Untold Truths/Conspiracy

How the US Dollar Will Collapse32 min read

Comments (29)
  1. Ericvorg says:

    All you’re doing is the same as every other Newsletter – fear Yes China will/is going to be the next superpower it’s part of the cycle. USD will not collapse, it will just change as everything else and as to those who listen to Richard Russel he’s been wrong for way to long and the same as those gold bugs too. China giving money to Venezuela will come with a big and painful cost too and will be no difference then US giving them cash either. As Trump said this past week, “America comes first” and what you think China is saying?? I bet the same “China comes first” Also it doesn’t matter where the oil contracts end up “China is expected shortly to launch a crude oil futures contract priced in yuan” because end of days get converted again into USD because money is flowing out of China.

    1. chris says:

      Well put. Thanx for saving me the effort of a lengthy reply to this ‘bad news’ hype letter.

    2. Dane says:

      If you are right Eric, I can sigh with relief and go spend my inflation proof gold. If you are incorrect, you may have a hard time of it I’m afraid. Don’t be sure sure that you don’t hedge against this possibility.

    3. Mick Boov says:

      ERICVORG….. Did you even read the article ?

  2. Frank says:

    Would investing in the Yuan be a smart thing to do ?

    1. Chuck Burton says:

      Perhaps it would. At least, investing in the better Chinese companies stocks would be an alternative.

  3. Mike Krause says:

    Great article! It must be the reason our Treasury Secretary made an unexpected visit to Fort Knox.

  4. Jerry Shimirak says:

    This is a great read and your references appreciated, if this doesn’t make people think and start researching nothing will. –Thanks — JS.

  5. Lip Man Louie says:

    Your comment regarding EV is now outdated. The latest development in China is that they will use Hydrogen Fuel Cell vehicle.(HV) The biggest problem of using Hydrogen as a source of energy is the storage of Hydrogen. For example the Toyota Mirai Hydrogen fuel cell car uses a very strong and thick tank to store Hydrogen in liquid form.( Keep Hydrogen in a high pressure chamber). In a few months, this will become obsolete. China now invents a new material to storage Hydrogen without the need of high pressure nor very low temperature. The storage can work in normal room temperature and pressure. This substantially lower the costs to make a Hydrogen vehicle and substantially safer. Hydrogen is much more environment friendly than EV. Lithium battery used in EV requires another source to manufacture the electricity, and the making and disposal of lithium batteries represent environment risks too. You can research on this issue. Once HV becomes popular, EV will be obsolete. SAIC Motor in Shanghai has announced that it will manufacture cars run on Hydrogen Fell Cell, and will give up EV. Other China car factories will follow. So EV will probably be obsolete in a few years. Refuelling Hydrogen is as easy as refuelling gasoline and existing gas stations can just easily add Hydrogen pumps, and refuelling takes only 3 minutes. China has set up some “mini nuclear power plants” to extract Hydrogen from water. The Hydrogen (in liquid form) will be trucked to pump stations for vehicle refuelling. Hydrogen is much cleaner and cheaper than gasoline or electricity. And the source and is water. Now the storage issue is solved. There is no reason that HV be not popular as it’s apparent benefits are so clear; cheaper, cleaner, unlimited supply, no big technical changes on a vehicle.

    Very soon petroleum corporations and Tesla will become broke.

    1. chris says:

      The good part of this hype letter is reading thoughtful replies like yours.

    2. Equedia says:

      While you may be correct that HV could be tbe next thing, it would take at least a decade for them to be commercially viable. People have been talking about electric cars for decades – technology on a massive scale takes time.

      1. Mark_BC says:

        I disagree that hydrogen will be the next big thing. The problem is you have to generate the hydrogen in the first place, i.e. separate it from water or some other similar process. The energy used to free the hydrogen from this would be more efficiently used if it was put straight into our cars… And while the same logic may be used against electric cars, EV’s require electricity which is much easier to generate than liquid chemical fuels and can come from a wide variety of places, some renewable and some not. The other major problem with hydrogen is that the cheapest and easiest source to make hydrogen is to strip it from natural gas. It then turns out it is more energy efficient to just burn that natural gas straight in an internal combustion engine… plus you don’t have all the problems with storing hydrogen at high pressure; natural gas is easier to store. Any way you look at it, hydrogen fuel cells make zero sense.

