Will The Almighty Dollar Disappear?

Let’s keep our heads about us when talking about de-dollarization. [The Rude Awakening] April 12, 2023 [WEBSITE]( | [UNSUBSCRIBE]( The Rude was ready to go on time. But our system inadvertently confused 7am with 7pm. Many apologies. Will The Almighty Dollar Disappear? - De-dollarization is a thing, but the USD won’t go quietly into the night. - Country mice and city mice are duking it out - same as it ever was. - Which dollar was “almighty” to begin with? [Urgent Notice From Paradigm CIO Zach Scheidt!]( [James Altucher]( Hi, Zach Scheidt here… I’m the Chief Income Officer at Paradigm Press. With inflation raging (and showing no signs of coming to an end any time soon), almost everyone in America is feeling the pain in a big way. Which is why, several months ago, I set out on a big mission… my goal was to create a [complete, step-by-step plan to surviving and beating inflation]( one that anyone could take advantage of. Today, after hundreds of hours of research, I’m revealing all of my findings. [Simply click here now to see how to survive America’s deadly inflation crisis](. [Click Here To Learn More]( [Sean Ring] SEAN RING Happy Hump Day from an overcast Asti! My good friend, colleague, and Head of Customer Experience, Dustin Weisbecker, sent over a chunky mailbag after yesterday’s “[Tuscany, The Uffizi, and the Amazing Blue Paint]( piece. I want to thank Sandy W., Myron H., Jim T., and Gordon F. for their kind words. I’m going to answer some of their questions in this Rude. Let’s get straight into it. The Almighty Dollar and Other Dollars Although we speak of the USD as “The Almighty Dollar,” according to Note 18 of George Macdonald Fraser’s Flashman and the Dragon, the phrase originated in the 19th century with respect to the Chinese dollar. That leads me quite nicely to Jim T.’s question: Jim Rickards and you frequently state alternative asset classes for consideration. Are there other alternate currencies that you recommend? How does one venture into other currencies, not even familiar with how one would do so other than going to an airport currency exchange? How would I open a bank account in another currency in another country? Jim T. (1 of 2) Jim, two ideas come to mind. You can “FX” into another currency using your USD if you have a brokerage account. The big caveat with this is that the currency you change into is not FDIC-insured in the US, nor will it be subject to deposit insurance in the other country. In a word, this method is “risky.” The other way to do it, and it’s far trickier these days, is to fly to the country of the currency you’d like to keep your deposits in. Then head to a local bank and make a deposit. Thanks to FATCA, this is ridiculously onerous for Americans, as the IRS can punish any bank worldwide by not allowing it to transact in USD. It’s a shame because I love Singapore Dollars. You may remember Pam and I met, married, and lived in Singapore for many years. We still have our bank accounts there and use them as cash savings vehicles. The SGD is one of my favorite currencies because Singapore is so small and vulnerable to capital flows that it can never be as prolifigate as, say, the United States with its monetary policy. The SGD isn’t risk-free, and it’s freely traded, but it’s as close to a sure thing as you can get. Unfortunately, the last time one of my friends tried to open a bank account as a foreigner, they asked for an SGD 200,000 (USD 150,000) deposit. This was in 2019. So if you’ve got that kind of spare cash, I’d first call one of the local SG banks (DBS, UOB, or OCBC) to see if they’d take your money. If they will, book a lovely three-day holiday on The Rock to sort it out. But indeed, there are other ways to accomplish this more cheaply in the Western Hemisphere. Country Mice Versus City Mice Kudos! Being 100% Sicilian, if the mafia could trace my lineage all the way back to the old country I’d like to see it. Does the animosity between the northern Italians and the southern Italians still exist over there? Would a Sicilian be welcome in Asti? Jim T. (2 of 2) Jim, I know a bunch of Sicilians up here. Many southern-born Italians come to Italy’s Industrial Triangle (Milan-Turin-Genoa) to work. There’s no animosity that I’ve seen or heard of. Of course, the same snobbery you see between the blue coastal “elites” and the red state red meat eaters in the US exists here. And it’s the same as Northern English blue-collar workers versus Southern English white-collar workers. Or the allegedly “thrifty” Northern Europeans versus the “spendthrift” Southern Europeans. But that animosity is rarely between individuals. Remember, Abe Lincoln imposed the USD on Americans in the 1860s. You can argue the USD is just like the EUR. Structurally flawed, but necessary to bring a polity together. And just like the messy EUR, the USD is getting ripped asunder by having different types of economies (blue US service/industrial versus red US agrarian versus international multi-users). I genuinely think if city people understood harvest cycles, we’d be a lot nicer to each other. By the way, to hedge USD risk, we like gold, silver, bitcoin (no shitcoins!), and farmland if you can outbid Bill Gates. I don’t like diamonds because soon they’ll be too easy to fabricate. And remember, Jim, you’ll always be welcome at the Ring Household in Asti. [Biden’s BIG LIE Could Devastate Millions]( [Click here to learn more]( For far too long Biden and the Dems have been LYING to you… But this time they’ve gone too far! [This despicable “SCAM”]( – perpetrated by the highest levels of government… Is a danger to you and every American citizen. That’s why today… [>>This Is Your Chance to Get Your Revenge!