Men in the city are fleeing a fiat dumpster fire. In a time of transition when delusion is ubiquitous and dollars are worth less, when economies are teetering and banks are broken, when birthrates are cliff diving and porous borders depict scenes from World War Z (see below:), when credibility in media and government is smashed, and faith in God is lost or forgotten, breakaway systems necessarily emerge. Urgent realities are spawning new movements storming the flimsy gates of bubble wrapped economies, senile Beta-Tyrants, and the scourge of sexual drought. Men in the city are red (and orange) pilling the masses and sounding alarms to prepare for an Age of Scarcity.
Gerontocracies, fiat-systems, and inverted sexual pyramids (a few men monopolize most women) are parasitic, slowly eating away at the socio-economic vitality and libidinous forces that prop them up. Parasites by nature are self-destructive because they bite the hand that feeds them. Parasites either kill the host that nourishes them, or the host marshals enough anti-bodies to eradicate the parasite. In any case, parasites continue to sting their victims the way debased currency, Beta-Tyrants and weaponized hypergamy push unsuspecting normies and thirsty betas to the “revolting point.” A global fire sale of dollars aka de-dollarization is the point of no return.
Parasites by nature are self-destructive because they bite the hand that feeds them.
The winds of change may be gusting, but the parasitic old guard is oblivious. Despite WEF Reset pablum, IMF papers touting a cashless society, and Dollar Milkshake theories, I can assure you that M was right when she told a rookie James Bond that “arrogance and self-awareness seldom go hand in hand." One of the key vulnerabilities of despotism is self-delusion. Tyrants, kings and ice queens are often surrounded by deceitful yes men and scheming courtiers who stroke egos and suppress facts to lure their arrogant masters into inescapable echo chambers. The view beyond the castle gates becomes occluded, and therein lies the danger.
For the betatized bureaucrats, central bankers and media spinmeisters of the Gerontocracy there is no problem that money printing cannot solve. Why be surprised after decades of easy credit let loose orgiastic consumption on everything: cars, condos, flipping houses, NFTs, and binging Netflix while you ingurgitate a Big Gulp from Seven Eleven. Fiat-economy is brain drain on demand. During the Age of Prosperity, QE infinity flowed indiscriminately, global supply chains flooded western markets with cheap Chinese goods, and Hollywood “soft power” broadcast Americana to the globe. That world is vanishing faster than Gangnam style.
The Fiat-Exit Strategy
The new world is divergent (not quite the dystopian movie). At the upcoming St. Petersburg International Economic Forum Russian President Vladimir Putin is expected to host over 80 countries representing the bulk of the global population. The Forum’s goal is to foster a new monetary union, a new confederation of nations spanning Eurasia, the Middle East, Africa, Central and South America. Guided by the vision of Russian Sergei Glazyev (head of Eurasian Economic Union) and powered by Chinese economy, this global project has one unifying principle, to exit the fiat system and fire sell its unit of account – the US Dollar. What would such a massive undertaking look like?
Global de-dollarization has one unifying principle, to exit the fiat system and fire sell its unit of account – the US Dollar.
Theoretical outlines of the plan to break with Bretton Woods have been teased out by economist Alastair Macleod. Writing for GoldMoney.com, Macleod proffers a plausible step-by-step exit strategy:
A new Central Bank that facilitates cross-border transactions through a new gold-backed foreign exchange currency
New agreements and credit facilities between central banks of member nations and the new Central Bank
New agreements to incorporate and parameterize participation from commercial banks
While the specifics will change as implementation rolls out, Macleod gives us the key takeaway: “The advantages of this new trade currency system is that it leaves individual central banks to manage their own monetary policies as they see fit. Therefore, it would not require political endorsement.” Political autonomy is perhaps the biggest grievance against dollar hegemony, and gold offers a backstop against inflationary tendencies of opportunistic governments. It also offers insurance against speculative attacks from western pump-and-dump hedge funds and World-Bank-IMF-Wall Street sanctions.
Political autonomy is perhaps the biggest grievance against the dollar hegemony.
