The End Of US Economic Dominance: Nails In The Dollar-Standard's Coffin

Tyler Durden's picture




 

Mike Maloney (of The Hidden Secrets of Money) has demonstrated that that every 30-40 years the world has an entirely new global monetary system, that the current monetary system (the U.S. dollar standard) is aging and becoming unstable, and, just like the previous monetary systems, will soon implode. The following wide-ranging clip shows that the "Nails in the Coffin of the Dollar Standard" are now coming faster and are more furious than ever before. He believes that there will be a global currency crisis before the end of this decade and that the days of the dollar standard are numbered. This will lead to a massive deflation followed by an overnight devaluation of the dollar and huge overnight revaluation of gold, and, though it will be painful for most, it is the greatest opportunity in history for those who are prepared.

 

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Wed, 06/11/2014 - 21:05 | 4846938 Acidtest Dummy
Acidtest Dummy's picture

The disillusionment will be epic. Expect mass hysteria.

Wed, 06/11/2014 - 21:06 | 4846948 Camtender
Camtender's picture

Will any of us live to see this happen????????????????  

Wed, 06/11/2014 - 21:07 | 4846955 Acidtest Dummy
Acidtest Dummy's picture

If you call this living.

Wed, 06/11/2014 - 21:21 | 4847010 NidStyles
NidStyles's picture

I agree with Mike Maloney, this is an amazing once in lifetime event for all of us. Every single one of us could walk away from this better off than when we went in. 

Wed, 06/11/2014 - 21:31 | 4847045 max2205
max2205's picture

Think I'll start moving $$ into the pound and franc before the year ends

Wed, 06/11/2014 - 22:35 | 4847236 Keyser
Keyser's picture

When it happens, US status will be downgraded to 3rd world shithole... The barbarians are already at the gate and the guy in charge is shouting, come on in!!!!

Thu, 06/12/2014 - 04:42 | 4847676 Sudden Debt
Sudden Debt's picture

So true, it really is like there's no effort at all to save the dollar anymore.

Especially for America, I think there's going to come some weird times...

Europe is different. We can break up, fuck it all up even more than we do now and cry defeat a few times and just start over like we always do. Over here it would only be news for about a week.

America will get it's USSR moment where it will crumble like a cookie where States will fight and kill each other like they did after the breakup of the USSR.

 

Thu, 06/12/2014 - 05:03 | 4847689 Incubus
Incubus's picture

I'm sticking with whatever side Texas is on.

 

 

Thu, 06/12/2014 - 08:06 | 4847847 Uncle Remus
Uncle Remus's picture

Ah - welcome to Mexico amigo. Your papers please.

Thu, 06/12/2014 - 08:31 | 4847917 Keyser
Keyser's picture

Don't think so as Texans are accustomed to the hispanic presence... After all, who do you think manicures our lawns, cleans our houses and cooks our food? It will take generations before they have a chance at economic equality... How long has the black community been trying to catch up? 

Thu, 06/12/2014 - 09:53 | 4848176 detached.amusement
detached.amusement's picture

so in other words, the more help they get, the longer it'll take them

Thu, 06/12/2014 - 10:50 | 4848391 JRobby
JRobby's picture

Remember Senor not to work or seek employment while you are here. Just enjoy yourself!

Sure, go try Canada. You will hear the same thing there gringo. Eh!

Thu, 06/12/2014 - 08:01 | 4847837 caShOnlY
caShOnlY's picture

So true, it really is like there's no effort at all to save the dollar anymore.

They have reached the proverbial fork in the road:  Save the dollar and suffer the deflationary depression that comes with it or accept the hyperinflation(currency destruction). 

From Ludwig Von Mises:

"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."

 

Wed, 06/11/2014 - 23:22 | 4847359 jeff montanye
jeff montanye's picture

yes. the franc. good choice.

but it's not gold.

