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: Has Ben Bernanke Ever Told the Truth?

Ben Bernanke served as the chairman of the Federal Reserve from 2006 to 2014. He famously told Congress the Fed was absolutely not monetizing the debt in 2008. He said the difference between debt monetization and the Fed’s policy was that the central bank was not providing a permanent source of financing. He said the […]

READ MORE →

Peter Schiff: The One Promise the Fed Is Going to Keep

Since the beginning of the pandemic, government debt and money printing are off the chart. This is creating inflationary pressure. Prices are on the rise. And this is by design. In fact, the Fed has been promising more inflation for years. As Peter Schiff explains, it looks like this is one promise the Fed is […]

READ MORE →

Commercial Real Estate Market Drowning in Debt

We’ve talked extensively about the growing levels of debt in the economy. The national debt recently eclipsed $28 trillion. Corporate debt was already skyrocketing prior to the pandemic. All of this is driven by loose Federal Reserve monetary policy designed to drive borrowing. And people wonder why Peter Schiff insists the Fed can’t actually let […]

READ MORE →

Peter Schiff: Jerome Powell Doesn’t Believe in Basic Economics

Last month, Federal Reserve Chairman Jerome Powell testified before Congress. In his answer to one question, it sure did sound like he doesn’t believe in the basic economic principle of supply and demand. Peter Schiff talks about it in this clip from one of his podcasts.

READ MORE →

Peter Schiff: You Can’t Consume What You Don’t Produce

There’s an economic myth out there. As the story goes, governments can print their way to prosperity. Just run the money printing press, hand out cash for consumers to spend and the economy will hum. In this clip from a podcast episode, Peter Schiff calls it “The Kelton Myth” named for economist Stephanie Kelton. At […]

READ MORE →

Comments are closed.

Call Now