World Reserve Currency: Do You Know What It Is And How It Affects Your Family?

YUAN WRC

I have written about this topic many times in the past and I have been lecturing on it for at least the last five years. So here is an update on World Reserve Currency.

According to Investopedia World Reserve Currency is difined as:

A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate. A large percentage of commodities, such as gold and oil, are usually priced in the reserve currency, causing other countries to hold this currency to pay for these goods. Holding currency reserves, therefore, minimizes exchange rate risk, as the purchasing nation will not have to exchange their currency for the current reserve currency in order to make the purchase. 

 

Today, the World Reserve Currency (WRC) is the US dollar. This means that all oil, for example is priced in US dollars, or that to buy crude oil (used to create gasoline, heating oil, plastics, etc.) a country must have a “reserve” of the WCR to make the purchase and assure the ability to make purchases in the future.

 

So naturally, any country that wants to protect itself against changes in that currency and to ensure its ability to purchase needed crude oil for the foreseeable future (in this example), will hold as many US dollars as it can to meet its long term projected needs.

SINCE 1450 THE AVERAGE DURATION A COUNTRY HELD WRC STATUS - 94 YEARS - US HAS HELD IT FOR 90 YEARS
SINCE 1450 THE AVERAGE DURATION A COUNTRY HELD WRC STATUS – 94 YEARS – US HAS HELD IT FOR 90 YEARS

Except, what happens when the there is a shift in World Reserve Currency, and the US dollar looses its WRC status?  What would all of the countries who hold US currency do with their dollars? And where will those dollars end up?

A shift away from the US dollar as WRC has been discussed for at least the past decade. An actual shift began just two years ago with currency agreements between Russia and China and China and Australia and the ongoing negotiations of BRICS (Brazil, Russia, India, China, and South Africa).  This has little impact at the moment, but it indicates a willingness on the part of these countries and others to side-step WRC and discuss changes for the future.

China Announces World Currency

That future is now, as China devalued its currency just 3 days ago (August 11) in another move to create a wedge between the yuan (or Renminbi or RMB) and the current WRC (US dollar).

With the American debt load we bear, it is only a matter of time before the WRC shifts completely and we witness a huge influx of US dollars that will trigger massive inflation.

Things To Do To Weather The Inevitable:

1. Move investments out of the dollar.

2. Develop a large inventory of regularly used household items (6 months to a year is recommended) and then rotate your stock, using the older items while continually adding new.

3. Find ways to reduce your tax burden (taxes will rise).

4. Reduce consumer debt load as much as possible, fixed mortgage is ok.

5. Develop multiply streams of income, do not depend on a single stream.

See the following past blogs for more ideas:

The Servile State: The Scourge of Economic Slavery 

What Ar eThe Georgics, Really?

Attention Span: Our National Education Crisis

The Death Of Free Enterprise

Fourth Turning – Skies Darkening

Return Of The Manual Arts

 

P.S. There Are None So Blind As Those Who Will Not See  – John Heywood 1546

I do not know how long this link will be good, and they want to sell you gold at the end but the meat of this 20 minute video is relevant and worth watching.   Meltdown America

Krislyn Elliott & Lauren Swanepoel

Krislyn Elliott and Lauren Swanepoel act more like sisters than moms as they take really slow walks through the woods together, looking at and taking pictures of every plant they see & wishing they could remember their names and uses more thoroughly. They also like concocting herbal teas, salves, tinctures and strange drinks.

Krislyn is from Utah and has loved learning about plants since an unusually cool high school biology teacher took his classes on neighborhood botany walks. She has always been fascinated and constantly amazed at the power and beauty of plants.

Lauren is from South Africa, she and her family emigrated to Utah almost 10 years ago. They have fallen in love with the area and know more about this state & the great places to explore here than most Utah natives.

We both feel strongly about taking care of our families with natural methods and the abundant medicine we have growing right around us. We are trying to learn as much as we can about our magical local plants and are looking forward to sharing some of our favorites with you.