Thu, 06/12/2014 - 07:04 | 4847774 CuttingEdge
CuttingEdge's picture

Norwegian Krona is a great alternative.

The US needs to look closer to home than China and Russia and the raghead states - fucking over your perceived allies to fill your depleted coffers cannot end well:

http://www.bloomberg.com/news/2014-06-11/ecb-s-noyer-says-bnp-may-prompt...

Thu, 06/12/2014 - 13:26 | 4849188 RaceToTheBottom
RaceToTheBottom's picture

I think the Franc is tied to the Euro, so basically the Franc now is not your fathers Franc

Wed, 06/11/2014 - 21:27 | 4847027 lordbyroniv
Wed, 06/11/2014 - 21:24 | 4846965 SilverDoctors
SilverDoctors's picture

Talk about nails in the coffin for the USD standard...Jim Willie is claiming that the Saudis, Germany, France, & Japan are about to turn their backs on the US, and join a Russian alliance- with you guessed it...a common gold-backed currency.  
The Fat Lady is warming up...

 

Wed, 06/11/2014 - 21:38 | 4847060 XitSam
XitSam's picture

A gold backed currency? I doubt it. Only if the bankers want a return to a monetary system that makes sense.

I anticipate another round of fiat. 

Thu, 06/12/2014 - 02:33 | 4847603 LostandFound
LostandFound's picture

If the Central Banks want an element of control, then they may find themselves having to go back to a Gold standard to stop the increase in market share of Cryptocurrencies.

Gold is the less of two evils for the banksters!

Thu, 06/12/2014 - 05:38 | 4847708 Urban Redneck
Urban Redneck's picture

Following up on what I posted below, for an idea of just how fleeting 100% gold backing was- the Bank Charter Act was passed in 1844, suspended in 1847, again in 1857, and again in 1866. The attached paper "Where it all began: lending of last resort and the Bank of England during the Overend-Gurney panic of 1866" Deals with shadow banking in the 19th century and the importance of accepting (clearing & settlement) other people's CRAP paper in exchange for your own CRAP paper if you want to you want to be top dog in global finance. The alternative of course, would be for the aspiring top dog central bankster to accept other people's CRAP paper in exchange for physical gold...

http://www.norges-bank.no/Upload/English/Publications/Working%2520Papers...

If the PBOC chairman came out and said "That might happen, and monkeys may fly out my butt" then I might rethink the possibility of backing toxic trash with physical gold, especially if Zhou Xiaochuan had been replaced by Jim Carrey, Mark Carney or some other obnoxious Canadian (particularly if they were an ex GS-banker with a giant pile of toxic paper to exchange for physical gold, but regardless- the opportunity would be restricted to members of the club).

Crypto currencies are like the physical coins in circulation- they mean something to some little people, but they are inconsequential at the CB level, and they can't take significant market share of the CB's unless they can efficiently discount toxic trash and be issued against the toxic trash. Just like with the goldbugs- who wants to exchange their crypto currency for digital subprime slime?

Thu, 06/12/2014 - 04:28 | 4847670 shouldvekilledthem
shouldvekilledthem's picture

How would it make sense when it still relies on a lowly promise made by a bunch of criminals?

bitcoin ftw 

 

Thu, 06/12/2014 - 04:29 | 4847671 Urban Redneck
Urban Redneck's picture

The rinse, repeat machine agrees... MOAR FIAT!!!

It won't be over until banksters go bankrupt, given that they have control of the printing press, they intend to be the last to go bankrupt.

Yes, the Currency School (read Austrians/hard money camp) did win out over the Banking School, but the victory was fleeting and with the next big crisis, the BoE/Bankster class was welcomed back to feed the debt addicts.

