My clever friend told me yesterday that 86% of all USA dollars ever printed were done so in the last 3 years . That caught me in my track and I found that the first USA dollar was printed 160 years ago in 1862 under Abraham Lincoln . Ok , over three quarters of all dollars printed in the last three years than the previous 157 years.
In my blog October 2021 ‘ The Pound takes a Pounding ‘ I sighted the weakening pound then 1.36 to the dollar. Since then it’s fallen 8.8% to 1.24. In my blog March 2022 ‘ Number Crunching ‘ I spoke of rising interest rates and since then we have seen an increase. Raising interest rates is we are told a tool to control inflation officially 9% more likely 15%.
In 1921 the Weimar Republic sought to repay their debt post WW1 ( then $33b). Their German mark was 4 to the dollar and by the process of printing money ( QE ) by December 1922 you needed 7,400 marks to buy a USA dollar. In 1923 you needed 4,210,500,000,000 marks to buy one dollar. In short a purse or wallet was redundant, one needed a wheelbarrow to move the money.
How long can you go on printing money ? The Western Governments could in the FIAT economies allow everyone to print money in their garden shed at home, close to the wheelbarrow in ultra efficient planning. How does this all end ? Usually in War which is now going on in Ukraine, could spread and all look terminal. Russia must finish the war worse off and they don’t have a FIAT economy. If China do assist them economically it will come at a price. Who really wins wars ?
The reality is there’s a lot happening and fast which is why some of the greatest brains can’t see the solutions to what we are facing. History does tell us and the clue to solve might be in realising that a new system will evolve. The Bible says that in the last days we will be neither to buy nor sell anything without the so called ‘ mark of the beast ‘ . What is that mark ? Some pundits thought it was the barcode, some see it as the contactless card or soon coming wave.,Chip impregnating could start ( it has already ) but the model must get based on something of substance. Bitcoin won’t do it, then what ?This is the question as the VIX ( fear index ) races ever higher. Something is coming down the line and we should lookout. Meantime look out for the wheelbarrows in your street.
Meantime it’s difficult to see the dollar failing whilst other currencies ( pound included ) fade. For the short term be with Uncle Sam , the printing presses are on pause and America still accounts for 60% of the global economy. They do have wheelbarrows in America though and situations as always can change quickly often overnight and usually unexpectedly. We are in deep transition , it’s exciting and I’m looking forward with an understanding of having looked back. Life is lived forwards and understood backwards ( just like the wheelbarrow).
qbitblogger 