When Nixon took us off the gold standard in 1971, he set the stage for the expansion of the Anglo-American Empire and NATO. As we relied on “the kindness of strangers” and/or as long as the U.S. military could force the rest of the world to accept dollars for the oil and other trade, the U.S. could continue to create trillions of dollars out of thin air. I had been wondering over the decades since 1971 how long this insanity could go on. It seems to me that this forced theft of the world’s wealth by the Anglo-American Empire may be nearing an end, which is why, as the world goes broke, I think we are facing one of the most dangerous times in American history.

Certainly rising rates will sooner or later attract some savings into the U.S. Treasuries. Had an arrogant Fed not tried to defy the laws of nature, we would not be in this horrible position. Had the U.S. never forced the world off the gold standard, we would not be in such a mess. But that is in the past. Now we must live with the repercussions of those sins. And it is likely to be horrible. If Donald Trump follows up with his belligerent attitude toward China, is there any reason to think China will return “kindness” to the U.S. and buy our Treasuries again? And with regard to Europe—who may still look at the U.S. as a friend—why would we think they will start buying Treasuries again, given the fact that Europe is a bankrupt continent?

At present the dollar is “strong” because the world economy is in fact contracting. That forces people to repay loans, which is another way of saying countries around the world are covering their dollar short positions. This is leading to a rapid imbalance in the global markets. Zero Hedge is right. Sooner or later, Ms. Yellen is going to have to do a 180-degree turn and start QE again but this time more and more, faster and faster than the last. What will that do for confidence in the alleged “omniscience” of central bankers? What will that do for the dollar and for the price of gold? I’ll leave it for your consideration.