Massive U.S. dollar dump? BRICS to launch new currency causing tsunami of inflation - Andy Schectman

Global Monetary Reset: A Narrative of De-Dollarization

In this interview, Andy Schechtman, the president and owner of Miles Franklin Precious Metals, discusses his thesis on a global monetary reset that is already underway. He connects various data points to show how the world is moving away from the dollar-dominated monetary system towards a new system backed by commodities.

Repatriation of Gold by Central Banks

• The repatriation of gold by central banks caught Andy's attention in 2017 when the Bundesbank Germany was repatriating its gold.

• Other central banks followed suit and started demanding their gold back from New York Fed and Bank of England.

• In 2018, these same banks bought more gold as a group than they did in the previous 60 years combined.

• The Bank for International Settlements declared that gold is a high-quality liquid asset, which means it is viewed as good as cash when used as a hedge position.

De-Dollarization

• The dollar has been increasingly weaponized, leading to de-dollarization gaining momentum following Russia's invasion of Ukraine.

• Countries like Russia are exploring alternatives to the dollar-dominated monetary system. For example, Russia offered to help Iran with a gold-backed stable coin.

• Saudi Arabia questioned whether they want to be part of BRICS and their relationship with the United States.

• Central banks buying gold at record rates is another sign pointing towards de-dollarization.

Commodities Backed Currency

• Countries like Russia are exploring alternatives to the dollar-dominated monetary system backed by commodities.

• Saudi Arabia questioned whether they want to be part of BRICS and their relationship with the United States.

• Central banks buying gold at record rates is another sign pointing towards a new system backed by commodities.

Conclusion

• Andy Schechtman believes that all these data points, when connected together, show a narrative that points towards a global monetary reset.

The Shift Away from the US Dollar

In this section, the speaker discusses how the shift away from the US dollar is happening and what factors are contributing to it.

Gold Accumulation and Petrodollar

• Saddam Hussein's gold and Ukraine's sale of $25 billion worth of gold to fund war.

• Kissinger's deal with Saudi Arabia in 1974 to denominate oil globally in dollars created a massive synthetic demand for the dollar for 50 years.

• Leaving Afghanistan signaled something to allies and foes. Saudi Arabia signed a joint military cooperation agreement with Russia, which was a huge move that got little attention in Western media.

• Joint military cooperation agreement with Russia by Saudi Arabia announced on the day we left Afghanistan or the day after signed death warrant for end of petrodollar.

Chinese Belt Road Initiative

• The Chinese Belt Road and Rail Initiative is connecting Asia, Africa, parts of South America, and Europe. It is the largest infrastructure project in human history.

• All 13 OPEC producing countries are on the Belt Road. Almost 70% of human population and 40% of global GDP are part of this growing group of countries.

• Most settlements on new Chinese digital Yuan; void of US dollar participation.

Growing Grouping Against Dollar

• A growing group of countries formulating around BRICS coalescing against dollar hegemony.

• China, India, Russia accumulating all gold; isolation of dollar.

• Countries like Iran sidestep sanctions by selling their oil to China for a bond that is immediately convertible into gold on the Shanghai Gold Exchange.

The Great Reset and the Insolvency of the US

This section discusses how government military pensions have rendered the US insolvent, and how this debt accumulated at historically low interest rates. It also raises questions about whether this was intended or not.

The Insolvency of the US

• Government military pensions have rendered the US insolvent.

• Most of this debt accumulated at historically low interest rates.

• Raises questions about whether this was intended or not.

Saudi Arabia's Role in Dollar Devaluation

This section discusses how Saudi Arabia's deals with China put the Petrodollar in jeopardy, leading to their search for protection from Russia. It also explores why they would make such a bold decision before seeing who is the bigger military power.

Saudi Arabia's Search for Protection

• The dollar starts to unravel when Saudi Arabia makes deals with China.

• Saudi Arabia looks to Russia for protection due to concerns over potential U.S. actions against them.

• The decision to seek protection from Russia was made before seeing who is the bigger military power.