<<]( This is your BEST chance to stick it Biden and the Dems… And possibly making a fortune in the process. [Click here to learn the truth NOW](. [Click Here To Learn More]( Open Market Operations Sean, Interesting ideas today. I have wondered if/when the dollar tide reverses if the US govt would suddenly declare that dollars held outside their borders are not welcome. That is, if you hold dollars outside the US, it would not be considered good to buy goods inside the US. Or only at a discounted rate, kind of like the yuan inside vs outside of China. Gordon F. Thanks, Gordon. I’ve abbreviated your question, but I’ll give you a complete answer. Let’s assume the USG isn’t insane - tough, I know - but they can’t cancel dollars if they want any of its credibility to survive. First, it’s important to note that the CNY (onshore Chinese yuan) and the CNH (offshore Chinese yuan) are entirely different currencies with a 1:1 exchange ratio. From [Wise.com]( [pub] Credit: [Wise.com]( Second, if the USG (via the Fed) wants to manipulate the number of dollars in circulation, they use open market operations. And they do this every single day. If the Fed wants to decrease the dollars in the world, they sell US Treasuries (USTs) and take in dollars. That reduces the supply of dollars (loanable funds) and increases interest rates. If the Fed wants to increase the money supply, they buy USTs and pay with USD. This increases the supply of loanable funds and decreases interest rates. The Fed won’t declare USD outside the US as dollar non grata. Gordon, I’d be far more concerned with the USG ramping up taxes on ex-pats for the privilege of owning that blue passport. To me, that’s a far greater danger because there is no group inside the US representing US citizens outside the US. That’s why it was so easy for an idiotic piece of legislation like FATCA to get passed. That’s also why a second passport is so valuable. That said, I wouldn’t trade my US passport for an Ecuadorian one. But if you have ancestry, marriage, or investments that avail you of a powerful second passport, I’d get on that immediately. Wrap Up Thanks for writing in. It’s great to get mail and answer these crucial questions. Keep thinking, mulling over, and considering what’s happening in the world. Your mind will churn over possible answers and solutions that will work the best for you and your family. Not every solution is suitable for everyone. And that’s why casting a wide net is critical. Have a wonderful day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening In Case You Missed It… Tuscany, The Uffizi, and the Amazing Blue Paint [Sean Ring] SEAN RING Happy Tuesday from up north in Italy! I hope you enjoyed Byron’s and Zach’s columns as much as I did. They were a hoot to read, not to mention germane to all the conversations we’ve been having. Before I get into today's mess, I’ll show you some of the things we saw in Tuscany, though no camera can do any justice to seeing it live. To get your ball bearings, here’s a map of the places we went to in Tuscany: [SJN] We started in Florence, then went to San Gimignano, Volterra, Siena, and Montereggioni. Monteroni d’Arbia served as our local town for eating, gassing, and getting groceries. Before this trip, I thought Tuscany was a bit overrated—no more. The ethereal beauty of the landscape cured me of that misperception. [SJN] Tuscan Foothills Credit: Sean Ring There’s a reason why places like Tuscany and Provence (in France) have the reputations they do. I’ll sprint through the places we visited if you ever come this way. Then I’ll tell you about a really cool paint - not painting - I saw in the Uffizi. Florence Ah, Florence. It’s simply one of the world’s great cities. The Renaissance started there, where the Medicis financed it with their banche (banks). In those days, the “banks” were just benches the bankers would sit at with you to discuss the loan you needed. Pro tip: don’t go on Good Friday. Far from everyone staying home and the city being empty, Florence was packed to the gills. And we couldn’t get into the Uffizi until Monday with our tickets, so we’ll revisit Florence a bit later. [SJN] Florence’s Cathedral of Santa Maria del Fiore with Brunelleschi’s dome. Credit: Sean Ring San Gimignano San Gimi is known as the “Manhattan of the Middle Ages,” thanks to its soaring towers. Though many have fallen since then, quite a few remain. Like its counterpart Siena, the Black Death of 1347-1350 wiped out the city and its power. It’s worth going for a short visit, but we didn’t spend much time there. [pub] San Gimignano Credit: Sean Ring The surprise of the trip was Volterra. What a wonderful city, high up on a hill. It’s great to walk around and view the sites, but the best part was looking out over the Tuscan foothills from the top of the city. There’s breathtaking beauty in this part of the world. [pub] The Tuscan foothills from Volterra. Credit: Sean Ring [[CHART] Could Inflation Hit 20%+ In 2023?]