The Doc: Loss of Reserve Currency Status Will Be The Death of The Dollar

dollarThe Doc joined the Prepper Recon Podcast this week for a discussion on the end game for the US dollar and the Western financial system, and how investors and Americans in general should prepare for what is ahead.
Doc discusses his outlook for the remaining lifespan of the US dollar as reserve currency, the risks facing the dollar at the present, and what a loss in reserve status for the dollar will mean for gold & silver. 

 Silver Buffalo Rounds As Low As 77 Cents Over Spot at SDBullion!




    (Here on page 557 they admit that the year 2002 might be the halfway point for their dream of global Anglophile domination. “Best souls” means “most conspiratorial minds;” “first organization” means The Pilgrims Society of London and New York; and “the seizure of the wealth necessary” means many planned disasters caused by government actions negatively impacting the wealth of nonmembers, and those outside the ranks of such unofficial subsidiary organizations as the Council on Foreign Relations, which has long served as a staffing agency for multiple Presidential administrations. “The seizure of the wealth necessary” means many particulars, the first World War; Britain’s attack on the world’s silver money system, starting in India in 1926 with the decision of the Royal Commission on Indian Currency; the Crash of 1929, facilitated by Federal Reserve policies; the Great Depression, caused by Britain’s attack on silver; Britain’s attack on gold in September 1931, exacerbating the depression; seizing gold from American citizens in March 1933, and seizing silver in August 1934 to the extent of 113,031,000 silver ounces; driving China off its silver standard as of November 3, 1935 through the Silver Purchase Act of 1934; FDR’s socialist federal agencies; the second World War; the founding of the United Nations; the Korean war; the ending of silver coinage by the mid 1960’s; the Vietnam war and its war manufacturers windfalls; and all the ensuing major financial dislocations since that time to the crushing of the Hunt/Arab silver play in January 1980; to today’s mortgage crisis; forcing the middle class into apartments (feudalism); exportation of industry and jobs; reduced standard of living; Food and Drug Administration tyranny; the anticipation of hyperinflation; and concerns over a potential Federal nationalization of precious metals! It is to exert against that last eventuality that I present this essay, to place this specific elitist organization on public notice that they are now known; a partial summary record of their past attacks on gold and silver money and ownership; and a partial list of specific identified Pilgrims Society members involved over the years, acting to suppress gold and silver as money and against the commodity prices of each, and acting against citizen ownership of both!)

    • As we all know, the power of the dedicated individual is HUGE. 
      One MAN (or Woman) can entirely change things. Once a great idea (or set of ideas) takes hold, it will gain a following. These pukes are trying to negate the power of the individual with their slavery structures. That is all…

  2. “3-5 or 5-10 on dollar reserve status”

    I would double this time line at least because every comparative currency is equally crappy. I would even argue a big sleep in PM that could stagnate for a decade unless we have a world event that tips the scales. I believe we can surpass Japan’s ratios without consequence.

    Seems the bugs can’t wrap their head around a QE cut from 80 b to 55.  Sinclair is calling a 333 bill a month! Supposedly we will be swallowed in 6 months.
    We don’t need it because other countries are printing for us already. This is why the dollar continues to hover around 80 and is really the best of the worst (concerning paper). From Richard Duncan:

    “A liquidity gauge for the United States is relatively easy to construct. When the government borrows dollars to fund its budget deficit, it absorbs liquidity. When the Fed creates dollars through Quantitative Easing, it injects liquidity into the financial markets. During 2013, the government absorbed $680 billion to fund its budget deficit, while the Fed injected just over $1 trillion through QE. The difference between what the government absorbed and what the Fed injected was $320 billion of excess liquidity.
    That is not the full story, however. The Fed was not the only central bank creating fiat money and buying dollar assets last year. In order to prevent their currencies from appreciating, many central banks around the world created their own money and used it to buy the dollars entering their economies as a result of their trade surpluses with the United States. Once they had acquired the dollars, they invested them in US dollar assets to earn a return. This, then, was a second source of liquidity. It can be measured by the increase in foreign exchange reserves. In 2013, foreign exchange reserves increased by approximately $700 billion. Roughly 60% of those reserves were US dollars. This second source of liquidity thus added another $420 billion or so to US liquidity, bringing total liquidity to $1.42 trillion and excess liquidity to $740 billion”.
    M2 money supply is not relevant anymore. The world does not operate on the supply of currency in circulation but based on our extension of credit. The world keeps turning on credit derivatives that literally dwarf any piss ant currency that we pump in. Deflation surrounds us so it’s not magic manipulation that allows PM to stagnate as currency gets created. This is why we are not in the hyperinflation scenario and currency production does not equal inflation. This is why we don’t have an across the board increase in prices going through the roof. One thinks manipulation of CPI data by the government is controlling this. That’s just crazy and gives the powers at be too much credit. Roughly speaking, we have maybe 400 trillion in world circulation with maybe well over 800 trillion outstanding. We are throwing pennies at a black hole. 

