Enter Sandman

A cryptic post of a heavy metal band anthem

I’ve been getting a lot of hate lately, because I have been positing things that people don’t like and don’t want to hear. And no, I am not guaranteeing that any of the things that I have postulated will come to pass, but knowledge is power, and people need to look behind the curtain to see how the international systems of payment and trade are being re-plumbed. As I have outlined in previous posts, my hope is that the Trump Team has been quietly laying down their own new plumbing system in parallel to the old, creaky one to hop on to as well.

There are a few key points that in my opinion, people need to be aware of:

1. The old system of trade and international finance was entirely based around the US dollar being the “World’s Reserve Currency” and the petrodollar agreement the US had with Saudi Arabia. The rest of the world had to buy and hold US dollars in their reserves in order to conduct any type of international trade. This gave the US tremendous power, which they abused so mercilessly that the rest of the world starting looking for ways to get themselves out and from under the hegemony of the US dollar and the SWIFT payment system.

2. The Bank of International Settlements (BIS), founded in 1930, is basically the master bank of all the central banks. It sets the rules for the settlement of trade and payments between nations. After the global banking crisis of 2007 - 2009, the BIS began to revise the standards and rules for conducting international trade. These are known as the “Basel III” reforms. The intention behind the Basel III reforms were to build a “more resilient” banking system. The most significant reform that came out of the Basel III requirements was the decision to declare gold a Tier 1 asset for central banks to hold in their reserves for international settlement. Prior to this, US Treasuries were the only accepted Tier 1 “liquid” asset in addition to cash that could be used to satisfy BIS reserve requirements. This was HUGE and its implications are being felt and exploited by those countries that want to decouple themselves from the petrodollar.

3. Central banks have been going on a gold buying spree, while shedding their US Treasuries. By some estimates, gold reserves have increased by about 25%, while US Treasuries held as reserves have decreased by approximately 22%.

   

4. As a consequence of the Basel III requirements, which offers an escape hatch for countries that don’t want to be tied to the USD, demand for US Treasuries is what US media are politely calling “softening”. At recent auctions of US Treasuries, the Federal Reserve was forced to use their SOMA funds, to purchase 20.4B of 3 year Treasuries and 14B of 10 year Treasuries. In other words, the Federal Reserve took money from their secret account “Y” to buy our own debt, and deposited the proceeds of this “sale” into public account “Z”, because there were no buyers from either our own major institutions, or global buyers. This is before the so-called “debt wall” that must be rolled over hits the markets.

5. The BRICS nations quietly began building their own payment and settlement system outside of the USD and the SWIFT system. This system is known as “mBridge”. This modernized, SWIFT alternative was started in Hong Kong, and China, Thailand, the UAE and most recently Saudi Arabia, participated in its development and its adoption. mBridge operates on its own proprietary blockchain ledger system, and provides real time payment settlement, in contrast to SWIFT which would often take 3 - 5 days or more to settle accounts.

6. The majority of the developing world in what some are now calling the “Yuxi Circle”, are being enticed by China to step away from the US dollar and use mBridge and physical gold to settle up any trade imbalances. To that end, this is being reflected in the arbitrage between the price of gold in US and UK markets and the Shanghai metals exchange. The price differential between Western markets, which are heavily manipulated by paper futures contracts, and the Eastern markets continues to widen as the demand for gold increases and the demand for US dollars decreases. It should also be noted, Shanghai does not allow the same type of paper manipulation that traders are allowed to get away with at the US and UK based exchanges.

7. China has engaged on an ambitious plan to set up depositories globally for gold, outside of US domination and control, that nations can use to settle any tail ends of trade imbalances. For example, China can buy Saudi oil using yuan, and Saudi can then exchange that yuan for gold. As of this writing, China has set up a gold depository inside Saudi Arabia itself, which directly challenges and is intended to negate the power of the “petrodollar”, and has stated its intention to set up other depositories around the world in key market economy countries.

8. Buyers of paper futures contracts on the metals exchanges are demanding physical delivery of the metals, instead of settling for cash as has been the norm in the past. This has created a crisis in the US and UK based metal exchanges, because there is not enough physical metal in their vaults to actual settle all the paper contracts they have allowed to be traded. The London gold market has already defaulted on their deliveries. Industry insiders believe that it is only a matter of time before the silver exchanges begin defaulting as well.

Warren Buffett, “the Oracle of Omaha”, considered by many to be the “greatest investor of all time”, announced at a recent Berkshire Hathaway meeting his intention to retire by the end of 2025, and as part of his remarks cryptically noted, “There could be things … that happen in the United States that … make us want to own a lot of other currencies”. Why would one of the wealthiest, and most plugged in men in the world warn his investors that you may want to divest outside of the USD because of “things that could happen in the United States” ?

Whether or not Americans like it, it is clear that the rest of the world is preparing and intending to step into a world that is dominated by gold as the main guarantor of payment, rather than the US dollar. As I have written previously, the US dollar is effectively “dead” as it is, through inflation of its actual purchasing power, and its declining attractiveness as a reserve asset now that an alternative (gold) is available. The knowledge that the quantities of US dollars actually washing about the global financial system has been revealed as “unknowable” due to the discovery of “magic money machines” is only making public what other nations have known for some time.

It is my hope and belief that the Trump Team has been quietly making plans to soften the blow of the death of the US dollar for Americans. Our quality of life would decrease dramatically as soon as the US dollar is officially rejected as the world reserve currency. Rumors of a commodities backed new US Treasury Note to replace the fiat Federal Reserve Note have been circulating for years. Trump’s use of tariffs to coerce other nations into ending currency manipulation for export advantage is another tool that can be used to help transition the US from the failed FRN to the new commodities backed, Basel III compliant US Treasury Note and US debt that is redeemable in physical gold upon maturity, as posited by Judy Shelton.

Enter the greatest conspiracy of all with respect to the death of the Federal Reserve, and the Federal Reserve Note (aka “USD”) : Operation Sandman. Under this theory, major trading partners and economies will begin to simultaneously dump their US Treasuries. When this happens, the face rate of US debt will increase, destroying its value, and the DXY will initial rise (analysts have referred to this as “failing upwards”) as US dollars begin flooding back to the US from overseas before ultimately failing entirely.

As you digest something of the bullet points above, consider that Dan Scavino, an advisor and trusted confidante to the President, just posted a clip of the Metallica ballad, “Enter Sandman” to his personal X account on May 8th.

Warning or trolling? You decide.

Dan Scavino Posts Enter Sandman Clip

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Previous Posts on this topic:

(I) The Golden Age of America

(II) Slaying Dragons and Other Quests

(III) The Men Behind the Curtain

(IV) Limited Hangout Time

(V) Global RV & Forex Resets

(VI) Temporary Pain for Long Term Gain

(VII) The Global Reset is coming