( [Click here to learn more]( Take a close look at this scary chart pictured here… What you see is the money supply in America… And as you can see, the number of dollars in circulation has exploded in the last few years. In fact, more than 80% of all dollars to ever exist have been printed since just 2020 alone! Which is why some say inflation could soon explode even higher than it is now, to 20% or more. And if you’re at or near retirement age you must take action now to protect yourself… otherwise you risk losing everything. [Simply click here now to see how to survive America’s deadly inflation crisis](. [Click Here To Learn More]( Siena Another wonderful surprise, we thought it’d be a dead city like San Gimi. But it’s alive and bustling, with a gorgeous black and white cathedral and colossal piazza. We walked around for about four hours and could’ve done four more if we didn’t have other things to see. We were also lucky to attend Easter mass, as we wandering Catholics needed a temporary home! [SJN] Duomo di Siena Credit: Sean Ring Montereggioni This place is a hoot. When it comes to walled cities, perhaps France’s Carcassonne is the most famous. But we happened to drive past Montereggioni a few times and finally decided to enter. And boy, were we glad we did. Again, it’s a city frozen in time. But it boasted great restaurants, gelato, and city wall walking, something I hadn’t done since a trip to York in 2003. It’s absolutely worth seeing, if only to satisfy your inner knight! [SJN] The walled city of Montereggioni Credit: Sean Ring On our way back north on Monday, we stopped in Florence so Pam could finally experience the Uffizi. The Uffizi Gallery is where the last member of the family dynasty gifted the Medici collection of art. It’s one of the world’s great museums in a fantastic location. I hadn’t been there since 1997, so it was wonderful to be back. Of course, Pam loved it, and Micah was bored in five minutes. That’s how it goes, I suppose! But as I was walking through the galleries, I noticed something I hadn’t seen in a very long time. It’s the mysterious, alluring shade of blue that Renaissance artists used when they could, sparingly, for reasons I’ll get to. You’d know it when you see it because it’s a one-of-a-kind color. I stopped, smiled, and mouthed, “Lapis lazuli.” London, the Noughties The National Gallery in London once hosted a Titian exhibition. Titian was a Renaissance painter of the Venetian school. One of the points the exhibition made so clearly was Titian’s use of lapis lazuli in his paintings. [SJN] [The Rape of Europa by Titian]( That blue you see in The Rape of Europa is now called ultramarine blue. But back in the Renaissance, you couldn’t find this shade of blue for love or money. That’s because it was made from lapis lazuli, which was only known to come from Afghanistan then. Since then, deposits have been found in other parts of the world, but not nearly the same quantity. Lapis comes from the Latin “rock,” and lazuli descends from the Persian for “sky” or “heaven.” In essence, you had to be a wealthy artist or have a wealthy patron to get this shade of blue in your paintings. A more famous example may be The Girl With the Pearl Earring by Vermeer: [SJN] [The Girl With the Pearl Earring by Vermeer]( Her blue headwrap is painted with lapis lazuli. From Then To Now All I could think about while seeing this gorgeous blue was, “If they had problems paying for rocks then, imagine the problems we’ll have in this politically charged, increasingly split world.” It’s not a leap to think we’ll have problems importing the stuff we’ll need if we’re perpetually at war with people we need to trade with. This was the argument I made last year as everything was kicking off in Ukraine. Whether it’s Russia, China, or the rest of Asia, there are immense resources we need that they have. Vanadium, palladium, cobalt, potash, or nickel? We need all of these things. But they’re only abundant in Russia and Asia. And it seems that someone in the West has finally noticed. [French President Macron]( just signaled his intention to make the EU a “third superpower” independent of Washington and Beijing. That’s a bold move. He also said the West should stay out of Taiwan, which infuriated the Americans. There’s no sin in not wanting to be a vassal. Wrap Up I hope you enjoyed this whirlwind trip around Tuscany, the Uffizi, and the fantastic blue paint. The story continues to develop, and it’s imperative to watch. Continue to stay abreast of the situation. It’s a once-in-a-century change. Until tomorrow. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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