ALERT!!! Just after this was posted, Fitch Rating Service Downgraded the Outlook for Debt of the United States! Please do not Ignore this Warning or the forces behind the move!
You may have noticed that all the stops have been pulled. There is nothing too sacred when attempting to prevent a second Trump term. The media offers a daily barrage with virtually no positive press. The Internet giants and social media have effectively blocked, banned, or throttled anything that supports the conservative cause. Google called it a "glitch" when a long list of conservative websites mysteriously disappeared from all search-engine results. A glitch that almost exclusively impacted conservative websites? And after the glitch, traffic remains mysteriously down?
What I think happened is that Google prepared a new algorithm to throttle conservative voices. But when they turned on the power, they didn't know the volume was all the way up. Sort of like starting your car after a teenager just drove it. So they "apologized" and lowered the volume a bit but left the program in place. We already know from Dr. Robert Epstein that Google is absolutely manipulating search-engine results to control the 2020 election. Dr. Epstein is a friend, but he's no conservative. In fact, he supported Clinton in 2016 and Biden today. But he is honest and very afraid of the idea that Google can control our elections. He knows where that can lead and it's not good!
You may have seen that a group of medical doctors with successful COVID treatments had their voices shut off for purely political reasons. No one should dare say that hydroxychloroquine might work (even though a top doc at Yale says it does as do well-researched studies). And there was the obviously biased Lancet report created to stop its use. Apparently, the only acceptable thing to suggest is that great and wonderful vaccines are in the works although they may not arrive in time to rescue the economy before the election. Strange how that works! It is amazing how social media companies, big tech, and politicians are allowed to censor actual physicians on the front lines. No debate is allowed. Conform or else.
In the Economic War Room, we interviewed a good friend, Andrew Whitney, who had a bit of hopeful news on a potential treatment that was all natural and had endured testing at Fort Detrick, the Virology lab of the U.S. at UTMB, and MD Anderson. All prestigious labs at the top of their field. Yet, despite the fact that Andrew made no promises or claims, that video was BANNED by YouTube. Here is our response that appears to have been throttled:
And, for good measure, here is the original video preserved on XOTV.me:
What I'm suggesting from this is that the progressive left, aided and supported by globalist/Marxist/terrorist organizations as well as the CCP (or is that redundant?) will do anything and everything possible to prevent a second Trump term. They are deathly afraid of the exposure of the Deep State cabal who truly did attempt to interfere in the 2016 election (and that goes all the way to the top) and then attempted a coup (the insurance policy) and pursued a doctored impeachment effort. Why? Because crimes against our constitutional republic would be exposed and people will go to jail if the Justice Department follows the breadcrumbs in a second Trump term. The gravy train of globalism would be shuttered and the lucrative path of selling out the United States for fun and profit ended. Not to mention exposure of human trafficking and a child sex ring operated by the late Jeffrey Epstein and his partner Ghislaine Maxwell that clearly implicates many of the rich and famous. But all of this will be covered up if Trump loses.
The bottom line is that it is in the interests of the Chinese Communist Party to stop Donald Trump and China has developed capability to interfere in the 2020 election. That should be 100% obvious to absolutely everyone. There is no doubt they would prefer Joe Biden who appears "bought and paid for" through shady deals provided to his son Hunter. Likewise, the BLM Marxists much prefer Biden. Of course you have to keep in mind that the BLM entity apparently doesn't care the much about Black Lives. They do care about political power and Marxism. And, of course, being black is defined as supporting Joe Biden. That's how a white BLM protester can claim to be "more black on the inside" than a first-generation immigrant from Nigeria.
The criminal democrat enterprises also must prevent a Trump second term as must the deep-state intelligence agencies who have been caught manipulating and deceiving the American people. Wait, didn't Chuck Schumer actually warn that the Deep-State IC would go after Trump? And, of course we have the human traffickers supported by leftist causes like Acorn, the abortion industry, and the globalists seeking total control. So what will they do to stop Trump? Actually, the real question should be, "What wouldn't they do?"
"This is to say that there is nothing in the world today that cannot become a weapon."
So What Else Might We Watch For? Look Out for a Possible Attack on the U.S. Dollar
Just a couple of months ago we were told that the dollar was invincible during COVID. China had plenty of problems and there was no stronger currency in the world. But that has not proven true to date. The dollar has weakened and may weaken more. You will see it in your grocery bill for sure and feel it at restaurants and retail stores (if you are fortunate enough to get out and about during the pandemic). There is no question that even with a contracting economy, our dollar isn't buying as much.
