The engineered demise of the dollar and the assets that benefit

The potential for a catastrophic loss of confidence is growing
Keep quiet as the country is dismantled

-The Harris/Biden regime’s recently announced fiscal policies are domestically oriented towards consumption, and despite the regime’s intention of more effective tax collecting efforts, fiscal deficits will persist and grow.
-As consumption is encouraged via this new deficit spending, the current account and balance of trade will continue falling further into negative territory as this fiscal spending will continue to relatively stimulate the domestic economy.
-The proposed higher corporate tax rates and socialist worker policies will only help to accelerate the offshoring of production and trade to lower taxed jurisdictions.
-As long as the USD is accepted for trade, these dollars will be repatriated by foreigners back into the US and into USD-based assets.
-The US Fed will continue to accommodate the Federal government’s domestic largesse by suppressing interest rates.

The growing risks from the Fed’s willed ignorance

-Though inflation may prove transitory in a linear fashion, my concern is that the USD as a reserve could continue to lose confidence moving out to mid-decade. This will provide the catalyst for prices to continue rising domestically, even as economic growth rates here subside when compared to year over year data.
-Demand for USD-based stocks as well as residential and key commercial real estate assets should continue to remain firm, regardless of economic circumstances. The nation’s capital and financial accounts will be in ever larger surpluses as the US’s trading partners will continue to dump their dollar holdings into tangible USD assets, except bonds. Stocks and real estate will be the largest recipients.
-The Harris/Biden regime seems to be encouraging the demise of the dollar as a reserve and these latest fiscal initiatives will only accelerate this. Foreigners will increasingly become concerned regarding the existential state of the USD. Based on my analysis of their actions, and not their words, it’s my conclusion that the politicians here in power actually hate the U.S. and prefer a global government.
-These hostile powers are using the push button calls of the manufactured COVID crisis, racism, and social inequality to further their objectives to destroy the nation’s finances, investment and business environment, and the dollar. Critics to their plans have been muzzled from political correctness, and there is no longer any restraint.
-A risk to investment residential RE; As prices continue to spiral upwards, the Harris/Biden regime may begin to place ownership restrictions on investment residential real estate. Any types of these actions would only further hurt the value of the USD.
-The US Fed’s willed ignorance regarding the potential of a catastrophic loss of USD confidence due to its policies as well as its blasé attitude towards the government’s naïve fiscal initiatives is duly noted here.
-By promoting the growth of ever larger trade deficits since the 1970s, the Federal government encouraged the use of the USD in the global marketplace, and thus encouraged foreign ownership of domestic assets. Reimposing ownership limitations of any kind on US assets,would hurt the USD.

Stocks, real estate, gold, (and everything else) top my list

-Despite what the gold promoters in the West are claiming, the data in the charts below are telling me that no countries are yet ready to link their currencies to gold. The gold shilling of China and Russia moving to a gold-based currency link seems to be coming from the West, and not from Russia and China directly. Though these nations may be frustrated with the current USD hegemony, moving to a gold link now is certainly not the answer. Any gold linking to the yuan would instantly destroy China’s export markets, as the yuan would rise higher. The CCP is currently trying to weaken the yuan’s recent run up against the USD, so going to a gold link would not make sense.

China’s M2 and loans to banks have tripled in ten years. China is not yet in any position to provide any gold backing to the yuan.
M3 estimates. China’s M3 growth was much greater than that of the other nations. PBOC no longer reports these numbers and estimates are no longer available, but the trend is clear. China can not link the yuan to gold.
M2 Russia (left axis) compared to the US (right axis); Russia’s money supply has almost tripled in the past ten years. Russia is attempting to diversify its economy away from oil and linking the ruble to gold would not help in this regard.

