There is a strange belief floating around on several monetary conspiracy websites and blog sites. This belief can also be found on many YouTube channels. It says the dollar will totally collapse on September 27th, 2016. As a result of this event, every world currency will also collapse and the global economy will suffer great calamity. Many people have bought into this theory. Is there any truth to it? Let’s explore more details about this belief. Here is their case from their perspective. This is basically a paraphrase of their thought process blended together from many of these sites.
What They Claim
The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. This collapse will not only bring down our dollar but it will also bring down every fiat currency around the world. The collapse will bring hyperinflation and every fiat currency in the world will collapse.
The economy was hit hard by the fall in oil prices. As an example these falling prices have already affected daily life for Venezuelans and everything has become an uphill battle. Now that the oil bubble has burst, nations that depend on oil sales are going to face great economic problems in their country.
In the U.S. we cannot keep living like we have twice the income that we really have. The Federal Reserve created trillions of dollars to buy most of our national debt and mortgage debt with money that they created on the spot, and nobody will buy this mortgage debt in the future. It is a Ponzi scheme. Our national debt will have doubled in just the time Obama was in office.
The more there is a risk of a default in currency devaluation, the more interest rates are going to rise. We may be able to pay $20 trillion dollars of debt at 3 percent interest with some pain, but at 6 percent interest or above for any extended period of time it will cause a total economic collapse.
Things got so bad that since 2008 most banks will not lend any more on commercial ventures. Instead, they are either still gambling on markets or they are sitting on their money. Nobody wants to lend money for economic development because they are afraid that they will never get paid back. Many other businesses that could expand will not do so because they are afraid of higher costs in the future through government taxation and regulation. That is one reason people are dropping out of the workforce. There are fewer businesses in America in 2016 than there were before the 2008 crash.
There is no easy answer to the world debt problems because many people and nations around the world have been living beyond their means for decades. They have been amassing debt and entitlements that cannot be sustained. With their aging populations, there is no next generation being raised that will have the numbers needed to pay the bills. The credit line of many nations are maxed out, and the young cannot support the entitlements that the old were promised.
As if the spending beyond our means for decades wasn’t enough, many banks are still gambling with your investments. They take your money and use it as security to leverage investments worth thirty to a hundred times that amount. In 2008 some bubbles burst, and many that were gambling lost. Some financial institutions got bailed out, but most did not learn their lesson. It is even worse today than it was in 2008. These world banksters are still gambling with savers’ money.
Some big corporations and financial institutions could not pay their debts because of the severe downturn in 2008, so they either went bankrupt or were declared too-big-to-fail by our government, and the government bailed them out by Americans taking on more future debt.
Another reason for the lack of quality jobs is that the government cannot institute a policy to buy American-made products because they risk a trade war with other nations in the global economy who are also living beyond their means. The trade war is probably coming anyway because unemployed people of nations will demand that their government do something to protect their jobs. All government can do to keep jobs at home is to allow protectionism.
Our future appears to be deflation, depression, or hyperinflationary depression which is bound to come as a result of overprinting the currency. This will allow the rise of populist demigods who will convince people that they know who is to blame and that they have all the answers. In other words, we are now repeating the same mistakes of the 30’s that led to the nationalist socialistic movements and the start of World War II. It will not be much different this time around, except that the stakes for the world will be much higher.
The same mistakes in housing in the US are being made all over again. The recent climb in values will probably be short-lived as this country goes back into the next phase of this depression. Foreign investment speculators who think we are in recovery are once again buying real estate and driving up prices. The percent of Americans owning their own home is actually still falling and has fallen to 1990’s ownership levels. Family income in the United States and hours worked is still falling. The recovery is most likely phony, and what recovery there seems to be is really built on the Federal Reserve creating more money and more government borrowing. The recovery is going to speculators in the top one percent.
But you can protect yourself from this entire calamity by purchasing gold and silver, or getting our inside trader stock tips or purchasing our newsletters. You might want to stock up on your stored food supply as well.
