It won’t happen tomorrow but slowly but surely the world is moving from dollars. The petrodollar system which has been key to the world economy over the last 40 years is eroding. More and more country to country deals are being done in currencies other than the dollar. The economic world as we have known it, after Bretton Woods in the Cold War Era, the post Cold War era, and the post 9-11 era is fundamentally shifting. The dollar is not what it once was. It is no longer “almighty” and one should be prepared.
You know, that is a really good question.
We wrote a couple of weeks ago that Bitcoin was under all out assault. The cryptocurrency was being attacked (and it continues) on all fronts, legally, through DOS attacks, in the media, by Jamie Dimon who surprise surprise said that the government would just regulate the alternative currency out of existence and “that would be the end of them.” Of course JPMorgan, Dimon’s company, has been trying to get its own rival “alternative” currency off of the ground.
Governments don’t like it. Central banks don’t like it. We shouldn’t be surprised that Bitcoin is being attacked from all angles. Bitcoin executives are being arrested, the Mt. Gox exchange was taken down, and now a denial of service attack.
The bankers fear Bitcoin.
I’ve written a number of positive things about Bitcoin and cryptocurrencies. I am happy they exist. I am happy they are challenging central banks. (This is a wonderful thing.) But Bitcoin and other cryptocurrencies are only one part of the solution, they are not the whole solution to a fiat system run amok.
We have followed Bitcoin from its birth. It is a challenge to the world’s central banks. It is a challenge to the world’s governments. It is a challenge to the super crony capitalists on Wall Street.
This is street fighting money.
The 0% interest rates of the past 5 years have made the wealthiest people in America and the world much wealthier. At least in (fiat) dollar terms.
Many people are mystified by the kids at the Ron Paul rallies screaming “End the Fed!”
They ask themselves, “Why should we end the Federal Reserve? The Fed helps maintain economic stability right? Every country has to have a central bank. These “End the Fed” kids are nothing but “Paulbots.” The people on CNBC and Bloomberg tell me that the Fed acts in my best interest. I think the people on Bloomberg and CNBC ought to know what’s right for me and my money. Harry Reid is right. Those hard money people and kids at the Ron Paul speeches are nothing but a bunch of anarchists!”
But the main reason many people feel this way is because they fundamentally don’t understand what the “End the Fed” people are really saying and why they are saying it.
No, too little.
You’ll remember that he was going to make the Fed more “transparent.”