposing a Go back digital currency they are trying To revive the idea of sound money that Can't be devalued but I have bad news The Bretton Wood system is not going to Come back the good old days of the Dollar being packed to the price of gold Is impossible to return to and you Quickly see how the dollar system have Morphed into a beast that is on a Runaway train to inflation hell now it Seems like it makes sense that the U.S Can back the dollar with gold that'll Return to a gold standard is possible Now the U.S reportedly has the world's Largest gold reserves sitting at 8 100 Tons modern Germany France and Russia Combined and for argument's sake let's Just assume that Fort Knox still has all The gold there there hasn't been an External audit for decades and even to Today America still doesn't allow full Transparency of their reserves but even If all the goals present there's still a
Big problem America has too many dollars Relative to their physical goal there Are too many Federal Reserve notes Floating around in The Ether and too few Ounces in a vault and if we look at m0 Which is the monetary base and this is The cash in the hands of the public and Bank deposits the Central Bank Reserves We have a crazy figure of 5.3 trillion Dollars and realize that this is based Money this is a generous number that Removes money lock away in money markets Savings accounts and within the big Banks as well and looking at the Official gold reserves in the U.S Treasury we have around 261 million Ounces of physical gold that's how many Bars and coins the treasury holds so if We take the 5.3 trillion dollars of Base Money and we divided by 261 million Ounces of gold we get a price of over Twenty thousand dollars an ounce and That means if the United States wants to Back up the US dollar with gold they Will have to revalue the price of gold Above 20 grand this also means that the Dollar is now effectively devalued Versus gold and before the reset you Needed just two thousand dollars to buy One ounce of gold but now you need 20 Grand after the reset to buy the same Physical Ounce and this is where all hell breaks Loose and why America cannot afford to
Return to the gold standard so in this Chart we have three types of assets that Are equivalent in value to each other we Have 400 thousand dollars in cash 200 Ounces of gold and a medium family home In the United States now all these three Assets are worth 400 000 the cash the Gold and the house they are all worth 400 Grand each and if you go back to a Gold standard suddenly this equation Will change the 200 gold coins are no Longer worth 400 Grand but 4 million Dollars remember that one ounce of gold Is now 20 grand and because the family Home is equivalent to 200 gold coins That means it should also be worth 4 Million dollars home owners will start To jack up their selling price they Won't just accept 400 000 for their Homes in the value dollars they want Either the same 200 ounces of gold or Four million dollars in cash and do you See the big problem here when you Revalue the price of gold you also have To revalue the prices of other hard Assets since the dollar is now as good As gold that means gold is now Officially money it is the new Baseline Where everything is compared against and This is not have to cause hyperinflation In the United States where everything Gets repriced then this also means that The dollars in your savings accounts are Worth less and they have lost even more
Purchasing power if you didn't hold gold Or other hard assets your wealth will be Wiped out and savers of US Dollars both At home and abroad will have their Holdings instantly devalued the bond Markets will implode and holders of US Dollars they're all rushed to get rid of Them for hard assets water still time They'll be panic and Chaos on the Streets now you're probably thinking Sean the solution is so simple I would Just buy as much gold as possible and Then back the dollar with it at the end Of the day but just imagine a situation Where the United States decides to go Into the markets they go into open Market and stockpile more gold it will Send alarm bells ringing across the Whole world it will raise more reflex Than the Chinese Communist parade the US Will be waving a big red flag telling The world that gold is real money gold Is so more valuable than even the United States the issue of the reserve currency Itself is dumping the US dollar for the Precious metal that is insane this will Trigger a wave of buying that the world Has never seen before now 2022 was a Record year of gold buying gold demand Whenever 4 700 tons that's an 11 year High but this number will easily triple If the United States suddenly decides to Increase their gold reserves central Banks all over the world not only China
They will start dumping Dr dollar assets And rush for gold like never before Confidence in the dollar will collapse We'll see go buy happen month after Month in the hundreds or even thousands Of tons because the dollar is now a hot Potato individual investors like you and Me will also rush for gold and this will Cost all the smaller bars and coins to Sell out the physical premiums will go Through the roof and here's the Situation America will not be able to Stack gold at cheap prices for another Gold standard gold might start at 2000 Dollars an ounce but by the time the Buying is done the price of gold might Reach 5 000 or even 10 grand and Beyond And let's just assume that the US Manages to double or triple the Stockpile it still wouldn't work now Governments and central banks around the World will all begin to test the gold Standard they will start redeeming their Dollars for physical gold and this will Break the system because they don't Trust the us to have to go they claim to Back up every single Dollar in existence Now back in 1913 the Federal Reserve Act They required a minimum ratio of gold Reserves to currency and deposits of Around 40 percent but in reality the Gold reserves went down to as low as 10 Percent it was never 100 there was never A full gold standard before and this is
Essentially another form of fractional Reserve banking but this time using gold And just recall the recent svb crisis Depositors all rush to get their money Out to the point that the bank collects And the same thing is going to happen to The Federal Reserve Reserve which will Break the gold window and when it breaks The US government they will take Draconian steps to fight back against All these gold redemptions like before They could move to confiscate private Goal from U.S citizens like what Roosevelt did in 1933 gold bullion and Gold coins all had to be surrendered to The Federal Reserve but it's more likely That a repeat of 1971 will happen and That's when Nixon broke the gold Standard he stopped all redemptions of Paper dollars for gold and effectively Ended the entire system and either way This will destroy the last threat of Credibility left in the Federal Reserve The Fiat system is just so monstrous That it is impossible to go back to Gold Standard it is impossible to back up Every dollar with Goal at a reasonable Price but let's go deeper those are just The technical reasons why the U.S can't Return to a gold standard the real Reason is that Asia will suddenly gain All the power now America's greatest Rivals China and Russia were suddenly Hold all the wealth and this isn't some
