How BRICS cause America to become another Somalia
On Memorial Day Jack and I did a podcast which brought a lot of comments from all over the globe. One of the comments, from Banger a long-time participant in our continued discourse, was about the USA becoming Somalia in the next couple of years. As I have thought about this and thought about what I have experienced in the arm pits of the third world, I see specifically what he implied by his statement. I had quite aa lot of thinking considering the state of the planet. To delve into this I am only going to consider one part of the over all global picture which I think most applies to his statement regarding Somalia and the change of the USA into a third world country.
When we look at the third world simply, we can look at the fighting internally, the killing of people based on tribe or community standing or caste. We can look at the military standing in the world or lack thereof. Everywhere politics and bureaucracies are rife with criminals, murderers, liars, narcissists, and graft. Science and new discoveries and developments are almost non-existent along with educational opportunities. Industry is low on the scale of exports. And medicine and healthcare go through all the above before it gets to those who need it.
Everything in the previous paragraph relies on one thing, money. The currency of the realm, greenbacks, rubles, Euro, etc. Supposedly, in world economics this is all digital and backed by the pledge of the seller that they will produce something of value to the buyer in exchange for what the seller has produced and offered in exchange for digital numbers. Therefore, what we have is a digital, or tangible, medium of exchange we call money.
Most of you are familiar with the United States currency once being gold and silver coin. This was not unusual as it has been the case for many millennia across the planet. Enter the United States dollar, backed by nothing in the 21st century. The dollar, a fiat currency, paper, of no value other than having the backing of the United States government and supposedly the production of the people of the United States. This medium of exchange is manipulated in markets of exchange across the globe. They call it the “petro-dollar” due to large exchanges of currency for oil being made in US dollars. The manipulation of the value of this dollar allows the people of the United States to have high standard of living as the they that are the market traders artificially keep the value high.
The rest of the world is very aware that the dollar has no intrinsic value other than faith in the issuer. Do you have faith in the United States government these days? Do you even have faith in your neighbor? Now I’m not an economist, sociologist, or any other kind of “ist” you might name. I’m just a guy who has watched closely what has gone on around me for the last 60 some odd years. Thanks to Banger I have given this enough thought to put some recent obseervations to paper (internet digits).
Once was the time when you could trade in a dollar for a dollar’s worth of gold or silver. That ended when the monsters from Jekyll Island decided to come up with the Federal Reserve Fractional Banking system. This is another of those things I’m sure most of you know about. This has been going on because of central banks forever, crtinly since Andrew Jackson’s time as President in the US. Suffice it to say that the US no longer backs the currency with any tangible. Today a single dollar will get you 1/2000 of an ounce of gold. Of course, the gold and silver currency was prior to the Lincoln greenbacks, then the FED, Hoover, and FDR came into the picture to make the dollar superfluous. We used to have $5 gold pieces up to $20 gold pieces. The $20 piece being an ounce. Silver coins were similarly traded in exchange.
The economists, politicians, generals, bankers, corporate leaders, and you, all know the dollar is worthless without the backing of some sort. The backing for the last 160 or so years has been only the word from Washington DC that the dollar is the medium of trade, or else here comes the red, white and blue waving above the artillery pieces. This is about to change and change drastically. Money drives all the forces of society I named in paragraph two.
Enter the BRICS nations and gold. For several years there have been economic trade discussions and agreements going on between the world’s largest producers to the exclusion of the United States. This group of nations are in the news quite often; Brazil, Russia, India, China, and South Africa lead the way. Have you seen the news recently about central banks around the world buying gold? Or headlines about states or municipalities in the US buying gold to provide liquidity? There is a reason for this, gold is the preferred tangible vehicle for trade world-wide.
Doing a quick search on Duck Duck for “BRICS choose gold” produces pages of analysis of the West’s downfall. (https://duckduckgo.com/?q=BRICS+choose+gold&atb=v365-1&t=chromentp&ia=web)
The change from a fiat paper reserve currency system like the petro-dollar to a gold backed system, where every nation is involved and in agreement as to how gold (the reserve) is valued and where gold backs the trade papers (currency or digits) takes time. The BRIC nations have been developing their system for years. They are about to put the American dollar, and thus the American economy out of business. Or at least push the US to the bottom rung of the economic ladder. Check out the inflation is some of the third world nations right now. Some annual numbers are over 100%. For those who don’t want to think that hard it’s prices on everything important doubling in a year. Or put another way a nine point something percent price increase in a month, every month on your fuel, food, clothing, housing etc., the important stuff. How many people will starve because they cannot produce something of value for the “black market” barter system that inevitably follows inflation?
Even if the US is the largest hoarder of gold on the planet the nation’s obligations have outstripped those reserves by almost double the gold holdings. In today’s value the gold reserves of the US are $510 billion with a $1 trillion debt. Maybe not this year or next, but many knowledgeable leaders across the world are planning for the dollar to go the way of the Dodo in favor of gold backed currency. The whole fractional fiat currency banking system is about to come crashing down because of real currency backed by gold. The US is indebted to the banks way beyond the amount of gold reserves.
Those of us who live in the US may not see inflation and the decline in standard of living like the Germans of the Weimar Republic, but you will feel it. Internally the nation will continue to print more and more worth less and less dollars. You will see the prices of your favorite Walmart, Amazon, and Harbor Freight items going up and up.
There is an individual and community way out of the pain and suffering to come. Jack and I bring it up quite often. Produce something tangible that others want, those others being those who have what you need or want need. Grow excess food, have a trade, make alcohol, reload ammo, paint, sculpt, write, invent, fix things, treat and heal the sick. The list goes on and on. If you cannot produce anything other than digits and paper tied to creating more fiat currency you will fall victim in this war of economics.
So yes, Banger I have to agree, barring significant change in monetary policy in the United States of America, Western Europe, and countries tied to them, the people of those countries will see their nations become just more third world backwater.