The US Government has Weaponized our Dollar

In 1971, the Nixon Administration ended the gold standard. All global currencies would become fiat. Fiat currency means that it is not backed by a physical commodity like gold. Our US dollar used to be backed by a certain amount of gold but that started to end in 1933 by FDR, and completely ended in 1971 under Richard Nixon. We can go back to 1933 to see that our government started messing with our money and its purchasing power. This was all planned as the Fed was formed in 1913. In 1933 FDR authorized Executive Order 6102 in essence to weaponize the dollar against the world and US citizens. This was the first major blow to the purchasing power of the US dollar and its citizens as our dollar was devalued.

Nixon weaponized the dollar in 1971

Some of Nixon’s lies in 1971 included temporarily suspending the convertibility of the US dollar into gold, the strength of the currency would be based on the strength of the economy, and our dollar would be worth just as much tomorrow as it is today. Well, temporarily was 52 years ago and it is still in effect today in 2023, the strength of the currency and economy is reliant on fiscal policy, printed money, and debt, and the US dollar has lost 97–99% of its constant purchasing power since 1971. The weaponization of the US dollar and all global fiat money for the world was dealt a huge blow in 1971. $1 in 1971 has the same purchasing power as $7.43 today. A dollar in 1999 is now worth $.55.

President Obama weaponized the dollar by sanctioning Iran in 2010

We spoke briefly on how the weaponization of our currency by the government affects citizens by taking away their purchasing power, but can the dollar be weaponized against another country? In June 2010, President Obama worked with Congress to pass the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (CISADA), which strengthened existing US sanctions against Iran in the areas of refined petroleum sales, serious human rights abuses, and Iran’s access to the international financial markets.

President Biden weaponized the dollar by sanctioning Russia in 2022

President Biden signed an Executive Order in 2022 to ban the import of Russian oil, liquefied natural gas, and coal to the United States. Biden also sanctioned Russia from using the SWIFT banking system. SWIFT is a vast messaging network used by financial institutions to quickly, accurately, and securely send and receive information. The majority of this is money transfer instructions. The entire world sees this. Another country’s assets in US dollars and US debt can be confiscated and frozen by US Executive Order sanction. It might be a good idea to hold more of our foreign exchange assets outside of the US dollar, the BRICS are saying to themselves for sure.

How many other countries must feel the same way because the US has been a bully for decades forcing countries to settle oil transactions in US dollars and forcing other countries to hold foreign exchange reserves in US dollars and US-denominated debt? It is not a surprise that many countries are doing more transactions in “local currencies” because of the Biden administration weaponizing our dollar and enforcing sanctions.

Using the US dollar as a weapon won’t help its safety

The collapse of the financial system and the banking system is a whisper away. The FDIC has $112 billion in its Insurance Fund but is supposed to insure over $12 trillion in deposits. Banks are currently sitting on close to $650 billion in unrealized losses. The answer our government gives us is that we can spend and print as much money as we want. Treasury Secretary Yellen says our banking system is strong. Other countries are distancing themselves more from the US dollar because of the weaponization of the dollar and of course because of our debt situation and expanding deficits. You don’t need to be a Nobel Prize winner to understand this predicament concerning the safety of our dollar. Oh, wait, former Fed chairman Bernanke is a Nobel Prize winner. Bernanke is one of the biggest currency printers of all time. You can’t make this stuff up.

Weaponizing the dollar weakens privacy

114 countries are presently pursuing a Central Bank Digital Currency. Central banks would issue a digital fiat currency which would allow governments to monitor every transaction that people make. A CBDC would also be programmable allowing governments to dictate when the currency will and will not be used. A CBDC is the ultimate monetary weapon against its people. It would be a great idea to distance yourself from that situation as much as you can. It is important to hold purchasing power outside of the banking system. This includes IRAs, 401(k)s, and other types of retirement accounts. A great proven way to hold purchasing power outside of the financial system is by holding assets in physical gold and silver.

The value or purchasing power of our dollar continues to dwindle

Let’s print money to save the world will be what we hear a lot of soon concerning climate change. In the last 23 years, the Fed has created nearly $8.5 trillion out of thin air. US debt is now almost $34 trillion. The cost to service the debt now of $34 trillion is over $1 trillion annually. $50 trillion in debt at 4% is $1.5 trillion a year. $50 trillion at 8% is $3 trillion a year in interest cost on our country’s debt. Hello, wheelbarrow money. Maybe we will change our name soon to the Banana Republic States of America.

One of the podcasters Midas Gold Group supports is Vlad of the American News Network. You can find Vlad on YouTube by searching American News Network. Vlad tells the story frequently of his upbringing in the Soviet Union. In 1998 Russia experienced a major currency crisis. The Ruble lost two-thirds of its value in three weeks. An economic and social crisis followed. The Russians saw an utter collapse of the centrally planned economy and political system. Then, a financial disaster wiped out the currency and whatever meager savings people had. There is wide agreement that the mismanagement of a major fiscal imbalance and the market for government debt was the proximate cause of the Russian financial crisis in 1998. Sounds familiar to possibly where the United States is headed.

In 1949 Ludwig Von Moses stated

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

It is time to concentrate on the only money that has maintained constant purchasing power for thousands of years, which of course is gold. The higher price of gold is telling us that more and more people are refusing to comply with the lie of fiat currency and are more concerned and aware of real money versus fake money. Fake money and fake currency that is being weaponized and devalued by our corrupt and delusional central bankers and political leaders.

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