Is The US Military Preparing For The Collapse Of The Dollar?

39 Comments on "Is The US Military Preparing For The Collapse Of The Dollar?"

Davy, Hermann, MO on Tue, 22nd Apr 2014 9:36 am 



Same old same old dollar noise…collapse will be global if any critical node collapses so PPI’s here calm yourselves. There is no time to fully transition away from the dollar. There is not enough gold on two planets and or valuable physical assets to find safe haven in. No other major currency is ready nor is there a political will among the big economies. “ALL” big economies are in trouble now especially China and Russia (PPI’s take note). The current efforts away from the dollar are small and mainly revolve around bilateral trade deals i.e. a type of national barter system. The collapse of the dollar will happen when the global economy collapses and we all collapse together. This is likely in 10 years or less for global financial and global oil reasons. The dollar is too connected in a complex interconnected global world to unravel. There is no decoupling of the US economy from the global system and still have global BAU. The unintended consequences of an adverse move on the dollar is a serious financial correction and or collapse. This situation is much like the talk about BAU transitioning away from fossil fuels and still remaining status quo BAU…tain’t gonna happin.

p.s. PPI’s are – political propagandist ideologues

bobinget on Tue, 22nd Apr 2014 10:15 am 



I find scare tactics refreshing, like the smell of napalm in the morning.

Northwest Resident on Tue, 22nd Apr 2014 10:23 am 



When the dollar collapses, the global economy collapses. No nation will be able to stand safely on their economic island while watching the American economy burn.

It isn’t the big bad dollar collapse that the military is preparing for so much as it is energy and food shortages, climate change disasters and general collapse of BAU. The military, the NSA and all defense/security-related entities are most definitely preparing for all of that.

noobtube on Tue, 22nd Apr 2014 10:27 am 



Never in human history has the collapse of one empire brought down all socieities and civilizations.

But, I suppose, this time is different.

J-Gav on Tue, 22nd Apr 2014 10:51 am 



The Roman Empire took quite a few societies with it when it went down, Noob. But Okay, not ALL societies. The Dark Ages that followed may not even been as dark as some history books make them out to be either, but many places were definitely not much fun to live in.

Yes NW. The first thing the National Security State is preparing for is civil society collapse, the unravelling of law and order. When enough people’s nest eggs, which they took a lifetime to build up, get stolen out from under them, things could turn downright nasty.

Northwest Resident on Tue, 22nd Apr 2014 11:07 am 



noobtube — Never in human history has the economy been so global and so technologically interconnected in scale. You suppose correctly — this time IS different.

J-Gav — Combine people’s stolen nest eggs with rapidly rising food prices and things most definitely will get downright nasty, and that seems to be putting in mildly… THAT is what the military and law enforcement and security forces are planning for.

GregT on Tue, 22nd Apr 2014 11:11 am 



The so-called economy, is a direct result of excess energy. As that excess energy becomes more expensive, and less available, our societies will become much less complex, and our economies will crumble. The societies that will be affected the most, are the ones that rely the most on excess energy inputs, and their associated economies. The less dependant a society is on excess energy inputs, the less the impact will be, as those inputs continue to become more expensive, and less available.

When the dollar finally collapses, economies will be decimated around the world. Those societies that are not dependant on these economies, will be in the best positions going forward. Live local, live with less, and learn how to become self sustainable. Wean yourself off of the economy, before the economy dies, and leaves you on your own.

clueless on Tue, 22nd Apr 2014 11:29 am 



What makes all of you think that we will all go down when the US finally sinks? Think again. NEVER in human history. Period.

Northwest Resident on Tue, 22nd Apr 2014 11:35 am 



clueless — If you’re living someplace where there is no electricity and little to no usage of fossil fuels, and you’re scratching a living from the land in the same way that pre-industrial people did, then you probably won’t be much affected by a global economy collapse. But if you use fossil fuels (gasoline, NG< etc..) to power any aspect of your life, then when America/Global Economy crashes and burns, you will be significantly impacted.

Never before has the global economy been so interconnected AND so commonly dependent on fossil fuel energy. NEVER. Period.

noobtube on Tue, 22nd Apr 2014 11:57 am 



Couldn’t any empire extol the differences of why it was different for their time?

If anything, when empire falls, it relives the tremendous pressure on everyone else to feed that empire.

After the Greeks, the Carthaginians and Romans were ready.

