The US Dollar System is Being Weaponized Against You

Some are leaving the dollar.  You might want to think about it, too!

Charles de Gaulle, the former Premier of France, called the global dollar system America’s “exorbitant privilege.”  Or maybe he didn’t.  Maybe with was a French finance minister.

But if de Gaulle hadn’t said it himself, he could have because he understood that it would end up fleecing the rest of the world.  In fact, de Gaulle sent his navy to pick up the French gold that was being stored by the United States.

The dollar’s exorbitant privilege of being the reserve currency of the world made Americans a little better off in some ways than they might have been.  It created an artificial demand for dollars, allowing the US treasury to borrow more cheaply than it otherwise could have done.

But such privileges don’t last more than a couple of centuries.   And now our privilege is expiring in half the usual lifespan.  Why?  Because the Deep State has weaponized the dollar.  Instead of being a neutral unit of accounting and trade, like gold, the US freezes, appropriates, and confiscates dollars belonging to other countries.  It prohibits them from using, spending, or disposing of dollars they own.  

To the extent foreign nations hold dollars, they are vulnerable to the whims of Uncle Sam and its often senseless foreign policy.  And they know it.  A “substantial percentage” of foreign central banks surveyed by Invesco reported concerns about the way the US and its minions froze almost half of Russia’s $650 billion gold and foreign exchange reserves.   

No country wants to keep wealth in a currency that can deprive it of its use unilaterally.  Like the dollar.  Imagine agreeing to keep money in a bank or brokerage account that can suddenly just shut you out.

Now Federal Reserve chairman Jerome Powell is being cagey with one congressman, Alex Mooney, R-W.Va., who is asking specific questions about foreign nations’ repatriating their gold and how much gold the Fed is holding.

We’ll let HeadlineUSA tell the story:

The Fed chairman told Mooney that the Federal Reserve does not own gold but holds it as a custodian for other entities—a fact the congressman presumably already knew. Powell also said that the Fed serves as a custodian for a “small portion” of the U.S. government’s gold, telling Mooney that “any questions you may have about such gold are best directed to the Treasury Department.” Rep. Mooney’s questions were not about the Treasury’s gold [emphasis added].

To Chris Powell, secretary-treasurer of the Gold Anti-Trust Action Committee, the Fed chairman’s responses to a sitting member of Congress are not only unacceptable but also telling.

“The refusal of the chairman of the Federal Reserve Board even to acknowledge, much less reply to, the questions of a member of Congress about the repatriation of gold from the Federal Reserve Bank of New York confirms that something really big is going on with gold internationally,” Powell said in an email to Headline USA.

President Biden recently announced the imposition of an additional 500 financial sanctions on Russia.  Altogether the US has some 4,000 sanctions in place against Russia.  Russia has developed workarounds for most of them.  It is clear that sanctions have hastened the development of alternatives to the US-controlled, dollar-based SWIFT account settlement system.  The effect of the American sanctions being wielded so promiscuously makes it appear that the global dollar standard is not so much failing as it is committing suicide.  

Washington is killing American prosperity.  It long ago killed the good-as-gold US dollar.  It is doing untold harm on many other fronts in addition to now destroying the dollar reserve standard.  It has declared foolish wars on the internal combustion engine, free trade, individual meritocracy, financial privacy and much more.  

Our political classes have the Midas touch in reverse.  They are turning everything they touch into toxic waste.  They will bring the dollar down and impoverish the American people.

We are in the business of helping people like you protect your wealth and yourself from their madness. Let us help.