Dollar Devaluation Versus Gold Is Accelerating (Uncut) 03-17-2025
Dollar Devaluation Versus Gold Is Accelerating. Can Something Be Done to Stop It?
Elon Musk, last year, he was able to catch that rocket that was landing, and that was impressive, even though I’m not into those kind of things, but I have to admit that was impressive. Will he be able, through DOGE and through cooperation with the Secretary of the Treasury and President Trump, will they be able to catch the dollar and stop it from collapsing? Monday, March 17th, 2025, Maneco 64, home of alternative economics and contrarian views. Well, I’ve been seeing a lot of comments by people like Elon Musk, by the Treasury Secretary, by President Trump, that they’re going to turn things around, but I want to look at whether the dollar is salvageable, and by the dollar, of course, I mean the fiat dollar, the paper dollar, the dollar that’s not fixed to any amount of gold or silver, because that’s the dollar we’ve had since Nixon temporarily suspended the convertibility of the dollar internationally into, yes, one troy ounce of gold, $35 per one troy ounce.
On August 15th, 1971, they called it the new dollar, but it’s been anything but the new dollar, in my opinion, it’s been the shrinking dollar, and that’s what we’re going to look at. I’m going to let you decide what’s going to happen to the fiat dollar, and by the way, it’s not just the dollar that is, in my opinion, on its way to perdition, it’s all the fiat currencies around the dollar. The dollar has been the major reserve currency since after the second world war, so all the other currencies are derivatives of that, but before we do, we’re going to touch upon demonetta, the demonetta, by Nicholas, of Nicholas Oresme, this is a translation by Charles Johnson, Nicholas Oresme, for those of you who haven’t heard about him, he was the Master of Theology at the University of Paris in the mid-1300s, and he wrote extensively about money, and today I’m going to go to chapter seven, and it’s an interesting chapter, because I see many questions, or not many, but some people are asking, can they take our coins, and by that they mean gold and silver, it could be any coin either, even the copper and nickel coins, and hopefully this will clarify to you who really owns the money, so chapter seven, who owns the money, although it is the duty of the prince, or government, or the state, to put his stamp on the money for the common good, he is not the lord or owner of the money current in his principality, for money is a balancing instrument for the exchange of natural wealth, as appears in chapter one, I spoke about chapter one last week in one of my videos, you can go back and look at that if you want, it is therefore the property of those who possess such wealth, for if a man gives bread or bodily labor in exchange for money, the money he receives is as much his as the bread or bodily labor of which he, unless he were a slave, was free to dispose, for it was not to princes alone that God gave freedom to possess property, well there you go, it makes me think about the World Economic Forum, they don’t want you owning property, their motto, one of their mottos is you will own nothing and be happy, so it’s a godless institution of course, the World Economic Forum, but to our first parents and all their offspring as it is in Genesis, money therefore does not belong to the prince alone, but if anyone object that our savior when a penny was shown him asked who is in this image and subscription and when it was answered Caesars gave judgment, rendered therefore unto Caesar the things which are Caesar’s and unto God the things that are God’s, as though he meant the coins is Caesar’s because Caesar’s image is stamped on it, so the argument was that Jesus said that it was Caesar’s coin, but let’s go further here because he explains this, what he meant, it is clear to anyone who reads the context that he does not say that the money was due to Caesar because it bore Caesar’s image, but because it was tribute, for as the apostle says, tribute to whom tribute is due, custom to whom custom, Christ therefore showed that the stamp was the means of knowing to whom the tribute was due, namely the person who fought the battles of the states and by reason of his dominion had the right to coin money, so basically it wasn’t Caesar’s money, it was tribute to Caesar, it was acknowledging that if it wasn’t for Caesar, yeah, he wouldn’t have dominion over the realm and he wouldn’t be able to coin money, thus money belongs to the community and to individuals and so say Aristotle in the seventh book of the Politics and Cicero about the end of the old rhetoric, so I’m going to stop here and I’ve seen questions about or comments that they can recall the coins, but don’t forget recalling the coins is completely different from taking it away from you, recalling the coins could be for minting new coins, maybe the coins are used, they need to renew the coins or maybe also in the past there could be warring princes who would counterfeit coins of another prince and they had to change the coins because of those counterfeits, so they can recall, they can limit, I guess there’s been limits on how much you can own of gold and silver, but you own your gold and silver coin, you earned it, yet if they take it from you then we’re doomed, I would say we don’t live in a free country.
