Is America still a powerhouse or a house of cards waiting to crumble?
Well….Having offshored manufacturing, the US is clearly import-dependent today and having weaponized the dollar, Washington is causing foreign central banks to stop holding dollars as reserves. The consequence is that the US has a rising issuance of debt to finance trade and budget deficits, but a declining supply of customers for that debt. So either the Federal Reserve has to monetize the debt or interest rates will rise.
To make things worse, it appears there will be in about 4 months a large expansion of BRICS. Argentina, Egypt, Iran, Saudi Arabia, and the United Arab Emirates have been invited to join. In fact, and in a slap down of Washington signifying the termination of the petrodollar, Saudi Foreign Minister Prince Faisal bin Farhan said, “The special, strategic relations with the BRICS nations promotes common principles, most importantly the firm belief in the principle of respect for sovereignty, independence and non-interference in internal affairs.”
BRICS expansion will surely make the two largest South American countries members, and with the Saudis, Iranians, and UAE almost the entirety of Middle East oil goes into the Russian organization, which with Russia’s oil is essentially the world’s oil supply, and Egypt sits on the Suez Canal. China and India, the largest part of Asia, are already members.
This suggests to me that the US dollar is headed for major trouble and will need interest rate support. If the dollar loses exchange value, the cost of imports will drive US inflation considerably higher. The worst inflations are always caused by currency decline. Gold investments make a lot of sense for Americans assuming that the clueless people in Washington who are ruling us don’t confiscate them.
As to Trump indictments, keep in mind that if white-hating black Democrat prosecutors and white-hating black Democrat juries convict Trump of these phony charges, political upheaval could result. If the Americans simply accept the false conviction of an American president, they will fall into tyranny and no asset will be safe. The United States might become by the same token the least safe place on earth, even less safe than South Africa and Zimbabwe. In fact, it seems some American cities already are.
It is not only that American confidence and lives are at risk. So are Americans’ civil liberty. American law schools are in the hands of Woke ideologues who want “to reclaim America from constitutionalism.” Law schools such as Harvard and Yale teach that the US Constitution is undemocratic and racist and should be abandoned. Under the Woke regime, the law schools and New York Times intend to impose, only the Woke and “official victims” would have rights. https://lnkd.in/eDjPJqWh
Gloomy but factual scenario indeed…. Brace yourselves. A tsunami in the makingShare: