Why the Dollar Will Hyperinflate at Ludicrous Speed – RESERVE Currency in REVERSE | Rafi Farber

➡ Rafi Farber talks about the potential for rapid inflation of the U.S. dollar, which could impact all global currencies. The author suggests that if the U.S. dollar inflates, people will turn to tangible assets like precious metals. The article also explains that in countries experiencing inflation, citizens often hoard U.S. dollars to maintain some purchasing power. However, if the U.S. dollar inflates too quickly, this strategy won’t work, leading to a faster and more severe economic impact.

The hyperinflation of the dollar will be the true hyperinflation of every currency in the world. There will be no more rush to US dollars in these foreign countries. They will all rush into real money because there will be no other choice. Ludicrous speed. It sounds ludicrous. Hey guys, RAF here from the endgame investor. And today I wanted to focus on one specific issue, and that is, will the collapse of the dollar be slower or faster than the collapse of other currencies in other countries? In other hyperinflationary countries? And my contention is that once the hyperinflation begins in the US, it will be over very, very quickly.

It will not be drawn out for years as it is in countries like Argentina and Lebanon and Syria and Egypt and other countries that. I will show you examples of those in a minute. In the US, it will be much faster. Prepare ship for light speed. Light speed is too slow. Light speed too slow? Yes, we’re going to have to go right to ludicrous speed. And why is that? Well, the simple answer is that the mechanism that makes hyperinflations drawn out over years and even decades in some countries, like in Latin America, is what will speed up the hyperinflation in the US and make it extremely painful but extremely quick.

Ludicrous speed, go. And before we get into that, this video is brought to you by Miles Franklin, precious metals. If you’re interested in owning some real money before this thing goes down, then get over to Miles Franklin. Call eight five five game end or email endgameinvestor@milesfranklin. com and one of our guys will get in touch with you. The specials this week, and this is the first time I’ve seen a special like this is 90% 3965 silver coinage.

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And junk silver, in fact, is the first stacks that I bought twelve years ago. And the stackers and the retailers and the ETF chasers are not going to stay out of this rally for much longer. I don’t think you have a lot of time on these prices. So if you are meaning to start your stacks or add junk silver to them, which I think is practically the most important thing for during the end game, as opposed to after it, which gold would be more important? But during the end game, you need small denominations of silver in order to enable retail trade.

So call eight five five, game end or email endgameinvestor@milesfranklin. com and so why will a dollar hyperinflation happen a lot faster than hyperinflations of other currencies in other countries? Well, think about it this way. When a third world country hyperinflates, what do they do? What do its citizens do? They hoard US dollars. And by hoarding US dollars, they preserve some purchasing power for themselves. And trade basically goes on on a drip feed.

The economy is on a drip feed. People get slowly poorer and poorer quickly, but not hyper quickly. Wealth gets more and more drained as they become poorer and poorer and poorer. And they hoard more and more US dollars and dump more and more of their local currency that they’re paid in. But on the other side of this is the benefit that the US, the United States, especially United States dollar holders and people in the United States who use dollars for their everyday purchases and expenses, they get to export their inflation, or the Fed’s inflation, to those foreign countries that keep them on a drip feed and prevent the system from entirely imploding overnight.

This is exactly what is going on in Argentina. It is what is going on in Lebanon, in Syria, in Egypt, in Venezuela, in Iran. I’ll show you all these charts. It’s all the same thing. The first thing I want to show you is this table from the IMF, those wonderful people at the International Monetary Fund. We can thank them for all of the good that happens in the world.

We have here the kofir, the currency composition of official foreign exchange reserves. This is how many of each currency exists in the balance sheets of central banks that are not the Federal Reserve. And we see here that the US dollars, claims in US dollars are consistently at the top at $6. 5 trillion. This represents mostly US treasuries, treasury bills, treasury bonds, treasury notes, 6. 5 trillion out of a total of foreign exchange reserves of $11.

9 trillion. So this is what they call reserve currency status. The dollar is the currency that is the most in demand by foreign countries. And we see the second is the euro, then the renminbi, then the yen. But it gets really insignificant as you go down the chain after euros. There really isn’t much foreign currency in other central banks that are not in that home country. And you can see that the argentinian peso and the iranian real and the egyptian pound and all that stuff basically does not exist here.

Claims and other currencies, that’s all other global currencies is just $426,000,000,000 out of 11. 9 trillion. It’s insignificant. And so if we look at this graph first, we can see that the dollar peso exchange rate goes higher and higher and higher. But this is the statutory rate. This is the rate controlled legally by the argentinian central bank. It is not the black market rate. The black market, of course, is the real market.

And you see here, when Mile was elected, he devalued the official rate from 357 to now, 847. It is devaluing on a steady pace again here. And what is happening as the peso is devalued is that the dollar is hoarded more and more and more by the Argentinians who use it to preserve their savings, and then they exchange it back into pesos when they have to make a purchase.