-Regardless, gold should continue moving higher; even commodities priced in dollars. Gold has been rising here less from Basel III regulations and more from the latest fiscal/monetary monstrosity coming from Washington and the Fed. As long as the Fed continues to suppress interest rates, while inflation rises from artificial domestic demand and a loss of USD confidence around the world, the globe’s appetite for the USD will suffer. Gold will benefit, perhaps sooner than later.
-Based on the charts above, Russia’s and China’s banking and monetary situation in many regards is more dire than the US’s. Russia and China have recently been hyperinflating their money stocks, and I suspect that they are doing so to juice their economies, because they know war is coming.

If the United States cannot get its fiscal and monetary houses in order, there will be a lot of anger spread amongst the nations of the world, and it will be directed squarely at the United States. Of course, I have to believe this is being done with intent. What better way for an enemy to destroy a country than to win its elections and control its monetary policy, and blow it up from within.

Domestically speaking, the vast majority of Americans are unable to place the connection between the massive waves of consumer oriented deficit spending and the escalating prices of everything around them, especially their houses and the prices of everything else.

Did the loss in the faith of the dollar happen that fast? Unless the Federal government has a complete change of heart with spending and can stop taunting its rivals I don’t think we have to wait much longer to find out. We are getting no indication from the US Treasury nor the Fed that anything is wrong. At what point do we have to consider that this is being done by design?

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33 thoughts on “The engineered demise of the dollar and the assets that benefit

  1. How scientific can scientists be when they previously rejected the Wuhan lab release theory, because it was supported by Donald Trump? Now these same people are coming out and saying that it was most likely released from the bio weapons lab, yet actually admitted they rejected the theory initially, because Trump supported it.. We can see how simple the experts even think. They were brought up in the public school system and they act like children. I hope Donald Trump does not run for president again. It will ensure another four years of President Harris. Right after he gets a billion-dollar+ in superior refinancing, the media begin to cover him again. Trump’s compromised from stem to stern, and he’s the perfect foil for cognitively compromised population.

    I noticed that Atylian Child’s Freemason video has been removed from his channel. I know that I am used to rejecting any of these types of supposed confessions on an a priori basis, since we know how our adversary operates, but he was the only one who repeatedly discussed the fact that Jesus was the only way out. No other disinfo agent ever dares mention the name Jesus.

    I look at the commentary on YouTube, which discussed his YouTube video as being done intentionally. What the commentators don’t specifically articulate is that there are two reasons why a supposed disinfo agent like Childs would release some of the adversary’s agenda.

    First, externalizing the hierarchy. Second, the logic fallacy regarding an enemy. Specifically, the enemy of our enemy is our friend, and in this regard, Mr. Child’s is our friend, since he is against our enemy. But I have to still believe that this man was sincere. He was washed up in all regards and hasn’t been active for several years. If he was someone we would consider a plant, he definitely wandered off the plantation, since he freely discussed Jesus.

    I have a suspicion that he regretted getting involved in Freemasonry, and supposedly he was vocal about it for about 5 years. I was friends with a 32nd degree Shriner and he kept asking me if I was interested in joining. He would tell me that I would be perfect for it, since I had a sense of spiritual essence. He told me that with my knowledge base I could go really far in finance.

    It is tempting to do such things to further oneself, but since I knew what was involved I just kept changing the subject. But he was persistent.

    After reviewing a number of people’s critical analysis on Me. Child’s YouTube video, I am more certain than before that Childs was at least sincere. I observe that those who were critical of him never mention the fact that he freely discussed Jesus and that he said that Jesus was the only way out. That’s because those who were criticizing Child’s confession we’re not saved, and never picked up on this. Many of those who were critical of his YouTube video probably reject Jesus anyway.

    These commentators had a very difficult time explaining why they thought he was intentional disinfo. We are used to being conned on every level, so we are used to throwing the baby out with the bathwater. This guy is 45 or 46 and his best years away behind him. Anybody who speaks about Jesus the correct light, is not my enemy. Childs spoke more correctly about Jesus’s role then many of today’s pastors.