    • There is no liquidity, the excess is going to the 1% and doing nothing for the worlds economies

    • Nothing would be considered relative. It’s only holding back a currency collapse. If there is no liquidity as you say, does it really exist? We know money velocity is being held back as credit expansion can only go in select areas without causing major problems. This is a problem for PM in the short term. The point is that we have the liquidity, we just can’t use it. That is why 333 billion in the short term is absurd to me for monthly purchases. Asia and Europe are fill these gaps while “destroying” their currency just as we are. Money supply will not dictate the price of gold in this current setting. Global reset? Perhaps but we have a ways to go before considering sound money. Expect some frustrating years ahead as a PM investor (more so)!

  3. A likely scenario in the near future is that there will be multiple reserve currencies in effect until some sort of new world trade currency comes into being.  Countries could use their own currencies “in house” but for buying and selling internationally, the trade currency would be used.  Not sure if that would be the infamous SDRs, a basket of current currencies, or something completely new.  But, it is pretty clear that business as usual is not working for a number of US trade partners.  Change is coming but we can only guess as to the form that it will take.

  4. As a newbie to this site I just like to say that I appreciated that clip for the background info. I just started stacking silver and lead. 

    I got a huge laugh out of the “Mutual Assistance Group” stuff around the middle of the talk, where I’m at we call it “the hood”. LOL Every one has something to contribute and we barter a lot. I just traded $150 in fiat and 10 oz of silver for a .357 Mag and 250 rounds of hollow points. I did a tech job for a neighbor and they kicked down 2 cases of beer. 
    Just be a good human and we can all get through this together. 

    • Smart move, but as all here would agree, stack the LEAD FIRST!
      If a scenario ever erupted to where you’d actually need the “lead”…that lead will be ten times more valuable than Gold or Silver. Of course we shall assume that you are stacking food and other necessities as well so we won’t go into that.
      But yes, build yourself an insurance policy against a government that has lost control of it’s slaves. If all goes well, as Ed and AGX have stated before, the Gold and Silver will come in very handy once a recovery is under way complete with a new currency.  Your “stack” of monetary metals will be converted to fill up the new bank account.
      Just keep doin’ what you’re doin’ and hang in there. Don’t stack Gold and Silver as an investment, because you may get scared and dump it, stack it as an INSURANCE POLICY!

    • @hayduke
      Cool Stuff, Man! But I think you work too cheap, unless it was a quick tech job LOL  :D
      Smart Move, Stacking LEAD. Now go get a carbine lever gun in .357 Magnum for a matched pair!
      I recommend (for the budget conscious) HiPoint handguns and carbines. 
      4095 and a JCP pistol, shares mags and fires 40 S&W… arguably the best overall semi-auto handgun round.
      4595 and a JHP pistol, shares mags and fires 45 ACP… a long time favorite! :D
      The 40 has 10 round mags and the 45 only holds 9 rounds. Your Preference on that one. ( I have both LOL)
      My LGS has these handguns for $139 new and the carbines typically go for under $300 no options. 
      Options include forward grips, (I have 2-3 extra if you need one) lights, lasers, etc. 
      Spare Mags are about $16 to $18 each. 
      The C9 and 995 combo is not as desirable, the C9 has some jamming issues (easy fix, but some may not like it) and the 995 carbine does NOT share mags with the C9. The best combos are the 40 and 45 versions for SHTF weaponry. (IMO)
      Insurance Policy, not an Investment  ;)

    • PS: A KelTec Sub2000 is available, in 9mm or 40 S&W
      They use 4 types of magazines:
      1. Glock
      2. S&W
      3. Springfield Armory
      4. Beretta
      You can match a pistol with the magazine style of your Sub2000. 
      Seems I need to buy a Beretta 96F now  LOL!!! 
      Beretta Mags are fine, I bought 2 ProMag 22 round mags. Like $21 each! 
      Glock would be a great bet, but my personal favorite is S&W M&P series. 
      I have an M&P9 and it is great. Now I need a Sub2000 in S&W 9mm :D