After the Romans, the Byzantines, Gauls, and Goths were ready.

After the British, the Russians and Americans were ready.

But, like I said, Americans think it will be different this time.

GregT on Tue, 22nd Apr 2014 12:13 pm 



noob,

It will be very different this time. Modern industrial society is coming to an end.

Davey on Tue, 22nd Apr 2014 12:52 pm 



Noob I echo Greg and add all of our locals rely on the global. I know you dispise the so called American empire but the Global now supercedes the old “Pax Americana”. We are truely helpless as a world population for what has developed though energy intensity, technology, and Market based trade. It was once a benefit but it is now our collective curse.

baptised on Tue, 22nd Apr 2014 12:56 pm 



They have been preparing since 911.The terrible part is, the same military that is taking away freedoms “for your safety”, will turn on the general population when told to, for a little food and shelter. Just look at how WW1 veterans
where shot on the white house lawn by military. When they complained a little too long for not getting what was promised them.

noobtube on Tue, 22nd Apr 2014 1:17 pm 



American Exceptionalism on display on PeakOil.com.

ghung on Tue, 22nd Apr 2014 1:29 pm 



Yeah, noob, nothing exceptional about the millions of tonnes of grain the US exports to over 100 countries; just reality. Exceptional will be the number of folks who starve when those exports stop. Not to worry though; they’ll think of something.

GregT on Tue, 22nd Apr 2014 2:10 pm 



Sorry noob,

I’m not American, but that doesn’t stop me from understanding what the collapse of the Empire will mean for globalization, and modern industrial society. No American exceptionalism here.

Arthur on Tue, 22nd Apr 2014 2:25 pm 



The Roman Empire took quite a few societies with it when it went down, Noob.

The British empire, the largest in recorded history, went down in a decade or two, which was bad for Britain, but for nobody else in particular.

The Soviet empire went down in less than a decade, which was good for everybody, except the former-Soviet citizens (in the short term). In the long term it was good, even for the Russians.

Collapsing is something you do on your own, just like dying.

Pacman on Tue, 22nd Apr 2014 2:34 pm 



Does anyone else see the collapse bringing an end of sexual equality in the west. As wasteful consumerism dies and manual labour becomes more important again ?

ghung on Tue, 22nd Apr 2014 2:40 pm 



Gosh, Arthur, I have to disagree. When Rome pulled out of its peripheral Empire, many areas fell into chaos, disrupting what were stable societies, sometimes for centuries. Many post-British Empire societies went the same way, with civil wars, etc. being quite common. The USSR? Yugoslavia became the home to numerous mass graves as those folks sorted things out. Somalia certainly didn’t improve much after the British and Italians left those folks to their own fates.

I’m certainly not for imperial occupation and rule of nations and societies, but decline-of-empire is generally disruptive for all concerned. I expect that the decline of the US Empire will be no different as struggles to fill political and economic vacuums ensue.

Davey on Tue, 22nd Apr 2014 3:13 pm 



Art it is different this time and in my opinion there is no American empire. It ended when “W” invaded Iraq and Afghanistan politically and economically in 2008. Currently it is a multipolar political world and a complex interconnected global economy. I would not say there is much advantage for the US to have a large military and reserve currency. With limits of growth for all economies having a smaller footprint is advantageous. It is much easier to tackle problems if you are smallish then biggish. The US has multiple issue that prevent it from enjoying empire status. The big footprint the US has is more of a liability now in the end days of BAU. Sure there are some fringe benefits but those are mainly for the 1%er’s.

Arthur on Tue, 22nd Apr 2014 3:14 pm 



Gosh, Arthur, I have to disagree. When Rome pulled out of its peripheral Empire, many areas fell into chaos, disrupting what were stable societies, sometimes for centuries. Many post-British Empire societies went the same way, with civil wars, etc. being quite common. The USSR? Yugoslavia became the home to numerous mass graves as those folks sorted things out. Somalia certainly didn’t improve much after the British and Italians left those folks to their own fates.

We don’t disagree. The empire itself could descend into chaos, but entities that were not part of the empire not so much. I don’t see why Russia and China would be hurt much. You could say that Europe is part of the empire, at least politically, but it has been emancipating itself a lot since the creation of the EU and euro. Another important sign of political emancipation was the refusal to participate to the Iraq invasion, a very wise move. And it is doubtful that the US/NATO will be able to drive a wedge between Russia and the EU over the Ukraine.

