The Silent Run on the Dollar Nobody Is Talking About | Doom Loop Part 4

[00:00:00]Confidence breaks long before capital.

[00:00:04]I'm going to show you how every major pillar of confidence in our monetary system has loosened. When that confidence breaks, you cannot get it back.

[00:00:19]Well, hopefully you have watched the first three doom loops. And if you have not, I think it's important that you go back and you do that because it all builds the crisis builds one on top of the each other because you know confidence it's a lot like a bridge and most people you just walk across a bridge without ever thinking about the engineering underneath. They don't question the bolts, the cables, the concrete, the fiat money. They just trust it. They trust that it'll hold because well, after all, we've always had the dollar here in the US. But here's the truth. Bridges, they don't fall slowly.

[00:01:07]Currencies, they do fall slowly until they fall all at once. Not when the first bolt loosens on a bridge, but when the last bolt snaps. And when that final bolt gives way, the collapse is instant, sudden, total, and irreversible.

[00:01:31]Financial systems work the same way.

[00:01:35]Confidence is that final bolt. We talk about it all the time. And today I'm going to show you slide by slide how every major pillar of confidence in our monetary system has loosened and how close we are to that final snap because confidence breaks long before capital does. When trust evaporates between institutions, between governments, between the public and the system, that's the last one left intact kind of.

[00:02:14]But even solvent institutions, they become illquid. Solvent. Solvent in a debt-based system that has decided to bail out the too big to fail.

[00:02:31]When that happens, when there are runs, well, frankly, this is the psychological break. The moment the system stops functioning as designed. And when those confidence breaks, governments react the same way every single time. So there is always a trigger and an effect and an outcome. Then governments utilize overt actions under pressure.

[00:03:01]They reach for the same tools. Reporting mandates, confiscation, revaluation.

[00:03:09]These are not theoretical. They're historical patterns. And history is our guide. And quite honestly, everybody out there that says that this cannot happen again, you're living onopium.

[00:03:23]And is not a very good plan. So if you want to know what governments will do tomorrow, look at what they did yesterday because that playbook never really changes. Only the technology does. So I'm going to take you back just a little bit of history and I remember this well cuz I was there in 1965.

[00:03:49]Foreign governments saw the writing on the wall with the US dollar as the world reserve currency.

[00:03:57]They didn't wait for the public to notice. They certainly didn't wait for any headlines. They converted their dollars into physical gold because governments always act first. And have we not seen the rise in gold buying from the global central banks. And oh by the way, the public always acts last.

[00:04:21]And the timeline quite honestly always tells the story. I think that it's quite telling that once the US became the world reserve currency, that is when and when that window of convertability that had been closed for a short while because of World War II when that window opened up. Look at this chart because this is where the confidence doom loop starts. And for decades, the world trusted the United States to hold the dollar at $35 for one ounce of gold. That was the promise of Brentton Woods. And as long as that promise held, so did the system. But look, you can see it. By 1958 and 59, foreign governments could see what Washington refused to admit, that the US was printing more and more dollars that it had tied to the gold to back them.

[00:05:25]Simply, the math didn't work and the promise couldn't hold.

[00:05:31]and confidence by foreign governments collapsed in America's ability to keep its word.

[00:05:40]That's why the blue line falls. Foreign central banks began quietly redeeming their dollars for gold, draining the US reserves, not out of panic, but out of logic and not rapidly, but slowly enough so that the public didn't notice.

[00:06:01]And this, my friends, this is the essence of the fourth doom loop. Once the world realizes the issuer can't defend the value of its money, confidence breaks. And let's back up here because what does defend it? The full faith and credit of a government.

[00:06:22]And let's translate that. As long as you have confidence in the government, you have faith, then you will continue to loan them money, extend them credit.

[00:06:34]So by the world sending in dollars which are Federal Reserve note debt instruments and pulling the gold out of the system, you can clearly see that the world lost confidence in the dollar and the system starts to unwind long before the public ever sees the cracks because nobody wants the public to see it. We're just the right size to fail.

[00:07:02]And then after that, that was the moment that changed everything when President Nixon ended foreign government's ability to convert their dollars into gold. Mr. Nixon said that the United States would no longer convert foreign held dollars into gold, thus altering the entire world monetary system. And he did it unilaterally.

[00:07:39]He didn't ask anybody else if this is okay. He did it because had we not done that, we would have had zero gold in deep storage. And maybe we do, maybe we don't. Who knows? But frank frankly, even though the world did not want to admit this, that was an official gold confiscation because the Brettonwoods promise was to convert dollars back into gold. So we were holding all of this foreign gold as they were holding our dollars. Now look at the world's monetary system changed overnight. I do believe and the world and you know time is going to tell if I'm right or if I'm wrong but I do believe that President Trump did the same thing when he signed into law that stable coin the Genius Act the stable coin bill. It's done. And whether you know it or not is not really relevant.

