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China Attacks US Dollar:
3 Steps to Take to Prepare for Financial War
Dear Friend,
Billionaire Sam Zell once said that he could imagine anything more
disastrous for our country than losing the dollars role as the reserve
currency.
Make no mistake about it: China is trying to dethrone the U.S. dollar as
the world’s reserve currency. And it’s making progress.
The mainstream media isn’t talking about it. That could be for political
reasons or because they don’t understand the seriousness of the
issue. Or both.
To that end, I’ve been burning the candle at both ends to get this to
you as soon as I could. And believe me, that wasn’t an easy task.
And these are difficult issues to understand. Not many folks can
explain them in a way that’s understandable.
China has one goal: replace the U.S. dollar as the world’s reserve currency.
In March they got Brazil, the largest economy in South America, to ditch
the dollar for trade.
Now the “elites” have been saying this could never happen.
- Forbes
In other words, many investments that you and your family depend
on for your retirement – will no longer be safe.
The good news is that this is not yet a widely known fact.
But first, it’s important for you to know who I am and why I’ve
spent the past three months working like a dog to get this out to
you.
That was a big break for a kid who grew up dirt poor on
welfare and food stamps in Queens, New York. I wasn’t going to
waste it.
And that’s how, at just 24 years old, I became one of the youngest
people in American history to launch a registered broker-dealer
and market-maker.
Or the speedy 235% gains that came from those who bought
FactSet Research with us at $63.23.
Or the stellar 40% gains we earned when Hilton Hotels was taken
over.
I’m grateful that I was able to help so many people profit from the
2008 crash.
When China makes this announcement, you could wake up one morning
to find your portfolio down 50%.
In a moment, I’m going to tell you exactly what to do when this happens.
And I’ll show you my “red-flag” list – this is a list of 3 investments that
will be hit the hardest (I can email it to you as well. Stay tuned to the
end).
Finally, I’ll show you what I think is the absolute most important thing
for you to do to keep yourself safe before this announcement
comes…and make a lot of money in the process.
For the past 50 years, investing for your retirement was straightforward:
you’d work hard, save as much as you could, invest that money in the
stock market and then watch it grow.
But all that that changed when Russia launched its invasion of Ukraine on
February 24, 2022. The world expected the Biden administration to put
sanctions on Russia. And I understand that. They wanted to stop Russia
from being able to fund its war against Ukraine.
But they didn’t just choose typical sanctions – like penalizing countries
that sold weapons to Russia.
On February 27, 2022, three days after Russia invaded Ukraine, Biden
froze the assets Russia kept in its own Central Bank.
That’s because Biden could have accomplished 90% of his goals with
more targeted sanctions.
But they did the one thing you can’t do if you want to keep the U.S.
dollar as the world’s reserve currency…
…they crossed the line and went after central bank reserves.
Let me show you exactly how I believe it’s going to play out in the
next six months…
In 2018, China launched a secret plan to replace the U.S. dollar as the
world’s reserve currency. But nobody took them seriously at first.
“The United States can take all your country’s money at will.
Protect your money from the U.S. by using our currency
instead of the dollar.”
And after what Biden did, countries like Brazil finally listened.
But this year, China got them to accept China’s currency, the Yuan.
Iraqi oil companies sold $39 billion worth of oil to China in 2022.
But this year, China got them to accept China’s currency, the Yuan.
Let me explain.
This announcement from China will be the final nail in the dollars
coffin.
On that day, China will announce the next phase of its attack
against the dollar: the launch of a gold-backed currency.
In July, they upped the purchase and bought 80.1 tons of gold.
It would suck trillions of dollars out of America and pump them into China.
Before he died, billionaire real estate investor Sam Zell said his “single
biggest financial concern was the loss of the dollar as the world’s reserve
currency.”
Mark my words when I tell you this: Americans are not prepared for
what’s coming... Let me show you why.
Let’s say Mercedes-Benz makes a $20 billion profit each year selling its
cars in the United States. That means they’re sitting on $20 billion U.S.
dollars.
So, what do they do with it? Well, it doesn’t just sit in a bank account.
They buy $20 billion of U.S. bonds with that $20 billion in US dollars.
Having the world’s reserve currency means that almost every company
on earth that sells something gets paid in dollars.
That adds up to trillions of dollars a year. And all those trillions of extra
dollars are used every day to buy things like U.S. Treasury bonds.
Once China makes this announcement, the first domino will fall.
Interest rates will not only rise…but they’ll rise much faster than
anyone is ready for.
They’ll rise because a lot less people are buying our Treasury bonds.
And the longer the bond, the harder it’s going to get hit.
So, if you own bonds right now, that means the value of those bonds
will plunge.
To beat the Chinese government and get the money into America, the
government will be forced to sell Treasury bonds at 10% - 15%
interest rates.
And when interest rates rise, all sorts of other rates and loans go up
too.