And yes, others will try to fill the vacuum:

– Turkey and Iran will fight over the Middle East, like Britain and France did over Africa, a century ago. KSA will be history, and probably Syria and Iraq as well. The entire Gulf will become Iranian.
– Russia and Europe will grow closer
– A divide will emerge between EU-Russia and China
– China will take Taiwan and intimidate Japan into submission
– The US will fall apart along racial lines. Euro-America will become inward-looking and largely retreat from world politics, but still allied to Europe.

Davey on Tue, 22nd Apr 2014 3:20 pm 



Pac, IMHO, yes women, old, young, and minorities are going to be set back significantly. Women will especially see a return to the home and family. This may not be such a bad thing. Families and home economics are horrible currently and are very much in need of stability that comes with a female at home. Yet, females have proven their worth and abilities so they will remain where they are the most effective. A significant amount of men will be in the fields working and not in an office.

Arthur on Tue, 22nd Apr 2014 3:21 pm 



More or less agree with Davy, except for this one:

I would not say there is much advantage for the US to have a large military and reserve currency

The dollar is quite a ‘free lunch’, that is going to be missed dearly and could be responsible for 20-30% of the US wealth. After the dollar crash, import products will need to be earned via home made products.

Arthur on Tue, 22nd Apr 2014 3:24 pm 



Women will especially see a return to the home and family. This may not be such a bad thing.

Shares of the company “Women’s Lib” are in for a nose dive.

DC on Tue, 22nd Apr 2014 3:56 pm 



The u$ military can ‘prepare’ all it likes, but when the dollar goes-so does the u$ military. Its tanks, jets and fragile warships will sail home, get parked, and start rusting away. There will be no funds or resources to support a trillion dollar + war machine. Spare parts for all but the simplest of machines will not be available, and the ‘average’ u$ serf-solider, ill-disciplined and indifferently educated at the best of times(ie today), will not take it very well when they learn their already paltry pay wont be forthcoming, or it if does-wont support them or their dependants at all.

The current Russian Federation military is about 1/5th the size and has a far lower budget than the old SU did. But the uS will be in no position to maintain even that. Russia still has vast resources, both material and energy to afford its pared down, but effective military, the uS-not so much. A dollar-less u$ military will be hard pressed to fund maintaining law and order in the ‘homeland’. They can forget about oppressing and terrorizing the world like they do now once the dollar has as much purchasing power as say,the Indian Rupee.

After the mass desertions are over-most of the thugs of the ‘former’ Us military, will likely up in the service of providing protection for the corporate over-classes property and people. IoW, they will end up working for the same people they do now-just under new contracts and terms….

Davey on Tue, 22nd Apr 2014 4:38 pm 



You are awful optimistic about The russian military’s future and harsh on the US Deec. I am sorry Deec looks like exaggeration to me. If you divide what you posted by pi then it sounds more realistic.

Makati1 on Tue, 22nd Apr 2014 9:18 pm 



WOW! Hot spot seems to be the collapse of the petrodollar not being possible without taking down the rest of the world. NOT so.

In a few more years the dollar will be displaced as the method of trade in most of the world outside the West. You know, where the other 6 billion people live.

The displacement may be slow but it is already gaining speed and the Ukrainian foolishness is pushing many countries into non-dollar use faster than it may have happened without the threats of ‘sanctions’ from the dying empire. A few years may see an alternate to the BIS, the WB and the IMF if the BRICS get their way.

So,the dollar may not collapse, but it will be relegated to 3rd world banana republic status.

Jimmy on Tue, 22nd Apr 2014 11:02 pm 



I watched the full length doc. It’s tripe. Capitalism (true capitalism!!! Not this Obama shit!!!!!!) will save us is the long and short of it’s message. And oh yeah, buy gold, they push that pretty hard too. Personally if USA goes the way of the Balkans I’d rather have plenty of lead and copper. If you know what I’m saying 😉

