by Mike Adams
To understand why the dollar is now doomed, first, realize that the petrodollar status of the US dollar made it the “world reserve currency” that has dominated world commerce for the last 75 years. The world reserve currency status allowed the USA to print more fiat currency and use it to purchase physical goods and raw materials from other nations without offering anything in return other than fiat dollars. In effect, it allowed the American people to enjoy a highly prosperous, materialistic quality of life — and affordability of goods — that has been artificial this entire time. Because if you can just counterfeit money and then spend it globally, you have an amazing deal.
All this time, America has been trading fiat currency for physical goods, and that’s a great deal for America and a horrible arrangement for the producers and export of the world, such as China, Ukraine, Mexico, India, Korea, etc.
Additionally, the hyper-creation of leveraged debt and trillions in new money printing (especially since covid) has created a highly precarious global debt bomb scenario and stands on the verge of imploding. It only needs one black swan event to topple the entire thing.
Putin just baited the West into unleashing an entire flock of black swans.
By goading the West into severe economic sanctions and banking de-platforming, America just fell for Putin’s tactical genius and unleashed a series of events that will inevitably spell the demise of the dollar and the collapse of America. Here’s why:
First, the SWIFT de-platforming of Russian banks hurts western banks and institutions far more than it hurts Russia. Western banks have loan payments due from Russian borrowers, and now those borrowers are unable to meet loan payment demands. Similarly, many businesses in Europe import substantial amounts of goods from Russia, including wheat, minerals and technology. Now, with no way to actually pay Russian businesses, those exports have ceased, causing extreme economic damage to western businesses operating in the UK, France, Germany, Spain… and contributing to the product shortages and supply chain disruptions that will only get far worse (look into Russia’s exports of fertilizer and energy if you’re curious about how bad it’s going to get for Europe).
Those businesses have lines of credit and owe money to many western banks. When those businesses go into default — which is already beginning to happen — the banks that loaned them money will suffer a swarm of loan defaults that were entirely unexpected (hence the “black swan” designation).
The SWIFT system just warned the entire world to stop using SWIFT
But that’s not even the biggest factor at play here. When SWIFT disconnected Russian banks from its system, it broadcast a powerful, history-changing message to the world: If you want to have reliable commerce on a global scale, don’t use SWIFT or the dollar. Otherwise, your nation (or bank, or business, etc.) can be cut off at any time merely because you have a political disagreement with the Biden regime.
Thus, right now there is a mass exodus away from reliance on the SWIFT system. There’s also a rush out of the dollar itself as international companies dive into the Chinese yuan as a more stable currency that can still engage in financial transactions with Russia. This is why the yuan is exploding in value right now, by the way.
Informed people are also moving rapidly into cryptocurrencies, and this situation highlights the perfect use case for crypto: Rapid, decentralized international transfers that can’t get easily trapped by rogue, corrupt governments. Suddenly, XRP, Bitcoin, etc., all look a lot more practical, and we are starting to see people enter this realm who are not speculators and “hodlers” but rather practical international business owners who simply need a transaction system that functions.
For these reasons and many more, there is a global rush away from the dollar and dollar-based control systems such as SWIFT. It’s almost as if Biden and western nations were actually trying to detonate the dollar and bring it to its knees, ending the 75 years of dollar dominance in one grand suicidal leap off a cliff.
The de-dollarization countdown clock is now ticking away
At this point, global de-dollarization is now inevitable. It almost certainly cannot be stopped. Global faith in the dollar and SWIFT has been shattered and is very unlikely to be restored. (Obama has achieved one of his key goals to bring down America.)
Here’s another way to easily understand this dynamic. The commercial aircraft manufacturer Boeing has just announced it is ceasing all support and spare parts for Boeing aircraft owned by Russian airlines:
This declaration, of course, violates Boeing’s contracts with its Russian customers. More importantly, it sends out a message to the world: If you buy Boeing, you will be cut off from spare parts and support if Boeing ever decides it doesn’t like the actions of your national leaders.
Note that commercial aircraft are expected to fly for about 20 years or so, and it takes many years to pay off the loan balances stemming from the financing of those aircraft. If those aircraft aren’t flying, none of the loans are getting paid. And if Boeing cuts off all the spare parts — which they just did — the aircraft simply can’t fly. (They have strict parts replacement requirements that can’t be ignored unless you want the aircraft to start randomly falling out of the sky, which of course Boeing aircraft are known to do on their own anyway.)
The result? No informed air transport company in the world will ever buy from Boeing again. Why would you risk the total default of your airline due to the knee-jerk reaction of a “woke” corporation like Boeing suddenly deciding to violate its contracts and refuse to support the very aircraft they just sold you? Whatever these corporations are doing to Russia today, they can do to YOU tomorrow.
In a similar fashion, what international business person is stupid enough to bet the future of their business on the dollar and the SWIFT system that has just proven they can disconnect you at any time, with no due process, for any reason they want? This is the international equivalent to the Canadian government looting all the private bank accounts of peaceful protesters or donors who merely gave $20 to the freedom convoy in Canada. There is no stronger declaration for why the Canadian people should all take their money out of all those banks immediately (and never use them again).
As a business owner/importer/exporter/manufacturer, the minute you realize the SWIFT system (and the dollar, and western banks) are all part of a criminal cartel of “woke” globalists who can destroy your entire business literally overnight, you will seek out a parallel economic system that promises far greater reliability and less woketard muckery.
This means there will be a mad rush away from SWIFT, away from the dollar and away from America. The new financial power centers of the world will likely land in China, with Russia also playing a significant role due to its vast energy resources.
