US Dollar Hegemony is drawing to a long overdue collapse. Could it trigger the collapse of the global economy, trigger the loss of the “Aerosol Masking Effect” and the collapse of the biosphere?
“What do you get when you add up a massive exodus from the US dollar, insane monetary and fiscal policy, record COMEX deliveries, and a wave of institutional funds headed towards the precious metals? Join Mike Maloney in today’s video to find out”.
As we circle the drain, both ecologically and financially and US dollar hegemony collapses because of the debasement of the fiat currency we see the Gold and Silver prices being manipulated.
The run on silver isn’t because of increased industrial demand, it is a flight to tangible assets.
The system is and will be gamed until collapse unfolds and then the debate will be academic.
This is exactly how complex societies collapse. The debasement of the currency contemporaneous with pathological sociopathy and psychopathy at the helm our sinking ship. Andy Schectman: Silver Supply Is Getting Tight Again
According to Schiff the ignorance is “likely to remain the case until the fall becomes a crash, which I don’t think will begin until the Dollar Index breaks 80. At its current rate of decline that level could be breached before year end, perhaps by election day.”
Dollar crash will topple the entire US ‘house of cards’ economy by year end – Peter Schiff
” Get ready to understand Quantitative Easing (indiscriminate printing of money by central banks), how the financial system works, who owns your financial system, who lets them get away with it and why, why gold is not necessarily going to come to the rescue like many hope it will, why it’s all about to come crashing down (no exaggeration) and why we’re seeing such extreme social, political and societal shifts at this present time.”
Watch this masterpiece and see how broken the economic system is.
Peter Schiff suggests getting out of any asset denominated in US dollars to mitigate the coming implosion of the Greenback:
Ok, so how does economic collapse trigger the collapse of the biosphere?
My co-host on Nature Bats Last on the Progressive Radio Network, Professor Guy McPherson and I have been warning of the potential consequences of a substantial economic crash or the collapse of industrial civilisation and what the loss of the aerosol masking effect will have on the climate, specifically warming.
It is still being debated how quickly the loss of aerosols will advance global warming. For me following the “Precautionary Principle” is paramount. When 911 happened and three buildings mysteriously collapsed in NY, all aeroplane traffic was grounded and within days the particulates fell out of the sky and their was a near immediate spike in temperatures.
October is the time when most of the major economic crashes take place which is why this latest work from Professor Guy McPherson is so pertinent.
” Although the paper by Rosenfeld and colleagues is ambiguous with respect to planetary warming beyond that forecast by Levy et al., an interview with the lead author of the paper indicates that the paper by Levy and colleagues underestimates by half the impact of the aerosol masking effect (thus, less than a 20% reduction in industrial activity will drive a rapid temperature spike of 1 C). ”
Think about that for a second. A 20% reduction in economic activity triggers a 1C global mean temperature rise. That’s another 40% of all anthropogenic warming so far in days or weeks.
This is why I follow the global economic system so carefully, sadly we are chained to it. Total collapse will be just that.
The Aerosol Masking Effect: A Brief Overview
The graph below shows the spike in temperatures in India as a direct result of the loss of aerosol pollution.
In Hemingway’s 1926 novel “The Sun Also Rises” Bill asked
“How did you go bankrupt?” .
“Two ways,” Mike said. “Gradually and then suddenly.”
This is exactly how civilisations collapse, slowly and then suddenly.
I was in Berlin one week before the Berlin Wall collapsed, which went on to trigger the collapse of the USSR. There was not a single hint that the end was so close. It will be the same with the ‘Empire of Chaos’
The cognitive dissonance around not seeing the obvious signs is amazing to me.
I'm an anti-imperialist, environmental activist and blue ocean sailor, who is passionate about the earth and all it's inhabitants without favour. Brace for imminent impact as we bare witness to the non-linear unraveling of the biosphere and habitability disappearing for most if not all complex life on the only habitable planet we know of. To quote President Niinistö in North Russia: ‘If We Lose the Arctic, We Lose the World’. Folks we have lost the Arctic.
