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Video lesson

Death of USD

Dollar’s Decline: Navigating the New Financial Wolrd

The world’s financial landscape is shifting at an unprecedented rate, and for those paying attention, this could be the greatest wealth transfer in history. But the question remains: Are you prepared to be on the right side of it? The video’s focus on the decline of the U.S. dollar and the rise of gold and silver as safe havens is timely, but it also hints at deeper trends that go beyond precious metals. In a world where trust in fiat currencies is rapidly eroding, cryptocurrencies and blockchain technology may play an equally transformative role.

As global monetary systems face significant stress, the parallels between past crises and the emerging digital economy become ever clearer. In this article, we’ll explore these shifting dynamics, offering both a critical analysis of the traditional financial systems discussed and a broader look at how decentralized finance (DeFi) and cryptocurrencies may offer solutions to the very challenges being predicted.

Is the Dollar Doomed?

The lesson focuses on the decline of the U.S. dollar’s dominance and the impending shift in the global monetary system. The core argument suggests that fiat currencies, particularly the U.S. dollar, are facing an inevitable collapse, largely due to overprinting and a growing distrust in the global financial community. The speaker highlights the historical patterns of financial collapse, explaining how wealth transfers are not new—they are cyclical, and those who understand these cycles can capitalize on them.

Among the key points made is the prediction that gold and silver prices will soar as fiat currencies fail, following the historical precedent of nations and investors turning to hard assets during times of crisis. Strikingly, the lesson draws attention to how countries are increasingly bypassing the U.S. dollar in international trade, signaling the waning influence of the dollar. This shift, combined with rising gold reserves in countries like China, points to an impending global financial recalibration.

Critical Analysis:

Strengths of the Argument:

Historical Context and Pattern Recognition:
One of the video’s most compelling points is its historical analysis of monetary crises. By tracing the decline of the Bretton Woods system and the end of the gold standard, the speaker effectively demonstrates how fiat currencies—particularly the U.S. dollar—are vulnerable to collapse. History has repeatedly shown that monetary systems built on trust, rather than tangible assets, are prone to failure. The argument that we are due for another such collapse is supported by numerous historical precedents, from the fall of the British pound to the inflationary collapse in Weimar Germany.

Supporting Example: The speaker references the 2008 financial crisis and the quantitative easing (QE) programs that followed, highlighting how the excessive printing of money can lead to inflation and the erosion of purchasing power. This aligns with the idea that fiat currencies lose value over time as governments inflate the money supply to manage debt.
The Role of Gold and Silver as Safe Havens:
The speaker’s emphasis on gold and silver as reliable stores of value during economic downturns is a point well taken. Throughout history, these metals have retained their purchasing power when fiat currencies failed, making them the go-to assets in times of crisis. The argument that gold and silver prices will rise as confidence in the dollar declines is particularly convincing, given current trends of countries repatriating gold reserves.

Supporting Example: China’s significant accumulation of gold, as discussed in the video, illustrates how major global players are hedging against a potential collapse of the U.S. dollar. This move reflects a broader strategy to minimize reliance on the dollar and signals a likely increase in gold’s value as the financial crisis deepens.
Global Shift Away from the Dollar:
Another strong point is the notion that the world is increasingly bypassing the U.S. dollar in international trade. The development of alternative payment systems, such as China and Russia’s bilateral agreements, signals a broader distrust of the dollar’s long-term stability. This decentralization of international finance mirrors the rise of decentralized systems like blockchain, where trust is distributed and power is not concentrated in a single entity or currency.

Supporting Example: The rise of systems like the BRICS bank, designed to facilitate trade between nations without the U.S. dollar, further strengthens the case that the global financial system is shifting. This mirrors the blockchain ethos of decentralized control and cross-border transactions without reliance on traditional currencies.

Potential Weaknesses and Limitations:

Overreliance on Gold and Silver as the Only Hedge:
While gold and silver have historically been safe havens, the video might place too much emphasis on them as the only alternatives to fiat currencies. The speaker does not adequately consider the rise of cryptocurrencies, which offer a new form of digital gold with added benefits like portability, divisibility, and resistance to confiscation.

Counterargument: Bitcoin and other cryptocurrencies have increasingly been referred to as “digital gold.” With a fixed supply and decentralized nature, they offer a modern hedge against inflation and fiat currency collapse. While gold is tangible, cryptocurrencies provide a level of flexibility and accessibility that physical assets cannot match, particularly in a digitized global economy.
Lack of Focus on Technological Innovation:
The video’s argument is largely based on historical patterns and physical assets, but it does not delve deeply into the role of technological innovation in shaping the future of finance. The advent of blockchain and decentralized finance (DeFi) presents an opportunity to reshape global finance in ways that go beyond a mere return to gold and silver.

Counterargument: DeFi platforms offer financial services—such as lending, borrowing, and trading—without the need for traditional intermediaries like banks. These systems could provide a more efficient, transparent, and accessible way to manage wealth during a crisis. By sidestepping the traditional financial infrastructure, DeFi opens up new possibilities for hedging against fiat currency collapse in ways that gold and silver cannot.

Connections to Cryptocurrency and Blockchain:

The ideas discussed in the video—particularly the loss of trust in fiat currencies and the shift toward hard assets—align closely with the philosophy behind cryptocurrencies and blockchain technology. Cryptocurrencies like Bitcoin offer a digital alternative to gold, with the added benefits of decentralization, transparency, and security.