        I’d also like to address your comment in the article about the rise of EV’s requiring a bunch of new electrical generation infrastructure. Your calculation looks good and the conculsion is accurate — that switching the entire fleet of passenger vehicles to electric would require 25% more electricity generation. However, the point you are overlooking is that by far the majority of people will charge their cars overnight when demand otherwise goes down. The bottom line is that no new electrical generation infrastructure would be required for this transition, it would just continue running on high overnight. Of course we would need more fuel to run the electricity generation if it comes from fossil fuels like gas or coal, but no new generation infrastructure would be required. It isn’t a perfect solution but one of the required steps in the process. Perhaps the next step would be to then transition to generate the electricity cleanly. Look at this website for charts of how much electricity demand otherwise goes down at night. Also search out the “smart grid” where your car would talk with the grid and only charge when demand is low and electricity is cheap. It could even sell power back into the grid when demand and price are high, so you can make profit off your car acting as a buffer storage device.

        https://energymag.net/daily-energy-demand-curve/

  6. Taz Uddin says:

    It is inevitable that the Chinese will eventually be in a position to dictate world’s economy. This is actually a blessing in disguise for the USA in that it will have 50% less to worry about world domination and hence the spending. If the USA can maintain the reliancees with her close allies without being imposing, I believe it can maintain it’s superiority and hence progressiveness with the shared resources for half of the globe.

    1. Dane says:

      Not in our lifetime I think.

    2. Chuck Burton says:

      American politicians are too impatient to be so progressive, since they work on two, four or six year election cycles. They always have to be cognizant of the next election in whatever they do. Solution? Limit them to one term.

  7. Nelson G Chenaur says:

    The US citizen will be much better off when the dollar is not the reserve currency. There seem to be some bankers (who can print money) who feel otherwise but speaking for myself they are they only ones who see an advantage unless there is some sort of pride that has no cash value included. If the dollar is not a reserve currency then there does not have to be so many of them and that helps the citizen.
    China is already part of the IMF so the dollar is nothing to them.
    Most money trades freely on the Forex so what is all the theoretical discussion about except hot air.

  8. Po'UncleMikey says:

    A most intuitive prospect for discussion here. I had no idea about the development of HVs and it’s solution to our dependency of oil and gas.
    On a second note about the proposed weakening of the US hold of world commerce, I don’t believe that this will be the case, as the US is based on economically driven colonial ideals which, unfortunately for the lower class, will surely maintain its power hold on the western civilization monetary system in place no matter the consequences which it will bring upon the unprivileged majority population. Too bad that it seems like an ugly human trait at this time of human development.
    Hopefully, through my own ” Rose coloured glasses”, the future generations will rebound and change this global mess that we are in right now.

    1. chris says:

      Optimism is necessary to survive.

  9. G L Nation says:

    I don’t see a serious threat to US$ remaining the world’s reserve currency so long as there is no other SAFE place to park big money. Currency transactions dwarf the world’s equities markets… and US debt is where they park. Would anyone park money in Chinese or Russian debt when the rule of law is questionable there? Would you park money in European debt, while Europe is arguably the most stagnant major ecomony in the world, taxation levels obscene, and negative deposit yields a serious policy tool?

    And absent these, who else has a large enough debt market to park $? Only Japan, where debt to GDP is in the stratosphere and yields miniscule. Nope, don’t see US$ being dethroned anytime soon…. especially with US debt yields heading up.

  10. Mike Policella says:

    This is a great big heap of nonsense. Russia and China in particular are fundamentally corrupt dictatorships. Do you want to put your trust in their management of a global currency . People put their money into dollars because they can trust the institutions supporting it , courts , banks, law enforcement etc. Russia and China can never give the world that.

  11. Equedia says:

    It’s interesting to see the comments posted – especially the replies that don’t agree with the opinion in this Letter.

    Perhaps it’s best I clarify.

