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While economies are falsely propped up with printed money and the pandemic decimates markets, legal tender backed by governments across the world, even the mighty US dollar, will collapsing in value. Smart investors should already be pouring money back into silver and gold before global monetary system collapse.
In this video, we’ll tell you just what to watch for as these major events play out, where the experts say you should be putting your money, and what’s to come for the global financial system as we see a massive shift in the status quo.
The US dollar currently serves as the world’s reserve currency. In other words, it can be used in international transactions and investments, as well as all other aspects of the global economy. The hunger for the dollar means that the American government and its citizens can borrow at lower costs, setting the country up for advantages across the board.
But now, experts like Peter Schiff, chief executive officer of Euro Pacific Capital, are betting on gold to topple the dollar’s long reign and establish itself as the new de facto reserve currency.Following examples from modern history, such as the French Franc and the Dutch Guilder, reserve currencies tend to maintain their dominance for about 100 years before falling. The US dollar overtook the British pound in 1944 to become the predominant reserve currency, which, if trends were to persist, would give it another 20 years or so atop the global hierarchy. However, the unprecedented calamity caused by the pandemic and the bungling of the US response sound early death knolls for the once sturdy dollar.
In a brief moment of relief, stocks experienced a rebound following positive news about phase one vaccine trials, but the optimism may be short lived. Schiff believes that continuous monetary stimulus from the Federal Reserve is the real culprit for falsely rising hopes about an economic recovery, or at least a bright spot amidst bombardment of bad news and crashing markets. He argues that US stocks are in fact overvalued.
The victims of the impending hyperinflation will be the working class, a demographic that has already taken a beating as the ongoing pandemic pushes unemployment to above 14%, already past levels recorded in the 2008 recession.While stimulus checks and bailouts may be easing citizens’ worries for now, the fallout will turn things upside down. So just what can Americans do?
Some experts hold outlooks that are even bleaker. In late March, cycle expert and financial analyst Bo Polny predicted a massive, destabilizing event to occur in late April. On April 21, oil–long one of the world’s most valuable resources–dropped to $0 per barrel. The contract for oil expired at a stunning -$37 per barrel.
“That is a more important event than the stock market,” Polny said.
Because oil is attached to the dollar, Polny argued that this event signals fundamental change to come. Petrodollars, or dollars paid to oil-producing countries for their product, is a major reason why the US dollar was able to maintain its prime position in the global economy and score its government and citizens lower borrowing costs. Those advantages won’t last much longer.
Like Schiff, Polny believes that gold and silver will overtake the US dollar, and that smart investors should get in now. Polny also called the current slump into recession “only a warmup,” the precursor to a global depression unlike anything the world has ever seen.
Polny estimates that the turn of the tides towards a gold and silver-backed monetary system will be evident before the end of September, and that the DOW will crash to 15,000 or lower by June of next year, 2021.
In many ways, it is a previous government failure that has set the market up for such a catastrophic stock market crash. It was only a matter of time before a major global event like the pandemic came along, disrupting the entire financial system and dragging world powers down with it.
Now, in response to the pandemic, the US government has printed $2 trillion of new money, a sum that is likely to keep rising. They have also touted a fiscal stimulus plan worth another $2 trillion, and likely to increase to $4 or 5 trillion, with little regard for the serious future consequences.
Leading Canadian businessman and philanthropist Frank Giustra predicted that the Fed balance sheet will be $10 trillion by the end of this year.
With hyperinflation on the horizon and the US government still failing to act, it’s time to buckle up and get ready for a bumpy ride ahead. The world will undergo a massive restructuring on the other side of this catastrophic market collapse, and, as experts have warned again and again, this is only the beginning of the coming global monetary system collapse.