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Page added on September 16, 2017
Suddenly, “De-Dollarization” Is A Thing
For what seems like decades, other countries have been tiptoeing away from their dependence on the US dollar.
China, Russia, and India have cut deals in which they agree to accept each others’ currencies for bi-lateral trade while Europe, obviously, designed the euro to be a reserve asset and international medium of exchange.
These were challenges to the dollar’s dominance, but they weren’t mortal threats.
What’s happening lately, however, is a lot more serious.
It even has an ominous-sounding name: de-dollarization. Here’s an excerpt from a much longer article by “strategic risk consultant” F. William Engdahl:
Gold, Oil and De-Dollarization? Russia and China’s Extensive Gold Reserves, China Yuan Oil Market
(Global Research) – China, increasingly backed by Russia—the two great Eurasian nations—are taking decisive steps to create a very viable alternative to the tyranny of the US dollar over world trade and finance. Wall Street and Washington are not amused, but they are powerless to stop it.
So long as Washington dirty tricks and Wall Street machinations were able to create a crisis such as they did in the Eurozone in 2010 through Greece, world trading surplus countries like China, Japan and then Russia, had no practical alternative but to buy more US Government debt—Treasury securities—with the bulk of their surplus trade dollars. Washington and Wall Street could print endless volumes of dollars backed by nothing more valuable than F-16s and Abrams tanks. China, Russia and other dollar bond holders in truth financed the US wars that were aimed at them, by buying US debt. Then they had few viable alternative options.
Viable Alternative Emerges
Now, ironically, two of the foreign economies that allowed the dollar an artificial life extension beyond 1989—Russia and China—are carefully unveiling that most feared alternative, a viable, gold-backed international currency and potentially, several similar currencies that can displace the unjust hegemonic role of the dollar today.
For several years both the Russian Federation and the Peoples’ Republic of China have been buying huge volumes of gold, largely to add to their central bank currency reserves which otherwise are typically in dollars or euro currencies. Until recently it was not clear quite why.
For several years it’s been known in gold markets that the largest buyers of physical gold were the central banks of China and of Russia. What was not so clear was how deep a strategy they had beyond simply creating trust in the currencies amid increasing economic sanctions and bellicose words of trade war out of Washington.
Now it’s clear why.
China and Russia, joined most likely by their major trading partner countries in the BRICS (Brazil, Russia, India, China, South Africa), as well as by their Eurasian partner countries of the Shanghai Cooperation Organization (SCO) are about to complete the working architecture of a new monetary alternative to a dollar world.
Currently, in addition to founding members China and Russia, the SCO full members include Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and most recently India and Pakistan. This is a population of well over 3 billion people, some 42% of the entire world population, coming together in a coherent, planned, peaceful economic and political cooperation.
Gold-Backed Silk Road
It’s clear that the economic diplomacy of China, as of Russia and her Eurasian Economic Union group of countries, is very much about realization of advanced high-speed rail, ports, energy infrastructure weaving together a vast new market that, within less than a decade at present pace, will overshadow any economic potentials in the debt-bloated economically stagnant OECD countries of the EU and North America.
What until now was vitally needed, but not clear, was a strategy to get the nations of Eurasia free from the dollar and from their vulnerability to further US Treasury sanctions and financial warfare based on their dollar dependence. This is now about to happen.
At the September 5 annual BRICS Summit in Xiamen, China, Russian President Putin made a simple and very clear statement of the Russian view of the present economic world. He stated, “Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.”
To my knowledge he has never been so explicit about currencies. Put this in context of the latest financial architecture unveiled by Beijing, and it becomes clear the world is about to enjoy new degrees of economic freedom.
China Yuan Oil Futures
According to a report in the Japan Nikkei Asian Review, China is about to launch a crude oil futures contract denominated in Chinese yuan that will be convertible into gold. This, when coupled with other moves over the past two years by China to become a viable alternative to London and New York to Shanghai, becomes really interesting.
China is the world’s largest importer of oil, the vast majority of it still paid in US dollars. If the new Yuan oil futures contract gains wide acceptance, it could become the most important Asia-based crude oil benchmark, given that China is the world’s biggest oil importer. That would challenge the two Wall Street-dominated oil benchmark contracts in North Sea Brent and West Texas Intermediate oil futures that until now has given Wall Street huge hidden advantages.
