As a beacon of freedom and democracy, the United States has been a pillar of dominance both economically and militarily. As a result, the USD has become the benchmark of world trade. Along with the privilege they have had the ability to dictate pricing, keep inflation in-check, issue Government bonds to help finance the government and basically control the world.

Consequently, when you continue to print money recklessly and don’t keep your finances in order, abandon the Gold Standard, by relying on a currency to be supported by economic activity alone, it seems we have reached a pinnacle moment in history whereby the neglect of responsibilities to the country and the world is on the verge of exploding into an unimaginable reality.

The USD as the world benchmark currency has now come under pressure. A new economic alliance known as BRICS comprised of emerging economies of Brazil, Russia, India, China and South Africa pose not only a powerful economic competitor but could sway the balance of dominance away from the USD, shifting it toward the newly backed currency established by both China and Russia based on Precious Metals and Rare Earth.

The Petro-Dollar is the means used to settle payments for Oil between countries. The American Government would issue bonds and much of the money invested in T-Bills, to guarantee a rate of return backed by the government. These investments would help finance government spending and keep the house of cards from imploding.

That being so, what will happen now that countries like Iran, BRICS Nations and an ally like Saudia Arabia consider alternative methods of payment for the Oil sold? Technically, the balance of payments will not be met and a real threat to the economic system can occur. Inflation will certainly be a byproduct of making our present situation look like child’s play. 

Click below: A point of view with an explanation of what the ramifications can become if the system comes out of balance. To reiterate, use your own judgment and ascertain your own opinion by doing a little more research. There are always two sides to every coin. I find this very interesting that we are entering times of incredible turbulence that will usher in tremendous changes. Most notably, the shift to digital currency will most likely rob individuals of their autonomy.

Welcome to the world of what they want us to hear versus reality. Today started off with Jobless Claims up 198k vs (196k) expected.  USA Real GDP came in at 2.6% in Q4 vs. (2.7%) expected. In Europe, HICP their measurement of inflation is down to 7.8% in March vs (9.3%) in February but expected (7.3%) this is still very elevated. Speaking of elevated I will shift attention to Janet Yellen, the Treasury Secretary, suggesting that the banking system is sound. That more regulations need to be put into place and there is no more swamp land in Florida to buy.

This led me to believe those in positions of power only want people to hear what they want us to hear without causing mass hysteria. Nonetheless, the USD Index slips toward the 102.0 level as currencies surge once again. Precious Metals are starting their upward trajectory as Gold regains a footing over the $1980/oz level and Silver heading toward the $24/oz level. On the other hand, Oil is now above $74/Barrel with momentum.