I want to forestall any speculations from the start--US Dollar-based system IS IN the state of collapse. We are just within this process which has some less acute or more acute phases, but it is ongoing. I will repeat myself--the main pillar on which US Dollar based system rests, US military might, turned out to be made from rotten wood, not hardest granite. Latest events with Iran merely marked yet another key point in this pillar's slow collapse. Once "power element" behind US Dollar is completely discredited, the more acute phase will start with world as a whole dropping US Dollar as a currency of choice. So, RT's report on that caught my eye today in terms of the time frame for such a collapse. Judge for yourself:
Central banks have been buying massive amounts of gold over the last 50 years, purchasing a historic high of 374.1 tons in 2019. The unprecedented shift has been seen by many as a move away from the US dollar. The interesting thing, according to Egon von Greyerz of GoldSwitzerland.com, is that not every country is buying gold. He told RT’s Keiser Report that mainly Eastern central banks have been piling up the shiny metal. “We are talking about Russia and China, Turkey, Poland, and Hungary.”Russia and China are the ones that are “really seeing what’s happening,” he says. “They know that the dollar is going to collapse.” According to Greyerz, China, which didn’t reveal its true position of gold holdings, “might… have 20,000 tons that they have gathered over a long period of time.”“Russia and China see that the dollar days are counted, and I agree with that totally. At some point it [dollar collapse] should happen this year and I think it will. We are going to see the dollar collapse and that would be very serious for the world and of course very serious for the United States,” he says.
I write about it non-stop: Russian intelligence and analytical institutions are arguably the best in the world, and Putin's (as head of Russia), and Xi's, I may add, actions and words can be better understood when one considers to what degree Putin is aware of the global processes. I think he has arguably the best picture of the shifting geopolitical balance in the world. I have all reasons to believe so and he is extremely well aware on the future fate of the US political, financial and military institutions. To a very large degree an insane tempo of Russia's political, economic and military re-institutionalizing ( I hate this tired stale term "reform") varies directly with the tempo of US internal political, economic and military degradation.
There is very little doubt about the fact Iran's response to the murder of General Soleimani sent a shock to the system and, undeniably, changed the mood on the streets of Middle East. Another factor, which testifies to a rather poor situation is the fact that some reports talk about severe lack of the American resources to deal with China and concentrating those limited resources back on the Middle East. In the end, it is not just the lack of the resources, increasingly visible with the passage of time, it is gross ineffectiveness of those since, as recent Conference on Libya in Berlin demonstrated, it used to be that if one wanted something done in the Middle East, one called Washington, today one must call Moscow. Something to this effect. This is not an environment which is conducive to maintaining the reputation of main reserve currency, when the main pillar of military might (from which all other "mights" derive) on which this reputation rested is not exactly what it was thought before, politely speaking. The question is not even in financial institutions that the United States maintains still around the globe, as Phil Giraldi noted today, it is the fact that even smaller regional players, such as Iran, not to speak of superpowers such as China or Russia, can play around the system without the danger of the American "rules-based order" being forcefully imposed on them.
I warned about this for years. Now, it seems, US Dollar's departure is not even a subject for discussion, it is a cold hard fact of life, fait accompli, but merely a subject for speculation on WHEN this departure will be finally formalized, be that through the internal economic collapse in the United States, the event similar to Suez Crisis (and Moment), or through combination of both. Difficult to say. Remarkably, nobody (I underscore it) wants US economic and financial collapse--in the end, everyone gets hurt one way or another, it is just the matter of economic strength--but current American political class is completely incapable to right the ship of the American statehood, not to mention stopping avalanche processes within American economy, so we are all treated to a mad circus of Impeachment which will finish US statehood off for good, unless, in the last moment (yeah, good luck with that) AG Barr decides to indict a bunch of treasonous lowlifes thus giving us at least some hope. So far, doesn't look like it is going to happen. But, I guess, as long as the stock market is doing great, we all should be fine, right?