The Dollar Approaches its Threshold of Lethality Tuesday, March 29, 2022

Alasdair Macleod, Michael Oliver & Patrick Highsmith are this week’s guests. Alasdair has recently pointed out that the Fed, the Bank of England and the Bank of Japan are now themselves becoming insolvent. As interest rates rise along with surging inflation, the massive debt they purchased to stimulate their economies is declining in value, resulting in negative net worth balance sheet positions. Insolvent central bank balance sheets began to emerge before Russia invaded the Ukraine. Now massive sanctions against Russia, keeping it from trading in dollars at a time when supply chain constraints are much, much greater than those created by COVID, threaten massive shortages of essential commodities on global markets, which in turn threaten prospects of dollar-denominated hyperinflation and still higher interest rates. President Biden talks of a New World Order with the U.S. leading it, but that may not be possible because creditor countries like China, not debtor nations like the U.S., end up as leaders when systems collapse. The U.S. has been running massive trade and fiscal deficits since 1971 and now the exponential direction of those deficits are blowing up the dollar-based system. Alasdair will discuss these dynamics as well as how gold may become a cornerstone of a new currency system. Owners of gold like Timberline Resources, which is in the process of making a significant gold discovery in Nevada, should be in a much stronger position than those who have put their faith in the Fed's dollar. Patrick will update us on Timberline’s exciting gold discovery, and Michael will provide his latest momentum and structural analysis for gold and other key markets.