Conclusion
These thoughts are the case that is represented in most of the conspiracy videos, websites, and blog posts. These people prey on people who know little about economics. I debunked most of this rhetoric in my book “The Truth About The Coming Global Currency Reset.” Most of the panic in this analysis is mixed with half-truths in an effort to make it more believable. If you know anything about real economics then you can debunk most of what is being said here. So in an effort to ease any fear or worry, I will explain why this is a load of sewage. This information can be found in my book in greater detail.
Let’s Debunk This Crap
First and foremost, if the dollar were to collapse as these guys claim, why would they know the exact date on which it is going to happen? Some conspiracy sites say the date was chosen by the Illuminati or the Rothschilds. (Give me a break) I decided to do some research and see if I can find a reason for that date.
The Federal Reserve is going to issue the standard Federal Open Market Committee report on September 21st, just 6 days shy of the predicted date. Aside from that nothing unusual is going on with The Federal Reserve.
http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
Southwest oil independents have scheduled a rally on September 27 against OPEC oil imports.
http://www.freerepublic.com/focus/f-chat/3466296/posts
There is some speculation regarding interest rates in September.
http://www.forexnews.com/blog/2016/09/05/september-important-dates-capital-markets/
In the end, I could not find any concrete evidence as to why conspiracy nuts chose September 27th to be the end of the dollar. This date was picked months ago! As I stated earlier, if this were to actually happen to the dollar then no one would know the exact date that this event would transpire. I believe this is part of a marketing ploy that these end of the world doomsday merchants have cooked up through the use of their nut job guru network.
This creates urgency to buy more gold and silver. You feel a sense of urgency to store more food. You begin to prepare for the end of the world.
The same thing happens in the dinar world all the time. If you think the revalue is going to happen on next Monday and today is Thursday, then you are going to place an order out of urgency. You are going to buy more dinar or put dinar on reserve. This is exactly why a revalue is predicted to happen every Monday
There appears to be two YouTube accounts which are the source of this erroneous theory. They are “Money News” and “Economic News”. From there it spread everywhere else. I started watching one of the videos, “Why The US Dollar Will Collapse on 27 September 2016 ?”. (over 700,000 views – see below)
This video is ridiculous. He starts off talking about a coming calamity, and then he says “will you take the proper steps to protect your family?” I am sure he is going to sell you the proper steps you need to take. There are many advertisements throughout this video, and with over 700,000 views some money is being made using fear tactics. Within two minutes of this video he mentions the National Inflation Association, which seems to have been debunked by Peter Schiff as a fake group with an agenda. (Check out the video below.)
Check out the National Inflation Association below
I think it is ironic that Peter Schiff is also one of the economists that they claim supports their theory. The truth is this theory only attaches itself to small portions of what Mr. Schiff says. The rest is all made up. Most laymen don’t understand reserve currencies or money mechanics, so these things sound plausible when they are presented through outrageous storytelling. These YouTube videos have disabled their comment section and suspended their voting as if they are afraid of being debunked. By now major warning lights should come on.
Peter Schiff has a reputable background and while I don’t agree with everything he says, He makes valid points on the nation’s debt. He points to logical problems that face the country. It is too bad that the Global Currency Reset crowd takes his comments out of context and applies it to their own ill-gotten gain. Peter talks about a collapse in the economy if these problems are not addressed. These guys take some of his facts and change it to a total collapse of the dollar and a revalue or collapse of every currency around the world. They seem to latch onto Mr. Schiff in an effort to gain some of his fan base.
Furthermore, these GCR gurus have been predicting the collapse of the dollar since the beginning of the millennium. Recently Lindsey Williams predicted the dollar will collapse under a global currency reset in 2012. It was predicted to happen again in 2013. Then the dollar was going to collapse in the first quarter of 2014, and finally, the dollar was going to collapse at the end of the second quarter of 2014. That is when the dollar took off like a rocket. 2014 was a great year for the dollar and 2015 was the best year the dollar seen since 2005.
http://www.reuters.com/article/markets-forex-idUSL3N0UF0EA20141231
http://www.marketwatch.com/story/dollar-index-on-track-for-best-year-since-2005-2014-12-31
The last time the dollar crash was predicted was May 28th, 2016. Before that, the last prediction was in April of 2016. So as you can see, these Global Currency Reset guys have a long track record of being wrong. They have been wrong in 100 percent of their predictions. I predict that they are going to be wrong once again on September 27th. There is not going to be a major crash of the world currencies on that date! Let’s wait and see who is right!