  5. hayduke   that is a good deal  JHP 357 is hard to find and usually goes for $40 for 50.  That’s $200 of ammo.  The pistol comes to $150.  nice deal
    We all gotta hang together or we will be haning separately

    • Yes, that is a good deal.  But good deals can be found by those who look for them.  About 3 months ago, I lucked out on such a find.  I got 2 boxes of very well made .357 mag commercial reloads for $48.  These use the 150 gr truncated cone FMJ bullets that I prefer.  They are very hard hitting, penetrate nicely, and do not fragment as some hollow points do.
      Bartering one’s electronic skills for beer or other useful items is also a great idea.  Kudos to Hayduke for that.  I am skilled in computers and networks but only work for family.  No pay, of course, but some good eats are gotten that way as well as a few nice gifts… like a propane grill.  Now, THAT I can really use!  :-)

    • hayDuke’s da man!!!
      @Ed_B, we will need you and Duke to reset the ‘WEB after SHTF. 
      I’ll handle the new gridless electrical structures, but those recruits will be everywhere LOL

    • @undeRGRound
      “we will need you and Duke to reset the ‘WEB after SHTF.”
      Yep, us and about 50,000 other guys-n-gals.  lol
      That’s a HUGE job.  Better get someone else working on some fried chicken, pizza, and beer to feed and water the troops.  ;-)

  6. WOW! Thanks for the comments guys, didn’t think I would get much of a response. 
    I’m totally on board with the PM insurance idea. I also took out a good chunk of fiat from my bank account in case we get a “hair cut”.
    One thing I haven’t heard anyone mention is water. I have 3 50 gal drums that collect rain water here in SW FLA and a purifier to get rid of the nasty Chemtrail crap they are spraying on us.
    Bought another 100 rounds of 38 wad cutters so I can practice with the 357. Got 2 cans of Teflon spray for the hollow points ;)  
    Thanks for all the ideas and support guys!  

    • We have a well here, but some excess storage capacity as well. Also 2 gennies in case the power is out. (1 gas, 1 diesel) I’m also currently working on a solar-assisted power generator, using one small panel. 
      Use a coarse “pre-filter” on your rainwater collection, and maybe a finer one after that. Then the purifier. It will make the purifier last LOTS longer if you get the crud out first  ;) 
      I’m not saying get an ammo stash for “going to war” but I’d suggest more. YouTube is full of recommendations and most of them (or all) call for more ammo. Most suggest 1,000 rounds per weapon, minimum. Your mileage may vary (YMMV) lol