Mortgage loans, credit card loans, car loans, truck loans, college loans,
small business loans, you name it.
Wait until we’re staring down the barrel of a 15% mortgage loan.
But the last time we faced interest rates these high was in the 1970’s.
That decade was a financial horror show. And it felt like it lasted
forever.
The stock market sank 64% that decade, dropping from 6,593 in Jan
of 1973 to a low of 2,352 in June of 1982.
But what they’ll really mean is that with $1 trillion a year in interest
payments, we’re going to have to make some cuts.
And the cuts will hit everything: Social Security, Medicare, Medicaid
and National Defense.
That’s why economist Peter St Onge said that losing our status as the
world’s reserve currency would mean “a catastrophic collapse in America’s
living standard.”
One morning you’ll wake up and read that China made the
announcement.
$25 trillion in stock market value would be wiped out the first day.
Your IRA, 401k, mutual funds, 529 plans would all be cut by 50%.
The good news is that I’m here to help you do just that.
In early 2020, the stock market crashed 40% because of the Covid
pandemic.
March was the worst of it. It was like a stampede out of stocks.
In a moment I’ll show you how you can protect your financial
security…and put yourself in a position to make money. Stocks my
research shows will be the best picks for the coming announcement.
Look into your 401k, IRA and any other retirement accounts you have.
If you have any mutual funds, see what you’re invested in. Log into
your brokerage account. I’ve found 16 funds that would be the first to
get crushed.
Here are the 16 high-yield bond funds most at risk if China launches a
gold-backed currency -
China’s blitzkrieg-style attack against the U.S. dollar this year has
already caused billions of dollars’ worth of damage.
That’s one reason the dollar has performed so poorly this year.
That’s when the dollar could sink to lows not seen in the history of
this country.
Flip China’s “blitzkrieg” attack against the dollar on its head with a
strategy that used to be available to professional investors: shorting
the U.S. dollar.
Even Brazilian President Luiz Inácio Lula da Silva called for reduced
reliance on the U.S. dollar.
All could point to significant downside for the U.S. dollar, which
could be catastrophic.
This little-known gold fund acts like a shield against the fall of the dollar –
and pays you dividends while you wait!
“Saudi Arabia is not dropping the petrodollar yet, but their activity
suggests they might be considering other options. Saudi
Arabia might be the keystone in the petrodollar too, and if for
example, they begin to trade oil in yuan, this may cause a domino
effect, and the other members of OPEC might follow suit.”
All could point to significant downside for the U.S. dollar, which
could be catastrophic.
In addition, rising interest rates are also making the U.S. dollar
far too expensive for emerging nations, leading some to trade in
other currencies. After all, any appreciation in the U.S. currency
can lead to higher import prices.
We should also note that the very idea of de-dollarization is the key
reason global central banks have been increasing their gold
reserves this year.
Even China’s central bank, for example, just extended its gold-
buying spree for the tenth straight month. All as it starts to back
away from U.S. dollar reliance. In fact, The People's Bank of China's
stockpile of the precious metal climbed by 29 tons in August to
2,165 tons, according to Bloomberg. About 217 tones were added
over the last 10 months.
The World Gold Council also just said nearly 62% of central banks
say gold will make up a greater share of reserves in the next few
years. That being said, one way to trade gold upside is with an
exchange-traded fund, such as the iShares MSCI Global Gold Miner ETF
(SYM: RING).
Making miners even more attractive – for more than 20 years, gold
mining stocks have outperformed the price of gold in bull markets.
All thanks to how gold mining companies use their operating
leverage to boost overall profits, which can lead to higher stock
prices.
“A rise in the gold price is usually going to lift the gold miners
as well. It’s not that unusual for miners to outperform gold in a
rising gold market – and perform worse on the way down,”
noted Capital.com. “When gold surged between 2000-2011, the
metal itself provided a rise of 550%; however, gold mining
equities on the NYSE Arca Gold Miners Index jumped 690%. Since
2015, gold has seen an upswing of about 78% – far outstripped by
gold mining stocks, with a surge of about 182%.”
Plus, consider this. Right now, the U.S. dollar’s share of global
foreign-exchange reserves stood at just below 60% in
the last quarter of 2022, according to the Council on
Foreign Relations. That’s down from 70% in 1999.
They also noted that, “China, the largest overseas holder of U.S.
treasuries, has cut its holdings of dollars as its relations with
the United States have nosedived. Its current holdings are at their
lowest point since May 2009.”
In short, the very idea of ditching the U.S. dollar is only growing.
Even better for TIP ETF investors, the ETF is seeing considerably
large inflows.
Plus, the TIP ETF also yields about 3.45%. And we should also note
that the TIP ETF currently has 48 holdings generating a real yield
(the yield after inflation) of 2.649%, a weighted average maturity of
7.04 years, and a weighted average coupon of 0.69.
Most importantly, all of the holdings in the ETF have a AAA credit
rating – which is incredibly safe.