Hypersonic ICBMs and Growing Unison of Countries

This section discusses how Zero Hedge ran an article saying that Saudi Arabia announced their nuclear submarines are outfitted with hypersonic ICBMs, which is technology that the West doesn't have. It also explores how countries are joining together in growing unison to stand up against Western hypocrisy.

Hypersonic ICBMs and Veiled Threats

• Zero Hedge ran an article saying that Saudi Arabia announced their nuclear submarines are outfitted with hypersonic ICBMs.

• The West doesn't have this technology, and the State Department expressed concern about it.

• This was a veiled threat to the West.

Growing Unison of Countries

• Saudi Arabia submitted their application to join BRICS last year.

• A growing chorus of countries is standing up against Western hypocrisy in a way they've never been able to do before.

• All it would take for the global monetary system to bifurcate is for all these countries to join together.

The End of Dollar Dominance

This section discusses how all it would take for the end of dollar dominance is for Saudi Arabia to open up oil purchases in other currencies, not just dollars. It also explores how this could lead to a misallocation and distortion of assets.

End of Dollar Dominance

• All it would take for the end of dollar dominance is for Saudi Arabia to open up oil purchases in other currencies, not just dollars.

• Countries that have had to hold dollars for the last 50 years will no longer have any interest in holding them.

Misallocation and Distortion

• Asset prices were blown sky high over the last several years with more money being created than ever before.

• Misallocation and distortions are created by this.

The Role of the Dollar in the Global Monetary System

This section discusses the relevance of the dollar in the global monetary system and how it may change in the future.

The Dollar's Relevance

• The dollar will always have relevance, but its current state may change.

• Agreements with BRICS represent a massive part of GDP and population. At what point does the West attempt to trade with this group?

• The United States won't give up its global reserve currency without a fight.

A De-Dollarized Global Economy

• A villain is needed instead of blaming the FED for creating distortions.

• Interest rates need to spike to tackle inflation.

• All these countries coming together represent a similar rallying cry against the West.

• A new BRICS currency backed by commodities would make the system work.

• Bretton Woods 3 rather than a system backed by dead instruments and promises.

• Central bank digital currencies or digital currencies on blockchain backed by gold and other commodities are developing trends.

Maintaining Status as Global Reserve Currency

This section discusses how far-fetched it is for the US to hope that it will be included in this trade system, given that they are being isolated.

Isolation of US

• It seems far-fetched that there wouldn't be a more aggressive push to maintain that kind of status.

Maintaining Status

• No bullet points available.

Potential War

This section discusses the potential for a kinetic war and how the US may resort to any and all options to maintain its status.

Potential War

• It certainly looks like we're heading in that direction right now.

• The US is funding Ukraine to a total of almost 100 billion dollars, selling them Stinger missiles and drones providing tanks and intelligence.

Maintaining Status

• No bullet points available.

Conclusion

This section concludes the discussion on the role of the dollar in the global monetary system.

Key Takeaways

• No bullet points available.

The Impact of Petrodollar on the Global Economy

In this section, the speakers discuss the impact of petrodollars on the global economy and how it affects countries like Saudi Arabia and China.

The Conflict Against Saudis or Chinese

• The conflict is against the Saudis or Chinese.

• If the Saudis come out and say no more petrodollar, who would the US potentially direct its wrath at?

• The Saudis are joining BRICS nations to have protection from countries that can back them up and stand up to the West.

Russia's Invasion of Ukraine

• This part discusses how Russia's invasion of Ukraine could affect the BRICS ability to launch a currency that challenges the dollar.

• If Russia loses in Ukraine, what does it mean for this whole reset theory?

• It may slow things down, derail it, or change how it plays out.

• However, ever since sanctions were imposed on Russia, over 80% of world trading still happens with them.

Global De-Dollarization

• This part talks about global de-dollarization and how every global reserve currency has lost its place in history.

• It is a natural cycle of events.

• Many countries are not paying attention to sanctions imposed by Western countries because they are not seeing any military might backing them up.

Team Dollar

• This part discusses who prefers for the dollar to maintain its status.

• Countries like Canada, Australia, United Kingdom Japan may prefer it but there is no certainty.