The plumbing is less important than the trigger. Here are the facts: Eurasia (BRICS + SCO) plus the Middle East (GCC) plus South Asia (India) represent almost 4 billion persons. BRICS alone represent a quarter of the world’s oil, half the world’s iron ore, and almost half the world’s corn and wheat. If you throw India, Mexico and Saudi Arabia into the mix the numbers utterly dominate global commodities. While such staggering economic weight should give policymakers in Washington DC, London, and Brussels pause, the Gerontocracy is unconcerned, nor are they paying attention. Rather, western governments are playing proxy war in Ukraine (and elsewhere), de-carbonizing (de-industrializing) economies, flouting debt ceilings and drowning morbidly obese and drugged up constituents in soaring debt and cost-of-living expenses.
Eurasian Life Rafts and Bitcoinization
While the West plays “Nearer, my God, to thee” (last song played on the Titanic) as the USD Titanic sinks, Eurasia is readying the life rafts. Eurasia will not instigate the selloff of US denominated assets (including US Treasuries); rather, they will pull the sell switch only after it becomes clear the legacy banking system is in critical condition and beyond repair. In the meantime, Eurasian central bankers continue to accumulate gold and construct alternative payment rails and credit facilities to limit collateral damage when the switch comes. For Americans and Euros trapped in the dollar cyclone our life raft is Bitcoin, which I believe to be the next western monetary system. Eurasia repegs to Gold, and Bitcoin onboards and reprices what’s left of western assets. De-dollarization will be ugly, explosive, and unpredictable but early exit is key.
For Americans and Euros trapped in the dollar cyclone our life raft is Bitcoin, which I believe to be the next western monetary system.
Bitcoiners the world over are preoccupied with stimulating adoption but onboarding at scale should be of chief concern. The Bitcoin community is robust, replete with talented engineers, Austrian school enthusiasts, and even boasts corporate sponsorship (Annual Bitocoin Conference). However, for Bitcoin’s mission to be fulfilled – to replace fiat full stop with a decentralized, trustless system – it must successfully onboard economies of scale as USD flames out. New infrastructure (mining capacity) needs to be built, hash-rates need to increase, transaction costs need to decrease, and on ramps (wallets, exchanges, enterprise services etc.) need to be simplified and streamlined. In short, ramping Bitcoin requires all-hands-on-deck and visionary leadership.
Decades of phony wealth artificially jacked up by toxic credit encased in leveraged collateral is soon to vaporize in the mushroom cloud of financial Armageddon.
What happens to the "castles in the sky" priced in dollars? Decades of phony wealth artificially jacked up by toxic credit encased in leveraged collateral is soon to vaporize in the mushroom cloud of financial Armageddon. City condos, commercial real estate, gaudy McMansions and single-family homes, Mortgage-Backed-Securities and municipal bonds, big tech stocks, even Rolexes and Porsche 911s will nosedive back to reality. Repricing in gold and Bitcoin (possibly other assets too) will deflate the mother of all bubbles. A stampede for the exits will test even the most bearish estimates as households, institutions and pension funds rush into gold, Bitcoin, commodities and anything else that is antifragile and deemed valuable.
Treading Water
We are not there yet to be sure, but the hourglass is nearly timed out. Only the most naïve and blue pilled plebs do not see the slow-motion train wreck derailing ahead. That said, transition is a psychological process. Seismic shifts in money systems are often imperceptible as they unfold. Once on the other side, monetary makeovers are obvious and looking back they seem inevitable, virtually predestined. Financial revolution is underway for those paying attention.
Of course, the Gerontocracy will stop it – right? Beta-Tyrants may be spineless, but they are gaming the system. Operation Choke Point 2.0 and FedNow demonstrate unequivocally that fiat is here to stay whether we like it or not so speculate on Bitcoin or buy gold if you like the destination is predetermined. The banking crisis is manufactured to pave the way for CBDCs. That is perhaps the dominant school of thought in red and orange pill circles.
Here is another perspective. Western elites are captured by self-destructive ideologies that threaten their power. Central bankers blinded by Keynesian orthodoxy are unaware or dismissive of the dangers highlighted above. The Gerontocracy has bigger fish to fry: riots in the street, corruption scandals, proxy wars, climate change, and micro aggressions. For Beta-Tyrants, controlling the masses requires Orwellian talking points, Wag the Dog, and media censorship. It is all they have known so why would this time be different?
Rest assured, the “Global Elite” are preparing for a long voyage on the fiat Titanic just like their predecessors a century ago.
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