Ukraine, the Dollar, and Gold

27 Feb

Ukraine, the Dollar, and Gold

But don’t just take it from us…

This blog and commentary are devoted to providing you with information that will help you profit and protect yourself from a decaying monetary and financial environment.

Obviously, we represent your first line of defense: gold and silver.  That, as they say, is our wheelhouse.  It is our expertise.  We point repeatedly to historical precedents for asserting the primacy of precious metals, as well as the unfolding policy decisions that are undermining our money and your prosperity.

Now that Russia has invaded Ukraine, it is important for our friends and clients to consider the potential impact of this warfare on the US dollar. 

With a few lines transcribed from his Fox News show on Thursday (2/24/2022) as the Russian air and ground campaign was underway, Tucker Carlson provides this perspective:

In this country, control of the US dollar is the key to our wealth.  Our entire financialized, debt-based economy rests on the unique privilege of issuing the world’s reserve currency.  If the US dollar is ever replaced, we are in legitimate trouble.  Our debt will come due, our government will go bankrupt, and millions of Americans will become poorer immediately.

So, this is the main thing we ought to be worried about and there is a greater risk now than ever before.  Sanctions are an emotionally satisfying way to punish someone like Vladimir Putin who clearly does deserve to be punished.  No one is really against sanctions.  But the question is, do they work?  Clearly, multiple sanctions did not prevent last night’s invasion of Ukraine.  Let’s start there.

At the same time, sanctions give Russia and many other countries across the world a strong incentive to dump the US dollar, which is the means by which we enforce sanctions.  

So last summer for example, in a story that most people didn’t pay enough attention to, Russia, in response to sanctions, completely removed the US dollar’s assets from its sovereign wealth fund, its national wealth fund….

So, we should be watching attacks on the primacy of the US dollar globally every bit as intently as we watch the coverage currently on television of the hot war.  If at the end of this conflict, whenever that is, countries around the world come to see the Chinese yuan as a stronger, more stable currency than the US dollar, then this country will have lost more than we understand.

Tucker Carlson, 2/24/22

Much of this, including Russia de-dollarizing its sovereign wealth fund, we have written about before (see HERE and HERE).  Carlson says that de-dollarization will make millions of Americans poorer.  To avoid being victimized by this inevitable development, let a Republic Monetary Exchange professional help you design a gold and silver portfolio that is right for you.