Will the U.S. Start WWIII?

[courtesy Google Images]

Holter Report

“I have read an unconfirmed report that 139 of the world’s nations are already in agreement to abandon the dollar. . . .

“I personally believe that this is very probable . . . a complete “break” away from the U.S. and western financial systems is perfectly logical leading into some sort of reset.  I believe that the reset will occur without any input or guidelines from the U.S.  In my opinion, the “reset” will be imposed on the U.S. . . .

“The danger is that the U.S. ends up ‘kicking the table over . . . [causing a] WWIII.  Make no mistake, World War III has already started in many forms, especially trade and finance.

“. . . I think the most likely scenario is a global war and one that is started by the U.S.  The U.S. is not going to go down quietly, lose power and become a 3rd world nation without kicking and screaming.”

I agree that a global currency reset might reduce the US to the status of a 3^rd World Country.

However, I disagree with Mr. Holter’s contention that the US government will start WWIII to protect the value of the fiat dollar.

After all, with government’s assent and approval, the fiat dollar has lost 95% of its purchasing power since A.D. 1971. After allowing and even causing the loss of 95% of the dollar’s value, why would the government start WWIII to protect the remaining 5%?

It’s true that, after Saddam Hussein started selling Iraqi crude for euros in A.D. 2000, our gov-co invaded Iraq. But that invasion was not to protect the fiat dollar against devaluation. That invasion was to protect the “petro-dollar” and its status as “world reserve currency”. That invasion failed to achieve those objectives.

Today, all that’s left to defend is the fiat dollar’s perceived value. I doubt that our government has much interest in that defense.

•  Given that the NSA spies on all Americans, most people in the EU and certainly the leaders of the world’s governments, I doubt that 139 nations could “secretly” agree to dump the dollar without the US government finding out. If the US objected to the dollar being dumped, some or all of those 139 nations might suffer a number of assassinations before a “dollar reset” was “imposed” in the US.

But no outbreak of political assassinations has been observed.

Why? Because the past 40 years proves that the US government wants inflation (devaluation) and would like nothing better than an excuse to devalue the existing dollar by another 30%, 50% or maybe more.

Why? Because if the dollar is dramatically devalued, so is the national debt.

I.e., the “official” national debt is $17 trillion. If the dollar was suddenly devalued by 50%, the value or purchasing power of the national debt would also be devalued by 50%. Government would still be liable to repay a nominal “$17 trillion” to its creditors, but those dollars would only be worth half as much as they are today. The creditors would only receive about $8 trillion in purchasing power for the $17 trillion that they’d loaned to gov-co.

Given that the US government is the world’s biggest debtor, a global “reset” that devalued the dollar would reduce the government’s national debt by robbing government’s creditors and thereby help the US government,  .

•  Over $5 trillion of the $17 trillion national debt is owed to foreign creditors, some of whom must be among the 139 nations allegedly planning to dump the dollar.

The quintessential foreign creditor is China—which allegedly holds over $1 trillion in US debt. If there were a global “reset” that devalued the dollar by 50%, China would lose $500 billion in purchasing power.   Do you think China wants to dump and devalue the US dollar bad enough to take a $500 billion haircut?

I don’t.

So, who’s more likely to start WWIII? The US government—which would be enriched by a global reset? Or China—which would be robbed by a global reset?

This argument is only amplified if our real national debt is closer to $90 trillion (as claimed by John Williams at Shadowstats.com) or over $200 trillion (including unfunded liabilities) as claimed by the Congressional Budget Office.

Of course, if the US dollar were devalued by 50%, the America’s people and economy would be hurt. Many might suppose that in order to protect the people and economy, our overly-indebted government would fight to preserve the dollar’s value.

Again, I disagree.

When was the last time you saw the US government fight to do what was right for the American people—especially if doing so hurt the government?

I suspect our government would secretly cheer for a global reset that would reduce the value of dollars by 50% (or more) and thereby also reduce the national debt by 50% (or more).

I suspect that our government would like nothing better than to see 139 foreign nations “gang up” in the US and dump/devalue the dollar. If that happened, the US government could claim to blameless for whatever adverse economic consequences afflicted the American people.

For the US government, a global currency reset imposed by 139 foreign governments might be the best of all possible worlds. First, that global reset would allow the US government to rob its creditors. Second, that global reset would allow the US government to avoid taking the blame for devaluating the dollar.

(In fact, when I think about it, if there are 139 nations eager to dump and devalue the dollar—I’ll bet that “gang” may be secretly organized, encouraged and even controlled by the US government.)

•  As I’ve argued for years, “What can’t be paid, won’t be paid.” Anyone with an IQ over 90 who looks at the US national debt knows that it’s too big to ever be repaid in full. That means that the US must inevitably default on some or all the US national debt at some future date.

The only questions are:

When will that default take place? And,

Who will be blamed for the default?

We know that, no matter what happens, the US government will be responsible for devaluing the dollar. But who will be blamed? China? Russia? The EU? The “gang of 139”?

The reset is going to happen, and every American debtor will cheer when it does. Creditors will be robbed. Much of the capital needed to run our economy will disappear. Few people will understand or care.

But when will this inevitability occur and who—other than the U.S. gov-co—will be blamed?

We shall see.