Cryptocurrency as Digital Gold:

Bitcoin, often referred to as “digital gold,” shares many characteristics with precious metals. It has a finite supply (21 million coins), is resistant to inflation, and operates outside the control of any government or central bank. As the world becomes increasingly digitized, Bitcoin offers a more flexible and accessible store of value than gold, allowing users to transfer wealth across borders with minimal friction.

Example: During the economic crises in countries like Venezuela and Zimbabwe, citizens have turned to Bitcoin as a way to preserve their wealth and bypass hyperinflated local currencies. This mirrors the historical use of gold and silver as safe havens during periods of fiat currency collapse.

DeFi and Decentralized Wealth Management:

DeFi platforms extend the principles of decentralization to financial services, offering users the ability to lend, borrow, and trade without the need for traditional banks. These platforms provide an alternative to the centralized financial systems that are at the root of the current crisis discussed in the video. By using blockchain technology, DeFi creates a transparent and efficient financial ecosystem that could play a key role in the next wealth transfer.

Broader Implications and Future Outlook:

The decline of the U.S. dollar and the potential collapse of fiat currencies have far-reaching implications for the global financial system. As trust in traditional financial institutions erodes, we are likely to see a shift toward alternative systems that prioritize decentralization, transparency, and individual sovereignty.

The Future of Finance:

Cryptocurrencies and blockchain technology will likely play a central role in shaping the future of finance. As we move away from centralized fiat currencies, decentralized assets like Bitcoin, Ethereum, and other cryptocurrencies will become more prominent as stores of value and mediums of exchange. This shift will have profound societal impacts, redistributing power away from governments and financial institutions and into the hands of individuals.

Speculative Outlook:

If the trends discussed in the video continue, we can expect a more decentralized financial system to emerge over the next decade. Blockchain technology will facilitate peer-to-peer transactions, making financial services more accessible to the unbanked and underbanked populations worldwide. This democratization of finance could lead to a more equitable distribution of wealth and power, provided that the infrastructure is built in a way that prioritizes fairness and transparency.

Personal Commentary and Insights:

As someone who has been deeply involved in both the traditional financial world and the emerging crypto space, I see a tremendous opportunity for innovation in the face of the challenges discussed in the video. While the speaker rightly emphasizes the importance of hard assets like gold and silver, I believe the real revolution lies in the digital realm. Cryptocurrencies offer a level of flexibility and accessibility that physical assets cannot match, particularly in an increasingly globalized and digitized world.

The rise of decentralized finance (DeFi) is particularly exciting, as it offers a way to bypass the traditional financial systems that have historically concentrated wealth in the hands of the few. By decentralizing financial services, we have the potential to create a more inclusive and equitable system—one that allows individuals to take control of their financial futures without relying on governments or central banks.

Conclusion:

The decline of the U.S. dollar and the broader collapse of fiat currencies present both a challenge and an opportunity. As the video points out, we are on the brink of a

massive wealth transfer, and those who are prepared stand to benefit immensely. While gold and silver remain important hedges against inflation, cryptocurrencies and blockchain technology offer a new frontier for wealth preservation and growth.

By embracing decentralized systems and educating ourselves about the opportunities they present, we can position ourselves to thrive in this new financial landscape. The future of finance is not just in gold and silver—it’s in the digital assets that promise to reshape our global economy.

Quotes:

“Wealth is never destroyed, it is merely transferred—those who understand the system can capitalize on it.”
“Cryptocurrencies like Bitcoin offer a modern hedge against the inflationary pressures of fiat currencies, much like gold has done for centuries.”
“The democratization of finance could lead to a more equitable distribution of wealth and power, provided that the infrastructure is built with fairness and transparency in mind.”

Navigating Financial Crises: Turning Global Turbulence into Personal Opportunity

In this lesson, we’ll explore the intricate dynamics between traditional financial systems and the emerging world of cryptocurrencies, particularly in the face of looming economic upheaval. We’ll focus on the erosion of trust in fiat currencies like the U.S. dollar and the shift toward hard assets like gold and silver. We’ll draw connections to how cryptocurrencies, as decentralized and inflation-resistant assets, offer potential solutions to these issues. By the end of this lesson, you’ll gain insights into the importance of understanding monetary history and positioning yourself to benefit from the next great wealth transfer.

Core Concepts:

Fiat Currency:
In traditional finance, fiat currency is money issued by governments without intrinsic value, backed solely by trust in the government. Cryptocurrencies, in contrast, are decentralized and often have limited supply, making them potentially more stable against inflation.
Monetary Inflation:
The process by which governments increase the money supply, leading to a decrease in currency value over time. Cryptocurrencies like Bitcoin are immune to inflation due to their fixed supply, making them attractive alternatives.
Gold Standard:
A financial system where a currency’s value is directly linked to gold. While traditional systems abandoned the gold standard in favor of fiat money, some cryptocurrencies, like GoldCoin, attempt to reintroduce the concept of a digital gold standard.
Wealth Transfer:
This occurs when assets change hands during periods of economic instability. Cryptocurrencies present an opportunity for wealth transfer by offering an alternative store of value in times of fiat currency collapse.
Quantitative Easing (QE):
A monetary policy where central banks create money to stimulate the economy, often leading to inflation. This mirrors the decentralized, deflationary structure of cryptocurrencies, which resist artificial manipulation of supply.