America, on the other hand, will be left holding Joe Biden’s diaper bag while the dollar plunges into oblivion. The dollar’s days are numbered, and the global process of migrating away from the dollar is already underway.
What happens to the American people when the dollar collapses?
When the dollar collapses, America will be plunged into lawlessness, chaos and destitution. Most commercial transactions will simply cease to function, causing a near-immediate halt to deliveries of everything (food, fuel, replacement parts, vehicles, tractors, etc.).
You don’t have to be a genius to figure out that America’s cities will burn while gun battles rage in the streets where Democrats de-funded the police. Even before the collapse, here’s what downtown Seattle looks like in early March 2022:
All the decades of debt creation, fiat currency counterfeiting and bailout money blowouts will coalesce into a day of reckoning that will plunge America into outright chaos. States will be forced to issue their own currencies just to prevent the plunge into third-world chaos. Secession will commence, and the D.C. swamp will find itself embroiled in both a kinetic and economic war on two fronts: The home front and the international front.
It won’t be long after when the swamp falls and the American empire ceases to exist. This has been the design all along, courtesy of Barack Obama who put this plan into motion in 2008 and still runs it in 2022. Once the dollar is abandoned on a global scale and the US government collapses, America can then be invaded and conquered by the communist Chinese who need America’s farmland to feed their populations. A mass genocide campaign will seek out and execute every American who can be located, including all the Leftists who once believed communism was awesome. They too will be shot and dumped in the very same mass graves they once thought would be filled with Christians and conservatives they had hoped to mass murder, Mao-style.
It will take years for this entire process to unfold, and during that time, the American people can count on suffering through extreme supply chain disruptions, outrageous price inflation and the very real possibility of widespread famine. (Learn about where fertilizer comes from. It’s made from fossil fuels via the Haber process. Obama’s war on fossil fuels is actually a war on food.)
At some point not far off, the dollar will lose 20% of its purchasing value each calendar month. Hyperinflation will become a horrifying reality. Mass money printing by the Idiocracy Biden regime will only make things worse, and at some point, the corrupt, broken, brain-dead government bureaucracy will attempt to confiscate firearms across America. That, of course, will spark a domestic civil war, which is exactly what Obama has been trying to set off since he ordered Eric Holder to pursue Operation Fast & Furious.
Can any of this be halted or reversed?
All this I’m describing is already set into motion. If we do nothing, it will all happen as I’ve described here. (I have successfully and very publicly predicted vaccine bioweapons, depopulation against humanity, the 2008 sub-prime mortgage crash and even the dot-com collapse.)
However, there does exist the possibility of late-stage intervention that could reverse all this and restore America. It would require a complete change of who’s in charge in D.C., followed by mass arrests of treasonous actors in Congress, the federal government, Big Tech, Big Media, Big Pharma and much more. It is highly doubtful, in my estimation, that such housecleaning will occur. Even Trump is still a shill for the vaccine industry while leading “conservative” Republicans are often little more than RINOs who can’t wait to betray America. If we had another hundred Wendy Rogers, MTGs and Rand Pauls, we might have a better chance…
Some credible researchers believe there is a secret white hat plan to stage mass arrests of the top criminals and reinstall Trump, the rightful winner of the 2020 election. I hope they are correct, but I don’t put much faith in this plan, especially when all the deadlines that are publicly proclaimed to be the dates of action keep getting rescheduled and moved into the future. The whole thing smacks of an elaborate intelligence operation to convince the American people to stay disengaged while their nation is stolen and destroyed from within. But we’ll see…
The American masses are so dumbed down, they have no clue what’s about to happen
In the meantime, merely surviving all this is going to take extreme planning, stockpiling of supplies and a hardened mindset of adaptability and courage. That said, perhaps 95% of the American people have no real planning, no real stockpiles and are mentally weak and unprepared. Life has been too easy in America for too long, for the reason I mentioned upfront: Easy money printing and affordable consumer goods often acquired with little or no effort. The American people haven’t really had to struggle for things in the way that Third World citizens do on a daily basis.
I’ve lived in Taiwan and Ecuador for extended periods of time. I’ve traveled around Asia, Central America, Europe and Australia. I speak three languages with adequate proficiency and am able to carry out conversations with local people in their own language, usually. What I’ve learned over all these years is that America has largely grown fat, dumb and lazy. I even wrote and performed a satire song about it in 2013 called, “Dumb and Lazy.”
If anything, the American masses are far worse in 2022 compared to 2013. The public schools have become pedophile-grooming indoctrination centers, the “news” is nothing but pathetic Pravda-style propaganda, and virtually the entire US population is mathematically illiterate.
While we’re at it, I also wrote a song in 2008 called, “I Want My Bailout Money.” Listen to the lyrics today in 2022 and you’ll be astonished how it predicted nearly everything we’re now suffering through:
So here we are, at the last chapter of the American empire, now run by an actual Alzheimer’s patient who can’t speak in a consistently coherent manner, who pronounces “economy” as that scene ripped right out of Idiocracy, and who thinks that when Russia attacks Ukraine it’s evil, but when America attacks Yemen, Bosnia, Yugoslavia, Iraq, Libya, Somalia and dozens of other countries, it’s perfectly okay.
So to punish Russia, they commit economic suicide for America. So pathetic.
Listen to today’s Situation Update podcast for even more details, including practical things you can do to beat inflation, stock up without spending a fortune, and prepare to survive the near-certain collapse of America: