Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Weaponizing the Dollar Is Risky Business (Video)

  by    0   0

SchiffGold’s own Mike Maharrey recently appeared on RT to talk about the potential consequences of US policies that effectively weaponize the dollar.

We’ve been reporting extensively on efforts by Russia, China and other countries to minimize their exposure to the dollar. Russia and China recently agreed to increase trade using their own national currencies. This is another in a series of moves globally to reduce dependence on the US dollar. Currently, about 10% of trade between Russia and China is conducted in yuan and rubbles. Under the new deal, it will increase to about 50%.

Russia has already developed an alternative payment system to compete with the dollar-based SWIFT system. The Russians are also reportedly considering the development of a gold-backed cryptocurrency. Last year, China launched its much anticipated yuan-denominated oil futures contract.

And it’s not just countries that have rocky relationships with the US that are looking for dollar alternatives. The EU recently announced an alternate payment system that will allow European countries to circumvent US sanctions on Iran is nearly ready.

Meanwhile, central banks have gone on a gold-buying spree. During an interview on RT Boom Bust, Peter Schiff called it a “global gold rush on the part of central banks” in preparation for a dollar crisis.

The days that the dollar is a reserve currency are numbered and the smart central banks are trying to buy as much gold as they can before the number is up.”

US policy is exacerbating the problem. It has effectively weaponized the dollar and used it as a tool of foreign policy. As Mike explained during his interview, this risks a further weakening of the dollar and potentially a collapse.

Highlights from the interview

The US has used the SWIFT system as kind of a billy club, as an instrument of foreign policy and I think it’s only natural that countries that are on the other end of that billy club are going to look for ways to pull themselves out of that type of situation.

We’re also seeing a number of central banks purchasing gold, which is internationally a stable, real money as opposed to the fiat currencies created by all of these central banks.

I think it could have a very negative effect on the US economy, and I think a lot of people don’t understand this. The dollar is already in a precarious situation because the US central bank has been essentially printing money over a decade in response to the economic crisis of 2008. This has created all kinds of economic bubbles … So, the dollar is already in a risky position. As more and more countries seek to eliminate their dependence on the dollar, it further weakens the currency. And eventually, many people believe the dollar will not be the reserve currency.

I think it’s important to understand that within the original US constitutional system – in the first place foreign policy was meant to be ‘harmony with all’ – that was the way George Washington put it. And the US has taken a more and more interventionist foreign policy and this is enabled by the central bank printing money out of thin air. This is a really problematic situation for the United States domestically.

Anything that is connected with a government is inherently political, whether it be a central bank, or a payment system or an international monetary fund. All of these things are political.

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Peter Schiff: The World Is Going to Reject the Dollar Standard

Peter Schiff recently did a presentation at the Endeavour Silver Town Hall Webinar. He talked about the state of the economy, the US dollar, and gold and silver. Peter said he thinks we’re about to see a gold bull market rivaling the 1970s because the world is going to reject the dollar standard and go […]

READ MORE →

Peter Schiff: Government Tries to Replace the Economy With a Printing Press

Peter Schiff recently spoke at the “virtual” Los Vegas Money Show and explained why we are near the endgame for the dollar. Peter opened up his talk speculating that the Money Show could be close to the end of its run. I think the money that most people have, or at least what they think […]

READ MORE →

Peter Schiff and Jim Rickards: $15,000 Gold?

Gold pushed above its all-time record price last week. Where does it go from here? Peter Schiff and Jim Rickards appeared on Kitco News to talk about gold’s trajectory and the possibility of $15,000 gold in the future. Peter opened up the interview saying he’s surprised it took gold this long to break its record. […]

READ MORE →

Peter Schiff and Anthony Pompliano Talk Gold and Bitcoin (Video)

Peter Schiff did a live show with Anthony Pompliano on Sunday to talk about gold, silver, bitcoin and crypto. Known as “Pomp,” Pompliano is co-founder and partner at Morgan Creek Digital, “a multi-strategy investment firm focused on providing access to blockchain technology and digital assets.” At the time of the recording, gold had just broken […]

READ MORE →

If History Is Any Guide We Could See $4,000 Gold

If history is any guide, we could be heading toward $4,000 gold. This according to analysis by US Global CEO Frank Holmes.

READ MORE →

Comments are closed.

Call Now