Key Sections:

1. The Decline of the Dollar Standard

Summary:

The U.S. dollar became the global reserve currency post-WWII.
Abuse of this privilege has led to global distrust in the dollar.
Countries are moving away from the dollar, seeking alternatives.

Detailed Explanation:
The U.S. dollar once reigned supreme, serving as the cornerstone of global finance. This dominance was solidified through a series of fortunate historical events, such as the Bretton Woods Agreement. However, recent decades have seen the U.S. government overextend its financial might, leading to massive inflation and the erosion of trust. Countries like China and Russia have begun creating alternative systems that bypass the dollar, signaling a shift toward new global monetary frameworks.

Crypto Connection:
In many ways, the current global financial system mirrors the centralized, inflationary nature of fiat currencies. Cryptocurrencies like Bitcoin, on the other hand, offer a decentralized solution, immune to government manipulation. As trust in the U.S. dollar wanes, trust in decentralized currencies grows.

2. Monetary Crisis: The Greatest Wealth Transfer in History

Summary:

Financial crises often result in massive shifts of wealth.
The current crisis is unparalleled in its global scope.
Those who understand the system stand to benefit immensely.

Detailed Explanation:
Financial crises, as devastating as they are, create massive opportunities for wealth transfer. Wealth is not destroyed but rather shifts hands from those who are unprepared to those who are educated and well-positioned. The ongoing monetary crisis, driven by runaway inflation and geopolitical instability, presents one of the greatest opportunities for wealth creation in modern history.

Crypto Connection:
Cryptocurrencies are rapidly emerging as one of the most effective ways to protect against wealth erosion during financial crises. Unlike traditional fiat money, which can be devalued through inflation, cryptocurrencies are immune to such manipulation. Those who hold crypto assets may find themselves on the winning side of this wealth transfer.

3. Gold and Silver: The Historic Hedge

Summary:

Gold and silver have always served as safe havens in times of crisis.
As fiat currencies continue to lose value, precious metals rise.
Accumulating gold and silver is a time-tested strategy for preserving wealth.

Detailed Explanation:
Gold and silver have long been viewed as hedges against inflation and economic uncertainty. When governments print excessive amounts of money, the value of these hard assets tends to rise. This is because they maintain intrinsic value, unlike fiat currencies, which can be devalued at will.

Crypto Connection:
Cryptocurrencies are often referred to as “digital gold.” Bitcoin, in particular, shares many characteristics with gold—scarcity, fungibility, and decentralization. As investors seek alternatives to fiat money, cryptocurrencies are increasingly seen as a modern hedge against economic instability.

4. Global Repatriation of Gold

Summary:

Countries are repatriating their gold reserves from foreign banks.
This signals a lack of trust in fiat currencies and international financial systems.
The race for gold accumulation is accelerating globally.

Detailed Explanation:
In recent years, countries have begun reclaiming their gold from foreign vaults. Germany, Venezuela, and others have repatriated massive amounts of gold, signaling a lack of trust in the global financial system. This trend underscores the fragility of the dollar’s status as the world reserve currency and hints at a return to hard assets as a store of value.

Crypto Connection:
Just as countries are reclaiming their gold, individuals are increasingly turning to cryptocurrencies as a way to “repatriate” their financial sovereignty. Cryptocurrencies offer a way to escape the control of central banks and governments, allowing users to store their wealth in decentralized, digital assets.

The Crypto Perspective:

For each of the main sections, cryptocurrencies offer an alternative to the centralized, inflation-prone traditional financial systems. Blockchain technology allows for a more transparent, decentralized system where trust is placed in code rather than governments. The current economic crisis presents an opportunity for cryptocurrencies to gain prominence as a store of value, much like gold and silver have done in the past.

Real-World Applications:

Gold and Cryptocurrencies: As central banks continue to print money, the value of hard assets like gold—and its digital equivalent, Bitcoin—rises. Historically, gold has acted as a hedge against inflation, and Bitcoin is now playing a similar role for those seeking to preserve wealth in the face of monetary instability.
International Trade Bypassing the Dollar: Countries like China and Russia bypassing the dollar in trade agreements mirrors the peer-to-peer nature of cryptocurrencies, where transactions occur without intermediaries like banks or governments.

Challenges and Solutions:

Problem: As fiat currencies lose value, people struggle to preserve their purchasing power.
Solution: Cryptocurrencies, with fixed supplies and decentralized control, offer an alternative that can help protect against inflation and currency devaluation.
Problem: Lack of financial education leaves many vulnerable during crises.
Solution: Educating oneself on how both traditional and cryptocurrency systems work can turn a crisis into an opportunity, positioning you on the right side of the wealth transfer.

Key Takeaways:

Trust in Fiat Currencies is Declining: As countries move away from the U.S. dollar, alternative assets like gold and cryptocurrencies are becoming more attractive.
Cryptocurrencies Offer a Hedge Against Inflation: With fixed supplies and decentralized control, cryptocurrencies like Bitcoin are becoming modern alternatives to gold.
Education is Key: Understanding the financial system, both traditional and crypto, is crucial for navigating crises and seizing opportunities.
Wealth Transfer is Inevitable: During times of crisis, wealth shifts to those who are prepared—cryptocurrencies offer a unique opportunity in this space.
The Future is Decentralized: As trust in centralized financial systems erodes, decentralized systems like blockchain are gaining ground as the financial systems of the future.

