US Formally Set To Weaken The Dollar, Markets Do Not Yet Understand Implications For Gold & Silver

The United States is no longer informally looking to weaken the dollar. The weak dollar policy just got real…

President Trump has been flip-flopping back and forth between being a “strong dollar guy” to being a “weak dollar guy” several times during his time in office.

He has also been quick to point to currency manipulation as one of the problems with the US Economy being unable to perform up to his standards, with the most recent example being this series of Tweets yesterday:

It really is amazing, he can talk about “currency manipulation” in several Tweets, and everybody is like, “yeah, we’re gonna show those Chinese for manipulating their currencies”, but whenever I discuss gold & silver price suppression, well holy crap, ‘Ol Half Dollar’s some kooky tin foil hat wearing conspiracy theory spewin’ nutcase who is just mad that gold & silver are priced exactly where they should be because of free market forces.

But I digress.

Nonetheless, on the one hand we’re really sticking it to the Chinese, but on the other hand we’re saying they’re wise for investing in the United States?

Case in point from just this morning:

Of course, everybody knows that Tweet is meant for the HFT Algos to “buy” S&P futures and what not, so that the Deep State Globalists can unload their shares, purchased with digitally printed and unaccounted for currency, and convert that currency into real things such as gold & silver, but either way, does sticking-it to the Chinese in several Tweets on one day and then implicitly praising their actions the very next day sound very consistent with any kind of dollar policy?

I don’t think so.

But it’s not supposed to.

And no, it’s not some 4-D Chess.

It’s just good old-fashioned Deep State Globalist fun in keeping everybody guessing.

Furthermore, all of this inconsistency is meant to help build the cover needed to shape the narrative for when the US economy’s collapse really picks up speed.

It’s coming.

And it will get a turbo boost with the US Treasury Department’s actions from yesterday.

Yesterday, for the first time in decades, the US has labeled China as a currency manipulator, and the US will now formally look to remedy the situation with the, drum roll please…the IMF!

Here’s the key take-away from Stevie’s press release:

As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions.

Engaging to eliminate the unfair competitive advantage means it is now public policy to weaken the dollar.

You see, if the Chinese yuan is just too dang weak, then that means the US dollar is just too dang strong.

What are the implications for gold & silver?

Well, currencies can devalue relative to each other, but there is only one thing the world reserve currency can truly devalue against – gold & silver.

My point?

All of this currency wars stuff is noise in the bigger scheme of things because while it may be a “race to the bottom” with the currencies, gold & silver will never be in a race to the bottom.

Just like all fiat currencies fail, gold & silver never fail.

So far, the reaction in gold & silver is not even raising an eyebrow of concern or suspicion:

There was a tiny little pop in price when the “markets” re-opened last night at 6:00 p.m. EST, but for the most part, gold & silver appear to have shrugged off the significance of formal declaration of currency war.

Interestingly, the US dollar is up slightly after all of this:

Of course, everybody will be quick to say this is not the dollar against the Chinese yuan, but since it is a global economy full of fiat currencies and market contagion, I’d rather use the dollar index as a gauge.

Nonetheless, here’s a look at the US Dollar against the Chinese Yuan (USD/CNY):

Here we can see the devaluation in the yuan yesterday, whereas you could get roughly 6.95 yuan to the dollar on Friday though yesterday you’d get over 7 yuan to the dollar.

Interestingly, the yuan has strengthened overnight.

OK, “Hey Half Dollar, you’re kinda all over the place today, can you make an overall point?”.

Yeah.

Good point.

Here’s my point: We are now apparently in a full-blown, formal and informal, direct and indirect, currency war.

With a global economy based on debt-based fiat currency and the dollar as world’s reserve currency, this war will be felt around the globe.

In times of war, especially currency war, hunkering down and hardening defenses means moving fiat currency into gold & silver.

The “markets” either haven’t figured this out, or the cartel is doing their best to feed paper into any increasing demand.

I think it is a combination of both, but there is good news for gold & silver stackers and other smart investors.

Because the markets will figure it out, and there will be a panic move into the safety of gold & silver.

The cartel may try all they like to feed paper into the markets, but this can’t last much longer.

There’s a finite supply of physical gold and silver, and now the cartel has a real problem.

They have been very heavy handed since 2011 when gold & silver went on a run.

So there will be a rush into gold & silver just when the cartel is out of ammo.

For now, the dollar has yet to begin its descent, but it is surely coming.

Gold & silver do not have much of a bid, but it is surely coming.

Global currency war is escalating, yet crisis hasn’t begun.

And when the fiat currency crisis becomes obvious?

The pain on Main Street, USA becomes obvious.

Of course, that’s only if we’re 100% in fiat.

And yes, that includes the fiat cryptos.

What if we are in gold & silver?

Not only will we be safe.

We will be rewarded.

There’s still time.

But not much.

It begins.

Soon.

Yes.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

***