As the world moves away from the US dollar as the world’s reserve asset, dollars will dump globally causing an “inflation tsunami” in the US as the currency returns to US shores . Interest rates will rise accordingly, followed by a “collapse” in asset prices, which would be used to usher in central bank digital currencies (CBDCs) and the Great Reset.
This dire scenario is the forecast of Andy Schectman, president and owner of Miles Franklin and expert in monetary and economic history. Schectman, who has three decades of experience in the precious metals sector, said the BRICS (Brazil, Russia, India, China and South Africa) coalition could lead the charge to develop its own reserve currency that would compete with the dollar. American.
“I think the BRICS are merging against the dollar, the perceived hypocrisy and hegemony of the dollar,” he said. “We were told before that the BRICS currency would be pegged to gold or to commodities, with the assumption that gold is one of the commodities.”
The BRICS are meeting in Durban, South Africa, in August, and one of their agenda items is the development of an alternative to the US dollar.
Schectman told Michelle Makori, anchor and editor of Kitco News, that the “weaponization” of the dollar during the war between Russia and Ukraine accelerated the trend of “throwing” dollars. He suggested that Western sanctions against Russia, along with Russia’s expulsion from the SWIFT payment system, had a chilling effect, deterring other nations from using the dollar.
“Since the militarization of the dollar in 2022, it [de-dollarization] seems to spin much, much faster,” Schectman observed.
He cited Saudi Arabia, which recently declared that it was ready to accept other currencies in exchange for its oil, as a potential catalyst for a massive dedollarization.
“All it takes [for de-dollarization] would be for Saudi Arabia to take the stage… [and say,] we will now consider using other currencies for oil,” he said. “And all of a sudden, bang, all the countries that had to hold dollars for the last fifty years, don’t have any interest in holding them anymore. And if they all started throwing dollars, and I think it would happen quickly, you’d have a tsunami of inflation hitting the shores of the West.
To find out why oil is so important to Schectman’s thesis, watch the video above
CBDCs and the Great Reset
As dollars return to the United States, it would “immediately create a spike in interest rates to offset the loss in purchasing power,” Schectman said. That, he claimed, would in turn cause a “crash” of assets like housing, stocks and bonds, which have risen in value due to the Federal Reserve’s accommodative monetary policy.
“We are coming from a period where asset prices have exploded over the past few years, with more money being created in the past three years than in the country’s history before it,” Schectman said.
As asset prices crashed, the government would introduce central bank digital currencies (CBDCs), digital tokens issued and controlled by the Federal Reserve, which act as fiat money. These would be offered, initially, as a way to help those who had lost their wealth.
“That’s when they would come in and roll out their new CBDC,” he predicted. “It gives them cover to roll it over.”
He cited the example of Lael Brainard, Vice Chairman of the Federal Reserve and future director of the National Economic Council, who champions Modern Monetary Theory (MMT), the idea that loose monetary policy can stimulate the real economy. , in particular through direct cash transfers to households and individuals.
“She [Brainard] wants to do modern monetary policy right on your iPhone,” Schectman said. “It would be perfectly appropriate for that to happen in the next few years, where she could come in and administer a central bank digital currency from the ashes of what would be a new system.”
To find out who Schectman thinks is behind The Great Reset, watch the video above
Follow Michelle Makori on Twitter: @Michelle Makori
Follow Kitco News on Twitter: @KitcoNewsNOW
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.