Discussion Questions and Scenarios:

How does the devaluation of the U.S. dollar affect global markets, and what role could cryptocurrencies play in providing a solution?
Compare and contrast the role of gold in the traditional financial system with the role of Bitcoin in the crypto ecosystem.
Imagine a future where fiat currencies have collapsed—how might cryptocurrencies reshape the global economy in such a scenario?
In times of economic crisis, which asset class—gold or cryptocurrencies—would provide the best protection for your wealth? Why?
What challenges do both traditional and crypto investors face when navigating wealth transfers during financial crises?

Additional Resources and Next Steps:

Books:
- Currency Wars by James Rickards
Websites:
- CoinDesk (for crypto news)
- Investopedia (for finance and crypto guides)
Tools:
- Blockfolio (for crypto tracking)
- Glassnode (for on-chain data analysis)

Glossary:

Fiat Currency: Government-issued currency that is not backed by a physical commodity like gold or silver.
Quantitative Easing (QE): A monetary policy where central banks create money to inject liquidity into the economy.
Gold Standard: A monetary system where currency is directly tied to the value of gold.
Wealth Transfer: The movement of wealth from one group to another during economic crises.
Cryptocurrency: A decentralized digital currency, secured by cryptography, often used as an alternative to traditional fiat money.

Read Video Transcript

I’m in Singapore and I’m about to go on stage in just a few minutes. I have not given a presentation for over a year now. I was in a little fender bender a while back and so I took a little bit of time off. There’s this sense of urgency now. The global dollar standard was put in place by a series of accidental events that were very fortunate for the United States because it gave us an advantage over the rest of the world.

But our politicians over the past decade or so have abused this privilege as though it was their birthright. And now the rest of the world are turning their backs on the U.S. dollar standard. This is going to cause a financial calamity the likes of which we’ve never seen before, and it’s going to be devastating for most people. I don’t want this to happen but the damage has already been done.

So I’m going around trying to alert people and show them how they can protect themselves and turn this into a great opportunity for themselves. There’s always one result from what we are doing right now, expanding the currency supplies all over the planet. There’s one result and that what we are doing right now, expanding the currency supplies all over the planet.

There’s one result, and that is higher gold and silver prices. I love America, at least the America that the founding fathers created. And I’m hoping that people get interested in this so that they’ll see that what made America great is the answer to our problems, to get back to free markets, free people, and sound money.

Our own history proves that this is the road to maximum prosperity. We are entering a period of financial crisis that is the greatest the world has ever known. The wealth transfer that will take place during this decade is the greatest wealth transfer in history. Wealth is never destroyed, it is merely transferred and that means that on the opposite side of every crisis there is an opportunity.

The great news is that all you have to do to turn this crisis into your great opportunity is to educate yourself. I believe that the best investment that you can make in your lifetime is your own education. Education on the history of money, education on finance, education on how the global economy works, education on how all of these guys, the central bankers, the stock market, how they can cheat you, how they can scam you.

If you learn what is going on and how the financial world works, you can put yourself on the correct side of this wealth transfer. Winston Churchill once said that the further you look into the past, the further you can see into the future. This program is all about creating your own crystal ball, being able to gaze into the future, being able to change this crisis, the greatest crisis in the history of mankind, into your great opportunity.

I was born in Salem, Oregon in 1956 and we moved to California when I was four years old in 1960. But when I went to school, it was obvious after just the fourth grade that there was something different with me. And by fifth grade, I was in remedial classes. And it turned out that I was dyslexic, and teachers were not taught to recognize that back then.

I was always falling behind everyone else. When I would get a teacher that would lecture instead of making us read out of books, I would just absolutely excel. I suddenly went from the dumbest kid in class to the smartest kid in all of the periods of that class. But the result was that after a while I was in every single remedial class and I just couldn’t take it.

And in 10th grade I dropped out, middle of 10th grade. And I’ve never been back to school. I often say that in every crisis, there’s an opportunity. And in this case, the handicap of dyslexia has also been a blessing. Because I couldn’t learn out of books, and I couldn’t take notes, I just had to remember everything.

And I have the ability to, my brain’s wired a little bit differently. I have the ability to look at a chart today and I know how it relates to a chart that I saw 10 years ago. But it was back in about the year 2000 when Steve Jobs of Apple introduced OS X. The world of books opened up to me, built right into the operating system, was a text-to-speech program.

Now I could just have an assistant slice and scan my books and turn them into text and email me, and then all I have to do is highlight the text, press a button, and the computer reads to me. People are turning to assets that will keep their value if prices rise. So much money has been pumped into the system that people are worried about inflation down the road, said Bruno S. Frey, professor of economics at the University of Zurich.

So dyslexia is no longer a problem. But what it’s also done for me is I have the ability to explain complex things to people in a simple manner for some reason. And so I sort of made it my mission to try and wake up the middle class, to let them know how the monetary system works, to let them know that there is a major economic calamity coming sometime down the road, and it’s most likely within this decade that we’re in right now. The US dollar is about 60% of the value of all the currency on the planet, and more than

half of the dollars reside outside the United States. The reason every country has US dollars is first of all, that’s what central banks use as a reserve currency. Second of all, oil is priced in dollars. So this is the world. And what you see here is that these are the countries that are avoiding the U.S. dollar in trade.