Kevin Hester 
“The economic structures, even before the pandemic, were reconfigured to mock faith in a meritocracy and the belief that hard work leads to a productive and valued role in society. American productivity, as The New York Times pointed out, has increased 77 percent since 1973 but hourly pay has grown only 12 percent. If the federal minimum wage was attached to productivity, the newspaper wrote, it would be more than $20 an hour now, not $7.25. Some 41.7 million workers, a third of the workforce, earn less than $12 an hour, and most of them do not have access to employer-sponsored health insurance. A decade after the 2008 financial meltdown, the Times wrote, the average middle class family’s net worth is more than $40,000 below what it was in 2007. The net worth of black families is down 40 percent, and for Latino families the figure has dropped 46 percent. Some four million evictions are filed each year. One in four tenant households spends about half its pretax income on rent. Each night some 200,000 people sleep in their cars, on streets or under bridges. And these stark figures represent the good times Biden and the Democratic Party leaders promise to restore. Now, with real unemployment probably close to 20 percent — the official figure of 10 percent excludes those furloughed or those who have stopped looking for work — some 40 million people are at risk of being evicted by the end of the year. An estimated 27 million people are expected to lose their health insurance. Banks are stockpiling reserves of cash to cope with the expected wave of bankruptcies and defaults on mortgages, student loans, car loans, personal loans and credit card debt. The ruleless-ness and anomie that defines the lives of tens of millions of Americans was orchestrated by the two ruling parties in the service of a corporate oligarchy.”
https://www.mintpressnews.com/chris-hedges-hypernationalism-crisis-cults-signs-united-states-decline/270236/?fbclid=IwAR0ya1v2mtW_O-qbmxRsSFIz6GfdLpcD9EabdUrXvvpZnkcjCmENsSZD_Rg#.XzcSEAdx3-M.facebook
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“Derek Sandison, director of the Washington state Department of Agriculture, tours a Fife warehouse Friday that’s packed with nonperishable food the state can tap if demand at food banks and other distribution centers soars amid the pandemic and resulting economic collapse. (Steve Ringman / The Seattle Times) ”
https://www.seattletimes.com/seattle-news/homeless/from-peanut-butter-to-applesauce-washington-state-stockpiles-tons-of-food-for-the-need-ahead/?fbclid=IwAR14tgDjU4MWHx4Yudka1DarkEblpI6wPKa3FMyNeLEKwbi0ArhpOyaCU7U
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The latest from John Perkins, the original “Economic Hitman”.
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“Updated at 8:09 p.m. ET”
“The U.S. has seized Iranian petroleum bound for Venezuela aboard four tankers near the Strait of Hormuz, enforcing a forfeiture order aimed at both Iran’s Islamic Revolutionary Guard Corps and the Caracas government, the Justice Department announced Friday.”
“Roughly 1.116 million barrels of fuel was confiscated from the foreign-flagged vessels M/T Bella, M/T Bering, M/T Pandi and M/T Luna, a Justice Department statement said, adding that the seizure took place “with the assistance of foreign partners.”
Money printing used to be called ‘Counterfeiting’, boarding another nations ship and stealing the cargo used to be called ‘Piracy’.
https://www.npr.org/2020/08/14/902532689/u-s-seizes-iranian-fuel-from-4-tankers-bound-for-venezuela?utm_campaign=storyshare&utm_source=facebook.com&utm_medium=social&fbclid=IwAR2AExgd4qKC394FSmKzKwbhI0JgjS7x9g_iCWvCnkWUO13cx9fsL4m1kYY
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The $US is likely going to continue to weaken for a few years on this cycle, and long term it probably follows the century long downtrend that the Br. Pound took last century. ($US 5 to 1)
However, tokens and credits aren’t what drive economies, energy does, with technological leverage an abettor. Tokens and credits are power to access what is available in the physical domain.
As there are bottlenecks in many resources, growth in physical throughput is slowing. Collapse as you and Guy envision it probably requires a black swan event or two. This is also likely, but timing is unpredictable. Niels Bohr and Yogi Berra: “Prediction is difficult, especially about the future.”
