Two things are happening that we would like to address today.
- The first is the loss of purchasing power of the US dollar. The United States, by “real” math, cannot repay our national debt. Our government is depreciating the purchasing power of the US$ to attempt to repay the debt with cheaper dollars. This shows up as letting inflation run hot . By this we mean, the “actual” inflation rate, not government numbers, will be higher than interest rates by design. Inflation will not go away because the government does not want it to go away. Watch what they do, not what they say.
- Second item we want to address is – other countries see this and want to move away from holding or transacting business in US dollars. Hence the movement to buy gold at central banks and oil no longer being bought and sold only in US dollars. There are other factors involved here. One is locking other countries out of the international SWIFT banking system. We have use this as a weapon too many times and countries are tired of it. The second is confiscating gold, investments and assets held on deposit in the USA or allied countries as punishment.