The Impact of a Shift Away from the Dollar and Treasuries

In this section, the speaker discusses the potential consequences of a shift away from the dollar and treasuries as global reserve currencies.

Consequences of a Shift Away from the Dollar and Treasuries

• If countries move away from buying oil in dollars, it could lead to a wave of selling of US treasuries.

• With inflation rates higher than treasury yields, investing in treasuries would result in negative real returns.

• A shift away from the dollar and treasuries could incentivize other countries to find alternative ways to invest their reserves.

• The sentiment against the dollar would build up, leading to a collapse in all three pillars of wealth: stocks, bonds, and real estate.

The Role of BRICS Reserve Currency

In this section, the speaker discusses how a BRICS reserve currency backed by commodities could become a leading player on the global stage.

Potential Impact of BRICS Reserve Currency

• A shift towards a BRICS reserve currency could lead to a tsunami of selling for dollars globally.

• This would cause an inflationary spike in interest rates that would have to compensate for loss of purchasing power.

• Interest rate spikes would cripple both bond and stock markets as they are now positively correlated due to low-interest rates.

• Real estate market will also be affected since it is one of three pillars of wealth in America.

Oil Prices and Saudi Arabia's Shift

In this section, the speaker discusses the relevance of oil prices and Saudi Arabia's shift towards other forms of energy.

Impact of Shift in Oil Prices

• A shift away from oil would not affect its pricing since it is priced in dollars.

• OPEC and Saudi Arabia want to leave the US because they do not want to receive depreciating dollars and treasuries while being told that their way of life is being ruined.

• Once Saudi Arabia has its alliances, it will make a quick switch towards other forms of energy.

The transcript has been summarized into three sections based on the content. Each section contains bullet points with timestamps associated with them.

De-dollarization and the Great Reset

In this section, the speaker discusses the de-dollarization of the global economy and its connection to the Great Reset agenda of the World Economic Forum.

Hypocrisy of Developed Nations

• The developed nations used carbon fossil fuels to grow their economies, but now they are telling developing nations that they cannot do the same.

• This is viewed as hypocrisy by many in developing nations.

• The dollar is the world reserve currency, so it comes into play for all commodities, not just oil.

Rare Earth Metals and OPEC-style Cartel

• Most rare earth metals are found in Eurasia.

• An Asian country's president recently suggested an OPEC-style cartel for rare earth metals.

• It is unclear how de-dollarization will affect buying rare earth metals.

Timeline for De-Dollarization and Great Reset

• The timeline for de-dollarization and the Great Reset is uncertain.

• However, alliances between countries seem to be accelerating rapidly since 2022 when the dollar was weaponized.

• Asset prices have become distorted due to high money supply and interest rates.

Connection Between De-Dollarization and Great Reset

• The connection between de-dollarization and the Great Reset lies in asset prices becoming too high due to distortions caused by high money supply and interest rates.

• If there is a collapse due to these distortions, then CBDC (Central Bank Digital Currency), which every country must have by 2025, will be rolled out.

• The number two person at the FED is a modern monetary theorist who wants to get rid of commercial banks and do monetary policy directly to your iPhone.

Resetting the System

In this section, the speaker discusses how Powell could have reset the system by raising interest rates and reserve requirements. He also talks about why people are not pushing back on the current monetary system.

Powell's Options for Resetting the System

• Powell could have raised reserve requirements at banks and increased interest rates to 20% to reset the system.

• Quarter and half-point interest rate increases are not enough to fix inflation.

• The return on the 10-year treasury is negative.

Why People Are Not Pushing Back

• Billionaires and those with a lot at stake in the current monetary system are not pushing back.

• Central banks are buying more gold than ever before.

• Record withdrawals off of exchanges like COMEX and LBMA suggest that insiders are quietly making an exodus.

Draining Exchanges

In this section, the speaker talks about how countries and wealthy individuals are withdrawing precious metals from exchanges like COMEX and LBMA.

Withdrawing Precious Metals

• Countries, wealthy family offices, sovereign wealth funds, etc., are withdrawing precious metals from exchanges like COMEX and LBMA.

• This metal is being shipped outside of exchanges, which is a big deal.