That would be one more huge manipulation lever eliminated by China and its oil partners, including very specially Russia. Introduction of an oil futures contract traded in Shanghai in Yuan, which recently gained membership in the select IMF SDR group of currencies, oil futures especially when convertible into gold, could change the geopolitical balance of power dramatically away from the Atlantic world to Eurasia.
In April 2016 China made a major move to become the new center for gold exchange and the world center of gold trade, physical gold. China today is the world’s largest gold producer, far ahead of fellow BRICS member South Africa, with Russia number two.
Now to add the new oil futures contract traded in China in Yuan with the gold backing will lead to a dramatic shift by key OPEC members, even in the Middle East, to prefer gold-backed Yuan for their oil over inflated US dollars that carry a geopolitical risk as Qatar experienced following the Trump visit to Riyadh some months ago. Notably, Russian state oil giant, Rosneft just announced that Chinese state oil company, CEFC China Energy Company Ltd. Just bought a 14% share of Rosneft from Qatar. It’s all beginning to fit together into a very coherent strategy.
Meanwhile, in Latin America:
De-Dollarization Spikes – Venezuela Stops Accepting Dollars For Oil Payments
(Zero Hedge) – Did the doomsday clock on the petrodollar (and implicitly US hegemony) just tick one more minute closer to midnight?
Apparently confirming what President Maduro had warned following the recent US sanctions, The Wall Street Journal reports that Venezuela has officially stopped accepting US Dollars as payment for its crude oil exports.
As we previously noted, Venezuelan President Nicolas Maduro said last Thursday that Venezuela will be looking to “free” itself from the U.S. dollar next week. According to Reuters, “Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro said in a multi-hour address to a new legislative “superbody.” He reportedly did not provide details of this new proposal.
Maduro hinted further that the South American country would look to using the yuan instead, among other currencies.
“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro also said.
The state oil company Petróleos de Venezuela SA, known as PdVSA, has told its private joint venture partners to open accounts in euros and to convert existing cash holdings into Europe’s main currency, said one project partner.
This first step towards one or more gold-backed Eurasian currencies certainly looks like a viable and — for a lot of big players out there — welcome addition to the global money stock.
Venezuela, meanwhile illustrates the growing perception of US weakness. It used to be that a small country refusing to take dollars could expect regime change in short order. Now, maybe not so much.
Combine the above with the emergence of bitcoin and its kin as the preferred monetary asset of techies and libertarians, and the monetary world suddenly looks downright multi-polar.
67 Comments on "Suddenly, “De-Dollarization” Is A Thing"
MD on Sat, 16th Sep 2017 5:22 pm
petrodollar recycling is dying, slowly. It’s been inevitable for years. Let’s hope it remains a slow process for some time yet, despite prognostications by kunstler, tverburg, and others.
Shortend on Sat, 16th Sep 2017 5:28 pm
Hear the war drums starting to roll.
Uncle Sam did not create this massive worldwide infrastructure for parades.
When push comes to shove, Wall Street and the Banksters will direct the military to keep the new world order in line.
Should be interesting and deadly.
makati1 on Sat, 16th Sep 2017 5:33 pm
MD, actually, for the rest of the world, it cannot come soon enough. It is reaching critical mass. The gold backed part of the plan will speed up the process. Gold is not dead. It’s history as a store of value goes back at least 5,000 years. It is almost genetic.
A trade war that the US seems to be fomenting, will be the last nail in the USDs coffin. TPTB know that and it is part of the Great Leveling plan they are pushing. I hope you are planing for that day.
makati1 on Sat, 16th Sep 2017 5:40 pm
Short, you assume that the US is going to lead the parade? I think you are in for a huge shock. The US is a has-been. The only weapon of any import that it has left, is nukes and if it is stupid enough to use them there will be no NWO or life on the planet.
Wall street is committing suicide. The banks/corporations will own everything. Do you think that corporations care what currency they are paid with? Narrow minded thinking, if you do. They prefer any currency of real value, like gold. Not almost worthless US IOUs.
Shortend on Sat, 16th Sep 2017 5:46 pm
Make, Uncle Sam a “has been”? If having close to 75% of the military power in the world today, not including its allies, is a light weight, OK Bud.
The other side of the coin, is CONTROL, have the Greenback the world reserve currency is about having POWER, Buddy best you rethink your position.
Davy on Sat, 16th Sep 2017 5:46 pm
makat, you have been saying the same thing day after day for years now but your dire warnings never materialize. You continue to look goofy and crazed. This is a process and everyone is part of it. I guess that is too much for an old man with a binary mind to handle.