They’re doing bilateral agreements where they’ll either hold each other’s currency and settle that way, or they’re establishing, like right now, they’re talking about a BRICS bank, Brazil, Russia, India, China, and South Africa, having a bank that will do settlements between the countries directly without using the U.S. dollar.

These countries, they tried to avoid using the U.S. dollar, like Iran tried tried and we banned them from using Swift. How many here have made wire transfers before? So do you know what a Swift number is? It’s a code that you plug in and this Swift system is what transfers those dollars from one person’s account to another person’s account. Well Iran decided that they were going to sell oil only in euros.

They got banned from SWIFT. But there’s countries right now coming up with a replacement for SWIFT, and it doesn’t use the dollar. It’s the Sucra system. And Iraq started selling oil for euros. In Libya, they were talking about creating the gold dinar and selling oil for gold. So those are the countries that are trying to use something other than the dollar.

Then we’ve got gold competing with currency. And there’s a lot of talk around here about the gold dinar. And there’s people that are actually using gold in some of the countries over here. And then in Utah, Utah has recognized gold and silver as money again. It’s legal tender currency in the state of Utah in the United States.

And then you’ve got physical gold accumulation. I’ll show you later that China is accumulating an immense amount of gold, but all the countries with an up arrow, that’s gold accumulation. I’ll show you later that China is accumulating an immense amount of gold, but all the countries with an up arrow, that’s gold accumulation.

Then we have gold repatriation. Germany has been asking for their gold back and they’re getting it. Venezuela has repatriated their gold from the Bank of England. And then if we put this on a timeline, here’s the nails in the coffin for the dollar standard, and you will see that there’s not a lot of time left.

This is my evidence that I think is proof that the death of the dollar is coming, and it’s coming shortly. Nixon ended Bretton Woods, and we went on the dollar standard. Then the first nail in the coffin is Iraq sells oil in euros. The crisis of 2008 and we added 1.25 trillion to our base money in the United States.

As we add to the base currency, people get worried about inflation. They start rushing toward gold and silver. Iran ends oil sales in dollars and they’re taking commodities in trade for oil they’re taking in Turkey they take the local currency and then buy gold in Turkey and export the gold to Iran so they’re basically selling oil for gold they do the same thing with India QE2 quantitative easing that’s more currency printing in the United States.

Libya, China and Russia bypassed the dollar. They did a bilateral trade agreement where they hold each other’s currency and they do direct debt settlement without having to wire transfer U.S. dollars. Chinese president just recently said that the dollar is the world’s reserve currency, is a product of the past.

Utah recognized silver and gold as money. China and Iran bypassed the U.S. dollar with a bilateral trade agreement. Venezuela repatriates its gold. China and Japan trade directly. India and Japan bypass the U.S. dollar.

Russia and Iran trade directly, Iran sells India oil for rupees and commodities, China and Brazil trade directly, Swiss citizens demand gold repatriation, African countries ban the dollar, in Zambia you can go to jail if you use US dollars. Quantitative easing number three, They have announced at the Federal Reserve that they’re going to be, they’re starting with $40 billion of currency that they’re creating each month, and now it jumps to $85 billion.

That’s more than one trillion a year. And remember, it took 200 years to go from no dollars to 825 billion, and now they’re gonna create a trillion every year. Iran trading energy for gold. Singapore removes tax on money. Germany repatriates 150 tons of gold from the New York Fed. The citizens of Netherlands demand gold repatriation.

Ecuador repatriates part of its gold reserves. Austrian citizens demanding gold repatriation. China acknowledges fundamental market shortage of gold, and now the Fed is increasing the rate of printing, I said from 40 to 85 billion every month, just over a trillion per year. So those are the nails in the coffin for the dollar standard, and if you noticed, they’re all speeding up and they’re all happening right now.

You don’t have a whole lot of time. And if you wait too long, then the opportunity is gone. It’s going to fail. Why is the dollar sank or sank? Why is it not going to happen to the US dollar? What will? But people think, oh no, it’s high technology, we have computers now, or the internet. These are ridiculous arguments.

The truth is, all fiat currencies have failed, and there’s no reason why this one won’t. What worries me again so much is that it’s a global situation, and so it’s going to cause problems on a global basis. And it’s a trust breaking down. And you’ve already seen the trust breaking down, as I I said earlier because you’re seeing different countries exchange directly with each other’s currency circumventing the dollar you’re seeing that in oil you’re gonna see it more and more and people are just going to opt out of the dollar and you’ll probably get to a point before the whole thing collapses

entirely where the dollar is more or less used internally United States and externally is not used as much because there’ll be a lot of agreements made between nation states outside of the United States that will want to use each other’s currency and not the dollar. This isn’t going to be pretty when it happens. I am NOT an end-of-world or a doomsday guy.

All you can do is play the hand that you are dealt. If we go to a new monetary system, and I think it’s absolutely inevitable, there’s just too much energy built up in this one that has to release, it has to come crashing down somehow. When that happens, there’s an enormous wealth transfer for people that are on one side of the bet or another.

And people don’t realize that whether they are, they think they are making a bet or not, they are making the bet. They are involved. This wealth transfer affects everybody whether you want to participate or not. If you’re holding paper assets and paper currencies, you have bet one direction. If you’re holding gold and physical currencies, you have bet one direction.

