The world loves the US dollar. Trump and the pandemic could change that

The USD is not going to lose its position as the world’s major reserve currency any time soon, for a variety of reasons, the simplest of which is that there is no possible alternative under the current monetary system;
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This is true. However, it is not the only consideration. The international monetary system has collapsed 3 times in a hundred years:

1914-Classical gold standard was abandoned
1939-Gold-exchange standard abandoned
1971-Nixon abandoned the convertibility of dollars to gold

So every 30-45 years or so as the useful life of a system is reached, a reset happens-ie the major financial trading powers sit down and rewrite the rules of the game.

Also, the Dollar as a major reserve currency and the systems such as the international Bank of Settlements, and the Swift payments system give the USA a big advantage to conduct financial warfare. In fact Putin has made it clear that if we try to kick them out of the system -like we did with Iran, that they will respond militarily.

The never ending printing of the dollar is quite consequential to other countries as well as the citizens. Inflation hurts them and USA citizens.

Triffin’s dilemma - If you run trade deficits long enough you go broke-eventually there’s too many dollars or not enough gold at fixed prices to keep the game going-hence the dollar-gold peg was abolished in 1971.

However, an additional measure was taken in 1969, when the IMF established the SDR(Special Drawing Rights). SDRs have been utilized during prior monetary crisis as a sort of back up reserve currency.

Resetting to make the SDR the major reserve currency has been under discussion for quite some time. The top five players were USA, Russia, China, Europe, and Japan(before Brexit).

Individuals do not and will not have SDRs -only countries. You will use your local currency the USD, Euro whatever to pay for your groceries etc. The countries will use SDRs to pay for oil and settle accounts etc.

The losers will be the citizens of the countries-local currency inflation. Elected officials get to blame the IMF for the problem. However, the IMF is unaccountable to the citizens. Triffin’s dilemma is solved.

Debt problems are inflated away and no one is accountable. That’s the globalist plan in a snap shot. You may have noticed that Central Banks have been purchasing gold, and taking their gold held in other countries-such as NY banks returned to them.

The only other solution is a return to the Gold Standard which Central Bankers don’t want-due to loss of their ability to print money and be central controllers of the economy.

Regarding the gold standard-it didn’t really 100% go away-it’s just kind of hidden. The votes in the IMF are connected to the Gold/GDP ratio. IIRC, Russia and China have caught up to the USA in that regard.

So when the Central Bankers are preparing for inflation and dethroning of the Petro Dollar, what should you be doing? Something other than saying relax the Dollar is fine. Hard assets such as precious metals, land, certain stocks that will fare better under the realignment. JMHO

Also there is the consideration of the willingness to hold dollars. If paid in dollars, but you no longer trust them, and there is no other currency you wish to hold, then gold is an option. Central banks have been buying quite a lot of gold as their hedge against inflation and financial shocks-I’ve been tracking that off and on for a while.

I honestly don’t know. If it would be possible to do it-The last estimate I saw, said that gold would have to be valued at something like $10,000 per oz. that’s a whole lot of difference from where we are now.

The Gold price was being kept down through manipulation in order to allow China Russia to acquire the gold they needed to represent their % of the basket of currencies for the IMF.

After one of the wars, Britain returned to a gold standard, but missed the estimate of what the rate should be, and it led to an economic disaster.

I think if anyone can do it-it will be Trump. He did appoint a person who likes the idea of a gold standard to the Fed. TBD

Ie Repeal the Nixon mistake
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Actually, I am not sure that Nixon had much choice. What was happening was that the trading partners did not want Dollars-they demanded to be paid in Gold. So our gold stock pile was being demolished.

As I noted upstream the actual abandonment of the Gold Standard happened way before Nixon. And Triffin’s dilemma seemed to be right around the corner-as trading partners didn’t want the dollars-they wanted the gold.

So Nixon/Kissenger stopped the outflowing of gold and made a deal with Saudi Arabia to demand dollars for sale of oil-the Petro Dollar system was born.

You may have noticed that the UN was calling for a fairer Global governance system, and mentioned Bretton Woods—that’s a pretty clear signal as a call to revise the rules of the game in the financial markets right there.

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