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Here’s a blog which is worth following on this topic. After reading this, go to the home page. There are 3-4 posts per month, and the comments are usually worthwhile.
https://surplusenergyeconomics.wordpress.com/professional-area/
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Great connection between the Blogs Steven, thx for taking the time to link it, I’ll delve deeper, many thx.
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The Technocracy movement of the 1930s also shared this perspective.
Although finance is an abstraction, we cannot ignore the effect that financial collapse would have on the real economy. It is the Golden Calf of our times, and faith in it is strong.
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Correct. But there will likely be domino bankruptcies anyway as the governments would need to bail out nearly everybody with cash matching debts to avoid that.
A Debt Jubilee doesn’t work because the savings of the upper third (a guess) in developed economies is largely in bonds and stocks which would lose most of their value. Banks hold mortgages and loans, and they would become worthless in a Jubilee.
Steve
(note I was a currency and derivatives expert until I retired at 45 30 years ago)
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This excellent post gets that NYC is never bouncing back but the author doesn’t quite grasp the unfolding collapse.
The coming days, weeks and months will determine which of us are correct, I hope tobe proven wrong.
https://www.linkedin.com/pulse/nyc-dead-forever-heres-why-james-altucher/?fbclid=IwAR1ceTngy84xlWX3IMyhHAfHZ40cecK6kgTTY4RCPujW1b6U7836WeBYde8
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Just listened to your and Guy’s conversation with Sid.
Excellent!!
Thanks for the shout out, my friend! 🙂
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“To be sure, financial uncertainty will cast a long shadow. Hovering over the global economy for some time will be the sober realization that all the money in the hands of all the nations on Earth will never be enough to offset the losses sustained when an entire world ceases to function, with workers and businesses everywhere facing a choice between economic and biological survival.”
“Unsettling as these transitions and circumstances will be, short of a complete economic collapse, none stands out as a turning point in history. But what surely does is the absolutely devastating impact that the pandemic has had on the reputation and international standing of the United States of America.”
https://www.rollingstone.com/politics/political-commentary/covid-19-end-of-american-era-wade-davis-1038206/?fbclid=IwAR1Q3fDiS1Co9TwU1HH8FmKRh0gEn43Y_fTzLMbhcJwsgg6RZYG5sAVSbzk
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“Hong Kong (CNN Business)Japan just reported its worst GDP on record as the ongoing Covid-19 outbreak dented consumption.”
“The world’s third-largest economy shrank 7.8% in the second quarter compared with the previous quarter, the country’s Cabinet Office said on Monday. That translated to an annual rate of decline of 27.8%, the worst since modern records started in 1980 and the third consecutive quarter of contraction.”
Stand by for more QE from the Japanese Govt;
https://edition.cnn.com/2020/08/16/economy/japan-economy-gdp/index.html?fbclid=IwAR0r6sNmgB5GzVF1p0qFJHsUUX8zWMO0DCZeUNP53LGex_dbUr74Yyj8HbU
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“There isn’t enough money in the world to balance the budget”.
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Kevin,
Money is created electronically by pushing a button. To get inflation in items that aren’t necessities like food, water, energy, health care… existing debts must be paid off and there still exist excess money to chase goods and services. Necessities ae rising all the time as bottlenecks exist, and brittle systems fail from time to time.
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“Global debt hits new record of $253 trillion and is set to grow even more this year”
https://www-cnbc-com.cdn.ampproject.org/v/s/www.cnbc.com/amp/2020/01/14/global-debt-hits-all-time-high-of-nearly-253-dollars–iif-says.html?usqp=mq331AQFKAGwASA%3D&fbclid=IwAR1Q6ho_4hzYUlh7Vatbjphl5q2FHoujRjdsa850ulm8g3XS218ZPmrFL9Q&_js_v=0.1#aoh=15976768665540&_ct=1597676910993&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&share=https%3A%2F%2Fwww.cnbc.com%2F2020%2F01%2F14%2Fglobal-debt-hits-all-time-high-of-nearly-253-dollars–iif-says.html
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“China and Russia ditch dollar in move towards ‘financial alliance’
Greenback’s share of neighbours’ trade falls below 50% for first time”
“Russia and China are partnering to reduce their dependence on the dollar — a development some experts say could lead to a “financial alliance” between them.
