The Fed Will Crush Other Currencies with Interest Rates

A follow-up to previous post on the economy

On Saturday, I published a post explaining why US households need to take a 1/3 haircut in their standard of living.

I Have Some Bad News About the Economy

That post focused on the inflationary gap between increases in household income (plus non-profit wealth) compared to growth in GDP. Essentially, the Fed spent more than a decade printing money without a corresponding increase in productivity.

Now comes Catherine Austin Fitts to tell us why we’re in this mess and why the Fed will hike interest rates no matter the damage to you and me. (Catherine Fitts was Assistant Secretary of Housing during the George H.W. Bush administration under Jack Kemp.)

Fitts’s reason for the coming crash is similar to mine, but different. We both recognize the importance of the USD as the world’s reserve currency. But, while I suspect other countries (Russia, China, Iran, Brazil, India, and, now, Saudi Arabia) will succeed in breaking the greenback, Fitts seems to believe the USA will do anything necessary to protect the USD by collapsing all other Western currencies.

In other words, this is the economic side of WWIII, and our supposedly allies (Europe and Japan) are our sworn enemies.

Via Greg Hunter’s USA Watchdog:

If you are Federal Reserve, you are playing a global game, and what you have to do is protect the reserve currency status.  It looks like to me they have decided that all the BIS (Bank of International Settlements) members need to be in the dollar channel.  They are doing everything they can to collapse the market share of the euro and then move that into the dollar syndicate.

It’s hard to disagree with Ms. Fitts, and I don’t have to. Our views of the situation are not in conflict. I had not considered what lengths the Fed and the Biden Administration would go to to prop up the dollar.

What this game of chicken means to you and me, though, is horrifying. Again, from USA Watchdog (emphasis added):

They don’t mind, as you learned from the pandemic, collapsing the small business side of the economy or collapsing the middle-class. . . . They are implementing the ‘Going Direct Reset.’  They are doing a currency reset.  What you are looking at is a fundamental reengineering of the governance system on planet Earth.  Most of the benefits in the dollar system come from the benefits of having the reserve currency and being able to swap money you print out of thin air for real labor and real commodities worldwide.

This puts us ordinary Americans in a bind. For whom are we supposed to cheer?

• If the USA gets its way, a handful of corporations will dictate what we say, what we think, what “gender” our kids are, and what we buy. They will own our lives completely. We will be poor, bound, and gagged and, according to Klaus Schwab, like it.

• If the dollar loses reserve currency status, the United States will go from world hegemon to just one among many countries. We won’t be able to inflate our standard of living with quantitive easing and cash thrown from helicopters.

This also creates a conflict in loyalties.

Most of you believe in America first and always fighting to defend what was once called the “the American way of life.” Most of you want to use the electoral process to restore that way of life in America.

Those of us who grew up on John Wayne, George Patton, and Ronald Reagan have developed a reflex to fight forces bent on threatening that way of life. We want to fight Russia and China and the Saudis. We were raised to believe the USD is the world’s reserve currency because God wills it.

Sadly, 21st century America is a leading opponent of the American Way of Life we grew up with. The American people—who retain an innate love of that way of life—are occupied and owned by a strange government imposed on us by our own laziness. And that occupational government is anything but worthy of our support.

Morally, we have no claim to world hegemony. We have no business controlling the world’s economy. A country $32 trillion in debt has no business telling anyone else how to balance their checkbook. If anything, we should be asking Haiti to handle our accounting.

It seems, that, to be true to the American Ideal, we have to root for the downfall of the USD.

As I wrote in the previous post, that will hurt. If you and I are lucky, we will suffer only a 33% loss in standard of living. Some will lose far more. Others will lose nothing or even gain. But, as a whole, the United States is 33% richer than it, by rights, ought to be, and that account must be settled.

Our 33% margin came at a high price. We sold our souls to Hollywood, Wall Street, and the Fortune 500 in exchange for the privilege of living beyond our means. We are all guilty to some degree—myself more than most.

In short, you will get crushed in the global war for currency dominance. You will get crushed by the Fed, or you will get crushed by America’s loss of empire. Choose your poison.

And, because I like ending with advice that isn’t my own, here’s Ms. Austin’s final word from USA Watchdog:

“Stop helping them. . . . Don’t bank at the big banks. . . use cash whenever you can, and pray. . . . This is first and foremost a spiritual war, and prayer is the best navigation tool possible.  With this level of uncertainty and change, there is no way there is enough experts to help you and enough time to listen to them all.  You have to focus on what is important.  You have to decide, are you here to be free or are you here to be a slave?  There is no more middle of the road.  There are two sides, one leads to freedom and one leads to slavery.  You have to choose.”

Spiritual warfare. Did you catch that?

Please read the article and watch the interview with Catherine Austin Fitts right next door at USA Watchdog. Here’s another free and easy button to click.