The U.S. Dollar: Last Line of Defence for Fiat Currencies

The last 14 days have been complete chaos within all financial markets coming off the heels of extremely hawkish comments by Federal Reserve Chair Jerome Powell.  Since the FOMC meeting in early November where Powell stated that the Federal Reserve was nowhere close to stopping inflation – stocks, bonds, crypto, and commodities have begun to take volatile swings in both directions as the market tries to determine the next move by Powell.  While many believe this is leading Powell to continue his record pace of rate hikes, the other side may hold more validity due to the U.S. economy struggling to handle the pressure continued rate hikes impose.  In reality, Powell is in a position where if he continues to hike, the United States will cause financial contagion in all other countries that struggle to finance dollar denominated debt followed by the United States defaulting on their national debt themselves.  Alternatively, if Powell begins to lessen rate hikes, even stopping them entirely, the USD will begin to inflate at an even accelerated pace destroying what is left of the publics purchasing power, as even after record rate hikes, real interest rates are hugely NEGATIVE.  The Federal Reserve is still massively behind on their inflation fight meaning the USD will inevitably die as all other fiat currencies have in the past, forcing an alternative currency into circulation.  The only question is, “which one?”

The answer to that question very well may have been answered this week.  We know that global central bankers have been pushing for a Central Bank Digital Currency (CBDC) due to the increased control it would provide them as the issuers of currency, and on cue, yesterday it was announced that the Federal Reserve, in partnership with other financial giants such as HSBC, Mastercard, BNY Mellon, CitiGroup, PNC Bank, TD Bank and most importantly, SWIFT, had launched a 12-week pilot program testing a Digital USD.  This is extremely bullish for silver and gold due to what a CBDC being released to the public would mean for individuals purchasing abilities.  This, of course, not being our personal hypothesis, but rather exactly what the General Manager of the Bank of International Settlements (BIS) had stated in 2020, “there is a huge difference [between cash and CBDCs].  For example, in cash, we do not know who is using a $100 bill today [or what they are using it for].  A key difference with a CBDC is that the central bank will have absolute control on the rules and regulations that will determine the use of that CBDC, and also, we will have the technology to enforce that.”  If and when CBDCs become commonplace, and they will (currently 98 countries have at least begun researching a national CBDC), those holding silver and gold will be in a position where their hard earned wealth can be spent on whatever they so choose.  They will not be restricted by central bank spending regulations that stop you from buying meat or filling up your gas-powered car because you have reached your carbon limit for that week.  Due to the flexibility and safety precious metals provide, in a CBDC landscape, the price of tangible assets will soar, as they will be held outside the system giving full control to their holder.

It should also be mentioned that the timing of this launch is curious as months prior the USD had been gaining massive strength relative to all other dying fiat currencies.  While not real “strength” the illusion of strength the USD was showing had many convinced that the dollar was in fact again “as good as gold”.  However, this past month it has began to bleed, and that was AFTER another 75bps rate hike in November that you would have expected to further strengthen the dollar.  That said, this time around, the market wasn’t buying what the Federal Reserve was selling, and USDs began to be sold off as the market reacted to the news that the Federal Reserve has made no progress on inflation.  Just a reminder, central banks bought a record amount of gold this year.


Alternatively, the public and financial institutions are going to need to start taking notice of what silver and gold are doing because as the USD loses strength, just as they should, silver and gold have began to wake up.  Yes, it is understood that inflation has been a problem for over a year now and precious metals have not woken up until September, but that is due to their prices lagging behind inflation, as they need to first confirm it is entrenched and here to stay.  This was done during Powell’s last meeting when he let everyone know that ZERO progress has been made to fight inflation.  The quicker those in the public realize silver and gold will equate for the losses of purchasing power in all fiat currencies, the better off they will be when the current system crumbles and we transition to the next.


Right now, the public, without realizing it in many cases, are waiting as long as they can for firm confirmation that there is financial trouble heading our way.  Innately, we want to believe everything is okay, and do not want to deal with the reality when it is not.  However, it is those that accept the situation for how it is, that get out ahead securing a portion of their wealth in precious metals (real money) prior to any type of major supply shock caused by a spur of public demand that will reap the full rewards.  This is similar to in 2008 when Jim Cramer was yelling “Bear Sterns IS FINE!” right up until their epic collapse or Sam Bankman-Fried saying FTX US clients are safe, 24 hours before suspending withdrawals and the entire crypto exchange imploded taking all depositor funds with it.  The mainstream media will keep the public behind the 8-ball as long as they can so as much wealth as possible can be transferred to those in the know.

Before receiving final confirmation from the mainstream that silver and gold are in fact real money, take it upon yourself to look into what was mentioned above.  It is clear that central bankers are vying for more and more control over the circulation of currency, and holding your assets in Real Wealth is one of the best ways to preserve it.  Below you will find our Au Bullion “Real Wealth” 1oz Silver Grizzly Bear Rounds that will be going live on our website in the coming days.