If you’re holding gold and physical assets, you’ve bet the opposite direction. So these are changes in Chinese holdings. They are accumulating gold, they are getting rid of US treasury bonds. This is gold held in China. The green line is the cumulative gold that’s on this side, this scale. So it’s gone from about 700 tons to almost 6,000 tons just since the year 2000.

So this is their central bank holdings. This is their mine supply. But this is, and my researcher put all of this data together you’re the first people to see this this is the amount of gold flowing through the Hong Kong exchange that goes into China and the past couple of years here they have ramped up their buying they know that the dollar standard is coming to an end and they are protecting, and you’re probably going to see gold-backed renminbi someday, the yuan.

So this is an interesting chart. Changing global influence. So this is the correlation to this basket of currencies. This basket of currencies, if you add them all up, they’re trading up or they’re trading down, and this was pre-crisis. So it’s before 2008. So this is from the International Monetary Fund.

It’s their data. So from 2005 to 2008, this is the correlation of, you know, if that basket of currencies was trading up, the dollar was probably doing about the same thing as what it’s saying the Chinese remember a little less so and then this is today the US dollar is done for I think there’s any question we’re heading for a new monetary system.

The question is what will it consist of. The four choices are sort of a world of multiple reserve currencies. And Barry Eichengreen of Berkeley is the leading proponent of this, or leading scholar on this topic. The problem with that, and where I disagree with Eichengreen, is there’s no anchor in that system.

We did have multiple reserve currencies before in the 1920s, he’s right about that, and it was sterling and the dollar, but they were both anchored to gold. And in the post Bretton Woods world since 1944 it’s been one reserve currency which is the anchor and it was anchored to gold until 1971.

Since then the dollar has been detached from gold but all the other currencies are still linked to the dollar. So at the end of the day, we’ve had an anchor of some kind. We’ve never had a world of multiple reserve currencies with no anchor. I’m not sure that’s that stable. The SDR is the second choice. The SDR is a basket currency sponsored by the IMF, at least for the time being.

It’s also printed money. The IMF literally prints the SDRs and ships them out to the members, and their reserves go up exactly the way the Fed the members and their reserves go up exactly the way the Fed creates money and bank reserves go up. But it’s not backed by anything. Third choice is gold, some variation on the gold standard.

And the fourth choice is what I call chaos, which is that nobody does anything. There’s a lot of wishful thinking. There’s a lot of denial. There’s a lot of delay. And we get to the point where people just totally lose faith on paper currencies, go to hard assets, and we have a sequential collapse of paper currencies around the world, at which point governments will have to react with emergency measures.

That could include coercion, confiscation, various sorts of freezes on paper assets. Could be a lot of things in that scenario. So to me, it’s multiple reserve currencies, SDRs, gold, or chaos. I favor gold but I fear that we may get chaos. I’ve talked about every 30 to 40 years the world has a new monetary system.

And the thing is that over the years governments and the central and the banks have basically screwed us more and more and more. And these new currency systems are always created by the same idiots that created the last one that fell apart. It’s the big banks, it’s the central banks, and it’s governments that are creating these new systems each time and each time the system they come up with is a system that cheats the population more and enriches the government and the banks more. It’s a system that transfers wealth at greater and greater speeds. You know

this one is going to fall apart just like all of the others. There’s a difference this time though. There’s the internet. People are connected all over the world. Information is spreading and people are getting educated. So I’m hoping that we go back to gold. Not a gold standard. Gold standards suck.

Did a video on that. With a gold standard, there’s supposed to be a certain amount of gold in the vaults for each unit of currency. In other words, it’s a one-to-one ratio is the way that it started. And then they print more receipts than gold that exists. So if we have gold standards, we’re going to get scammed again.

If we used gold and silver, if the public gets educated enough before all of this happens. If we went back to gold and silver then governments can’t scam us. It limits their ability to transfer wealth from the population to the government and to the banks.

A lot of people say that you can’t use gold and silver today because they’re too heavy and bulky and it’s completely wrong. You could put gold and silver in a vault and you could make payments to somebody by transferring ownership of nanograms, grams or ounces of gold and silver from one person’s account to another by means of a check, a credit card or even your cell phone. If we go back to a gold-backed currency, gold-backed U.S.

dollar, at that point, I think the minimum scam that the U.S. could get away with, which means the minimum number of dollars in existence that they could make convertible into gold, would be the dollars that are held in foreign central banks. That would be similar to the Bretton Woods system that we had from 1944 to 71.

Well, I did some analysis on this when I was writing the book back in 2005 and back then it required $20,000 an ounce gold for the Treasury to have enough gold to cover those dollars or the New York Fed actually. And if they were going to back all of the dollars, you’re talking gold measured in the hundreds of thousands of dollars per ounce. There just isn’t that much gold, and there’s a whole lot of currency.

We keep on printing it every minute of every day. This is gold and how it accounts for currency supply. This is our base money in the United States, which was gold back here from 1900 until the Federal Reserve. The amount of currency in circulation in gold were the same. Then we established the Federal Reserve and we inflated for World War I and we had more currency in circulation than we had gold to back it.

