Have the past 70-years in the USA been an aberration?
I am always taken back how many people think the US has had an 'Empire' since 1776, the facts speak for themselves; this is just FALSE. The US did not reach pinnacle until after WWII came to an end. Allow me to explain how this came to be.
Key Dates and Events
In 1954 the US $ became world reserve currency, as British Sterling faded from its glory. Check below for the inflection point so you can validate for yourself the $ did not magically become King Currency at the end of WWII. These types of events take time!
That fateful day back on Aug 15th 1971, when Nixon stated the US Gold Window would be closed 'temporarily.' The US has been riding a wave of prosperity and with it came world control (overt). At this point the Dollar (US$) became a broken FIAT system, however, it did not prevent riches from being created over the past decades. Faith in the system moved from Gold back currency to Government backed confidence.
When Nixon took the US off the Gold standard in exchange for the Petro $. In 1973 the USDX Index was created and it really hasn't done much, recall the baseline is 100 and its roughly 104 right now. So it moved 4% in 50-years? How is that a good investment; just asking?
Now getting back to my point about the past 70-years been an aberration. Let's review world history
Let's compare cost of Livings across a few eras:
2015 showing costs vs 1975 - Still think US is an Empire? Hint... it gets worse!
Anyone think a broken FIAT system is to blame? The US $ has lost nearly all of its purchasing power over the decades and now with Inflation eroding the last vestiges of it the game is up.
Long Ago US Lifestyles were affordable and the envy the world over. Based on the Infographics above have you been able to see that?
- Average home size was affordable on one income and thus allowed for home ownership.
- Last year in the USA more homes were acquired by Institutions than individuals - You awake yet?
- 1-car families
- Food was affordable and not created in a lab
I fear that the majority of the US Population have unwavering faith in the US Government and that they will be shocked to their core when the first US Bank performs a Bank Bail-in and the we see the majority of US Banks fail. Perhaps these bank failures will take-out mid-tier banks too. Which will be the precipitating event for the unveiling of the CBDC system. Once activated they will have no choice but to comply. See my last bullet above!
Summary - Cycles repeat themselves until the doom loop takes over and the system implodes! Are you prepared when all those $ sloshing around the globe come home to create Hyperinflation?
- Blog Body image #1 Eichengreen et al. (2016) share of globally disclosed foreign exchange
- Blog image via Wikipedia