Currency experts are already forecasting that "dollar dominance will melt away," according to a Reuters report. That, in part, can be blamed on "the Fed's reckless experiment," buying up all the bonds they can find to prop-up the COVID-ravaged economy. Even troubled Deutsche Bank warms that the global demand for dollars is already waning. All of this sets the stage for this from Bloomberg last month:
Now wonder famed economist Stephen Roach warns that "a dollar crash is virtually inevitable" according to CNBC. He predicts a 35% drop against other major currencies., saying "problems will go from bad to worse" on June 8th in an Op-Ed:
The era of the U.S. dollar's "exorbitant privilege" as the world's primary reserve currency is coming to an end. Then French Finance Minister Valery Giscard d'Estaing coined that phrase in the 1960s largely out of frustration, bemoaning a U.S. that drew freely on the rest of the world to support its over-extended standard of living. For almost 60 years, the world complained but did nothing about it. Those days are over.
Already stressed by the impact of the Covid-19 pandemic, U.S. living standards are about to be squeezed as never before. At the same time, the world is having serious doubts about the once widely accepted presumption of American exceptionalism. Currencies set the equilibrium between these two forces — domestic economic fundamentals and foreign perceptions of a nation's strength or weakness. The balance is shifting, and a crash in the dollar could well be in the offing.
Forbes even speculated that "China could force Donald Trump to Destroy the U.S. Banking System." According to the Financial Times, this would force us into a "post-dollar world." If that weren't bad enough, a stock market crash (which is clearly in China's warfare doctrine) could trigger a dollar collapse. The Hill described this as "echoes of Suez, 1956" where China would shove the U.S. aside to take global leadership.
By the way, did you see the U.S. GDP report today? Shocking, down by 33%! Worst contraction ever for a single quarter, yet better than expected? The Chinese Coronavirus (aka COVID-19) is unquestionably the greatest economic weapon ever unleashed on the planet. And yes, creating a virus to cripple an enemy nation's economy is absolutely Unrestricted Warfare. While it seems likely the lab release of COVID-19 was accidental given the way things happened, the creation of it seems intentional and the response to it was clearly premeditated. It is a fact that China limited travel from Wuhan within China while encouraging foreign travel. Likewise, it is a fact that China failed to contain the virus, delayed reporting the existence of the virus, hid the truth of human to human transmission (and used the WHO to lie about it), scooped up all the Personal Protection Equipment (PPE) before the world knew it was needed, provided faulty PPE to a hurting planet, attempted to hack the IP of proposed treatments, and blamed everyone but themselves.
Thus, if you would allow a bioweapon that would kill 150,000 Americans and countless around the world, is anything off limits? Likewise, if you would use a pandemic as an opportunity to unleash (or support) a Marxist insurgency with street riots, is anything off limits? Or if you would politicize treatments so that as many as 100,000 people die unnecessarily, is anything off limits?
Here's the scary part! Unrestricted Warfare calls this the "combination method." It's like a Cloward-Piven strategy designed to overwhelm the system on a global scale and we are seeing it operationalized today. And that brings me back to the main point. We should expect to see a manmade financial attack or even a series of them. We have warned about the very severe risk of a "single manmade stock market crash," as outlined in Unrestricted Warfare. It is very clear that a market crash can determine an election outcome. And, we know that a crash can be engineered through hacking and/or manipulation of the high-frequency trading algorithms that dominate market activity. Thus, we have pushed hard for a restoration of the traditional Uptick Rule and a ban on any short selling unless the shares are properly borrowed in advance. But this is not the only financial attack possible.
What we have seen is that massive government spending and the Federal Reserve's provision of extraordinary liquidity has been able to keep the economy somewhat afloat and the stock market at surprisingly elevated levels. But therein lies the risk. We have watched our reported Federal debt explode due to 1) contracting tax revenues and 2) massive increases in government support via the Cares Act, Federal subsidies, and PPP loans. Here is a snapshot from USDebtClock.org:
All of this leads to legitimate questions about the status of the American dollar. And that is the point! The dollar is backed solely by the full faith and credit of the U.S. And that faith and credit has been eroded. Thus, when the dollar declines, observers will say that it should be expected. But consider this from an official house organ of the Chinese Communist Party, Qiushi Magazine (translated from Chinese). [BTW, you should read the whole article as it lays out the Unrestricted Warfare plan in detail including Economic Warfare, Financial Warfare, Military Exercises, Space Warfare, Attacking a Nearby Enemy, Befriending Distant Enemies, and the Public Opinion War.]:
Of course, to fight the U.S., we have to come up with key "weapons." What is the most powerful weapon China has today? It is our economic power, especially our foreign exchange reserves. The key is to use it well. If we use it well, it is a weapon; otherwise it may become a burden… Of course, the most important condition is still that China must have enough courage to challenge the U.S. currency….
