The talks between Russian President Vladimir Putin and Chinese President Xi Jinping mark another level of danger in the efforts to destabilize U.S. currency, retired U.S. Air Force Brig. Gen. Blaine Holt, a former deputy military representative to NATO, said on Newsmax Saturday.
"That is the whole ball of wax," Holt said on Newsmax's "Wake Up America." "That is what is at the highest levels of global conflict."
He added that China and Russia, along with countries like Brazil, India and South Africa, are "building a consortium as fast as they can" and have been working for years to form an alternative to the central banking system of the West.
"I'm pretty sure a lot of us have a lot of criticism for the central banking system, but Americans don't understand that if Xi Jinping were able to get Saudi Arabia on board with just getting rid of the petrodollar as the way that the Bank for International Settlements settles transactions, we're going to be well on our way to a real problem between the East versus West," said Holt.
Meanwhile, if China creates a gold-backed dollar, that would be "extremely dangerous" to U.S. national security, said Holt.
"People just cannot understand the economics of what that would look like," he said. "Since 1972, not only have we left the gold standard and gone to fiat, the 'you just got to believe in it' currency, we have overleveraged every economy after the other. That's how you get to these insane numbers."
China, he added, has been "steadily buying gold over the last year and duping the dollar."
"You start to believe there might be something military afoot in 2003 from China because they're starting to separate from us," said Holt. " As you start to see business arrangements and supply chains separate from China, if they start to separate from the dollar, you're starting to decrease their interdependence on us and we on them, and that starts to drop deterrence on going to war."
China has also already been pushing for financial superiority with the Belt and Road Initiative, a "spiderweb of land and sea lanes that gets in to everybody's continents," said Holt.
"What they do is loan scams to countries," he said, noting that China agrees to build infrastructure, but then defaults the countries on the loans and tells the nations that "'now you're going to do everything that we say,'" said Holt.
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