    Mark 9:38-41

  2. Knowing what we know about how QE functions andits true intentions, we can see why these globalists want to engineer higher inflation while running their monetary stimulus programs. The long-term viability of quantitative easing is predicated on low inflation, but in order for these globalists to accumulate wealth in the quickest fashion possible, they need to engineer monetary stimulus on a scale as high as possible. The higher the quantitative-easing levels, the quicker the wealth consolidation of the globe. It’s that simple.

    The less that these Globalists care about us, the higher they can run inflation. At some point they will have to consider the higher inflation numbers that are being generated and start to diminish their wealth consolidation program via quantitative easing. This is a reason why the Federal Reserve and other central banks are being willfully ignorant about the inflationary ramifications of their policies. They hope to prolong this massive wealth consolidation scheme for as long as possible and until the plebes start to resist. The less these globalist care about the plebs, higher they’ll just let inflation run. They don’t even care about what we think because they’re just telling us that inflation is not yet a problem, even though it is. The globalists are just going to drain our wealth as quickly as they can.

    Covid has been so instrumental for the synagogue of Satan on so many levels to consolidate global wealth, consolidate power, as well as to sicken and demoralize the population. Longer-term, it is also been instrumental in bringing about their conflict of the global powers. The agenda and objectives of a new world order have sped up tremendously over the past year or two.

    1. Janet Yellen is out there talking about the benefits of higher inflation and higher interest rates.

      https://www.marketwatch.com/story/yellen-says-higher-interest-rates-would-be-a-plus-report-11623020858

      Let’s see what happens when the Fed funds rate rises to 1.25%. Yellen says it would be good to have higher rates and inflation, but she knows it’s impossible, and so do we.

      The economy is incapable of existing under a systemic regime of higher rates, especially as Yellen knows that Biden’s 4 trillion in stimulus spending can only be financed via QE.

      Higher rates with higher inflation still helps the income generating asset owners. The common man has no way to keep up with rising prices except by rising wages. And let’s face it, Yellen’s bosses have made certain that the domestic employee no longer has any wage pricing power.

      She says all this would be nice, but she knows it’s impossible… even folksy Yellen is a sellout to the synagogue of Satan.

  3. We knew this years ago… From Bloomberg…. “The bottom 90% of Americans are borrowing from the top 1%.”

    https://www.bloomberg.com/news/articles/2021-06-04/the-bottom-90-of-americans-are-borrowing-from-the-top-1?cmpid=BBD060421_BIZ&utm_medium=email&utm_source=newsletter&utm_term=210604&utm_campaign=bloombergdaily

    “We know three things about the U.S. economy, Peter Coy writes in Bloomberg Businessweek: The rich are getting richer, everyone else is in debt and interest rates have fallen. The connection between these three facts has implications for fiscal and monetary policy. By forcing interest rates down, extreme wealth inequality is pushing the pushing the U.S. economy toward a “debt trap.”

    Buying income generating assets was the way out.

  4. The MSM economists who were all wrong last year are still the go-to experts this time around. The bovine scatological analysis is especially running fast and furiously in the housing sector.

    They are paid and promoted to mislead.

  5. Hey Chris,

    I was reading about Basil 3 and it’s impact on the unallocated gold market. This sounds like it would be very bullish for allocated metals. My understanding is The Euro banks adopt this at the end of this month, with the UK following suit in Jan ’22.

    Not sure if this is just a red herring or substantial. Curious to hear your thoughts.

    Best regards,
    Dean

    1. Could have a bigger longer effect on gold, though QE status will have more of a direct one. Gold (and most everything else) bounced off lows after employment report came out.

      I have to think the central banks could develop methods to work around these new regulations. I am not minimizing Basel 3, just trying to put it into perspective. I will be looking to see how gold responds as these regs are phased in. The gold promoter crowd is playing it up, be I am taking a wait and see attitude.

