4-21-13 Eagle1: With all the comments that have been made during the past few weeks, and expressions of concern over the coming devaluation of the U.S. Dollar, it seemed appropriate to answer concerns and questions for everyone. Let me see if I can provide a bit of background info first.
In 1973, Richard Nixon took the U.S. off the gold standard and allowed the U.S. Dollar to float freely, along with gold. All monies printed after that lacked any kind of asset backing. They simply were declared to have value, backed by “the full faith and credit” of the U.S. Treasury.
Hence, the concept of “fiat.” I’ve referred to it for a long time as “funny money” since there was nothing to back it. The U.S. Dollar has pretty much been like playing the game of Monopoly. In Monopoly, the money is only as good as the game participants say it is.
In 2002, as concerns began to mount over growing national debt — not only in the U.S., but in many nations around the world, most notably within the European Union — George W. Bush initiated a cooperative effort to help restructure and avert an impending crash of the world economies.
As part of a joint project with the IMF, the UN and the World Bank, a plan was initiated under the rather bland title of the Basel III Protocols.
One of the primary parts of these protocols was a move to restructure world currencies in order to get rid of the fiat monies being printed by central banks and circulated world-wide creating crazy cycles of inflation and economic crashes or (in some cases) depression-like results among certain countries.
Studies were implemented by the IMF and various organs of the UN on the short-term and long-term economic effects of large-scale currency devaluations and “appreciations” in order to determine what the best approach would be to implement such a plan.
Previous such studies had taken place with widely differing and contradictory results, and the parties to Basel III needed agreement between themselves in order to proceed effectively.
There’s a much longer story and history behind Bush’s efforts that I won’t take the time to go into today. Suffice it to say that [from what I know, and have seen] he was trying to fulfill and complete a plan originally created by President Reagan and sabotaged by folks who had a different agenda.
A major part of Reagan’s plan was to put the U.S. back on some kind of solid footing and eliminate the economic risks associated with “funny money.” In addition, Reagan wanted to provide a reserve of funds within the U.S. Treasury so that Americans could have respite from federal taxation and the government could operate in the near-term without digging into everyone’s pockets.
Not since the early days of America’s existence had such a thing existed! In fact, Andrew Jackson was the last President to actually pay off the national debt. (Here’s a funny unrelated tidbit for you: John C. Calhoun, who was Jackson’s Vice-President was one of Della’s ancestors.)
President Bush and his economic team concluded that it wouldn’t help much if the U.S. was the only country on solid footing.
Through joint cooperation between the IMF, the World Bank and the U.S. Treasury, the Basel III Protocols were initiated to put all of the major currencies of the world back on some kind of asset-backed basis.
Knowing there wasn’t enough gold in the world to put everyone on the gold standard, a decision was made to add other kinds of assets — silver, diamonds, various minerals, oil, water, agricultural produce, etc. — some of which each country was likely to hold in order to establish some kind of realistic asset base.
When the Iraq War began in 2003 over the WMD issue, (and the WMD issue was real — not contrived like the left media has screamed) the removal of Saddam Hussein and the inclusion of the Iraqi Dinar became a major boon to what was going to be referred to as the Global Currency Reset (or GCR).
Prior to Saddam’s invasion of Kuwait in 1990, the IQD had been worth $3.22. Following Saddam’s invasion, sanctions were placed on Iraq by the IMF and the IQD crashed in value, sinking as far as 4000/1.
After the U.S. led invasion of Iraq toppled the Saddam Hussein regime, Iraqi national (and financial wizard) Dr. Synan al-Shabibi was brought in from the IMF to take over the Central Bank, and a gradual rise in the value of the Dinar began. (Here’s another tidbit for you, folks! Shabibi’s picture is back up on the CBI website as the Governor of the Central Bank.)
The GCR was kicked into high gear when U.S. soldiers discovered enormous veins of gold in Iraq, right under the streets of Baghdad, when they were digging their defensive trenches and foxholes.
Suddenly, there was a whole lot more gold in the world than anyone had considered. We had pictures of some of that posted here on the forum two or three years ago.
With the U.S. having been so over-leveraged, debt-ridden (our true debt exceeds $83 Trillion — not the $16+ reported in the media) and on a spending-spree driven by the current administration, there is no way that the GCR can do anything but devalue the USD.
The actual amount of devaluation will somewhat be cushioned by whatever the final rate of the IQD turns out to be when the rate is released — and if we see an RI, the rate will surely float or be kicked up methodically to a full RV.
The reason why the USD devaluation could be mitigated by the RI/RV of the IQD is because of the amount of IQD held by the U.S. Treasury.
In 2003, when George W. Bush said on national television that the Iraq War was fully paid for (and the leftmedia scoffed and mocked him for saying so), he wasn’t kidding.
The U.S. Treasury had provided access to $400 Billion for Shabibi to begin the process of rebuilding and restructuring the Iraqi economic platform.
In exchange for that $400B, we received trillions of IQD — IQD which the U.S. could hold as part of its asset base to back the Dollar, and a portion of which would be used to purchase oil from Iraq at a favorable price.
A worst-case scenario for the Dollar when the reset takes place could be a devaluation of 40-60%. How that devaluation is actually implemented is a process [I believe] still in flux. Should we get a true RV with an IQD exchange rate of $7+ (as I noted roughly a year ago when it appeared as an FRA on the Frankfurt and Paris FOREX exchanges) the devaluation of the USD could actually be in the 30-40% range.
Either way, folks are going to take a hit in their pocket books — at least in the short run. As other world currencies go through their restructuring during the remainder of the year, the effect of the USD devaluation will be mitigated and compensated for, and Americans will find that the Dollar is actually worth something for the first time in many years.
The short-term chaos in our markets will yield to some longer-term stability.
Now, let me say one more thing and I’ll quit. Unless our administration and/or successive administrations repent from their socialist, spendthrift, steal-from-the-rich-to-give-to-the-poor, Robin Hood mentality and practices, the reprieve we get from the GCR will be short-lived.
In five-to-seven years we will again be bankrupt, and there will be no more GCR to fix things. We will see firsthand the Revelation 18 scenario unfold before our eyes as utter collapse takes place to the entire “Babylonian” system. That’s a topic I won’t delve into here, but plan to address at a later time — most likely in the regular Coffee Break series that I publish.
I honestly believe that the GCR is a reprieve for the body of Christ to take advantage of the greatest transfer of wealth from the wicked to the righteous in the history of the human race.
The purpose is to advance the Kingdom of God, to provide an unlimited flow of finances in order to ensure that the Gospel of the Kingdom goes forth unhampered and unhindered, and that the Lord Jesus Christ has for Himself a company of people — a Bride who has readied herself for Him, and is truly His Counterpart and Other Self! There! Was that a windy-enough explanation? Blessings on you.