The 2023 Banking Crisis
So, while the rest of the world is trying to decouple from the US dollar and go to alternatives, what has our government been doing to combat that?
What can they do… Washington has put us $31 trillion in debt. Our continued printing of dollars has caused a loss of confidence in the American dollar.
As the world rushes to limit its dollar dependence, the Fed wrecks the US banking system with aggressive interest rate hikes.
Typically, market upheavals coincide with a surge in the value of the US dollar, as it’s perceived as a stable refuge during times of financial uncertainty. However, this pattern has yet to emerge amidst the recent turmoil in the banking industry. Investors are reconsidering how they bank and save and are moving to hard assets like gold (source). Could this indicate a lasting devaluation for the foremost fiat currency?
And it seems this crisis is far from over. JPMorgan’s Jamie Dimon says US banking turmoil is not over and foresees long repercussions. (source)
Central Banks Are Loading Up on Dollars Gold
So, while the government is busy trying to shore up the banking system, what are central banks around the world doing? They’re buying record amounts of gold.
- Gold demand shattered records in 2022. Central banks can’t get enough gold. (source)
- 2023 is seeing the strongest start to a year for central bank gold buying in more than a decade. (source)
- Central banks are leading a revolt against the US dollar and shifting to gold at a record pace. (source)
- China is the largest buyer of gold. (source)
- Are we headed for a major reckoning in 2025 as some have predicted? (see below)
- Will this frantic move to de-dollarize bring a new central-bank digital currency (CBDC)?
- Is this the end of fiat currency and a return of a gold standard?
We’ll leave you with some links and quotes from other experts:
I’m going to make a prediction: by 2025 we are going to be at war, we are going to have a new dollar, a currency that probably is coming from the central bank, we’ll have a currency collapse, and we will live in a virtual police state,
Giant crash coming. Depression possible. Fed forced to print billions in fake money. By 2025 gold at $5,000 silver at $500 and Bitcoin at $500,000. Why? Because faith in US dollar, fake money, will be destroyed. Gold & Silver Gods money. Bitcoin people’s $. Take care.
My gut tells me we will fight [China] in 2025.
–U.S. Four-Star General Mike Minihan (source
The intensifying geopolitical contest between Washington and Beijing will inevitably be felt in a bipolar global reserve currency regime as well.
–Dr. Doom Nouriel Roubini, from China’s Yuan Will End US Dollar Dominance and Create a Bipolar Currency System in the Next Decade
The black swan event I think markets, and really the world at large, ought to be most worried about is some kind of conflict erupting between China and Taiwan,
The world isn’t just teetering on the brink of another recession… It is in the midst of a profound economic and financial shift.
–Economist, Mohamed El-Erian (source
Currency collapses happen in slow motion at first. When the lack of confidence comes, it’s a waterfall effect and the currency collapses.
–Damian White, Sr. Precious Metals Advisor (source