[00:08:34]It's done. and the foundation of that system. Now, after the gold was removed and of the system that we're moving into, it requires one thing.

[00:08:50]Confidence. And when debt or in the future purchases can create money, well, I got to tell you, something very predictable always happens. Oh my gosh.

[00:09:05]Devaluation.

[00:09:07]This is not an accident. It is a policy.

[00:09:14]So, I want to be super clear on this.

[00:09:17]January 31st, 1934, a 41% overnight devaluation.

[00:09:25]December 18th, 1971, a 10% overnight devaluation.

[00:09:33]January 25th, 1973, another 10% overnight devaluation. And again, just a couple weeks later, February 12th, 1973, another 10% overnight devaluation.

[00:09:57]Dollar devaluation, the new American reality. Do you see that headline?

[00:10:05]And that's all thanks to corporate debt passing as money.

[00:10:09]And frankly, it shows up in the data.

[00:10:13]This purchasing power of the dollar is a planned devaluation, but they want it to happen slowly enough that you don't change your habits. To them, that's price stability. But make no mistake about it, inflation is planned devaluation. And the central bank's job is to regulate the rate and speed of that devaluation. Because a dollar has lost over 90% of its purchasing power value since 1971.

[00:10:45]And the derivative markets, well, quite honestly, they tell the same story. So, what is a derivative? A derivative is derived from some underlying something. It can be anything. It doesn't matter.

[00:11:02]But it can never be converted into that underlying. And so I'm going to take you back to 2008 because markets are always now encouraged to experiment with these very complex bets. That's what derivatives are. They're just extremely complex bets against two or three entities. Not a big market, but these are just contract bets based on the price action of whatever it is they're tied to. the underlying. So that could be stocks, it could be credit, it could be weather, it doesn't matter, but it's complicated and it's only liquid as long as counterparties in those contracts have confidence.

[00:11:55]Right? In a contract, you have two parties. You have the issuer and you have the counterparty. As long as that counterparty has confidence, these contracts can be liquid. But when derivative confidence evaporates, boom, the entire financial system becomes unstable because they're so huge.

[00:12:19]It was the loss of confidence in speculative derivatives that triggered the death of the monetary system in that well the system that was in place since the 70s and 80s. Leman, Merrill, AIG, these were not isolated events. They were symptoms of a deeper break. And the breaks spread not just between banks but between sectors of the economy.

[00:12:49]Were you there? Do you remember this?

[00:12:52]Because this is what I'm talking about when we're talking about confidence. And the first trigger happened in 2008 with interbank lending. Commercial banks lost confidence in each other, putting pressure on overnight London interbank offer rates. strains intensified in the spring of 2008 when Bear Sterns could not borrow even on a secured basis. This goes back to what we were talking about what what appears to be solvent.

[00:13:25]Yeah. The institutions that appear to be solvent, they couldn't even secure a loan with secured credit. And then the panic intensified further in the fall of 2008 as interbank funding markets stopped functioning period and overnight rates soared to extraordinary levels. It was a run and it threatened the stability of short-term funding to businesses and municipalities because the ability to borrow is what matters in a debt-based system. And then central banks h guess what 2015 they lost confidence in each other because up to that point they were working in a synchronized and co and a coordinated manner.

[00:14:16]But with the Swiss surprise where Switzerland kept promising the European Union that they would maintain their Swiss frank peg to the euro and that was their highest I remember this so vividly. That was their highest highest highest priority until two days later when guess what it no longer became a priority. saving themselves became a priority.

[00:14:48]And when central banks stopped trusting central banks, the global monetary system, well, that can be pushing us into a freef fall circumstance.

[00:15:00]Now, I'm taking you back to 2008, and I'm going to ask you, doesn't this look very similar to the chart that I showed you earlier on the run in the dollar from other governments converting their dollars into gold and pulling the gold out of the system because what you're looking at here are foreign holders of treasuries.

[00:15:22]And this, my friends, is absolutely a run, a modernday run on the US dollar.

[00:15:29]Well, it's happening quietly and it's happening behind the scenes because if you understand what's happening, yeah, frankly, you just might make different choices.

[00:15:43]But look, foreign governments are selling treasuries. The same pattern we saw before 1971 when that confidence in the dollar broke. The shift from the goldback dollar to the pro dollar kept the system going for decades.