MKohnen on Wed, 23rd Apr 2014 1:01 am 



Oddly enough, I think the US will engineer the collapse of the petrodollar. As many have pointed out, the economies of this planet are highly interconnected, yet the US seems to think it can cripple or destroy some of the larger economies without being affected: most specifically, Russia’s. And soon we will have the Chinese dragon rearing its head again in the South China sea. With the air of desperation that Washington has been demonstrating lately, they seem to be itching to start a war, especially an economic one. Is it because they are afraid of what will happen in a few short years when the “fracking lie” is exposed? I would guess so. They know time is running out and that the US isn’t nearly as “almost energy independent” as the public has been lead to believe. Of course, that leaves Russia and China with a huge advantage over the US, since they are much closer to large oil supplies than the US is. It is at that point, when the oil is actually starting to run out, that China and Russia can use military means to keep America out of Eurasia and Africa. I have no doubt the US government is a long way ahead of me on this, and that is why they are the ones likely to tip the global economic apple-cart, thereby ending the hegemony of the petrodollar.

simonr on Wed, 23rd Apr 2014 1:44 am 



Quick Question about the petrodollar.

To trade in oil from currency XXX the price of oil is set in dollars, but the seller may have currency YYY so when the trade takes place surely the program (Computer) simply sais

Price to buy oil in XXX = (amount of oil * Cost of oil in dollars) * Xrate USD to XXX

Money TFR’d to Seller = (amount of oil * Cost of oil in dollars) * Xrate USD to YYY

and as always a bank is the intermediary, thus no actual dollars are traded, is this not how it is done ?

DC on Wed, 23rd Apr 2014 2:58 am 



Yes and no simon. Because the entire world needs oil, and oil is only traded in dollars, ALL nations, big or small, strong or weak, are required to maintain large reserves of USD’s(that they need in order to buy oil. This artificially inflates the ‘demand’ for USD making the dollar appear much more desirable than would ordinarily be the case. All transactions must be conducted in USD. They can buy USD with there own currency-which they do-and then turn around to buy oil with, which further increases ‘demand’ for dollars. And who prints dollars?-the uS of course. Are there any limits or restrictions on how many petro-dollars the u$ can print(to ‘buy’ oil with? Sure, self imposed ones, but we know how tough those are..

In reality, what is happening is, the uS is technically not even paying for oil-under the petro-dollar syystem the uS basically gets its imported oil for free. A literal money tree by any other defination. Of course the uS expends ‘resources’ to maintain this state of affairs-it couldnt be otherwise, but its a pretty sweet deal. In fact, its the ultimate free lunch. As long as your the one printing the lunch money of course. Which helps explain why being a currency hegeomon is something is such a big deal. Nor is it any coincidence that oil transactions themselves are routed though commodity exchanges in NY and London-only. And they only deal again, in USDs. Not the currency of the customers chosing.

Full explanation here

http://ftmdaily.com/preparing-for-the-collapse-of-the-petrodollar-part-2/

Makati1 on Wed, 23rd Apr 2014 3:03 am 



simonr, I think you are correct. At every transaction the Western banks take their cut. THAT is why the petrodollar is so important. When the East has a system that cuts out the western banks, the West will fall.

MKohnen, we seem to see the same thing. The uS seems hell bent to force Russia and China and the rest of the nonwest countries to dump dollars and build a new system that cute the West out of the loop.

Makati1 on Wed, 23rd Apr 2014 3:03 am 



simonr, I think you are correct. At every transaction the Western banks take their cut. THAT is why the petrodollar is so important. When the East has a system that cuts out the western banks, the West will fall.

MKohnen, we seem to see the same thing. The uS seems hell bent to force Russia and China and the rest of the nonwest countries to dump dollars and build a new system that cuts the West out of the loop.

simonr on Wed, 23rd Apr 2014 3:18 am 



Makati, or …. the eastern banks just muscle in and they take a cut.

Plus Ca Change

Davy, Hermann, MO on Wed, 23rd Apr 2014 5:37 am 



Look Deec, nothing free in this world except you first drink of mom’s milk! Your explanation is way off the true mark. There is a great expense to having a reserve currency and that is all the problems we see in the US with unnatural growth and its related dysfunctions. If the idiot reset of the world would not have nearly destroyed themselves the US would never have ended up being so dominant.