Get Your Facts Straight!
These GCR guys mix a little fact with fiction to create an illusion in order to sell their products. The valid points make the invalid ones seem more plausible. This is no different from what the dinar gurus do. The only reason why it is addressed on this website is because dinar gurus have tried to link the GCR to the revalue of the Iraqi dinar. Let’s cover a few of these so-called facts.
First of all, there was never an oil bubble as these loons proclaim. Oil prices are driven by supply and demand. The more oil there is the less it cost. This is economics 101. The reason why oil prices are cheap is because Saudi Arabia flooded the market in an effort to shut down American fracking. The increase in oil production in America has led the Saudi’s to take this strategic approach. Russia also supplies the world with oil. This is how their economy recovered from the crash of the ruble in the 90’s. Canada is also looking for a better way to bring more of its oil to global markets. This is what the keystone pipeline was really all about. Now Iran is able to bring their oil to global markets as more sanctions are about to be lifted. There are many other oil-producing nations as well. So as you can see, oil is not likely to go up with major price increases anytime soon as long as new supplies enter the market and nations are competing around the world for oil sales. This is not necessarily a bad thing for the U.S.
It is true that Venezuelan citizens are suffering right now, but this is primarily due to the fact that Hugo Chavez took over the country and instituted communism. He appointed businessman Roberto Mandini president of the state-run oil company Petroleos de Venezuela. Chavez also set out to rewrite the Venezuelan constitution. He kicked out oil companies while keeping much of their equipment. He gutted most of the private sector. His actions had an effect on the country’s economy. While falling oil prices contributed to the problems that all Venezuelans now face, the root cause was communism and a gutting of private infrastructure.
https://en.wikipedia.org/wiki/Hugo_Ch%C3%A1vez
The problem with these GCR guys is anytime the price of some commodity drops they claim the commodity was really in a bubble, and the bubble collapsed because of debt or some other obscure reason. Supply and demand or natural laws regarding economics never seem to apply. From what I could gather, they believe several bubbles collapsed in 2008.
The dollar is actually a lot stronger than these arm-chair economists know. Ecuador, Zimbabwe, and the British Virgin Islands are just a few examples of countries that don’t have their own currency. They use the dollar exclusively for commerce among their citizens. There are many other nations that circulate the dollar along with their own currency because the dollar provides stability. In addition to this, the dollar can be found in reserves in most nations around the world. These reserves serve to back other currencies.
http://www.investopedia.com/articles/forex/040915/countries-use-us-dollar.asp
Let’s not forget about the petrodollar! In august of 1971, Nixon removed us from Bretton Woods. This is known as the Nixon Shock. In 1973 agreements were reached with Saudi Arabia and later OPEC. This agreement was that these nations will sell their oil only using the U.S. dollar. In returned the United States Government promised to make these oil-producing countries rich, and the U.S. would provide these nations with military protection if they were ever invaded. This is why we went to war with Iraq after they invaded Kuwait. Kuwait sells oil in dollars, and we had the responsibility to provide military protection due to the petrodollar system.
Selling oil in U.S. Dollars has been a source of strength for the dollar. While Saudi Arabia complains about fracking and at times has threatened to sell oil using another currency, the truth is this is highly unlikely because it will leave the Saudi government without military protection and they will be defenseless. Iran will more than likely engage with the Saudi government if this event ever took place. So as long as there is a demand for dollars in other countries because of oil sales, it is highly unlikely that the dollar will collapse anytime soon!
