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"RIP USD: 1971-202X … and the Way Forward" underscores the urgent need to return to SOUND MONETARY POLICY

By ramontomeydw // 2025-02-25

• In his book "RIP USD: 1971-202X … and the Way Forward," Shanmuganathan N. warns of the U.S. dollar's impending collapse, similar to the 1920s German hyperinflation, due to its unbacked status and flawed Federal Reserve policies.
• He predicts hyperinflation by the decade's end, or at least a period of high inflation that would destabilize the global economy and erode the dollar's purchasing power.
• The author criticizes the Fed's excessive economic stimulus as the main contributor to a precarious economic situation, suggesting the U.S. would be in a deep recession without such measures.
• Shanmuganathan calls for radical reforms, including a gold-backed dollar, Federal Reserve abolition and reduced government spending, to restore economic stability.
• He warns that the U.S. dollar's status as the world's reserve currency is threatened by America's declining economic dominance and the rise of China, suggesting a BRICS gold-backed currency could be a potential replacement.

In his thought-provoking book "RIP USD: 1971-202X … and the Way Forward," Shanmuganathan N. presents a compelling argument about the potential collapse of the U.S. dollar and the urgent need for a return to sound monetary principles. The book delves into the fragility of the current fiat currency system, the risks of hyperinflation and the historical parallels that suggest the U.S. dollar is on an unsustainable path. Shanmuganathan's analysis is both a warning and a call to action, urging readers to reconsider the foundations of modern economics and the role of money in society. The book begins by drawing a stark comparison between the U.S. dollar and the German Papiermark, which experienced hyperinflation in the early 1920s. Like the Papiermark, the U.S. dollar is a fiat currency unbacked by tangible assets such as gold. Historically, no fiat currency has survived more than a few decades – and Shanmuganathan argues that the U.S. dollar is no exception. He predicts that the dollar could face a similar fate, with hyperinflation becoming a probable outcome within this decade. Even if hyperinflation is avoided, he warns of a prolonged period of high inflation that could erode the dollar's purchasing power and destabilize the global economy. Shanmuganathan highlights the concept of an "unstable equilibrium" in the U.S. economy, where massive monetary inflation driven by excessive economic stimulus has created a precarious situation. He argues that without these measures, the US would already be in a deep recession. The author uses the Dollar Index (DXY) to illustrate the dollar’s vulnerability, suggesting that despite its current strength, the DXY could lose 50 to 90 percent of its value during a crisis. This instability, he contends, is a direct result of the Federal Reserve's flawed policies and the abandonment of the gold standard in 1971.

Gold vs. fiat: The battle for sound money

"RIP USD" provides a historical overview of money, tracing its evolution from barter systems to gold- and silver-based currencies, and finally to unbacked paper money. Shanmuganathan emphasizes the importance of the D3C2 properties of money: Desirable, Durable, Divisible, Convenient and Consistent. He argues that gold and silver are the only commodities that satisfy all these criteria, making them the ideal forms of money. In contrast, he dismisses cryptocurrencies like Bitcoin as speculative assets that lack the fundamental properties of sound money. Shanmuganathan critiques the Fed's role in perpetuating the current monetary system – which he believes has led to excessive debt, wealth inequality and the erosion of the dollar's value. He explains the Cantillon Effect, which describes how monetary inflation benefits those closest to the source of new money (e.g., banks and financial institutions) while harming ordinary citizens. This, he argues, has exacerbated economic disparities and undermined trust in the financial system. The author also warns that the US dollar's status as the world’s reserve currency is under threat. America's declining economic dominance and the rise of China and other nations make the current system unsustainable. Shanmuganathan suggests that a gold-backed currency, possibly emerging from the BRICS nations, could replace the dollar as the global reserve currency. To avert a crisis, Shanmuganathan advocates for radical reforms, including a return to a gold-backed U.S. dollar, the abolition of the Fed and a dramatic reduction in government spending. He calls for a revival of the founding principles of limited government and sound money, arguing that these measures are essential to restore economic stability and prevent a catastrophic collapse. In conclusion, "RIP USD: 1971-202X … and the Way Forward" is a wake-up call for policymakers, economists and individuals alike. Shanmuganathan's analysis underscores the urgent need to address the structural flaws in the current monetary system before it's too late. The book serves as both a warning and a roadmap, offering a path forward to a more stable and equitable economic future. The key takeaway is clear: The longer people delay meaningful reform, the more severe the consequences will be. Watch this video about Shanmuganathan N.'s book "RIP USD: 1971-202X … and the Way Forward." This video is from the BrightLearn channel on Brighteon.com. Sources include: Brighteon.ai Brighteon.com

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