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: We’re Heading for Recession No Matter What the Fed Does With Rates

Jerome Powell took center stage last week and the Federal Reserve chair didn’t do anything to dampen expectations of a rate cut. His comments sent both stocks and gold higher. Peter Schiff recently appeared on RT Boom Bust with University of Amherst economics professor Richard Wolff to talk about the Fed and its impact on […]

READ MORE →

Think There’s No Inflation? Think Again!

The question often comes up: with all of the loosey-goosey monetary policy, historically low interest rates, liquidity injections and quantitative easing, why haven’t we seen huge bouts of price inflation? Some people then take the next step and suggest that since we haven’t had huge bouts of inflation, this kind of loosey-goosey monetary policy should […]

READ MORE →

Markets Poised to Crumble Like a Sandpile; Gold Could Hit $2,000 (Video)

The price of gold is up over 9.5% since the beginning of the year. One strategist who appeared on CNBC yesterday says he sees it going even higher – as high as $2,000 by the end of the year. David Roche heads London-based Independent Strategy. During an interview on CNBC’s Squawk Box, he said he […]

READ MORE →

Peter Schiff: Gold Glitters in Times of Turmoil

Although it has given back some of its gains with news of a ceasefire and a resumption of talks in the trade war between the US and China, gold has surged over the last couple of weeks driven by global instability and turmoil – not only from the ongoing trade conflict, but also with the […]

READ MORE →

Jim Grant: The Fed’s Defacto Dual Mandate of Arsonist and Fireman

Back in December, Peter Schiff said the Federal Reserve’s was about to do the last rate hike of the cycle. He went further and said the “Powell Pause” wouldn’t be enough and the next step would be rate cuts and another round of quantitative easing. Fast forward to today and nearly everybody expects that the […]

READ MORE →

Comments are closed.

Call Now