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A Fiat Currency Cannot Change Its Toilet Paper DNA

By Matthias Chang – Future Fast-Forward
14th November, 2014

“A rose by any other name would smell as sweet”
Romeo and Juliet – William Shakespeare
“A shit by any other name would still smell as shit”
Source unknown

I trust that our readers get the picture.

But, for those who still cannot understand why the US dollar toilet paper money is rising in value recently, we urge that you do not forget the above quotations.

Toilet paper money will always remain as toilet paper money. The financial DNA of such a paper cannot change. No amount of tinkering of the DNA can change the nature of the toilet paper money.

Hence, the artificial manipulation of its value to give the illusion that it is not toilet paper money

A Short History – Toilet Paper Money 101

We have stated in our past analyses that post Nixon’s de-coupling of the US dollar from gold in 1971, the value of the US Toilet paper money was shored up artificially by means of the Petro-dollar. This was the deal hatched by Kissinger with the Saudi royals – in exchange for military protection against any coups and unfettered absolute rule, the Saudis must, as head of OPEC, ensure that trade in crude oil be denominated in US toilet paper.

And as US printed more toilet paper money, the price of crude was artificially hiked to create an artificial demand for dollar i.e. more US dollars would be needed to buy the same amount of crude.

But, for this deal, the world would have dumped the US dollar and its DNA exposed for what is it – toilet paper money!

There were so much US dollar floating in the world currency markets that unless the US dollar was sucked up by the OPEC currency vacuum cleaner, the US would end up as a banana republic! The vacuumed toilet paper money was then recycled into US treasury bonds and other US dollar denominated assets.

Everyone with the exception of US must convert their national currencies to US dollar in order to buy crude, no matter where the crude was extracted. This was the exorbitant privilege demanded by the American power elites!

And whenever demand for dollar took a dip for whatever reasons, the exchange rates would be manipulated so that the demand could be sustained.

All the right-up in the global mainstream media about flight to safety is just bullshit. This propaganda was the cover to shore up artificially the value of the US dollar. As otherwise, why would anyone run to the so-called safe-haven of toilet paper money? This was plain simple con job!

Fast Forward To The Present

Post the 2007/2008 Global Financial Tsunami, the FED through various schemes increased the amount of the US toilet paper money inter-alia to salvage the global fiat money banking system. The global network of Too Big Too Fail (TBTF) banks were rescued at the expense of the global real economy.

It is bad enough when the shit hits the ceiling fan. But, the FED and other central banks acting in concert ensured that the shit would be spread to every nook and corner of the world. The stench was unbearable! And so no one was wiser that it was in fact the US dollar toilet paper that was the cause of the stench.

The Zionist Anglo-American financial elites assumed that because of their unchallenged military power, no one would dare complain, what more retaliate against the financial rape that was perpetrated.

It took some time for the victims to coordinate and gather their financial resources to mount an effective counter-attack.

When the stealth counter-attack was unleashed, the Zionist Anglo-American financial elites were caught with their pants down.

There was no turning back in the global de-dollarization. In the last two years the momentum gathered pace and it is now impossible to reverse the trend.

The US Dollar Catch 22

There can be only so much money that the FED can print (digitally or otherwise) to monetize the humongous debt without triggering a global collapse of confidence in the US dollar.

When would the Red Line be crossed, how much can the FED’s balance sheet be expanded – US$5 Trillion, US$6 Trillion, US$7 Trillion?

It is clear that the FED and the financial elites came to the inevitable conclusion that it cannot in the present circumstances exceed US$5 Trillion.

This is the reason why the FED took a breather by halting QE in October, 2014. Let me emphasize here and now. QE will resume sometime in the not too distant future. My call is late 2015.

To curtail the effect of the ending of QE – a rise in interest rates, the FED and other central banks announced that the Zero Interest Rate Policy (ZIRP) would continue. But, no one can have his cake and eat it as well.

Now that there is less toilet paper money floating in the world’s currency markets, the need for a higher price for crude to vacuum up the excess dollars by the Saudi vacuum cleaner would no longer be necessary. Continuing the high price of oil would be inflationary and would be counter-productive. This is the reason for the recent controlled fall in the price of oil.

Given the fact that global de-dollarization has begun it would also be inevitable that the value of the dollar would soon plummet.

However, the US cannot afford any downward pressure of the dollar beyond a certain level. The argument that a devalued dollar would help US exports is a non-starter. To put it bluntly, the major export of the US is the export of the US toilet paper money. But, the US cannot increase the export of the toilet paper money.

The trillion dollar question – now that the Petro-dollar option is no longer available, how can the demand for the US dollar be triggered thereby preventing further depreciation of its value?

The trick to overcome this Catch 22 dilemma is to shore up the value of the US Dollar toilet paper by some other means as the old method is no longer feasible or desirable.

The answer is rather simple. Get Japan, the lapdog of US to shore up the dollar.

How?

As reported by the Economist on 31st October, 2014, “the Bank of Japan (BoJ) stunned the financial markets by unexpectedly expanding its programme of quantitative easing. The bank’s existing measures, a “different dimension” of easing from past efforts, were already daringly bold. Now it will swell Japan’s monetary base at an even faster pace, by around ¥80 trillion ($712 billion) each year, up from ¥60 trillion-70 trillion currently. To do so, it will hoover up still larger quantities of Japanese government bonds (JGBs).”

The Yen plunged relative to the US dollar. It follows that (as sure as night follows day) other countries would respond with competitive devaluation to secure their exports. With currencies devaluating all over, the perception would be that the US dollar has strengthened. The presstitudes would then tout that such strength was the result of the US economy recovering better than expected. This misperception is augmented by the Yen carry trade.

To put the nail in the coffin to the argument that the US dollar is the “King of all currencies”, gold and silver was smashed down mercilessly.

Let us be clear. This is a death struggle for the US dollar and it would be naïve for anyone to suppose that the financial elites would give up without a fight. Fight they will, to the bitter end.

In the circumstances, it is our assessment that more attempts would be made to smash down the price of gold to maintain the illusion of the mighty dollar. However, past experience have shown that with each smack down, demand of gold soared and the smart money poured in to buy during the dips.

Our repeated advice is not to panic but to continue to acquire more gold whenever the price dips!

Our confidence is grounded on the fact that the DNA of toilet paper money cannot be manipulated and or tampered with. A toilet paper money will always remain a toilet paper money!

And Alan Greenspan in his intellectual deathbed has confessed and finally came to terms with the undeniable fact that gold is money that requires no backing and that no fiat currency can be compared to gold. Period!

Be assured that when more ferocious attacks on gold are mounted, the quicker will the US dollar toilet paper be consigned to the dustbin.

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