Slowly At First and Then All At Once… The Financial Tsunami

The US has been selling its bonds to overseas buyers for decades. It not only was seen as the safe asset, but also it was an agreement with other large parties. Such as Saudi Arabia. We buy their oil, they buy our bonds. (it wasn't that simple, but that is how it works out) And all this works great, right up until it doesn't.

Many economists have forecast the collapse of The US Dollar. But it hasn't happened yet…

"The dollar is too big, it will never happen."
"Its inevitable, all currencies go to their real value, which is zero."
"Everyone around the world would have to stop using dollars all at once, for it to collapse."

All of these phrases have some validity…
But, this time its different.

There is no where to run to

Usually a currency would collapse on itself because of bad things the country did with its money. Zimbabwe, most South American Countries, Mexico. And further back in time, Germany, Venice…

All of these had one big thing in common, there was an alternative.

A currency hyperinflates when all the people lose trust in it. At some tipping point, people will do anything to get away from that currency. They get paid a punch of paper Marks and they run out and spend it as fast as possible. No one saves them, they feel anything else is better to own.

So, when there are other, nearby currencies, people will dump what they have, and use the neighbor's currency.

Today, there is no place to run.
What are you gonna buy besides The US Dollars?

Even as it falls, it is still the best turd in the punch bowl.

Gold is no longer money. Bitcoin is not really money yet.
Both have problems that The US Dollar doesn't.

So, they are not an escape… yet

Alternatives?

Gold has been called a barbaric relic for so long, that it is now.
Very few people know what gold even looks like.
"A gold eagle or a candy bar" were offered to people on camera, and most (maybe all) chose the candy bar.
It just isn't spendable any more.

Bitcoin isn't money yet. It is being accepted at more and more places. It is getting a bigger name. But it is no where close to the dollar in spendability. Of course this will changes as we go forward. When more people catch on to using digital cryptos, it will become the payment of choice. It is just that much better, easier, faster than using a bank today.

Euro isn't money in America. It can be exchanged, but not many people know where an exchange place is. Most bank tellers don't know about these services. And really, the Euro is in the same boat as the dollar. Both slowly sinking.

BRICS … well, they tried to make their own currency, and didn't get very far, so now they are working on using their own currencies in an exchange manner… and well, good luck to them. It may happen, or not. Bitcoin will probably work out first, and whatever the BRICS do, their people will just use bitcoin.

So, there is just nothing to escape the collapse of the dollar.
And this is the big reason everyone is not leaving the dollar in droves.

The coming bond Tsunami

The destructive thing that is happening is that many people/govern-cements are giving up The US bond. And as they do, this surge of paper comes racing across the planet to smash into the coast of Wall Street.

It is a real liquidity crisis. M2, for all the money printing, is actually going down. M3 is cratering. This is a huge deflationary event. And the banks can't have deflation, so they have to print as much money as fast as possible.

But this is having repercussion. People are losing confidence in the dollar, and are getting rid of their The US debt. They are rightfully looking for liquidity, but this sucks other places dry.

Which leaves one place, the Fed, to print money and buy up all of these bonds. Which causes its own problems.

Basically, prepare for a lot of bank failures, and banks not having any cash to give out.

We will probably see this sweep through Europe first and then hit The US. Probably a week or two is all the warning we will have.

Unfortunately, this is not all by happenstance. Not happening because a bunch of disparate people decided individually to all do the same thing, no there is a fair bit of organization to this.

Catherine Austin Fitts calls it the "going direct reset"

So, do not be surprise that after the tsunami hits wall street full in the face, that there will be the central bank offering CBDCs or FedNow as the solution. There are already dozens of countries working with Ripple to build a digital currency for their country. It is already in the works.

The only think i am not sure of is if the mother WEFers actually have enough control to make the timing right. My guess is that things will collapse just a bit faster than they expect, and so will be slow to roll out the solution.

Its coming, buy silver, crypto and FOOD.

All images in this post are my own original creations.