Dear Reader,
I want to give big credit to Mitch Daniels – former governor of Indiana, former head of the Office of Management and Budget under George W. Bush – basically a sober-minded fiscally responsible person.
He wrote an op-ed for The Washington Post this week titled: ‘The Day the Dollar Died’ is coming. What’s the Plan?
It is a terrific piece, and here’s what that looks like:
Daniels is trying to shake the tree – bring attention to this coming apocalypse.
He says we need a conference to plan for the day the dollar is no longer the world’s reserve currency, because that day is coming.
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Biden Administration Makes Shocking Admission: U.S. Dollar is Toast
Treasury Secretary Janet Yellen recently admitted that nations around the world will continue to dump the US dollar…
If you have any money in US dollars, go here now and see why you must move your cash before September 30th.
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And he’s right. You know we’ve been talking about this for over a year.
I’m going to quote a section:
“With debts already about to surpass the nation’s entire GDP, and adding close to $2 trillion more this year, only a dwindling number of denialists doubt that a cataclysmic reckoning including double-digit damage to Americans’ income growth lies ahead. It’s past time to prepare.”
Daniels agrees we are going to hit a point where people stop using the dollar as the world’s reserve currency…
We’re printing so much money, adding so much debt, that we’re eroding the value of the dollar and people are going to start looking for alternatives.
We’ve only been able to have the world’s reserve currency up until now because we’ve managed our affairs pretty well. That has incentivized people to use the dollar as the world’s reserve currency.
But now, Daniels warns: ‘The Day the Dollar Died’ is coming. His words, not mine, but you know that is something I would have written – literally, just like that.
What makes his op-ed so unique is that he thinks beyond the fiscal ramifications to what this really looks like:
He talks about the societal upheavals that will come when that happens.
People really don’t understand what it means to have the dollar as the world’s reserve currency.
The very first domino that’s going to fall is bond prices are going to plunge and interest rates will spike.
Let me show you some of what it means to have the dollar as the world’s reserve currency…
Take Mercedes-Benz, for example:
Say they make a $20 billion profit on selling cars in the U.S. this year…
Now they take, say $10 billion back to Germany…
They take $5 billion to invest in plants in China or Saudi Arabia or South America…
And then they take the other $5 billion and invest in things like U.S. bonds.
Remember, bond prices and interest rates have a seesaw relationship.
If Mercedes-Benz is buying bonds, that helps push the price of bonds high, which keeps interest rates low.
If countries and institutions and companies like Mercedes-Benz stop buying bonds because they don’t trust the dollar as the world’s reserve currency…
Those buyers will leave the market. The price of bonds will fall. Interest rates will jump.
When that happens, mortgage rates will rise and housing prices will fall. The stock market will crash. Retirement accounts will crash.
This is deadly serious business.
What Mitch Daniels does in his article that is incredibly unique…
And that I’ve never seen spoken this cogently from a sober-minded national figure with such a reputation for fiscal responsibility…
Is to say, look, it’s not just financial consequences we have to worry about – this will ravage our society.
We have to worry about riots in the streets…
A change of government perhaps –
Think about 1930s Germany…
Because when does a country elect a Hitler?
When they have 25%, 30% unemployment.
If the U.S. dollar loses its role as the world’s reserve currency, we will see unemployment spike.
We will see utter tension in the streets.
And remember:
A lot of old conservatives I talk to, don’t like Franklin Delano Roosevelt.
They say he was too liberal…
He added this program, he added that program – of course these are programs that we all rely on to this day…
But if you put yourself in FDR’s shoes – the population at the time was really fighting for communism.
They wanted guaranteed income. They wanted guaranteed social security.
FDR was trying to protect the country from going communist!
So he had to push out all these social programs in the wake of the Great Depression.
And now, I am telling you if we lost the reserve currency status, we would basically have another Great Depression.
And we know, young people today – they have no idea how bad communism is – they would actually try to push for this, just like back then.
There would be a lot of political upheaval in our society if we lose the dollar status as the world’s reserve currency.
And look, I do not see one candidate from any party talking honestly about this problem.
I have to talk honestly about this because I want my children to inherit a better country than the one I inherited. I figure that’s my generation’s responsibility.
And I’m sure they’re going to want to make sure their children, my grandchildren-to-be, inherit a better country than the one they inherited.
So, big thanks to Mitch Daniels for writing such an honest, sober and far-minded piece.
I hope you take it as seriously as he does and as I do and as you should.
Watch my presentation on what’s going on, why the Biden administration is hiding this news before the election, why the market could drop 50% when the news hits, and what you must do to prepare. Here it is.
“The Buck Stops Here,”
P.S. With the 50-year-old petrodollar agreement expiring…
The first domino has already fallen…
Here are three more sectors that are set to fall in the next six months.