And the peso loses value over time, faster and faster, but at a steady rate here. And so the US gets to export its inflation to Argentina, and that keeps it on a drip feet and alive. And we see here the same thing in Egypt. We see these like cusps, these sudden jumps in the exchange rate. And the reason for this is that, let’s say Egypt wants to maintain a certain exchange rate, or a statutory exchange rate with the dollar, and so they sell their foreign exchange reserves in order to strengthen the pound, but then they don’t have any foreign exchange, and so they can’t make payments for commodities internationally, they can’t import commodities, and their entire economy shuts down until they allow the exchange rate to decline over here or rise.

It depends on when you want to see it. And we saw here these happening successively in 2022, October 2022, another time in January 2023, and finally here from about 25 26 pounds per dollar to 48 pounds per dollar. And meanwhile, Egyptians do not use their currency, they use US dollars. They have to use their currency in local transactions, but they save what they can in US dollars. And that’s why the pound keeps getting worse and worse and worse, because the Egyptians are demanding dollars, they can still use dollars, and therefore the trade system, the monetary system, still is on a drip feed.

And that’s what makes the hyperinflation drawn out and excruciating and never ending. Same thing in Lebanon. We see these statutory rates breaking again and again and again, trying to maintain the exchange rate, but it not working, and then devaluing and then lebanese hoarding US dollars and their economy in shambles. But still there isn’t complete lawlessness near because they still have a basic monetary system out of drip feeds, thanks to supplies of black market US dollars, which are exported from the United States into Lebanon and keeping them on a drip feed.

Same thing in Syria we see here. They print money to plug up their fiscal deficits and then have to devalue the currency here. Once in 2020, another time in 2021, and finally here from 1775 pounds to the dollar to 13,000. And all of a sudden everybody is so much poor. But they need to do this in order to import more foreign exchange so they can pay for commodities so people don’t literally starve to death.

And there isn’t complete lawlessness in Lebanon. Same thing in Iran, same story here. They keep devaluing their currency relative to the dollar, because everybody needs the dollars to survive, because they can’t survive on their own currency. And they have the semblance of a monetary system through the dollar reserve, but their currency keeps dying. I thought it was called the iranian real and now it’s the tomah. And I think it changed names.

I don’t know what’s going on here. Point I’m trying to make here is that you could make a false extrapolation and say, well, weak currencies are taking such and such a time, such a long time to collapse to zero. Then a force yore, the dollar, which is the strongest currency in the world because it’s the reserve currency, will take a very, very long time. We have decades left until there’s hyperinflation in the dollar.

But that is just the opposite. It is a false extrapolation. It’s exactly the opposite. What will happen? And why is that? Because what is keeping these other countries’monetary systems on a drip feed? That is the export of US dollars from the US to these countries. Because these countries citizens, they need US dollars to survive because their currencies don’t work. And so the US can export its inflation, and that is what keeps the dollar alive or looking stronger.

But what happens when the dollar dies in the domestic market in the United States, because there is one final financial crisis and the Fed has to print seven $8 trillion overnight. Then in that event, what happens to all the dollar reserves of these countries that are hoarding US dollars? Their value evaporates very quickly. And so what do they do? They turn around and they take all of their dollar stacks and they send it back to the United States for whatever they can.

They sell their treasuries, they sell their dollar cash for whatever real assets they can get. And so the flight to real assets happens not only in the United States, but in other countries that hoard US dollars, right? Remember that when other countries are hoarding US dollars, it’s not a flight to real goods. Real hyperinflation is a flight to real goods, it’s not a flight to another currency. These hyperinflations in other currencies like Lebanon, Syria, Venezuela, Argentina, it’s a flight to US dollars.

But when there’s a flight from US dollars in the domestic US market, then all of the US dollars that were exported to other countries go back to the United States very quickly. And that makes the hyperinflation in the United States that much quicker, because all the forces that were slowing down the hyperinflation of the US. So it’s not that the stronger the currency, the longer the hyperinflation lasts.

It’s that the reserve currency, because it is used in international trade, has a privilege to export inflation until such a time that its currency dies in its domestic market. And then as it is dying, the international market converges on the United States and sends back the dollars in a wave, making the hyperinflation the flight to real goods in the United States that much quicker. My brains are going into my feet.

And what do the US citizens hoard during a dollar hyperinflation? There is no other currency to hoard. And it’s not going to be bitcoin, because bitcoin is a dollar derivative. The only thing underneath the dollar in extra’s pyramid is gold and silver itself. And so we will see a hoarding of gold and silver as the money and the death of the dollar and every other currency based on it.

The hyperinflation of the dollar will be the true hyperinflation of every currency in the world. There will be no more rush to US dollars in these foreign countries. They will all rush into real money because there will be no other choice. And once again, if you want to prepare for this monetary apocalypse, then grab a bag of junk silver from miles Franklin for only one dollars and $0.

99 over spot. I don’t know when the stackers and the retail traders are going to start participating in this rally, but they have not yet. So these prices are not going to last for much longer. Call eight five five, game end or email endgame investor@milesfranklin. com and get your junk silver today. This is Rafi with the endgame investor and I will see you guys soon. Why don’t we take a five minute break? Very good, sir.

Smoke if you got them. It sounds ludicrous. .

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