Almost Everyone Wants a Weaker Dollar. American Workers, Rust Belt, US Manufacturing, BRICS & JD Vance. Our Readers Do Too!
From Detroit to Pittsburgh: The Case for a Weaker Dollar to Boost U.S. Industry and Jobs. Memo to Sick Folk: Quit Trying to Kill Donald Trump.
apologies, this article was reworked as more breaking news was discovered. Please disregard previous post.
Op-Ed
Given this escalating trend of people trying to shoot Donald Trump, there are many people concerned. Unfortunately, I’ve even read that there is increasing plausibility that if this isn’t unchecked, JD Vance could be the next President of the USA.
Senator Matt Gaetz of Florida yesterday raised concerns about potential threats to Donald Trump's life, claiming there are 5 terrorist groups actively plotting to assassinate the former president.
This comes in the wake of two recent assassination attempts on Trump.
The first occurred on July 13, 2024 in Butler, Pennsylvania during a campaign rally. Trump sustained a minor injury when a bullet grazed his ear.
The second attempt took place on September 15, 2024 at Trump's golf course in West Palm Beach, Florida. A suspect named Ryan Wesley Routh was apprehended after Secret Service agents spotted him with a rifle about 300-500 yards from Trump.
Agents fired at Routh, who fled but was later caught. An AK-47 style rifle and other equipment were found at the scene.
source - John Solomon is an award-winning investigative journalist and founder of Just the News. He has worked at AP, WaPo, TWT, and The Hill.
Adding to the tense atmosphere, Hungary's Prime Minister Viktor Orban made a statement yesterday expressing solidarity with Trump. Orban, a longtime Trump ally, said:
"We stand with President Trump against these vicious attacks. The globalist elite will stop at nothing to prevent his return to power." - Hungary's Prime Minister Viktor Orban
These events have heightened concerns about political violence and the security challenges facing high-profile candidates as the 2024 election approaches.
end of section
BRICS ++ project mBridge and the UNIT Currency
The BRICS summit in Kazan Russia is scheduled for October 22 through 24.
The global financial landscape is undergoing significant shifts as BRICS nations and their allies pursue strategies to reduce dependence on the US dollar. This coordinated effort, known as de-dollarization, is gaining momentum through various initiatives and technological advancements.
Project mBridge and the BRICS UNIT (Unified New International Trade)
40% gold backed
set to launch in October 2024
Test already worked last week
The BRICS nations are developing a blockchain-based payment system called BRICS Bridge, which aims to connect member countries' financial systems using payment gateways for settlements in central bank digital currencies (CBDCs). This system is designed to serve as an alternative to the SWIFT network, which is dominated by US dollar transactions.
A recent milestone in this effort was achieved when RAKBANK in the UAE executed its first CBDC cross-border transaction using the mBridge platform.
This successful test demonstrates the viability of the system and its potential to facilitate international trade without relying on the US dollar.The BRICS nations are also exploring the creation of a new currency unit, potentially backed by gold. This initiative, discussed during a meeting in Russia, aims to establish a coordinated campaign for trading outside the US dollar system.
Gold as a Settlement Medium
Even before the launch of the UNIT and mBridge, Russia had been taking steps to circumvent US dollar-based transactions. Reports indicate that Russia was hiring couriers to transport gold to Hong Kong, where it could be settled for local currency. This practice suggests that gold was already being used as a medium of exchange in international transactions.
The Gram of Gold for Barrel of Oil Program
A strategic proposal gaining attention is the "gram of gold for barrel of oil" program, developed by Sergey Glazyev and highlighted by Credit Suisse analyst Zoltan Pozsar. This concept suggests pegging the price of oil to gold, potentially revolutionizing the global oil trade.
DOUBLING THE PRICE OF GOLD.
This is Why Central Banks are Accumulating at Record Levels
Currently, the proposed peg is one gram of gold for one barrel of oil. However, if this ratio were to change to two barrels of oil for one gram of gold, it could potentially double the price of oil. This flexibility in the peg ratio demonstrates the program's potential to significantly impact global oil prices and trade dynamics.