There were some bank runs in the 30s. Then Roosevelt unpegged the dollar from gold and gold’s value rose from $20 an ounce to $35 an ounce and when it did, the value of the gold held at the U.S. Treasury rose to meet the value of all the currency that was printed in the meantime. Here’s the same chart again, but now I’m taking it out to 1971, and what you see is these gold inflows during World War I.

During World War II, it’s another 117% gold increase. This is what made the United States a superpower. It’s all financial. It isn’t our war machine necessarily. It’s all the gold inflows that we got because everybody else was at war, and we were isolated from it, and they had to pay us for all their consumer goods and so on.

And then we jumped into the war and we inflated, and then in about 1959, countries started figuring out that we didn’t have all the gold. We were printing more dollars than gold that we had to back it, and under the Bretton Woods system, they could go to the New York Fed and turn in their dollars for gold at $35 per ounce.

Only foreign central banks, individuals couldn’t do that. So gold started flowing out, and the U.S. lost 50% of its gold from 59 to 71. And in the meantime, we kept on printing currency. If this had continued until it got down to zero, if there was one more dollar out there that laid claim to gold, that came in and said, we want our gold for a currency, and there was no gold to back it up, the entire world monetary system would have come crashing down.

So Nixon had to take us off of the Bretton Woods system, the last vestiges of the gold standard in August 15th of 71. So here’s the same chart again. There’s the first chart and the second chart to 71 and now I’m taking it out to 85 and I’m adding a second line here. How many people would agree that credit cards are replacing cash in circulation? Yeah? Credit cards, you use your credit card more and more every year, right? You use cash less and less. Well, this is outstanding credit card balances.

It’s called revolving credit outstanding, is the name of the chart that you get from the Federal Reserve. When you charge something on a credit card, you create currency. The bank didn’t actually loan you anything. They invented numbers, and then they have the gall to charge you interest if you don’t pay those numbers back on time.

But so the thing is that the merchant that you’re paying, the restaurant or the grocery store, that merchant’s checking account can’t tell the difference between the credit dollars that you created or the cash dollars that you pay them. So to that merchant’s checking account, it all looks the same. And those dollars that you pay them. So to that merchant’s checking account, it all looks the same.

And those dollars that you created stay in circulation until somebody saves them up and pays down credit card debt. So unpaid credit card balances, I include as part of the cash in circulation. And in 1971, Nixon took us off the gold standard, and gold became a freely traded, separate commodity slash money, and it did an accounting of the currency supply.

There was quite a while here where we could have gone back on the gold standard. The value of the gold at the Treasury exceeded all the dollars printed from George Washington to Jimmy Carter. And for a week or so, a couple of weeks, it exceeded base money plus outstanding revolving credit. So here’s the same chart again.

That was to 1985, and now I’m going to take it out to today. And so there’s that 1980 peak where it shot past base money and base money plus outstanding revolving credit. And then we get to the crisis of 08. And Ben Bernanke, oh, by the way, instead of billions, we’re now measuring in trillions.

So we started in millions, and then it went to billions, and now it’s trillions. So we did the bailouts and all the quantitative easings, and that’s what the currency supply looks like today. And then they announced quantitative easing three, which is that $85 billion a month that they’re creating. And they think they’re going to have to do it until about 2015.

So here’s the projection for gold covering the currency supply today would be $13,400 per ounce gold for history to repeat and for gold to do the same thing that it did in 1934 and in 1980. And believe me, it shocked people in the 1970s. When gold was $35 an ounce and Nixon took us off the Bretton Woods system, all the economists were predicting that gold was going to go down because now there was going to be no more monetary demand for it. Anybody that said gold was going to go to $100 was considered

an absolute lunatic, and it went to $850. It rose 24 times its price. Well, when I wrote my book, we were right here with base money. So base money plus outstanding rolling credit. It took about $6,000 an ounce for history to repeat. Today it takes $13,400.

And if you include the same overshoot, remember in 1980 it didn’t just cover base money, but it shot past it. $24,000 an ounce gold is what it would require to meet that, except the Fed has announced that they’re going to keep on printing currency until there’s lower unemployment and the economy gets back on track. And they think till 2015. So the projected price, according to the Fed and history repeating, if the Fed does this and then history repeats and gold, the public gets afraid of what the Federal Reserve is doing and they rush toward gold and silver to protect their purchasing power,

gold would have to rise from there to way up here, and that is $26,000 per ounce gold to cover. If it does the same overshoot, we’re talking about $47,000 an ounce gold. Now, I don’t even like to measure gold in dollars. If you measure it in a price, price doesn’t mean anything. It’s the value. How much can you buy with the proceeds? If we have deflation and some of this currency evaporates, because it’s all just numbers that they type into a computer these days, if we have deflation, maybe gold peaks at $3,000 an ounce

and the currency supply collapses to way down here somewhere. And the Dow is at $1,500. That means gold will still be double the Dow. You’re still going to get 14 times more paper assets one day than you can buy today with them. And it’s probably only a couple of years left that this is going to take, as you saw by how the nails in the coffin of the dollar standard, how they’re speeding up.

If we have big inflation and the Dow goes to 30,000, maybe gold will be 60,000 an ounce. And if we have hyperinflation, the Dow would be 30 trillion and gold would be 60 trillion. It doesn’t matter. In any case, gold would buy you 14 times more paper assets than it does today. So these are the global assets.

Here’s the bond market. Here’s the stock market. This is the value of real estate on the planet. And these are bank deposits, and there’s gold. Now, that little slice of the pie is going to get a lot bigger in just the next few years, and it’s not going to do it by a whole bunch more gold just appearing.

