After the US decoupled the dollar from gold in 1971, officially converting the US dollar into a pure unbacked fiat currency, the power of Wall Street was unleashed. It’s no coincidence that, in the years that followed, Wall Street eventually became stronger than Main Street. It’s also no coincidence that the rise of Wall Street mirrored the nearly four-decade ascendance of the bond market — which was necessary to keep up with the ever-increasing hunger for credit.
In 2008, the amount of debt on the books had grown so large that the corrupt fiat system was reportedly only hours away from imploding, only to be saved with a massive dose of monetary intervention by the Fed, and several years thereafter of unrestrained currency printing under the guise of something called “quantitative easing,” or QE for short.
It turns out that the Fed was unable to save the system on its own. Eventually, the world’s other major central banks were forced to also start their own QE programs, flooding the world with even more currency. As a result, there is now so much cash sloshing within the debt-based international monetary system that many of the world’s largest corporations are sitting on huge piles of cash because there’s few decent investment options remaining.
Meanwhile, there’s almost no one left to continue the level of debt expansion required to keep the current system going; governments and consumers are both buried in debt. Debt is everywhere because fiat cash is everywhere. The financial crisis was the world’s last real opportunity to correct the financial imbalances that had been building since 1971, but the medicine required to cure the disease was rejected in favor of palliative care designed to extend Wall Street’s power stranglehold a little while longer — despite the moral hazard such a decision posed to Main Street.
Even now, all of the world’s currencies are losing purchasing power at an alarming rate, which is why, at some point, the current debt-based monetary system charade will end, and the “Almighty US Dollar” will finally fall from grace. When it does, a return to some form of gold standard is almost inevitable. The following fast-moving and very entertaining presentation by Grant Williams explains why. Enjoy …
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