      1. Appreciate your insight. I will be keeping a close watch as well!

        Thank you,
        Dean

  6. Weaker-than-expected employment data bodes well for the market and a continuation of the dovish policies.

    We hear all this talk about firms having a difficult time trying to hire skilled labor. First of all, because of open borders and a one-world economy, wages are stuck in the toilet. Firms just arbitrage between nations. Secondly, why bother working for a $100,000 salary to kiss a boss’s ass, while the employee’s house and stock portfolio have appreciated $500,000 over the past few years. The monetary system encourages all sorts of misallocation of resources.

    1. The BLS notes that manufacturing investment in today’s marketplace is far more capital intensive than labor intensive, which means firms are spending more on facilities and machinery than on job creation, hiring, training, retention and benefits.
      covid, depopulation is the tribe’s solution to this problem?

      1. (…)This represents a threefold increase in manufacturing productivity, according to the St. Louis Fed and the BLS, and it illustrates the” rise of automation”.

        1. The mRNA jabs are just a little preemptive legwork to weed us out. Ben Bernanke said that the Fed balance sheet could go to 100% and higher. A couple years ago, he pointed to Japan’s case, and stated it could even go higher. I agree with BB, and as the plebes get sicker and dumber, they can drive up the Fed’s balance sheet getting their UBI checks.

    1. It makes sense for Russia, as the continual pressure from the US regarding sanctions makes it not worth to deal with dollarized investments anymore. It seems they are concerned over the next couple years regarding further problems; Russia knows the election garbage is just that, so they are exiting. They will align with their trading partners. The Biden regime is just phoning in their sanctions playbook to create friction. Russia has had enough. Shouldn’t make any big difference.

  7. House prices: ‘Wall of money’ hits European real estate

    https://www.dw.com/en/institutional-investment-in-european-housing-surges-amid-higher-prices/a-57765308?maca=en-GK_RSS_SmartNews_Volltext_ENG-20051-xml-media

    While this all looks obvious now, it didn’t a year to a year-and-a-half ago. For those who are able to take advantage of the problems of the past couple years and purchase properties, they have done very well.

    I truly no longer see residential real estate as the once excellent investment it used to be. For those just starting out, they are confronted with a paltry cash flow versus the purchase prices. For those who bought earlier, the opportunity still exists to profit. But over the next couple of years real estate will become like speculative stocks. Income ratios and such won’t really matter as prices have begun decoupling from traditional pricing measures.

  8. The monetary authorities had hoped to raise residential real estate prices to a permanently higher plateau in a vein similar to what we saw from 2000 to the height of the bubble in the aughts.

    Is financial Engineering in the real estate market serves a vital function as the local tax jurisdictions can begin to replenish their budgets as property assessments rise higher.

    Recall that when the last real estate bubble collapsed, prices never fell back to the 2000 – 2002 levels. They remain permanently elevated, and though we could get another bubble in real estate, it will happen at higher llevels.

    The FED will have to soon begin to taper and end their mortgage-backs acquisitions of 40 billion dollars a month, though they will have to maintain an elevated level of Treasury purchases in the wake of the higher deficit spending. Barrimg another manufactured crisis, the FED will eventually taper back Treasury purchases to match the year-over-year deficit spending increases. This could be a taper back down to 50 billion from the current 80 billion or so over the next 12 months.

    Regardless of the tapering in the future, asset prices will still be supported is money stock measures will still increase above long-term trends. The Republicans have provided virtually no resistance to the sharp rises in Social spending. If this changes, then we can reassess matters.

  9. https://www.bloomberg.com/news/articles/2021-06-02/biden-targets-a-tax-break-that-helped-trump-build-his-fortune?cmpid=BBD060221_BIZ&utm_medium=email&utm_source=newsletter&utm_term=210602&utm_campaign=bloombergdaily

    I get asked often about the repealing of the 1031 exchange for real estate that the Biden regime is contemplating. If it does get signed into law in some regard, it could hurt large investors and REITs. It would impact large land and commercial building transactions and could help slow down turnover, but for investors like me and the average person,its rescission wouldn’t have any real impact. Moreover, the prices of residential and most commercial properties would not be affected.