Once the printed excess dollars cannot be sold, the depreciation of the dollar will accelerate and the impact on Americans wealth will be enormous. The U.S. will not be able to withstand this pressure and will curtail the printing of U.S. currency. The dollar will then appreciate. Most importantly, through this, China's foreign exchange reserves will no longer be "the meat of the Tang-dynasty monk" for the U.S. Instead, they will become a major economic force to constrain the U.S. The key to success is that China needs to have enough courage and determination to take the U.S. pressure. This is exactly what we need. It just shows how much the U.S. needs China. The more pressure we can take, the more successful this strategy. It will indicate that this "weapon" is highly effective and the U.S. will start to fear us…
The fact that the U.S. dollar is the world's reserve currency makes the U.S. a financial superpower. Currently, China's increased share in the International Monetary Fund and its increased voting rights are a very big step forward. The problem is not that the value of this share is expressed in U.S. dollars, but that it would be best if the share could be expressed in RMB. Therefore, for China to challenge the position of the U.S. dollar, it needs to take a path of internationalization and directly confront the U.S. dollar…
That was written in 2011. Two years later, it became the official policy of the Chinese government to "de-Americanize the world." They went on to say that this will require that they "de-dollarize the world." China claims COVID-19 will do just that. In other words, they desire to remove the dollar as the primary reserve currency of the world. If they succeed, it will be devastating to your life, livelihood, and way of life. Ending the dollar would effectively end America given our debt. We would become a third-world subservient nation unless we learned to live within our means. Think Venezuela in the worst case.
This does not mean China can pull it off. America is hopefully far too resilient for that. But would we be after the most progressive Administration in the history of America as Bernie Sanders promises regarding Joe Biden? What if Biden had the House and Senate? We would see a takeover of the Supreme Court, a massive tax increase, a Green New Deal, the loss of free speech, gun restrictions, limits on certain religious activity, implementation of Islamic teaching in public schools, and a whole host of other measures that clearly point to a Marxist America. That would be Joe Biden's America.
So what should we watch out for in the case of a dollar attack? Well for one thing, we would see a weaker dollar.
Then, we would see China attempting to undermine the Western financial system. Guess what, that very effort is ramping up now. China is warning other nations to avoid the Western SWIFT system so as to not be subject to the effects of American sanctions. This is precisely what we suggested on an Economic War Room program with Gal Luft from Israel. It is also what former Secretary of State John Kerry said would happen and then seemed to work to make it happen. And, the Chinese have built an alternative payments system (CIPS) far away from American influence. While at first glance it appears that CIPS is just in its infancy, we have no way of knowing if there is more substance hidden from our view.
While we cannot share specific sources, please know that there are very genuine reports from senior channels of the US Intelligence Community (IC) that "China has a long-term effort to undermine the U.S.-backed global payments system to undermine our economy and ability to impose sanctions." This is a widely regarded assessment across the IC. It is also a radical shift from the response I got when I first shared these concerns over a decade ago. Now, The Economist is reporting on it as almost reality. Are the Chinese winning in this respect? Certainly the BRICS nations have considered alignment.
We have heard that China has amassed an enormous pile of gold that may be far greater than official estimates. We have also been told of China's gold-backed digital currency with plans to use it to take world economic domination. So even if the Chinese yuan were not considered a viable dollar alternative, there may be interest in a gold-backed digital yuan. And, we know that China has seemingly undertaken efforts to fraudulently expand their gold holdings. Keep in mind that it's possible to fake gold holdings if their primary purpose is to sit in a vault and shine.
This is an issue of extreme importance. There is some hope, however, as I will explain in my next blog. In fact, I will lay out precisely the steps we can and should take to avoid a dollar catastrophe. We can win the economic war with China if we act now and do the right thing. Stay Tuned.