Toppling King Dollar: The Afghan Lesson

27 Aug

Toppling King Dollar: The Afghan Lesson

We have written many times about the impact on you – and on supercharging gold prices – as the dollar loses it privileged position as the world’s reserve currency.  See here, here, and here.

But we have never stated the case quite a dramatically as was done by Erik Prince on Tucker Carlson’s show this week for a conversation about the impact of the White House’s bungling on Afghanistan.

Prince is a former Navy Seal and a founder of the private security firm Blackwater.  Blackwater was the recipient of billions of dollars of US government security contracts from the CIA, the Pentagon, and the State Department from 1997 to 2010.

Carlson said Prince is “one of the most knowledgeable people in the world on the subject of Afghanistan”.

This Afghan calamity spells the end of NATO said Prince.  Forget about Democrats complaining about Trump damaging NATO.  “This will destroy what’s left of NATO,” he said, pointing to the cluelessness and unilateralism of US actions that have seen the US rebuked in Parliament for the first time ever.

“We have shattered the confidence of our European allies and every other ally around the world.” 

The international privilege that the dollar enjoys is co-extensive with the US empire, so Prince’s observations about NATO were only an entree to his observations about the dollar. 

“The dollar is the world’s reserve currency,” said Prince, “because it is underpinned by the notion of US military strength….”

“We deficit spend and we can keep doing that since we can just print more and more dollars.  As Pax Americana goes away, and people don’t have confidence in the dollar, it has massive trickle-down implications to our economy and to our way of life.”

It will mean the abolition of the welfare state, Prince predicted, “Massive, massive changes, far greater convulsions than the Great Depression or any other civil unrest we have had in America.”

We have identified the ending of the dollar’s reserve currency status and the corollary move of foreign central banks to converts reserve assets to gold, as the most important monetary mega-trend of our times.

The suddenness of Afghanistan’s collapse reminds us of Ernest Hemingway’s observation that bankruptcy happens in two ways.  “Gradually, then suddenly.”

Don’t wait for “suddenly” to take steps to protect yourself and your assets with gold and silver.