    I am not saying China will overtake the US dollar – I am simply writing facts on how China is making efforts to, or at least compete with it.

    The key word is facts. The facts are clearly stated with supporting links. The premise of this Letter is to let people see things from many perspectives.

    It certainly would be very difficult for China to overtake the US dollar, but not as difficult as you may think if they simply want to compete. Ten years ago, people said there would be no way the yuan makes it into the SDR, yet here we are and the yuan makes a large component of it despite capital controls and convertibility issues.

    I highly encourage everyone to share their thoughts, but I do think it’s wrong to say “I am wrong” when I simply stated facts, and did not say that China will overtake the USD.

    If you disagree with certain facts, please state which facts are wrong and we can clarify. The idea of the Equedia Letter (Equal Media) is to write about all sides of the story.

    If you think the USD will prevail, please share why.

    If you think the yuan will overtake the USD, please share why.

    If you think the yuan will eventually compete with the USD, please share why.

    Thanks again to all who have made comments thus far!

  12. Dane says:

    One word why the Yuan will gain and surpass the USD…….. US debt.

    1. Frank says:

      Thats 3 words

  13. Edward says:

    I thank you for your news letters from the past and glad that you are continuing on the monthly schedule. You inspired me to “seek the truth ” and I have subscibed to China daily and sputnick news. I get another Viewpoint and I’ve become very impressed with the brilliance of Xi Jinping and th belt and road and BRIKS initiatives. I believe that the U.S. in particular will work very deviously to delay the inevitable loss of world domination to the point even of war. Interesting but frightening situations in play.
    On the bright side, i have used several of your investment recommendation s and usually made some money on your recommendations. Hope to see more in the future.
    Thanks again, Edward adolph

  14. Larry arnevick says:

    Should a person acquire Real gold not certificates or IOUs but real gold

  15. Chuck Burton says:

    China’s offering of oil futures contracts designated in Yuan, and convertible to gold could be a backdoor way of linking the Yuan to gold. This would ultimately destroy the Dollar, unless we would do the same thing. However, re-linking the Dollar to gold would also destroy the Dollar’s value against the Yuan, because it would require a value of tens of thousands of Dollars per ounce to account for all the $Trillions printed by the Fed since 1971, and Nixon’s de-linking. This would make the Yuan preeminent among currencies. American politicians look for immediate payoffs, even if they weaken us. Chinese politicians respect the value of patience in affairs of state.

  16. John Musial says:

    Ivan,
    Sorry for the delayed reply.
    You did not end this excellent and comprehensive analysis with what I thought would be the biggest point – that Trump would announce that we are now going to back the dollar again with gold, and soon.
    Seems likely. Any reason you can think of that we wouldn’t – or couldn’t?

    John Musial

  17. B says:

    What you all need to realize is that the US is not the only player in the game. Yiu also have to realize by now that the US government is not always telling you the truth. It’s a false economy. Hell your still looking for weapons of mass destruction hmmm! War feeds the US economy. How many countries has the US invaded in the last 15 years. Why do worried about what’s going on in countries around the world! Or is it just for financial gain, and securing resources.

  18. Joe Borg Costanzi says:

    With China owning 40% Russian oil, if it starts to deal with Saudi Arabia, this would allow Saudi to increase the price of oil and therefore Saudi revenue. Venezuela could then extract its oil as it would become financially feasible to do so and Venezuela’s decision to price oil in Yuan would increase the pressure on the USD and Western currencies further.
    The increase in price of oil would not put pressure in China as the deficit would be supplemented by its holdings in Russian oil.
    Everyone’s a winner except for the US and whoever carries on dealing solely in USD.
    The UK, which has the largest Stock Exchange market is already making advances to China and India. That is what Obama was afraid of with Brexit.
    The US might have to re-consider aligning the USD to gold again however that will also put pressure on all Countries (especially US, UK, Europe) who have printed large amounts of currency without improvement in productivity. China not transparent enough to allow a fair realignment.
    A big reset is about to happen. The question is when and who long it will last.

Leave a Reply

Your email address will not be published. Required fields are marked *