By Gregory Mannarino, TradersChoice.net
The U.S. dollar has hit a record low with regard to its purchasing power. And we have not seen anything yet.
The Federal Reserve has by design created a monster. A monster that exists in the creation of astronomical amounts of cash out of thin air. Understand the mechanism here. Every dollar that is magically created out of thin air, either in digital form/added to a digital screen or a dollar created on a printing press, MUST get its value from something.
But what is that something?
That something for which every new dollar gets its value is this: it robs a small percentage of value from every other already existing dollar. And THAT is how a newly-created dollar gets its purchasing power. (You are not supposed to know this!)
In other words, for every new dollar created to have purchasing power, it must steal a fraction of worth from every other previously-existing dollar.
Think of it like this: Imagine a single pile of cash that includes all the dollars on Earth. Now, this pile of cash has a particular amount of purchasing power. As a central bank adds to this pile of cash, for every dollar added to have worth, it must take a bit of purchasing power from every other bill in the pile. So, even as the pile of cash increases, the overall purchasing power of the pile decreases.
This mechanism has caused the U.S. dollar to hit a record low with regard to purchasing power. Being that the Federal Reserve has no plans to stop printing/creating cash, the dilution of the dollar concerning its value will continue to plunge… and this is no accident.
The Federal Reserve is on a mission to destroy the dollar in its current form only to issue in a new, dollar-based fiat system. This new system will give the Federal Reserve absolute control over every single transaction; a digital trail with your name on it.
A System of Control
We are in the midst of a new paradigm with a new set of rules. This system of control will be rolled out using a very old trick: PROBLEM, REACTION, SOLUTION. The current dollar is being weaponized (the “problem”) in the form of evaporating purchasing power, to bring about a reaction, and then comes the solution.
Problem: The dollar in its current form losing vast amounts of its purchasing power.
Reaction: The population reacts to the “problem” and demands a solution.
Solution: A new dollar, 100% digital/fiat.
Central Bank goals are met.
As the dollar in its current form continues its downward spiral, it will exert influence over other assets.
In theory, assets priced in dollars should gain in value priced in dollars. I say “in theory” mostly talking about the price action of precious metals. There is a deliberate mechanism in place being utilized by major banks, mostly JPMorgan, to artificially suppress the price of gold and silver via the derivative.
Crude oil, priced in dollars, will gain in value. Shipping costs will skyrocket, and necessities such as food and petroleum-based products will also see their prices inflate.
The stock market will inflate/rise, as it will take more “weaker dollars” to buy everything. This mechanism will have an inflationary mechanism on stock prices because it will take more weaker dollars to buy shares of stock.
The mechanism here is simple, and it has been well-thought-out by central planners, also known as central banks: Total control over the world monetary system via a new dollar, becoming the lenders and buyers of last resort which OWN IT ALL.