  10. This is a good article from the Financial Times, which explains the dilemma the financial markets are facing right now with regards to all of this excess cash.

    https://www.ft.com/content/0cff3e60-6591-493c-b85e-2d37d46f47a0

    In fact, overnight to 7-day lending rates briefly dropped below 0% here in the United States as the world is awash in trillions of dollars of cash.

    As interest rates move lower and the banks find it unprofitable to continue lending at such low interest rates, the Federal Reserve increasingly becomes the primary banker to the world. A centrally managed monetary system, gratis the central banks. The more deficit spending, the more cash in the system and the higher asset prices move. Low interest rates and massive deficit spending is a recipe for much higher asset prices.

  11. Now that we have some time that has passed, you and I have been able to see that the covid crisis was manufactured carried out according to well-planned script. Regardless of the facts, you and I who questioned the pandemic are few in number. Take a look at the Japanese zombies who are too afraid 2 open the Olympic Games in Tokyo.

    https://www.insider.com/tokyo-olympics-10000-volunteers-quit-nhk-2021-6

    The Japanese have watched one too many Zombie Apocalypse movies and they’re too scared to do anything anymore. This irrational fear has spread worldwide and the people are still afraid of something which was completely misrepresented.

    The statistics were completely blown out of proportion, the number of cases reported was a complete fraud, the amount of money devoted to this manufactured and fake crisis will soon bust the Western nations, and MRNA jabs as the mode of treatment will sicken hundreds of millions of people over the next several years.

    The worst part is that when the people start getting sick with debilitating autoimmune and nerve disorders, they’ll never make the connection, because the mainstream media will make sure that they are unable to connect the dots.

    I have to believe that there are a lot more people than we realize who share our view. Only about half of the US population subjected themselves to the MRNA experiment.

    The average profane person looks to these jams as some sort of partisan political stunt or a vote Between Coke and Pepsi. How stupid the people have become.

    Look on the bright side, and there’s no mutual exclusivity in this regard; the less able that a person can make a rational decision, the more easily they are parted with their money. This is why we have boom-bust cycles. We can profit from the stupidity of crowds.

    I suspect that as the people become more sick from these jabs, the more easily we can make money off them. Do not give in to the mainstream media’s answer to covid oh, if only to be more clear minded and make money off the heathen. The stupid deserve to be fleeced.

    1. Aren’t you being harsh on people? You sound like you have hate in your heart.

      1. No he isnt and hasnt. If people knowingly choose to reject our Saviour Jesus Christ as is happening now then they get what they deserve from the Lord. Read the Bible for where God constantly chastises his people for their repentance. Unfortunately it’s just going to get worse and we will see and experience unheard of things during this tribulation.

      2. I have no sympathy for these people, these are the proles. Every person that claims I am speaking out of hatred and every person that gets the covid jab, is one more person that affects me directly. The more people that succumb to the manufactured garbage of covid-19 the more likely it will be that they will make these mandatory, and God-fearing Christians will become rejected remnants cast to the outside of society. You just don’t get it, do you. Those with a low-level intellectual capacity and the fearful are the ones that deserve to get financially and spiritually fleeced. The fearful will not make it into the Kingdom of Heaven and the fearful are just going to make the remnant’s job of navigating this disgusting world that much more difficult.

        The biggest enemy of the remnant are the low-level majority of humanity that’s succumb to all this garbage. Your neighbor and the person down the street who have been fully deceived are your worst enemies. Because if they knew what was going on, none of this would be happening. They reject knowledge and so God reject them.

  12. OEG had a tremendous day. Keep in mind that the firm is desperate to raise capital and could come out with a secondary offering announcement any day.

    1. Holy Moly! That was a massive jump today. Chris, have the day traders taken all of the profits on this one, or is this a “buy and hold”. I have been heads down at work today, so I have not dug into this company, they seem like a niche player.