Conspiracy talk the Federal Reserve Themselves have admitted why they don't Want to return to a gold standard on the Fed's own website they have listed some Really silly reasons for not going back To a go back currency and this includes Some really bizarre ones like how gold Is environmentally damaging to mine but This is the real answer we are all Looking for they admitted the U.S mines A lot of gold but we are not the biggest Producer the bigger suppliers of gold Would have more control over our Monetary policy and guess what China and Russia they are the biggest producers of Gold China's at number one mining 332 Tons a year while Russia produces 330 Tons annually plus their reserves are Most definitely understated because they Likely want to accumulate more Gold Without pushing the global price up and If the US goes back to a gold standard And if it turns out that Russia and China have more gold they are Effectively a new Financial superpower America America would have effectively Given up the reserve status to China and Russia because now there's much fewer Yuan or rubles circulating around Compared to the dollar is easier to back Up their local currencies with gold and This ironically will determine the Dollar as the world Reserve currency and America doesn't want to lose control of
The reserve currency even if that means The dollar losing purchasing power and Even households in India have more gold Than the U.S treasury according to the World gold Council Indian families hold More than 1.5 trillion in physical gold And that is over 23 000 tons of gold Three times more than the stash sitting In Fort Knox in fact there are estimates That it could be as high as 27 000 tons The men on the street in India has more Gold than Uncle Sam and if America Decides to go back on the gold standard They will lose control of the Dollar's Value and it will be based on free Market economics you'll be determined by The supply and demand of gold not Dollars however here's the biggest Reason why a gold standard is never Coming back because it constrains the US Government from spending excessively and Under a gold standard you can only issue As much currency as you increase your Gold Supply your goal reserves and in 2022 the total supply of gold mined Increased by only two percent do you Think the U.S treasury can keep up the Money supply growth cap at two percent It's virtually impossible America's Default strategy is to print money and Expand the monetary base especially when There is a crisis and here are some very Disturbing numbers that we need to Digest in 2020 the money supply grew by
Historic 27 after the Federal Reserve Printed trillions and gave up all those Steamy checks and during the 08 crisis The FED increased the money supply by 10 World War II increased the supply of Dollars by 18 and in response to a Great Depression Made It Jump by 10 and if the US government we reverts back to a gold Standard they can no longer print money And stimulate the economy whenever they Like they have to spend responsibly Again and in order to spend more money America needs to dig up more gold from The ground and then they can issue more Dollars or they acquire it by earning More money around the world they have to Manufacture more goods and have a trade Surplus for all the dollars in the world To flow back into the United States they Can no longer go back to the Yahoo money Printing habits when the dollar was a Fiat currency and here's the interesting Thing even Jerome Powell knows that Returning to a gold standard will Destroy the U.S financial system it will Wreck the U.S economy and when asked if A return is possible he told them it Wouldn't be a good idea he told Congress You have to sign us the job of Maximum Employment and stable prices if you Assign us to stabilize the dollar price Of gold monetary policy could do that But the other things would fluctuate and We wouldn't care and here's the benefit
Statement we wouldn't care if Unemployment went up or down that Wouldn't be our job anymore and he knows If there's a return to the gold standard Prices might be stable but unemployment Will Spike up because the economy can't Grow as fast you can't just borrow a Print as many dollars as possible Because you are concerned by how much Gold you have in the votes and that's Why even though a go back currency might Be good for our purchasing power it will Just collapse the U.S economy in the Process that's why the dollars decline Can't be stopped inflation is back into The cake guys and return to a gold Standard is almost impossible plus with All the sanctions in Russia the world Will be suspicious of the US if a return To the gold standard really happens Right there'll be two big questions Floating around does the U.S possess the Goal that they claim to have and even if They do will they confiscate my dollars Away as well but the biggest loss the U.S will have is control over the world Monetary system because if you stay in The current dollar system even though it Is dying America still has enormous Control over the supply of the reserve Currency and let's use the Federal Reserves dollar swap lines as an example Sure they are designed to improve Liquidity around the world but it's more
About exerting control over the world There's a big difference and we know There's always a consistent demand for Dollars you need to buy Commodities and To pay your dollar denominated debt and If you're in America's good graces You'll be rewarded with a US dollar swap Line and this is basically a Lifeline Where countries can access U.S dollar Liquidity when they need it the most and The Federal Reserve has swapped lines With countries that they deem are Friendly like Canada the UK and the EU They have an unlimited swap line with The United States but notice that many Countries in the global South don't Absorb lines with the FED obviously Russia isn't on the list but China and India are missing too and this is how The US exerts control using the dollar If there's a currency crisis and you Don't have a swap line in the U.S you Your local currency is at risk of Depreciation and inflation will solve so We shouldn't hold our breath for the U.S To return to a gold standard it could Happen but it's really unlikely America Won't want to give out control and we Continue to see the world the dollar Rise more and more as a result now that Doesn't mean we shouldn't hold gold in Fact this tells us that inflation will Forever be a clear and present danger The decline of the dollar is inevitable
And we must prepare but let me know what You say in the comments below is the US Dollar truly doomed is the return to the Gold standard even possible today let me Know in the comments below stay safe be Sure to smash the like button and Subscribe it has to be navigate through This inflationary times
