Confidence, and the US dollar

Confidence, and the US Dollar

Right now, on 10/22/20.. apart from gold, the US dollar is the safest bet for central banks trying to hold some value. But all there is backing the US dollar at this point is confidence in its value. If that confidence falls, then there would be no reason to use the US dollar as a reserve currency.

Having the dollar as the world reserve currency has allowed the US to rack up record amounts of debt and wage indiscriminate wars in foreign lands. The US has seriously abused this power by creating absurd amounts of regulations and expecting foreign banks to comply. They've levied billions of dollars worth of fines against foreign banks who haven’t complied and threatened to banish any foreign banks from the US financial system who don’t pay their steep fines. They've slammed foreign banks with record fines simply for doing business with nations that the US doesn’t like; and they’ve demonstrated absolutely no willingness or ability to improve. Financial markets, consumer prices, risk perceptions, investment habits, savings rates, hiring decisions, pay raises, sovereign debt, housing starts, and more are all controlled by the US dominated monetary system. Also, many of these decisions are controlled by the Federal Reserve board. Out of 330 million people, a group of 10 individuals– all unelected bureaucrats and mostly academics with no real-world business experience– makes crucial decisions about how many dollars to print. This irrational, arrogant system presupposes by design that a few central bankers are smarter than everyone else; that markets are incapable of determining appropriate risk and value; that he is more effective at allocating our time, capital, and labor than we are. Future historians will be dumbfounded when they see how long people allowed worthless, unbacked fiat paper to pass as money. In fact, it’s nothing less than extraordinary (in a negative way) that most people today happily accept a digital abstraction of paper currency as ‘valuable’.

In the following video.. Peter Schiff discussed the future of gold, silver, and the US dollar.