MK, yes and no, on the US engineering the collapse of the petrodollar. I see no evidence the US is engineering anything except a thorn in Russia’s side and a desperate attempt to control the last vestiges of a once dominant position for a few US elite. The complex interconnected global world is contracting. I see no advantage to any economy in this situation. We will see food insecurity especially in China and other countries in severe overshoot with overpopulation. China will come unglued when it can’t feed its people especially if it becomes an adversary of the US that supplies a significant portion of its basic food supply. Russia is a banana republic with little industrial capacity to support its resource industry or any other industry for that matter. It is a country in social decay nothing special there to weather a collapse. Of course the US, Europe, and other developed countries will greatly suffer with an end to a technical industrial economy. Basically these societies will begin to grind to a halt without complexity. “ALL” societies have a comparative disadvantage and “ALL” societies have a similar situation of requiring the support of the global to supply the local. So, you PPI’s here always looking to bash the US are just looking past the reality of the situation to find your goal of demise of the US and hoping for a new party to step up and be the great one. When contraction and or collapse happens it will be global and all inclusive. Food insecurity will hit most every nation and the nations that fare better will have to fend off the hungry migrating masses. There will be no winners. I might add PPI’s here bashing the US, it takes two to tango and your poster girls need deodorant too. They are generally filthy with human rights violations, corruption and inequality. I see no inspiration for any other country in the world. The global world is corrupt and should fail.

MKohnen on Wed, 23rd Apr 2014 2:14 pm 



Davy,

The fact that you don’t see evidence that the US is engineering anything is astounding to say the least. One must compliment you on your fanatic nationalism. But it is my experience that many Americans (and yes, that does include a lot of my fellow Canadians) are the same.

I do not champion any country. As far as I am concerned, all present governments are inherently corrupt and fail abysmally to represent the needs of their people, both present and future. I totally agree with you that all societies will suffer during the coming depletions, it’s just a matter of timing as to whom suffers first.

My heart holds extra enmity for the US, though, but I guess that’s just because of how I grew up. As a child, I believed that the US was the greatest nation on earth, and was the standard bearer for human rights and decency. I was so enamored with NASA that I could have been described as fanatical. But as the leader into a brighter and more enlightened future, the US couldn’t have dropped the ball more spectacularly. By the time Bush Jr. came along, the record was already bad. But the Bush years have convinced much of the rest of the world that the US is one of the most morally corrupt nations on earth. As for not engineering anything, you must be kidding!?! You did catch Colin Powell’s dog-and-pony show at the UN, didn’t you? Considering that it was all lies, what would you call it? Naivety? Try telling anyone who isn’t blinded by nationalism that the US isn’t trying to find a pretext with which to destroy Iran. And now it seems that Russia is on that list, too. Unfortunately, it is just this kind of blatant engineering that will hasten, and thereby harshen, all the effects of peak-everything.

J-Gav on Wed, 23rd Apr 2014 3:12 pm 



Clueless (aptly named in this post) : I’m certainly not saying, nor have I ever, nor have the vast majority of posters on this site, suggested that an unravelling of the American Empire necessarily means the end of the world. That could happen, of course, if things went nuclear; if climate change continues unabated; if Western grids go down for whatever reason, unleashing all the nuke waste, etc. But it isn’t a question of everything hinging purely on North America’s future.

Davey on Wed, 23rd Apr 2014 4:29 pm 



MK, it is too bad you are still caught up in enmity and resentment for the US . Some of that is fair and a good deal I hear on this site is just cry babies looking like kids do for someone to blame. I really tire of political propagandist idealogues here who champion Russia, China, and Iran among others. These are just as dismal as the US in their own way. This blame and complain attitude is precisely why there is little hope for this world

Now MK, unlike you and others here I will criticize my country. My meaning on the US not engineering anything is not defense it is criticism. I am saying at this point the US leadership is totally inept and impotent politically for reasons of political party paralysis and poor understanding of the new world order. We are in a new reality now that is multipolar, complex, and global. What scares me is the still significant US latent military and financial power that could harm everyone with poor choices. Lately that is all we are getting from the US elite.

Now the rest of the political world is no better. My point is it is the US that is the elephant in the room

MKohnen on Wed, 23rd Apr 2014 10:16 pm 



Davey,

I couldn’t agree more about Russia, China, Iran, Venezuela, North Korea, etc., etc., etc. And yes, my criticism also whole-heartedly includes Canada (I’m not quite sure what would make you think I was at all hesitant to blame my own country.) I also agree that the US is the elephant in the room, but at this point, given the current political environment, it is hardly the only protagonist. In a dream world, the countries of the UN would pull together to figure a way out of the mess we are in. In reality, there are no real leaders and unless the peoples of the nations can figure out a way, no one will. How the people accomplish this is beyond me.