From 1858:

Had we space to trace in detail the history of the Bank of England—to show how the privileges contained in its first charter were bribes given by a distressed Government in want of a large loan—how, soon afterwards, the law which forbade a partnership of more than six persons from becoming bankers, was passed to prevent the issue of notes by the South-Sea Company, and so to preserve the Bank-monopoly—how the continuance of State-favours to the Bank, corresponded with the continuance of the Bank's claims on the State; we should see that, from the first, banking-legislation has been an organized injustice. But passing over earlier periods, let us begin with the events that closed the last century. Our rulers of that day had entered into a war—whether with adequate reason needs not here be discussed. They had lent vast sums in gold to their allies. They had demanded large advances from the Bank of England, which the Bank durst not refuse. They had thus necessitated an excessive issue of notes by the Bank. That is, they had so greatly diminished the floating capital of the community, that engagements could not be met; and an immense number of promises-to-pay took the place of actual payments. Soon after, the fulfilment of these promises became so difficult that it was forbidden by law; that is, cash-payments were suspended. Now for these results—for the national impoverishment and consequent abnormal condition of the currency, the State was responsible. How much of the blame lay with the governing classes and how much with the nation at large, we do not pretend to say. What it concerns us here to note is, that the calamity arose from the acts of the ruling power. When, again, in 1802, after a short peace, the available capital of the community had so far increased that the redemption of promises-to-pay became possible, and the Bank of England was anxious to begin redeeming them, the legislature interposed its veto; and so continued the evils of an inconvertible paper-currency after they would naturally have ceased. Still more disastrous, however, were the results that by-and-by ensued from State-meddlings. Cash-payments having been suspended—the Government, instead of enforcing all contracts, having temporarily cancelled a great part of them, by saying to every banker, “You shall not be called on to liquidate in coin the promises-to-pay which you issue;” the natural checks to the multiplication of promises-to-pay, disappeared. What followed? Banks being no longer required to cash their notes in coin; and easily obtaining from the Bank of England, supplies of its notes in exchange for fixed securities; were ready to make advances to almost any extent. Not being obliged to raise their rate of discount in consequence of the diminution of their available capital; and reaping a profit by every loan (of notes) made on fixed capital; there arose both an abnormal facility of borrowing, and an abnormal desire to lend. Thus were fostered the wild speculations of 1809—speculations that were not only thus fostered, but were in great measure caused by the previous over-issue of notes; which, by further exaggerating the natural rise of prices, increased the apparent profitableness of investments. And all this, be it remembered, took place at a time when there should have been rigid economy—at a time of impoverishment consequent on continued war—at a time when, but for law-produced illusions, there would have been commercial straitness and a corresponding carefulness. Just when its indebtedness was unusually great, the community was induced still further to increase its indebtedness. Clearly, then, the progressive accumulation and depreciation of promises-to-pay, and the commercial disasters which finally resulted from it in 1814–15–16, when ninety provincial banks were broken and more dissolved, were State-produced evils: partly due to a war which, whether necessary or not, was carried on by the Government, and greatly exacerbated by the currency-regulations which that Government had made.

Thu, 06/12/2014 - 06:00 | 4847718 Cryogenic
Cryogenic's picture

But this time it will be different, we promise....

Fri, 06/13/2014 - 03:47 | 4851783 cooky puss
cooky puss's picture

Hard to believe yeah, but FMI Christine Lagarde DID mention multiple times an economic reset on interview recently:

http://www.lecontrarien.com/pour-christine-lagarde-leconomie-mondiale-a-...

(sorry for the french blog link, video is in english though, I use an electronic device with limited browsing capabilities)

A new currency might be in the minds of many by now (in the form of a cocktail of currency + % of gold)

Wed, 06/11/2014 - 22:32 | 4847229 explosivo
explosivo's picture

Thanks for that link.

Thu, 06/12/2014 - 02:43 | 4847616 LostandFound
LostandFound's picture

I like Jim Willie, although i struggle to listen to him, i love reading his stories, they are excellent.

One thing for sure, is that the Saudi move will not happen until they unpeg themselves from the dollar, similar to here in the UAE. Why peg your currency to a currency that is ending?