Royal Gold is a unique gold company that does not operate mines
but acquires and manages royalties and streams on gold and other
metals. All of which allows the company to generate higher margins,
with lower capital expenditures.
One, gold prices could push aggressively higher on the potential for
de-dollarization.
All could point to significant downside for the U.S. dollar, which
would send gold prices higher.
Even China’s central bank just extended its gold-buying spree for
the tenth straight month. All as it starts to back away from U.S.
dollar reliance.
The Santa Rita mine is a nickel mine, with significant gold, copper,
and platinum-group metals by-products. With this mine, Royal Gold
will receive 64oz of gold, 135oz of platinum, and 100oz of palladium
for each 1M lb. of payable nickel produced from the Santa Rita
mine.
We should also note that the Homestake Gold Mine was the deepest
and most productive gold mine in the Western Hemisphere. At one
point, it produced more than 40 million troy ounces of gold, nine
million troy ounces of silver, and six million ounces of copper. While
the mine was closed in 2003, Dakota Gold is looking to reinvigorate
operations.
For one, gold prices could shine with the potential for de-dollarization.
"Bank Indonesia is confident that the National LCT Task Force will
be an effective coordination forum to strengthen policy synergy between
government ministries and agencies in an effort to increase the use of
local currencies in bilateral transactions between Indonesia and major
trading partners," Governor of Bank Indonesia, Perry Warjiyo said, as
quoted by Business Insider.
At the same time, it would fuel higher highs for gold prices.
Two, the company has a bright future ahead of it with key gold
discoveries.
If the resources pan out, Aberle also aid Dakota Gold could have an
approved mining permit within five to 10 years.
Dakota Gold has been exploring the Homestake Mining District for
about a year now with a focus on the Maitland Gold and Richmond
Hill gold exploration projects.
All of which has been growing, considerable interest, with gold prices
expected to run higher.
In fact, with “gold prices having increased eight-fold over the past 20
years, the mining district has recently attracted renewed interest from
explorers like Dakota Gold after the district became uneconomically
viable for gold production in 2002 as operating costs became
disproportionately high,” as noted by Seeking Alpha.
Dakota Gold (SYM: DC) should benefit from the growth and development
of its existing portfolio.
Plus, as gold price rise, and interest grows in the Homestake Mining
District, shares of Dakota Gold could shine moving forward.
**********
Dakota Gold (SYM: DC)
Dakota Gold Corp. Description:
106 Glendale Drive Dakota Gold is a South Dakota-based
Suite A responsible gold exploration and
development company with a specific
Lead, SD 57754 focus on revitalizing the Homestake
District in Lead, South Dakota. Dakota
(605) 717-2540 Gold has high-caliber gold mineral
https://www.dakotagoldcorp.com properties covering over 46 thousand
acres surrounding the historic
Homestake Mine.
The Numbers
Conclusion
*****
A publication of Behind the Markets Copyright 2023 53
*****
Three Satoshis would set you back $0.001350, for example. So, no,
you don’t have to spend gobs of money to hedge with Bitcoin.
While Bitcoin can get far more complex, those are the bare-bones
basics.
What makes BTC even more attractive is its use as a hedge against
a week U.S. dollar.
Three, with the stability of the U.S. dollar become a bit unstable,
Bitcoin is seen as a hedge.
First, if you want to invest in the digital currency, you would visit an
exchange, such as Coinbase.com. Add your payment method. Start
a trade by clicking buy, and eventually sell. Select Bitcoin, as the
cryptocurrency to trade. Input the quantity. Finalize the transaction.
And there you go, you’ve bought Bitcoin. Easy. You can also buy
Bitcoin using PayPal, for example.
However, if you choose to store your BTC in a wallet, there are hot
wallets and cold wallets.
There are also cold wallets, which rely on hardware to secure your
holdings. These can be disconnected from the Internet, which makes
them safer than hot wallets. Of course, if you lose the storage
device, you lose your BTC. Not good.
Or, if you’d rather invest in ETFs that rise and fall with the value of
Bitcoin, consider…
If you believe the value of BTC will push higher, you can invest in the
Pro Shares Bitcoin Strategy ETF (BITO). With an expense ratio of 0.95%,
the ETF tracks the performance of spot Bitcoin, and is the world’s largest
and most actively traded cryptocurrency ETF, according to ProShares.
Or, if you believe Bitcoin will drop in price again, or if you want to hedge
a long bet, there’s also the ProShares Short Bitcoin (BITI). This one
follows the S&P CME Bitcoin Futures Index, with profitability computed daily
(before fees and expenses) as the inverse (-1x) of the index’s daily
performance. BITI has an expense ratio of 0.97%.
Again, while Bitcoin can get far more complex, those are the bare-bones
basics.
Thank you for taking time to read this report. Because this is a fluid situation,
I will update you as events dictate.
Dylan Jovine
Chairman,
Behind the Markets