(RepublicanNews.org) – A well-known investment banker, lawyer, and advisor to the Department of Defense says the current world order is on the precipice of a financial cataclysm. James Rickards bases his analysis on mathematics and history and says the U.S. dollar is nearing the end of its life cycle.
Rickards says that global monetary systems historically change every three to four decades. This, and the fact that the dollar has held its status for over 50 years as the world’s reserve currency, means it is long overdue for a replacement. He says the situation has been exacerbated by the dollar being maintained as a fiat currency backed by nothing.
In 1971, President Richard Nixon took the United States off the gold standard in an effort to tame already-rising inflation. Inflation has continued to climb despite his actions.
Rickards says that “the unprecedented sanctions” imposed on Russia after they invaded Ukraine have “accelerated” their desire to move away from the already-unstable dollar and toward a new currency that can’t be controlled by the United States.
Russia is among the BRICS nations, and the group has been openly contemplating a new gold-backed currency that would replace their dependency on dollars for many years. The five-nation power will meet in South Africa later this month to vote on new memberships and discuss a successor or challenger to the dollar.
Rickards refers to these fluid events as “currency wars” and says that over the past century, there have been a total of three of these types of conflicts. The first came during World War I, the second followed during World War II, and the third will likely cause World War III.
Precedents from history are “sobering enough,” he says, but the complex “financial linkages” between countries in today’s world mean that potential danger is “exponentially increased.” The investor says that things are “about to heat up.”
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