The Truth is there are a lot of problems with the Euro. We just witnessed the Brexit event. Spain, Ireland, and Greece, are just a few of the countries that have been a drain on the Euro. As a result, people are running away from the Euro and they are running to the dollar. As the Euro weakens the dollar grows stronger.
http://demonocracy.info/infographics/eu/debt_piigs/debt_piigs.html
http://demonocracy.info/infographics/eu/cyprus_crisis/cyprus_crisis.html
In spite of all the problems with America’s debt, one of the advantages that the dollar has is that there really is not another currency out there that can replace it anytime soon. Most conspiracy nuts will point to the Chinese Yuan, but as we will soon see this won’t be an option in the near future.
America has been exporting jobs to China ever since Bill Clinton lobbied to make China a member of the World Trade Organization. Obama loaned General Motors 80 billion dollars. They used that money to build eleven new factories in China. They even made their research and development center in China. Many U.S. businesses have relocated to China.
China has benefited by keeping their currency values low. This has caused their exports to grow. If their currency becomes a major reserve currency that replaces the dollar then that will place more value on the Yuan. As a result, their exports will fall. China is not going to put themselves in this position anytime soon. While America has around 12 trillion in their M2 China has 130 trillion Yuan. Talk about printing money! They back their currency with approximately 1,000 tonnes of gold and U.S. dollars, so it is extremely unlikely that China will give up their export advantage in order for the Yuan to become a reserve currency.
Many of these conspiracy theorist claim that the dollar is a fiat currency. They say it backs most other currencies making them all fiat as well. The next claim is that the Federal Reserve is printing too much money, and we will see hyperinflation as more and more of this currency enters the economy. These statements alone should show you how out of touch these guys are with the actual facts!
The claim that the dollar is a fiat currency is made in an effort to imply that the dollar does not have any assets to back it. It is merely worthless paper. Nothing could be further from the truth! Currently, there is a little over 166,000 tonnes of gold in the world today. Out of that only 17.4 percent is used as an asset to back currency. Out of that number, the United States currently has a little over 8,133 tonnes of gold for the express purpose of currency backing. THIS IS AN ASSET BACKED CURRENCY! The United States has more gold than any other nation. The U.S. also has other assets that back their currency. Second in line is Germany with 3,396.3 tonnes of gold, followed by the IMF with 2,814 tonnes. These numbers can be verified by clicking on the links below.
https://en.wikipedia.org/wiki/Gold_reserve
https://www.gold.org/research/latest-world-official-gold-reserves
http://demonocracy.info/infographics/world/gold/gold.html
The Federal Reserve does not own one printing press with the express purpose of printing money. Any physical money that is made is done by the United States Treasury per the constitution! It is the responsibility of the United States Treasury to mint coins and print money! The Federal Reserve distributes the money the U.S. Treasury makes.
We currently have about 12 trillion in our M2 money supply. All of this money does not sit in America, and because of this it does not have a major impact on local inflation. About two-thirds of our currency is exported and used around the world. It sits in central banks and it is used as a reserve. It is used to buy oil and governments around the world conduct commerce with it. It is used by citizens of governments all over the world to conduct commerce. This notion that the Federal Reserve prints money is totally bogus.
https://en.wikipedia.org/wiki/United_States_Department_of_the_Treasury
https://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html
https://www.treasury.gov/services/Pages/coins-currency.aspx
Final Thoughts
There is much more that can be said to debunk all the claims this conspiracy group is making, but I think by now you are beginning to get the point. I could go on for days debunking their propaganda. These Global Currency Reset guys all have an agenda. It seems to be this, buy our products or you will die and we are going to scare you to death with junk economics until you get the message! It is totally idiotic beyond belief to arbitrarily pick a date and then proclaim that to be the time when the dollar and the world economy will come crashing down all around us! It serves a purpose. It creates urgency.
The United States Dollar will not crash on September 27th, 2016! Any proclamation that it will is pure fantasy, displayed by people who are writing fiction and presenting it as fact for a profit!
Iraq Currency Watch 