I think a new dinar or confirmation of a free floating currency will be the signal that this is going to end. Until now, this has not happened.

Thu, 06/12/2014 - 08:35 | 4847929 Keyser
Keyser's picture

I believe Jim is right, it's just a matter of timing... My belief is that the dominos will begin to fall with the collapse of the Euro... If Spain defaults, that may be the black swan...

 

Thu, 06/12/2014 - 05:49 | 4847712 barre-de-rire
barre-de-rire's picture

you are done, you & your money,  why we would not turn back & go where frontiere are natural way for commerce ?

 

you are behind a whole ocean, you dont have to interact with ukrain, not your land, not your history, you only have economic war issue.

 

after you failed & die, there is no more problem.

 

just die & stfu. stick your tafta in your ass. you pushed europa to do dumping & kill jobs for decades, time's come you to pay.

 

 

Thu, 06/12/2014 - 08:32 | 4847921 quasimodo
quasimodo's picture

We should be in good shape then here in the states, puulletee of fat ladies to go around.

 

Thu, 06/12/2014 - 10:53 | 4848402 JRobby
JRobby's picture

Willie is next in line to be poster boy for euthanasia. Unless you want to fill in for him?

SPC

Wed, 06/11/2014 - 21:19 | 4847002 duo
duo's picture

Rivers and seas boiling, 40 years of darkness....Earthquakes, volcanoes...

The dead rising from the grave.

"Human sacrifice, dogs and cats living together, mass hysteria!"

https://www.youtube.com/watch?v=O3ZOKDmorj0

Wed, 06/11/2014 - 21:22 | 4847011 zaphod
zaphod's picture

I don't expect mass hysteria, I expect mass looting both physically and in voting booths by people demanding to be taken care of.

Thu, 06/12/2014 - 02:56 | 4847629 mt paul
mt paul's picture

Coffin dollars...

Wed, 06/11/2014 - 21:05 | 4846941 stant
stant's picture

The dalla darlin will be the last to go. But go it will

Wed, 06/11/2014 - 21:06 | 4846946 Ned Zeppelin
Ned Zeppelin's picture

Those who fantasize that the USD will go quietly into the night will be proven quite mistaken.

Just IMHO.

Wed, 06/11/2014 - 21:16 | 4846987 COSMOS
COSMOS's picture

I think Libya, Syria, Vietnam, Afghanistan, Ukraine, Iraq, etc are making quite a bit of noise....

Thu, 06/12/2014 - 07:13 | 4847780 BrosephStiglitz
BrosephStiglitz's picture

Was having this discussion with a colleague (economist) on monday.  He claimed "it takes a long time for currencies to collapse."

That is exactly what I responded.  This has been in the making for decades.  It started taking real form in 2002 and has continued to accelerate.  A lot of people really cannot grasp reality, they think this is tinfoil hat stuff.  The general response I get is disbelief in my assertions, even from people that I consider to be good friends.

Thu, 06/12/2014 - 07:59 | 4847836 JoeSoMD
JoeSoMD's picture

I think decades is waaay to short a period to call a collapse.  Rome was centuries even without a strong central command and (political) control structure.  I think it comes down to external pressures, and i don't see a strong enough entity out there to apply the pressure.  There is a goog, but really really long book on Rome out there.

Thu, 06/12/2014 - 10:44 | 4848380 MrButtoMcFarty
MrButtoMcFarty's picture

Rome didn't import energy.

 

Thu, 06/12/2014 - 12:20 | 4848844 JoeSoMD
JoeSoMD's picture

True, but they did import food... it was a major reason for conquest.  the other was to present more of a buffer against invaiders.

Thu, 06/12/2014 - 02:28 | 4847595 Dubaibanker
Dubaibanker's picture

Hey Ned,

First, you go down gradually (since 9/11) and then suddenly.....

Black swans and all....