      1. I have been on the sidelines with regard to the solar and EV plays since the first week of February. But the market action today in OEG is very encouraging. With the dollar and the other fiat cast of characters fading fast in the international markets article, the energy sector is really picking up.

        I find today’s market action especially encouraging and will begin to trade again on the long side with this stuff. I will even take overnight positions and such. I haven’t been trading stocks much in the past three months or so, but will begin to concentrate on them once again. We can see how the money shifts in and out of sectors, yet the overall trend is higher. We had the EV plays doing well then we had the cryptos now we have the solar. All in a uptrending market. I still think most of those small EV plays are dead as they will be taken out by Ford and GM. Personally I like the F-150 truck and if I am forced to buy electric, I will buy that one over anyone elses. Doubleplusgood.

    2. The oil sector got the big catalyst we been waiting for today! Optimistic statement from the Saudis, summer traveling beginning. First day of June too, obviously done by design. They have the playbook and have the answers, most of us only have the questions. There should be some easy 10% gains tomorrow and the rest of the week.

      And AMC is not explainable, huge offering yet continues upward. My local movie theaters and others in my county areas are empty even on the weekends, very odd. Seems like none of these companies will no longer have to sell products or services. They are making their profits from offerings and pumped share prices.

      All the alt media sites are still huge on Doom and Gloom. Yet everything at the moment is doing good, a little too good, which hypocritically gives the Doom and Gloomers fuel to continue their drivel. However they keep pushing the big up coming collapse out next year, 2 years, 5 years, 10 years. Hmm!

      1. The financial system has been collapsing for decades and people have been making a ton of money off it. Of course, the average person is getting beat up, but if we know what is taking place, we can stay ahead of the game. You make great points. Make hay while the sun shines.

    3. Hi Chris;
      What EV or solar plays are you looking at atm?
      Cheers Bob

      1. I still have a screen of all of those EV and solar plays from late last year up on my screen, and I keep an eye on them. I do trade them from time to time, though I am certainly not active like I was six months ago.

        As of right now that big spike in OEG seems to be short covering. This is actually a good sign as I think a lot of the institutions have been shorting positions and assume the eventual demise of many of these firms. Though I still am bullish on the sector concept, a lot of these very small plays have very poor balance sheets and many of them stay in business through the issuance of equity. I still know that OEG needs to go in and raise more cash, so that’s a stock I don’t like holding overnight because it could come out with an announcement at 8:30 in the morning and wipe out any profit one has accumulated. The stocks of these are just trading vehicles, so I would accumulate on any oversold trade and hope for a spike. And take profit when it accrues. They were about 35-40 stocks, with which I had familiarized myself and traded them frequently. Of course it pays to have zero commissions.

        Eventually, the big boys will own the electric vehicle Market. The same ones that control the diesel and gas powered cars, they will control the EV Market as well. In order to produce these vehicles you need billions of dollars in readily needed cash and this is something that these small players don’t have access to. When Ford comes out with a doable electric F-150, I will buy that over any other small play. I think at this point many Traders are hoping that the small plays Tie themselves up with a big producer. Any of these smaller firms that aren’t tied up with the large producers will eventually Fade Into Oblivion.

  13. Imagine the fallout from a dropping dollar. The world doesn’t have a replacement and is stuck using it. The one who gets hurt the most is the person that the government says they’re trying to help. Isn’t that the way it always works?

    If what you say is correct, what’s going to happen when house prices go up another 20% over the next 12 to 18 months?

    1. Yes. House prices could go up another 20% here in the United States and there doesn’t have to be any increase and median household income. That would bring the ratio a price to household income up to about 5.

      In mid 2019, the house price to median household income in the United States was about 3.5.

      I hope the people love their social spending. Of course as we have been saying, nothing is free and there is nothing worse than a hidden cost in which a person doesn’t know the source or reason.

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