[00:16:00]But that support has been fading and it's fading faster and faster. It started fading in 2000. This chart shows a controlled steady withdrawal of global confidence in the US dollar. A modernday run on the dollar and it's happening in real time.

[00:16:20]And with that genius act, they were trying to rebuild the petro dollar experience by forcing corporations now to hold treasuries and keep this game going, I don't know, a little bit longer or not.

[00:16:36]The central banks know exactly what's coming. No doubt about it. And that's why, frankly, they're not buying gold for decoration. They're buying gold for survival.

[00:16:50]and the public.

[00:16:52]Well, sorry guys, but the public is losing confidence as well.

[00:17:01]This is from a Pew study. In 1958, 73% of Americans trusted the government.

[00:17:08]Today, it's just 17%. A fiat money system cannot survive without trust and confidence. No con game can. And while some public trust remains, another strong bout of inflation, more than likely that will be the final straw. And we're likely to see that pretty darn soon. I don't know. What do you think? Are you really feeling safe?

[00:17:37]Because quite honestly, gold reflects lack of confidence. It's not that gold is rising as much as that the currencies are falling and governments respond the same way every single time.

[00:17:57]This has happened across nations and across centuries and the lessons are crystal clear.

[00:18:06]Desperate governments do desperate things and barring your exit for them to inflate away your life's work.

[00:18:18]This is why it is so critical that you become your own central banker so to speak and you execute every part of the mantra to create shity in food, water, energy, security, barterability, wealth preservation, community and shelter. You need to get it done and you need to get it done as quickly as you possibly can because hey, we've got lessons from gold bands and you know, history whether it rhymes or it repeats, I don't know, take your pick. But governments always act after the crisis begins.

[00:19:04]And then what do they do? They restrict gold. They revalue like I showed you in the 70s, right? In the 30s and then the 70s, they revalue the fiat against gold.

[00:19:20]But quite honestly, the collectibles have very unique protections. Let's look at those protections. Collectibles are historically exempt. They're not reportable. They're not pulled, not digitized, and not easily seized.

[00:19:37]Because the people that own a lot of them, they're in a different category.

[00:19:41]And can you not see this K-shaped recovery that is so awesome for the few, not so great for the many, but it's those few that actually own this. And frankly, the market is tiny. Take a look at this. Collectibles are just 1% of the gold market.

[00:20:04]So quite honestly that scarcity is absolutely a level of protection and history shows what happens next. These are just three examples and I've shown them to you a million times and I could show you 4800 more examples. Germany, Venezuela, every currency reset in history. It is not gold rising.

[00:20:30]It's the currencies falling. That, my friends, is why it is so important for you to understand the true fundamental value of an ounce of gold. Because what you're looking at here in these overnight revaluations is gold beginning to move towards its true fundamental value.

[00:20:56]So, let's go back to the bridge because most people they walk across it without thinking. They trust it because it's always been there.

[00:21:08]They're living onopium.

[00:21:11]But you now, can you see the bolts loosening?

[00:21:18]Can you see those cracks forming?

[00:21:21]And can you hear the metal straining?

[00:21:26]You have a choice. You can wait for the final bolt to snap. That's what most people do. That's what people did in 2008.

[00:21:36]Or you can step off that bridge before the collapse just by setting up your own sound money strategy, becoming your own central banker, but creating that local community so that you can create shity in all of the mantra areas and creating that global community as a citizen for sound money.

[00:22:06]so we can get redeemable gold back in the global monetary system again. This is the moment to protect your wealth, your freedom, all of our freedoms, our future. The public takes it back its power.

[00:22:22]It's not going to do you very much good if you wait until the crisis begins.

[00:22:27]It's certainly not going to help you after the exits close and after that revaluation.

[00:22:36]Where do you think you're going to be?

[00:22:38]Because historically, 80% of the population ends up in abject poverty.

[00:22:45]And you can do something about that to prevent it today because confidence, public confidence, I've talked so much about it. It's the final bolt.

[00:22:59]And once that snaps, the collapse is instant.

[00:23:06]That, my friends, when we see consumer confidence go to the lowest levels ever, that is when the clock will really start ticking rapidly. And you want to be in place before that happens. and we're here to help you do it. But even more than that, grow this community. Grow the community that is standing up for sound money. And remember, if you're a client, you get the first dime card for free.

[00:23:36]After that, you can have it at our cost because you're the army.

[00:23:42]One person, just little old me, there's only so much I can do. But together we can do anything, including taking our power back.

[00:24:00]Join the fight. Protect yourself.

[00:24:03]Protect those you care about. Protect the world. Let's make this happen. And until next we meet, please be safe out there. Bye-bye.

[00:24:15]Heat.

[00:24:22]Heat.