What did FDR do? Well, technically he did not confiscate, even though I have said that in the past, he actually compensated with paper money, so not even the executive order 6102 was confiscation per se, so there you go, I hope that clarifies it, we’re going to continue looking at demonetta as we go on, so back to whether the dollar is salvageable and yeah, I showed this Newsweek magazine, it’s from August 30th, 1971, it was sent to me by one of the viewers in Japan because it was published in Asia for the US military, I think, and for publication out there and he bought it in Japan for me, so I’m really thankful, it’s interesting how they call it the new dollar and Nixon smiling, right, everything is great, we suspended the convertibility of the dollar into gold temporarily, everything’s going to be fine, we got a new economic plan, Nixon’s recovery plan and it sounds familiar to what’s going on today, I saw Elon Musk posted the other day that the interest on the debt is at 1.2 trillion, he said we’re going to fix that, but I’m not too sure, Elon Musk is a clever, intelligent and successful guy and so is President Trump and Scott Besant, but sometimes situations are almost impossible in my opinion and that’s why I think personally, I think the dollar is not salvageable in its current form, so what could happen to the dollar? Well, the dollar could lose so much value, purchasing power very quickly that we’d have to see a brand new currency come out and that would be really bad, of course, for people who hold dollars or hold treasuries or treasury bills because it would become worthless and as I’ve said many times, holding physical gold and silver is the best protection for that and it’s interesting because we’re always looking at the future, at technology and we kind of, well not denigrate, but we overlook people from the past, for example, Nicholas Erasm from the 14th century or even let’s say Voltaire and I think Voltaire is going to be proven right again, why is that? Well, because paper money eventually returns to its intrinsic value and that is zero, so what I wanted to show you today is a chart of gold, but I turned it the other way, I did it in terms of the dollar, not gold, I did it in terms of USDXAU and on TradingView you can go back as far as 1833 and I’ve drawn this red curve, it’s a curve in technical analysis, it can be the other way as well, I could have put the chart the other way, but I thought it would be good to show you this chart because a lot of people of course ask, is it too late to buy gold? Gold is too high, I’m going to wait for gold to correct and it might correct, but in the long term as you can see here, it looks like gold is only one way to go and as you can see on the price axis, it’s saying 0.00, yeah, I guess if you went further to the fourth digit, it would be maybe, I don’t know, eight, but we’re getting very close to zero, what does it mean getting to zero? Well, I think it will eventually mean that you won’t be able to really exchange the new dollar for anything and that’s when the currency collapses and yeah, I think it’s only gold and silver that will protect you in terms of liquidity and being able to transact indirectly with other people. What about the Swiss franc, Singapore dollar and other currencies? Well, I’m sorry to tell you, they’re going to go the same way as the dollar and I think that’s why a lot of foreign central banks, especially those in the BRICS camp or in the Global South camp or Eastern Europe, they’re loading up on gold because they know what’s coming, I think, or maybe they accidentally are buying it and but I think they know it’s coming and so let’s look at this chart and the interesting thing is, I put like an arrow here and it says, Nixon detaches money from reality into mythical values. Well, what’s the mythical values about? Well, President Putin said about three years ago that the current dollar system will collapse and that a lot of the values are mythical because they can create it out of thin air and that’s why I use that and as you can see, prior to Richard Nixon deciding to detach the dollar temporarily from gold, you had over a hundred years, almost 140 years, 138 years where the dollar was a fixed weight of precious metals or gold because that’s what money is.
The currency is just a reflection of the money. It’s a promissory note for the money. Yes, there was in 1934 a devaluation of the dollar and of course, domestically, the dollar was not attached to gold anymore.
I grant that but internationally, it remained attached but at a lower level and as you can see from 1833 till 1934, the dollar was basically, well, $20.67 was basically one troy ounce of gold and it never changed and from 1934 to 1971, it was $35 per troy ounce. So, that’s when money was a fixed weight of precious metal and you can still have credit bubbles in that system but it’s a lot more tied to reality than mythical values but look at what’s happened since 1971 and you can also look at other charts like the national debt and wealth inequality and many other things, indicators, economic and macro indicators, they all seem to take off in the early 70s and that’s because of this detachment of money from reality. So, as you can see, there’s a big leg down in the dollar from 1971 to 1980 and then from 1980 to the early 2000s, the dollar rebounded but it was just a counter-trend rally and then from 2001 to the dollar dropped again until 2011.
We’ve had a counter-trend rally as well since 2011 but it was much shorter than the first counter-trend rally and we’re accelerating lower now and I’m afraid to say personally, I think it’s going to be very hard to salvage the dollar as it is right now. I know Elon Musk last year, he was able to catch that rocket that was landing and that was impressive even though I’m not into those kind of things but I have to admit that was impressive. Will he be able through DOGE and through cooperation with the Secretary of the Treasury and President Trump, will they be able to catch the dollar and stop it from collapsing? I think the chances are slim.
So, what happens in this situation is that the currency becomes worthless so you want anything that can hold its value and yeah, so that’s how I see it. Comment below what you think, why you think they might be able to salvage it. I’m pessimistic about it just looking at that chart.
So, before we look at the markets this morning, I just want to give a shout out to Dirty Man Safe and I know I spoke about who owns the money right and technically it should be our money but you never know with government going rogue around the world or with private actors out there trying to get your possessions. I wanted to give a shout out to Dirty Man Safe. It’s underground safe solutions to store your valuables like gold, silver, coins, documents and even crypto wallets.
It’s hidden protection and instant access so if you want to find out more about Dirty Man Safe, there’s a link below in the description. My link will also give you a 10% discount if you were to buy a Dirty Man Safe. So, let’s finish off and look at the markets.
It’s 8.33 a.m. London time. We’ve got spot gold at $29.85, virtually unchanged. The high has been $99.94, $29.94, the low $29.81. Silver is at $33.75, it’s down about nine cents.
Low has been $0.63 and the high has been $0.92, so the markets are pretty steady to quiet really. This week we’ve got the FOMC meeting starting tomorrow and ending with the decision on Wednesday. It doesn’t seem like they’re going to do anything in terms of interest rates.
We’ll have to wait and see though. We had a rally in the stock market on Friday. This morning the Dow is down half a percent or 200 points.
NASDAQ 100 is down about 89 or half a percent as well and the same thing goes for the S&P, down half a percent. The currencies are pretty steady. What about the other commodities here? Well, crude oil WTI is up two-thirds of a percent, $67.30. Copper is unchanged at $4.90. Keep an eye on that $5 level for high-grade copper and the bond market is fairly quiet too.
The 10-year yield is stuck around 4.3 percent. So with that, I’m going to wish you all a great start to the week. Take care.
Bye.