It’s going to do it by the price of other assets going down or at least their value going down and the value of gold going up. So the price of gold will change. That piece of the pie is going to grow. It was a lot bigger back in 1980 when gold was at $850. It’s going to get a lot bigger today again, but today, as you’ve seen, it requires far, far higher prices.

So the death of the dollar standard. How many people here believe that I’m sort of predicting what’s going on in the future here? You can see that there’s a new world monetary system coming. It happens every 30 to 40 years, except this time, instead of a baby step off of gold, 40 years, except this time instead of a baby step off of gold, we’ve got to go from nothing back to something.

It’s going to be a worldwide convulsion, the scale of which has never been seen before. At the end of the day, the fundamental driver of gold, it’s not so much the gold’s in a bull market, it’s more the dollar’s in a bear market. And people say, well, how high can gold go? And my answer is, well, how low can the dollar dollar go the answer is the dollar can go to zero if you divide any number by zero the answer is infinity so gold can go to infinity if the dollar goes to zero now in the real world something else will happen it’s not that gold becomes worth infinite number of dollars

it’s more the case that the dollar just falls off the stage the dollar gets the hook so to speak and the dollar just falls off the stage the dollar gets the hook so to speak and you you’ll count gold in dollars to five thousand to ten thousand at some point but there’ll come a time when you won’t count gold in dollars anymore because dollars won’t count people won’t want dollars there is so much opportunity in crisis it is absolutely extraordinary that’s just not me saying that that’s just history you read any amount of history and i don’t mean last week

i mean real history you know in terms of crisis it’s when huge fortunes were made. Times of crisis it’s when human beings create and develop newest technologies and newest science and new medicines. In times of crisis there’s so much opportunity as long as you can remain calm, get educated, be resourceful.

The challenge for most people is that in crisis they go into crisis mode, which means they go into scarcity, they go into lack, they go into blame and none of those emotions are resourceful for helping you solve whatever challenge is in front of you. I believe that this is probably the greatest opportunity of anyone’s lifetime.

There has never been a situation where everything came together just like this. This is the first time in history where all the world’s currencies are just fiat currencies backed by nothing. And if what I think is going to happen happens, this is the greatest wealth transfer in history. It’s the greatest opportunity, and it’ll never happen in our lifetimes again.

So now we’ve learned the following hidden secrets of money. There is a global loss of confidence in the U.S. dollar that is accelerating rapidly. The change to a new monetary system is inevitable and will most likely be chaotic. Gold standards do not work over long periods of time, but gold itself does.

The public contributes to the massive amounts of currency creation by using credit cards and signing loans. Gold has already accounted for the expansion of U.S. dollars twice in the last century and may likely do so again. So that’s it for this episode. I thank you for watching and I hope you enjoyed it.

I know I threw around a bunch of astronomical prices for gold someday in the future, but it isn’t the price measured in dollars, it’s how much is its value. What is it worth? How much stuff can it purchase? The price measured in dollars, or any currency for that matter, is just a bunch of numbers, and it really doesn’t mean anything.

There are numbers that are created by the world’s central banks, by the commercial bank system, and we’re forced to transact in these currencies. But in our next episode, we’re going to clear away the smokescreen of national currencies and show you how the world monetary system really works and how all national currencies have to continue losing value.

It is not possible for them to maintain purchasing power over any reasonable period of time. As for the golden nails in the dollar’s coffin, it’s only been a short while since we filmed the presentation in Singapore, and already there are more of them. So for an update, visit hiddensecretsofmoney.com, and in your free information toolkit, there’s an exclusive presentation on the latest developments of the golden nails in the dollar’s coffin.

Now, I know this episode was kind of serious and it might have you upset right now, but believe me, it’s not all doom and gloom. As I’ve said many, many times before, there are these brief moments in history where the safest asset class, the safe haven investment for the last 5,000 years, also becomes the asset class that has the greatest potential gains in purchasing power and I have bet my life on it.

First I became an investor back in 2002 and then I started telling everybody about it. I started warning them what was going to happen with the world economy and how to protect themselves and I made it my mission to educate as many as I could. So in 2005 I wrote my book and then I gave people a means to protect themselves and opened up GoldSilver.com.

I believe that my team and I have created the world’s best precious metals dealership. Because we don’t just sell gold and silver, we are gold and silver investors. And what we want to do is help you understand how to get through what is coming to protect yourself and to turn all of these bad things around to your benefit.

So if you decide that precious metals are for you, please visit goldsilver.com. We’d love the opportunity to become your dealer because we feel that we are more than a dealer. We are a partner with you and we’re on the same side of the fence as you. So thank you very much. Good luck.

Do you think this is a man-in-the-lifeboat situation? Let me ask you this. If you knew the Titanic was going to sink and you were on the Titanic, you knew there was going to be a lifeboat situation coming up soon. Would you like to get in the lifeboat early? Get a nice seat, maybe close to the water, maybe close to the food supply, right there in the middle, nice and comfy.

Or you want to be one of the last ones on the boat and you’re dockying for position, you have to throw a kid out to make room for you. Yeah, so lifeboat situation, it depends how you like your accommodations on the lifeboat is whether you should be winking your way towards it right now. And I will be edging my way towards it right now.