Historical Stability of Oil Prices in Gold Terms
James Turk's analysis reveals an interesting perspective on oil prices when measured in grams of gold. According to Turk, the price of oil has remained relatively stable for over 50 years when denominated in gold. This observation suggests that the perceived volatility in oil prices may be more a reflection of currency fluctuations than changes in the intrinsic value of oil.
Paper Derivative Suppression and Resource Stewardship
The current system of paper derivative markets for commodities like oil, silver, and gold leads to artificially suppressing prices. This means you can buy gold and silver at a steep discount but not for long.
This suppression leads to undervaluation of these resources, resulting in poor stewardship and potentially depriving future generations of their true value. The argument suggests that more accurate pricing mechanisms could encourage better resource management and sustainability.
Political Implications and the Weaker Dollar Strategy
What if JD Vance is our Next President?
Memo to universe, stop shooting at Donald Trump.
The concept of a weaker US dollar is gaining traction in American politics, with potential presidential candidate Republican JD Vance campaigning on this platform. The rationale behind this strategy is that a weaker dollar could boost US manufacturing competitiveness, create jobs, and revitalize economies in regions like the Rust Belt.
A weaker dollar would make US-produced goods more price-competitive on the global stage. This could benefit industries such as automotive manufacturing in Detroit, steel production in Pittsburgh, tire manufacturing in Akron, and textile production in the southern states.
Impact on Precious Metals
A weaker US dollar scenario is very bullish for precious metals like silver and gold. As the dollar loses value, these metals often become more attractive as stores of value and hedges against currency depreciation.
Everything is going wrong for The Fed, and tailwinds for Gold and Silver.
With 159 countries showing interest in joining project mBridge/Unit, we anticipate a wave of global economic collaboration that could deliver weeping and gnashing of teeth for Fiat overlords.
What if, in a coordinated effort, they all flipped the switch at once? (Google Project Sandman)
Central banks are devouring Gold and Silver (Silver to vanish by 2025 since there are no new Silver discoveries)
Most of the world is strategically selling Treasuries to buy Gold ( Gold now being a more attractive commodity for purchasing oil than US dollars).
Fed cuts interest rates means Gold could move 3X and Silver 5X?
Fed returns to QE fueling inflation, kickstarts another mad dash to Gold and Silver.
A weaker dollar further boosts Gold and Silver on top of these things.
The ongoing efforts to create alternative financial systems and trading mechanisms outside the US dollar's dominance are gaining momentum.
The BRICS nations' development of the mBridge platform and discussions around a new currency unit represent significant steps in this direction. Concurrently, proposals like the gold-backed oil trade and political movements advocating for a weaker dollar are challenging the status quo of global finance.
These trends have far-reaching implications for international trade, commodity pricing, and the future of global reserve currencies. As these initiatives progress, they could reshape the landscape of international finance, potentially altering the balance of economic power and influencing resource management practices worldwide.
The success and adoption of these alternative systems will depend on various factors, including geopolitical dynamics, technological advancements, and the willingness of nations to embrace new financial paradigms. As these trends continue to evolve, they will likely have profound effects on global markets, trade relationships, and economic policies in the coming years.
US Response summarized by Jim Rickards
The United States could potentially respond to de-dollarization efforts by implementing a system that pegs US Treasury bonds to gold, effectively reintroducing a form of the gold standard. This approach, as suggested by financial expert Jim Rickards, could significantly increase the value of gold. Rickards arrives at a potential gold price of $27,000 per ounce based on two key factors: historical trends and current money supply. He notes that historically, gold has backed about 40% of the money supply.
When applying this 40% ratio to the current M1 money supply (which includes cash and easily accessible funds like checking accounts), the result suggests a much higher gold price. In a more aggressive scenario, Rickards proposes that gold could reach $50,000 per ounce if a higher percentage of the money supply were to be backed by gold, or if there were a sudden loss of confidence in fiat currencies, leading to a rush to gold as a safe haven. This scenario takes into account potential geopolitical instabilities, continued de-dollarization efforts by other nations, and a possible restructuring of the global financial system. While these figures are speculative, they highlight the potential for significant shifts in gold valuation if major changes occur in the global monetary system.