    • @undeRGRound
      Great plan with your well and generators, RGR.  That should be a great system.  You get a lot of rain down your way but it doesn’t hurt a bit to have multiple ways to provide water to your family and any neighbors or friends that might need it.  The situation in W. Va. a couple of months ago should demonstrate the need for having plenty of water on hand plus ways to purify it in case the local ground water becomes contaminated.  It the W. Va. case, it was a chemical spill but flooding, which is not uncommon, can also cause sewage systems to over-flow into the ground water supply.
      “Use a coarse “pre-filter” on your rainwater collection, and maybe a finer one after that. Then the purifier. It will make the purifier last LOTS longer if you get the crud out first  ;) “
      Great tip on this.  Anyone who doesn’t think of this before they start using a nice filtration system will soon discover the wisdom of your words.  A few layers of cloth can be used to make a coarse filter to remove debris from water.  This helps protect the fine filter that drinking water usually requires.
      A great way to prepare water for a good filter, such as any of the ones that use sintered ceramic filter media, is to build a sand filter.  This is basically just a metal or plastic pipe of about 6-8″ in diameter and 4-6 feet in length that is filled with multiple layers of filter material.  A rolled up towel is used at the very bottom to hold the layers in place.  A couple of big nails, bolts, or wires are put through the pipe in an “X” or “+” shape below the towel to hold it in place.  Then, the following layers are added:  coarse gravel, fine gravel or pea gravel, crushed charcoal, and sand.  A small piece of cloth can be added to the top to reduce channeling when water is added.  Pre-filtering really dirty water through cloth is good and helps prevent plugging of the sand filter.  A clean pillow case works well for this.  Once the water is filtered, it can then be put through your good filter to produce water that is safe to drink.  This will make the good filter last a LOT longer.  The sand filter can be dumped out and the components replaced whenever the flow rate drops such that it is clear that it is plugging up with gunk.
      “I’m not saying get an ammo stash for “going to war” but I’d suggest more.”
      Any number of folks on this site WOULD recommend a stash suitable for war, as that is what they see coming during a SHTF scenario with massive civil unrest and the 97% or so of the population who are not prepared going nuts.
      As to the amount of ammo, any is better than none and lots is better than more.  lol   Much depends on the use of these weapons.  Ones that can be used for hunting should have plenty of ammo because we may need to feed our families for an extended period of time mostly by hunting.  A decent .22 rifle is the best small game getter there is.  Another good one is a 20-ga. shotgun for those who are small of stature or recoil sensitive.  Others might prefer a 12-bore gun.  Ammo for a shotgun can be slugs for big game, buckshot for medium game and self-defense, and birdshot for birds and other small game.
      Pistols are back-up weapons, IMO.  Great to have but they are not a primary weapon in most cases.  A decent semi-auto rifle, such as an AR or an AK, is a strong defensive weapon out to 300 yards, as is a shotgun out to about 70 yards.  Marksmen can extend these ranges some but don’t let ego get between you and a realistic assessment of your ability to hit moving targets at long range under far from ideal conditions.  
      I have had discussions wherein people will say, “I will use a .22 rifle and pinpoint accuracy to serve my defensive needs”.  OK, I tell them.  Here is a life-sized silhouette target.  Let’s put this here, walk back about 300 yards, put on your pack, pick up your rifle and ammo, and then run 200 yards as fast as you can, stop, and see what your “pinpoint accuracy” looks like.  In most cases, they can’t put a single round on paper after that.  Sometimes they will get 1 or 2 on the paper but not in vital spots.  There is a HUGE difference between calmly punching holes in paper, usually from a bench / rest, and being in a combat situation with your adrenalin at a high level and one or more people shooting at you.  This gets worse in bad weather and at night when visibility is poor.  When trouble comes, it rarely comes when it is convenient.  Anyway, the bottom line is to use a defensive weapon of sufficient power that even non-ideal hits will put an adversary out of the fight.
      Magazine capacity is another issue.  I own an AK type rifle and have 6 mags for it.  Each of them holds 30 rounds.  I usually load 25-26 rounds so as to not compress the mag springs too much.  Some say that putting a full load into a mag  can cause feed reliability problems.  I don’t know but maybe it does.  If so, then a few less rounds that work every time is better than a few more that might not.  I would not recommend less than 20 rounds in a combat rifle magazine.  Various states are now mandating 10 round or less magazines.  While this is fine for hunting game, it is not for combat and could get people killed needlessly, IMO, as they need to reload more often and perhaps at just the wrong time.  Some rifle magazines can hold 40 rounds.  I do not recommend these as they can be cumbersome to fire from the prone position, something that occurs often in combat situations.

    • @Ed_B
      I linked Sir HayDuke to Uncle AG’s prepper article.
      I’m sure he can figure out his weapon/ammo needs from that  ;) 
      I did not want to sound too overboard. Better to let folks come 
      to that realization for themselves, usually. 
      I do really like a 357 handgun/carbine combo! 
      Better than anything I have, that shares ammo…
      and I have a LOT of combos. The AR needs a 
      pistol companion, does it not??? :D

  7. I just spent 2 hrs cleaning guns.  
    Sheesh   What a pain.
     I need one of those capachino monkeys to do that work.  
    My wife told me to pound sand when I suggested she help out

    • All part of the program, AG.  I have to admit that I like shooting a LOT more than I like cleaning but I don’t mind it.  I usually put on some music or turn on some mindless TV program and then have at it.  A well cleaned and oiled gun is a thing of beauty.  It is also ready for immediate action, if required.  :-)

  8. roger that Ed_B    I shoot the AK platform more often now   Ammo is half the cost of the 223 and taking the weapon apart is a snap.  Ditto for pistols that take down in 3 steps

    • @AGXIIK
      Yes, the 50% lower cost of ammo for the AK platform means that one can have / shoot twice as much ammo for the same fiat as one can with the AR platform.  This can be offset by reloading 5.56 mm ammo to some degree.
      I admit that the AR platform is a sweet rifle but the round is just too small, IMO.  The AR would be a MUCH better combat rifle if it were chambered for a round that was more like the .243 Win.  While it can use little 55-70 grain bullets, most loads for it use bullets in the 80-105 grain size, which are much more effective than the little 55-60 grain 5.56 mm bullets.  All IMO, of course.  No offense intended to our AR friends.  :-)

Speak Your Mind