A new monetary system might be here sooner than we think

A new monetary system might be here sooner than we think:

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A new monetary system might be here sooner than we think.

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America has held its power over the world with its currency since the Bretton Woods system was created in 1944.

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They can use their dollar to enforce sanctions on countries and take them out of banking systems.

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It’s what they did with Russia.

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How do other countries feel if America decides one day that they want to take them out of the banking system?

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China and Russia know the dollar will collapse at some point.

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We might be closer to the end of America’s supremacy over the world than most people think.

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America has way too much debt.

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Interest rates are at 0%.

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If they hike rates to get inflation under control, they need to hike more than a couple of percent.

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Problem is they can’t do that because they can’t service the interest on the debt.

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So now they’re blaming other countries for their own monetary policy problems.

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Biden’s putting inflation on Putin and Russia.

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Obviously, not his own Federal Reserve that has printed trillions of dollars since Covid started.

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But if they don’t raise interest rates, inflation gets even more out of control.

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That’s disastrous around the world, especially for developing countries.

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Revolutions happen over poor economic conditions often due to inflation because most people can’t afford the basic necessities of life.

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If people can’t afford to heat their houses and eat, you have problems.

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Many countries peg their currencies to the dollar so they’re feeling the inflationary pressure.

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Everything is more expensive everywhere.

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That’s not only an issue for businesses, but also for countries civility.

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This is how protests, riots and revolutions happen.

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So the Fed is trapped.

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Save their economy or save their currency.

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Pick one Jerome Powell.

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Either option has a terrible consequence, but you have to make a call.

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My bet is they’re going to keep printing until the asset bubble bursts.

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But if that happens, they have nothing left in the tank.

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They can’t backstop the system to infinity because then the American dollar hyperinflates and other countries’ governments will start dumping US treasuries. 

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The Fed can keep buying the debt, but for how long before the rest of the world realizes they need a new system.

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The next evolution of the world reserve currency is up for debate. Could it be the RMB? Maybe. Could it be gold? Maybe. Could it be a basket of world currencies? Maybe. Could it be bitcoin? No, but nothing is impossible.

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Many people around the world could never conceive of a world where the American dollar is not the world’s reserve currency, but we may be sooner to its collapse than people think.

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All currencies collapse.

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This is how history works and history is undefeated.

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The critics will always say ‘it’s different this time’ till it’s not.

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A new monetary system might be here sooner than we think.

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