When was the last time you checked up the share price of Citibank or for that matter Lehman? You probably don't even remember what happened to Bear Stearns and Merill? I heard they used to be big and all....

Never mind what the Americans are doing in countries outside, including with friends like Germany (hint: Snowden). What about the people who are not friends like Syria, Iran, N. Korea, Libya, Afghanistan, Pakistan, Yemen, Sudan, Somalia, Ukraine, Venezuela.......all have been pounded back to the Middle ages, sadly! Perhaps Americans need to create a few friends. Must be needy, I guess, by now.

Been to Detroit or Stockton lately?

Wed, 06/11/2014 - 21:15 | 4846972 DavidPierre
DavidPierre's picture

 

The once glistening fortress in Kentucky used to house 8500 tons of gold until it was stolen by the Clinton-Rubin gang.

Only morons and dupes believe the official story of relocating it to the New York Fed and West Point for safe keeping, coupled with lunatic concepts like Deep Storage Gold.

Ask Germany, Netherlands, Austria, and Venezuela how the safe keeping of their official gold account is doing.

http://news.goldseek.com/GoldenJackass/1402516860.php

Abandonment of the Petro-Dollar involves the reversal of a generation in commitment, even more. It involves discharge of decades of accumulated rubbish US$-based debt paper.  

We could have the first sighting of a BRICS Central bank outpost for processing USGovt debt securities, straight into Gold bullion.

 

 

Wed, 06/11/2014 - 21:24 | 4847014 NidStyles
NidStyles's picture

Wait, Die Hard taught us tha the evil Germans were trying to steal our gold. So when the Germans come looking for their gold seriously, what will people think?

Wed, 06/11/2014 - 21:44 | 4847078 CCanuck
CCanuck's picture

yippy ki-yay motherfucker!

Wed, 06/11/2014 - 23:13 | 4847337 jez
jez's picture

Ja, but vizz ze heavily-accented Pritish actors playink ze Chermans.

 

Jeremy Irons saying "Holy Toledo" was a highlight for me.

Wed, 06/11/2014 - 21:13 | 4846978 Hagen
Hagen's picture

There is just a problem with this charlatan. A currency in a zone in deflation which is prolonged reinforces mechanically, it is thus the opposite of what he tells.

Wed, 06/11/2014 - 21:52 | 4847110 SilverIsMoney
SilverIsMoney's picture

This is a great point but I think the point he's trying to make is the Central Banks will never let it happen. When this deflationary mega-crash hits their only response to it will be to print MOAR and it's at that point he thinks PMs will jump into their super-bubble becasue the currencies will just straight up collapse as they try to fight the worst deflation in history with the largest inflation of credit/money in history. It will lead to a collapse of all currencies and PMs value relative to everything else will go bonkers - that's where this golden moment comes from in his eyes - When 1 OZ of gold buys the dow, when Silver hits 10-1 in the GSR, and when 500OZ buy a house. He's basically telling you a giant bubble in PMs are coming as a result of this currency collapse and that's where this golden moment lies for us. He's thinking a step a head of the deflationary collapse - though said collapse would most likely destroy PM prices imo and he doesn't mention that.

I've been following Maloney for a long time and that's the impression I get...

Thu, 06/12/2014 - 12:24 | 4848862 Turin Turambar
Turin Turambar's picture

More like a deflationary fallacy. Yeah, nobody's going to buy a cup of coffee today because it'll probably be cheaper tomorrow.  Nobody is going to buy a computer today because they will be more powerful and even cheaper tomorrow.  Err, wait, nevermind.  :-O

Economic illiterates.  Sure, pay attention to what the phD geniuses have been saying about the repercussions when they've been wrong about everything else for decades - Austrian school excepted.

Wed, 06/11/2014 - 21:15 | 4846983 Obama_4_Dictator
Obama_4_Dictator's picture

Mike is the best...this presentation is amazing...he's one of my idols

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