According to John Maudlin, the U.S. dollar is “going to get a lot stronger than anyone can imagine.”
Mauldin believes the dollar is going to keep rising and “get a lot stronger than anyone can imagine.” He says, “We are going to be trading stronger against nearly every currency.“
Which currencies might the dollar be weaker against? Hmmm, maybe this one:
It has gathered its fortune through the tools of modern finance, but now Islamic State (Isis) aims to mint its own coins.
The move is reportedly the brain child of the Isis leader, Abu Bakr al-Baghdadi, who has personally overseen the design of gold, silver and copper coins of the Islamic dinar to be used in his self-declared caliphate – as soon as the terror group can locate a mint and enough precious metals.
Isis has released designs of the coins and a breakdown of denominations. It claims the currency will free Muslims from a financial order that has “enslaved and impoverished” them. But it isn’t totally eschewing the mainstream economy, acknowledging that each coin’s worth will reflect the metal’s value on commodities markets.
Gold will have two denominations, silver three and copper two. With the Isis caliphate not recognised anywhere in the world, the currency will have no value outside the swath of eastern Syria, and western and central Iraq under its control.
The only real problem is that you will be labeled a terrorist if you try to
invest in gold this way buy these from ISIS. After all, you would be funding terrorists, unlike the U.S. government.
Not long after this meeting, Saddam Hussein began preparing to make the switch from pricing his country’s oil exports in greenbacks to euros.
***By 2002, Saddam had fully converted to a petroeuro – in essence, dumping the dollar.On March 19, 2003, George W. Bush announced the commencement of a full scale invasion of Iraq.According to Clark and Engdahl, Saddam’s bold threat to the petrodollar system had invited the full force and fury of the U.S. military onto his front lawn.*
The U.S. invaded Iraq. Saddam Hussein is dead.
Yet even before armed conflict drove the U.S. companies out of Libya this year, their relations with Gaddafi had soured. The Libyan leader demanded tough contract terms. He sought big bonus payments up front. Moreover, upset that he was not getting more U.S. government respect and recognition for his earlier concessions, he pressured the oil companies to influence U.S. policies. . . .
Gaddafi has progressively impeded the interests of U.S. and Western oil companies by demanding a greater share of profits and other concessions, to the point where some of those corporations were deciding that it may no longer be profitable or worthwhile to drill for oil there.
Instead, what distinguished Gaddafi and made him a war target was that he had become insufficiently compliant — an unreliable and unstable servant to the West.
Some believe it is about protecting civilians, others say it is about oil, but some are convinced intervention in Libya is all about Gaddafi’s plan to introduce the gold dinar, a single African currency made from gold, a true sharing of the wealth.
“It’s one of these things that you have to plan almost in secret, because as soon as you say you’re going to change over from the dollar to something else, you’re going to be targeted,” says Ministry of Peace founder Dr James Thring. “There were two conferences on this, in 1986 and 2000, organized by Gaddafi. Everybody was interested, most countries in Africa were keen.”
Gaddafi did not give up. In the months leading up to the military intervention, he called on African and Muslim nations to join together to create this new currency that would rival the dollar and euro. They would sell oil and other resources around the world only for gold dinars.
Then the Arab Spring happened. Muammar Gaddafi is dead.
Now ISIS is doing the same thing. Only this time, there is no country to invade and no leader to kill. ISIS is now going to issue a gold-backed currency. This is the exact scenario envisioned by Jim Rickards in Currency Wars, except that it was Russia that created a gold-backed currency to destroy the dollar.
So the dollar, backed by nothing, is going to get stronger even as our foes create alternative currencies that are backed by something valuable (gold and silver). Unlike Ben Kenobi, the dollar won’t be coming back to give us advice on how to beat Darth Vader.