Financial writer Charles Hugh Smith recently sat down for an interview in which he boldly declared that ALL currencies – not just the United States dollar -will see a catastrophic drop during the coming economic collapse. It’s not just the dollar, but every currency backed by government force will fall.
In a video interview with USA Watchdog‘s Greg Hunter, Smith details the eventual collapse and says currencies such as the Chinese yuan will also drop. Smith, the author of the new book Money and Work Unchained and founder of the popular site OfTwoMinds.com says, “All these currencies, by which there is nothing backing the currencies except the government’s force. That’s the yen, the euro, the dollar and the Chinese yuan. They are all going to have a catastrophic drop against real assets because they are all based on too much leverage, too much debt, too much money being pumped into the financial system that ends up in unproductive speculation. You can’t grow your debt at six times the rate of your economy. In other words, if you are creating $6, $8 or $10 of debt to eke out $1 of low productivity growth, you are dooming your currency, and all currencies are doing the same thing. All the currencies are going to take a big drop at some point . . . relative to real stuff. Real stuff is commodities we need: water, grains, food, oil, natural gas, and of course, precious metals. Everybody knows they have been money for 5,000 years, and I personally feel there is a role for cryptocurrencies.”
“Once you destroy your currency, you destroy everybody’s savings, everybody’s purchasing power, everybody’s poor,” says Smith. He then explains that how governments run economies is not how economics works. Most assume we can continue to borrow from the future to pay today for the promises made yesterday. It simply doesn’t work that way. “Most of the households in the US are losing ground,” explains Smith. Hunter then asked a powerful question: “Do you think they [global elitists] are trying to crush the dollar on purpose?”
“Yeah…there’s that idea that we boost our exports if we can reduce the value of our currency compared to the yen and the euro and so on. But then of course, we have to think about the other side of that which is…the Japanese are even more dependent on exports than we are, so they don’t wanna see their currency, the yen, shoot up in value becasue their exports then become more expensive here. It’s kind of a zero sum game…no country becomes great by devaluing their currency.“
The entire system of government is broken at every level. Is it time to evolve beyond the need for rulers and authority and central planning? Smith explains that only the elites have access to the capitalism that will lift everyone out of poverty.
“If you’re in the inner circle, then capitalism works for you,” says Smith. The global elitists and politicians who get rich off the backs of those they force socialism upon don’t want a real free market to emerge because that’s how they will be taken down a notch and forced to compete in a real market scenario. “[The global elites] have protected it [capitalism] and only they get access to the benefits of capitalism and everybody else gets a watered down sort of socialism, like universal basic income. You don’t get any opportunity to do well.”
But of course, as with all government programs (including government employment), there’s always a problem, and universal basic income will create a disaster of epic proportions for human beings. The best single description of the problem, according to Smith, came from Hunter. “The fraud of universal basic income has to basically attach itself to a fraudulent money system.”
“It doesn’t really address the underlying problem which is a lack of productive work that gives a positive social role to people. In other words, they feel like they’re contributing to their family and their community. And just giving somebody a welfare check, I mean, how many people on welfare are writing poetry and really happy? I mean, we already have a test audience of what happens when you give people just enough money to scrape by, but no opportunity. What we really need is not universal basic income…we need to create opportunities to serve their community…the whole idea needs to be localized to the community...in a real free market, everybody has an opportunity to pursue what they want and to contribute and this is what we’ve lost.“
Smith says he’s more concerned, however, that the market will slowly decay rather than just crash because he thinks that the public would let the elitists get away with it.
“The consequences of the weight of our policies would become apparent if there’s a 5,000 or 10,000 point drop in the DOW. People would start asking questions…but if it just slowly erodes, people habituate to it.”
Be prepared to protect yourself and your family financially for the dollar’s imminent collapse.
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Author: Mac Slavo
Views: Read by 868 people
Date: February 19th, 2018
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