Russell McDougal at Investor’s Daily Edge says there is too much dollar-based debt that can’t be paid back for the buck to survive in its present form. Another Nixonian dollar default is coming, this time via hyperinflation. And the same people who have sentenced the greenback to death will be launching its replacement, the Amero.

This from Russell:

The US dollar has had its run of the globe since the end of WW2. American technology and know-how have held center stage. We have had the greatest economy and military the world has ever seen. These enviable attributes were eventually combined with a near infinite ability to print and distribute dollars and other financial products. Everybody wanted what the US had to offer. Those days are gone.

The response to last week’s article was overwhelmingly positive. IDE readers clearly “get it”. We’ll be on this topic a while longer.

The dollar’s dominance is way past its prime. In the 1960s, Charles de Gaulle called it an “exorbitant privilege” to issue the currency that the world uses as money. This was at a time when the US dollar was actually backed by gold. He knew what was going on with dollar debasement and decided he’d rather have the promised gold than green paper. I know it’s politically correct to bash the French but my PC skills are pitiful at best…De Gaulle’s actions were prophetic.

In 1971, Nixon tricked all global dollar holders and reneged on the gold for dollars deal. You won’t likely read it in the history books but that is what is correctly called default. It also sent the dollar into a purgatory where it remains to this day.

Those of us who study both economics and money have long seen the issuers of the dollar dig its grave. Notice I didn’t say we’ve seen them dig their own grave. We watched attentively as the Euro was birthed over ten years ago.

The word at the time was that it was being brought forward because the buck was getting old and cranky. Since that time the Euro has come to garnish up to half of worldwide trade transactions. Who drew up the Euro in the first place?

Let’s just say that those who like to make their livelihood by turning computer keyboard entries into yachts and palaces had their fingers in the pie. The Euro is just as flawed as any other un-backed (fiat) currency. It’s merely a younger version awaiting its own purgatory.

Would you like a franchise with which you could stroke a few keys and instantly, out of nothing, create “money” that others would literally slave for? You should have been a banker.

Never forget that what is commonly called inflation has its roots in excess money printing. All central banks partake in this privilege. Central banking is a sweetheart deal between money royalty and politicians. Feudalism lives on.

Even the Commies have figured out this trick as China embarks on its “capitalistic” adventures. They have their own central bank that prints whatever they’re told to print. Authoritarian rule and abusive money is a double whammy. This one could play out for a long time as the Chinese, for the most part, are historically accustomed to one form or another of dictatorship (Emperors, etc).  “Free man” concepts are not even on the horizon.

The demise of the dollar may come as a surprise to many. Others have long prepared for the event. That is what all the background talk of the Amero is about. The foundation has already been laid. You can rest assured the gang that is imploding the present system will be front and center with its replacement. There is no justice.

The New World Order is all about currency regions. The three primary areas are set to be Europe, Asia and the Americas. Europe is up and running. Asia is moving quickly in that direction with China and Japan vying for supremacy. Smart money predicts the Chinese Yuan will be the victor. The dollar is playing out its final timeline.

The common term for the dollar’s global dominance is called dollar hegemony. Here are three definitions of hegemony from dictionary.com:

1. leadership or predominant influence exercised by one nation over others, as in a confederation.
2. leadership; predominance
3. (esp. among smaller nations) aggression or expansionism by large nations in an effort to achieve world domination

Leadership and influence are admirable terms. Aggression, expansion and domination are anything but admirable. Is the US dollar backed by military might? Maybe it’s just coincidence that Iraq and Iran were/are opting out of the dollar based system. Attempting to do so can be hazardous to national health. Oil is inextricably linked to the fate of the US dollar.

The money turf will be defended. As of 2005 there were over 700 American military bases in 160 other countries (Chalmers Johnson).

The unfathomable dollar based debts cannot be paid. The Fed, Treasury, banks and various financial institutions are presently playing hide the monkey with damaged or worthless economic goods. Black holes abound. Another Nixonian default is underway, this time via hyperinflation. The buck won’t survive it in present form. You’ve seen it won’t likely go quietly.

These are turbulent and disturbing times. Purgatory ain’t forever.

Source: My Fellow Amero-cans Part 2: Dollar Purgatory