In the first quarter of 2020, the dollar’s share of trade between Russia and China fell below 50 per cent for the first time on record, according to recent data from Russia’s Central Bank and Federal Customs Service.
The greenback was used for only 46 per cent of settlements between the two countries. At the same time, the euro made up an all-time high of 30 per cent, while their national currencies accounted for 24 per cent, also a new high.”
https://www.ft.com/content/8421b6a2-1dc6-4747-b2e9-1bbfb7277747
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The downtrend in the $US started years ago. It goes in wave (/cycles around 7+- years down & then up around the same duration. See agbisset.com I was a customer in the late 80s before retiring at 45. Ulf and I communicate at least weekly.
Recall the Br. Empire and Pound decline of last century from $US 5 to 1. It looks like this C it’s the bucks turn.
See 50 yr chart:
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From 2009—————–
“The conventional wisdom among the elite is still that the current slump “cannot be as bad as the Great Depression.” This view is wrong. What we face now could, in fact, be worse than the Great Depression—because the world is now so much more interconnected and because the banking sector is now so big. We face a synchronized downturn in almost all countries, a weakening of confidence among individuals and firms, and major problems for government finances. If our leadership wakes up to the potential consequences, we may yet see dramatic action on the banking system and a breaking of the old elite. Let us hope it is not then too late.”
Guess what? It’s too late;
https://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/307364/?fbclid=IwAR0X_gAN9TrD-e1TvcyAPVZ7flZqyZWLBpFG2PdZN63ntfeiUtAH_lEk_qU
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“Zombification”, that’s a new word for me!
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Peter Schiff explains why the Greenback is toast. No economist seems able to conceive of collapse;
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Courtesy of Scott Andrews .
“A great interview of a former employee of the Fed. She basically states that the Fed has gone off the rails. The interview starts at the 20 minute mark.”
https://podcasts.apple.com/us/podcast/the-disciplined-investor/id217999782?i=1000488286831&fbclid=IwAR0nJsTX_YFBqn4wMX1ZmlOLB2r4dwhtcCtlIBy7S_jXxFuWT85Vq0Olksw
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Another brick removed from the foundations of US dollar Hegemony.
“Russia calls on fellow BRICS countries to DUMP US DOLLAR in favor of trade in national currencies”
https://www.rt.com/business/498880-brics-nations-dump-dollar/?fbclid=IwAR2S1eJJXfnXGKWeChspuKiZXl-ueqIPc8McXMmCfFf3daMkb9DFvmLdOhg
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They have lost complete control. Collapse is in train.
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“Meanwhile, even prominent central bankers are considering alternatives: At the annual Jackson Hole meeting, Mark Carney, the Bank of England Governor, hinted at the idea of a crypto-backed system playing the role as the new global reserve currency: “It is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies.”
There fake fiat currency is tanking and the banksters are desperately trying to come up with an alternative ponzi scheme.
The ship is sinking fast, expect the criminal banksters to behave appropriate to their criminality. This is exactly what GuyMcPherson.com has been warning of lately.
https://concoda.substack.com/p/the-concept-of-a-u-s-dollar-collapse-goes-mainstream-633dd82d2c8d?r=r3w0&utm_campaign=post&utm_medium=web&utm_source=facebook&fbclid=IwAR059NUQaaEpKkQcivXLzooOEmTVBQhgpkulKh_46x-Wy_22XXbpwXEmqW8
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Thanks Kevin…Good Info for those who remain in the dark! MainUNStream Ep 08 Paul Lange/Simon Michaux
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“This is an extinction level event for tech start ups.”
Standby for contagion now that one of the domino’s has collapsed. Like any “Jenga Stack” as each block is removed, the whole ponzi scheme becomes more unstable.
When the Global Financial system collapses, we lose the Aerosol Masking effect. We’ve been very close before; we can’t keep dodging bullets. Everyone who perseveres with “Russian Roulette” eventually gets a bullet in the head.
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