Economic World War 3 Declared On US Dollar!
Commentary on Precious Metals Prepared for CoinWeek.com by Patrick A. Heller
The 30-year $400 billion agreement for Russia to supply natural gas to China without using US dollars for payment is just one of the opening salvos by these two nations to destroy the US dollar.
There are a number of other attacks on the US dollar and US economy in the works that are getting almost no coverage by the US media:
• The Chinese government has ordered all state-owned computers to stop using Microsoft Windows 8 software.
• Just days after the US government indicted five Chinese military officials on May 19 for criminal hacking, the Chinese government ordered all state-owned businesses to sever all relations with US consulting firms.
• The US firm Cisco has acknowledged that it has not received any new Chinese orders in a month.
• IBM supercomputers in China are being taken out of service.
• For more than a year, China has stopped adding to its holding of US currency and Treasury debt holdings and is slowly decreasing this position.
• In the past few months, Russia has dumped so many tens of billions of US Treasury debt onto the market, to be absorbed supposedly by Belgium but in reality almost certainly by the Federal Reserve, that the Federal Reserve’s claim to be “tapering” its quantitative easing program isn’t even worth the paper it is printed on.
• Russia and China are now making financial inroads with supposed US allies such as Germany, Saudi Arabia, and several nations in Africa and South America.
Foreigners can clearly see this economic war. Too many Americans don’t see it because they don’t want to. These Americans don’t want to see this ugly development because our politicians keep telling us we are a free nation and undergoing an economic recovery.
The timing is not coincidental. While the economic and political strength of China and Russia have been growing internationally, the United States has been declining. All that was needed was a pretext of the United States being the bad guy internationally for the major push of the economic war to begin. That pretext happened last year with the revelations that the US National Security Agency (NSA) engaged in extensive domestic and foreign surveillance of telephone calls and emails.
As commodity investment guru James Rogers said in a recent interview, decades ago China’s economy was about 80% controlled by the government while only about 20% of the US economy was government-controlled. Today, China’s economy is only about 20% controlled by government while America is up to at least 40%. Therefore, it should be no surprise that, because of the expansion of economic and political liberty, China’s economy is growing while the US stagnates.
Because the United States is the world’s largest debtor nation run by a government that operates with huge annual budget deficits, there is little that the federal government can do stop the development of Economic World War 3. The only practical beneficial step would be for the US government to remove the shackles on the private sector.
I just don’t see America’s politicians willing to return political power to the citizens of America. For that reason, the US dollar is almost certain to be crippled, if not destroyed, by the Economic World War 3. For self-preservation, every American should look at establishing an insurance position of physical gold and silver.
Patrick A. Heller was honored with the American Numismatic Association’s 2012 Harry J. Forman Numismatic Dealer of the Year Award. He owns Liberty Coin Service in Lansing, Michigan and writes Liberty’s Outlook, a monthly newsletter on rare coins and precious metals subjects. His award-winning radio show “Things You ‘Know’ That Just Aren’t So, And Important News You Need To Know” can be heard at 8:45 AM Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio and text archives posted at http://www.1320wils.com). He is also the financier and executive producer of the movie “Alongside Night”.