• Elon Musk has paid a 50% premium for every ounce of silver he buys because people want to hold onto it instead of selling it.

CBDCs and Universal Currency

In this section, the speaker discusses CBDCs (Central Bank Digital Currencies) and their relationship with universal currency.

One Universal CBDC?

• Ultimately there will likely be one universal CBDC but right now many countries are creating their own versions.

• The Chinese have built a cross-border payment system for CBDCs called the M-Bridge with United Arab Emirates and Singapore.

The Role of Gold in the Global Economy

In this section, the speaker discusses the role of gold in the global economy and how it can be used as a hedge against economic collapse.

Gold as a Backing for Currencies

• Countries are importing more gold than ever before and applying for BRICS membership.

• If countries are backed by commodities like gold, they eliminate the option of printing money, which takes away power from central banks.

• Gold would be an anchor instead of allowing central banks to print money unabated.

Benefits of Owning Gold

• Owning gold allows individuals to have options when others have none during economic collapse.

• Jim Rickards and Jim Sinclair predict that gold will reach high levels because it will be pegged to a new system.

• Owning gold allows individuals to preserve their wealth.

Bitcoin vs. Gold

• While some Central Banks own Bitcoin, every Central Bank owns gold.

• Canada has sold off most of its gold but recently bought some again.

Concerns with Central Bank Digital Currencies (CBDC)

In this section, the speaker discusses concerns with CBDC and how owning gold can provide safety during economic collapse.

Lack of Privacy with CBDC

• Every transaction made with CBDC can be seen by the government.

• Owning gold provides safety when using CBDC becomes mandatory.

Benefits of Owning Gold During Economic Collapse

• Owning gold allows individuals to have options when others have none during economic collapse.

• Owning gold allows individuals to preserve their wealth.

Converting Gold to CBDC

• Individuals may need to convert their gold into CBDC in order to function in the new system.

• Interest-bearing assets may not be as important in this environment, and countries like Canada may realize the value of owning gold.

Is There a Mastermind Behind the Global Economic Crisis?

In this section, the speaker discusses whether there is a mastermind behind the global economic crisis and if it is orchestrated or just how things develop.

The Possibility of a Mastermind

• The speaker suggests that it could be frightening if there is a mastermind behind the global economic crisis as it would mean that it is thought out and planned.

• The Federal Reserve, big money, and the World Economic Forum are some of the entities that could be pulling the strings.

• It could be a combination of both circumstances coming into play and being taken advantage of to paint a narrative or picture.

Derailing the Track

• The speaker wonders if anything can derail this track from happening. One possibility is for the US to issue a gold-backed CBDC right away and show all its gold reserves.

• This move would allow them to pull themselves up from their bootstraps and not see the world dumping dollars.

Why CBDC Digital Money Programmable on Blockchain is Inevitable

In this section, the speaker talks about why CBDC digital money programmable on blockchain technology is inevitable.

Monetary Policy

• The creation of money by being lent into existence by commercial banks creates issues with monetary policy.

• The FDIC systemic resolution board publicly stated in November that they may not want to tell people about an impending run on banks due to unintended consequences.

Recourse of Action for Individuals

• To mitigate exposure to dollar risk, individuals should remove counterparty risk and de-dollarize by diversifying outside the dollar.

Owning Metals as Wealth

In this section, Andy Schectman discusses the importance of owning metals as wealth outside the system.

Metals as Wealth

• Owning metals is not an investment but rather wealth.

• In a bad bear market, he who loses least wins. Therefore, owning metals puts you in a position to retain what you have worked hard to accumulate.

• If interest rates spike, there will be very few places to turn to. Therefore, owning metals outside the system is crucial.

• Unfortunately, it seems like some of what Andy is saying has a chance of happening.

Conclusion

In this section, Michelle thanks Andy for his insights and hopes that he is wrong about his predictions.

Hopeful Conclusion

• Michelle appreciates Andy's pushback and asks great questions that raise valid points.

• Both Michelle and Andy hope that his predictions do not come true.

• Michelle thanks Andy for joining them on Kitco News' special coverage of the Vancouver resource investment conference.