William DeMille

Director of Georgic Develeopment

William DeMille is a lifelong vegetable farmer. He studied Horticulture and Agronomy at Northwest Missouri University, Maryville. He holds a certificate in aquaponic engineering and production from Cornell University, NY, and another from GrowHaus Aquaponics in Denver, CO. He also studied soil regeneration and is a graduate of Dr. Elaine’s Soil Food Web School. He is the Director of Georgic Development for The Center for American Legacy Studies.

William is a farm consultant establishing several agricultural startups since 2005 in Missouri, Oregon, Colorado, Utah, and Nevada and he currently manages 2500 acres of grassland for the Ruby Mountain Foods Company.

His latest venture is a market gardening school called Georgic Revolution where he teaches a 17-week course onsite in Nevada covering soil health and vegetable production without the use of fertilizers, pesticides, herbicides, etc. and where he operated a soil lab.

William lives with his wife Vernie in the snow capped mountains of Northern Nevada.

Lloyd Nelson

World Renown BD Expert

Lloyd Nelson has been practicing the art of Biodynamic (BD) Agriculture for over twenty years. He is a BD preparation maker, builder, artist, farmer, arborist, BD educator & consultant. He is co-founder of Biodynamic Source – a Colorado based non-profit specializing in high potency BD preparations – and he owns and operates a Biodynamic spray, fertilizer and consultation service. He has worked with small and large scale farms, vineyards, and orchards to transition to sustainable Biodynamic land management and Demeter BD Certification.

Vern Cox, PhD

Educator

Vern Cox is married to Joyce Christensen and they have 8 children. He has 3 earned degrees, a BA in psychology, and both a Master’s degree and a Ph.D. in marriage and family therapy.

He has had a diverse and interesting career that started with the Bureau of Land Management, followed by a stint as a Learning Disabilities teacher, and finally a marriage and family therapist, working his way up to executive director of the High Country Counseling and Resource Centers that served two counties in Wyoming.

Dr. Cox served for several years on the board of a charter school. Dr. Cox remains heavily involved in his community and the home schooling movement.

He has extensive background in marriage and family counseling, having held a number of administrative positions during his first career. He holds a BA in Psychology and both a Masters and PhD in Marriage and Family Therapy. He lives with his wife and several married children on their multi-generation farm in Southern Utah.

Joseph Lofthouse

Educator

Joseph adopted the principles of landrace gardening in response to the harsh growing conditions in a high-altitude, short-season, desert garden. Instead of relying on expensive poisons, labor, and materials to coddle the plants, he encourages genetic diversity, cross-pollination, and survival of the fittest, allowing the plants to adapt themselves to the current and ever-changing ecosystem, thus simplifying gardening and seed saving. Joseph is the author of Landrace Gardening: Food Security Through Biodiversity and Promiscuous Pollination. Joseph loves eating, farming, swimming, hot-springs, sunbathing, bird-watching, running, yoga, leggings, kilts, playing guitar, singing, and living habitually barefoot.

Dan Brooks

Educator

Dan Brooks was born and raised in the Pacific Northwest. During his first career, he spent 20 years working in and managing high-end restaurants and golf courses including extensive banquet/special events services and ice sculptures.

For the past 23 years, Dan has been a successful entrepreneur and family business owner in Las Vegas. He and his wife have 4 children and 11 grandchildren. He serves as a trustee for The Center for American Legacy Studies.

Shanon Brooks, PhD

Director

Shanon Brooks is the director of The Center for American Legacy Studies, an institution dedicated to helping families embrace and incorporate the Five American Ideals; Georgics, Liber, Providence, Public Virtue, and Liberty into their lives and communities. America exists because of Americans. Americans are the beneficiaries of a peculiar culture and way of living.

Over the past 75 years, that culture and way of life have been lost. Restore that culture and Americans will rebuild America to once again be worthy of John Winthrop’s 1630 admonition, “For we must consider that we shall be as a city upon a hill. The eyes of all people are upon us.”

Brooks has been a leader in alternative higher education for over 30 years, and is the author of two books: AMERICAN: Killing the American Dream and A Thomas Jefferson Education for Teens.

Dr. Brooks is a veteran of military service in the United States Submarine Fleet and holds a Bachelor’s degree in business administration, a Master’s degree in education, and a Ph.D. in constitutional law.

He and his wife Julia reside on the 80-acre conference facility of The Center for American Legacy Studies.