Anonymouse1 on Sat, 16th Sep 2017 5:48 pm
The uS has been trying to avert the scenario described above for years now, under the cover of its ‘endless war of terror’. So far, the uS has been to able to throw a huge wrench into the process with its fake, but deadly, wars against Libya, Iraq, Syria. Its undeclared but ongoing wars against Russia, China, Iran and others also plays a role in this.
Once the world realizes it has a viable alternative to the the JewNited States and its Free world order, the empire of war, death, and (chronic obesity) will collapse like a gyprock house in the floriduh panhandle. Bypassing London, Jew York and Tel aviv with its rigged ‘free’ markets and thug military\spook agency enforcers, will continue to be a risky move for the time being , that much is certain. However, the future will happen, whether washindum and tel aviv like it or not.
makati1 on Sat, 16th Sep 2017 6:20 pm
Ah Davy, you just don’t want to see that it is already under way. Resorting to the same old worn out name calling and attempted putdowns. So sad.
dave thompson on Sat, 16th Sep 2017 7:24 pm
How much gold is there to back up a currency? I do not see how there can be enough gold for very long, when you can cash in your money for gold. Short term it might work for a while. Long term if people can cash in money for gold the money will be cashed in and poof no more gold reserve.
Boat on Sat, 16th Sep 2017 7:42 pm
amouse,
“Once the world realizes it has a viable alternative to the JewNited States and its Free world order”
Damm, yet one thing we have to wait to realize. Is there even enough popcorn for so long a wait?
makati1 on Sat, 16th Sep 2017 7:51 pm
dave, it all depends on the price of gold, doesn’t it? There is no limit on that, is there? It certainly will not be limited to today’s ‘managed’ price. Why not $50,000/oz or higher? You and I will be using coins and bills backed by gold as prior to 1970. And about time.
shortonoil on Sat, 16th Sep 2017 8:02 pm
This little piece is certainly making the rounds. Who has the most to gain from such unsubstantiated gibberish? The US has 20 mb/d of the world’s refining capacity, and if anyone needs that finished product they will be buying it with US dollars. If they want to sell raw crude to those refineries they are going to get paid in US dollars. Until this little irregularity changes the Petrodollar isn’t going any place.
As far as Venezuela is concerned when they figure out how to extract their 6.5° API road tar for less than $125 per barrel they may become a threat. In the meantime they will remain a failed state eating their cats and dogs. The end of the oil age has just showed up a little earlier for them than it has for the rest of the world. Their problem is that they are the first with the “crappiest oil” curse. A situation that is already arriving at the door of all the world’s oil producers.
dave thompson on Sat, 16th Sep 2017 8:03 pm
Up to about 1970 coins in the US had silver content. It was taken out I suppose because the silver was worth more then the coinage face value. But I still wonder how there can be a currency backed by gold without the major currency holders showing up and taking the gold equivalence. The end result being no more available gold holdings by the bank.
makati1 on Sat, 16th Sep 2017 9:30 pm
dave, why should banks hold gold? Gold trading centers like the current paper money exchange (BIS) would work fine. Banks only hold digits and bits of worthless, faith based, cash today. Nothing of REAL value. You and I would carry paper and coins backed by gold.
I suspect that the price would settle down to a small range of variance just like international exchange rates do today. I look at the daily rate every time I exchange my USDs into Philippine Pesos. Varies in a small range most of the time. I do not see a problem with gold backed trade.
The plus is that it would end the current system and open up trade without the US being able to skim off a profit from every transaction, mafia style. It would end the ability of the USD to borrow and support the 800+ bases around the world. It would end a lot of negatives that has been the rule for too long.
BTW: Yes, I remember silver coins. I still have some. I also remember the silver certificates and the gold certificate. Then came worthless paper and junk coins. Ah well, it seems what goes around comes around.
makati1 on Sat, 16th Sep 2017 9:31 pm
Ah, shortonoil, your days are numbered. LOL
dave thompson on Sat, 16th Sep 2017 9:53 pm
Yes makati good points. My question stems from the article that is saying that China is going to a gold backed currency. My understanding is a gold backed currency is redeemable in gold. What would keep large currency holders of this gold backed currency from redeeming the currency for gold until the gold was gone?
MASTERMIND on Sat, 16th Sep 2017 9:53 pm
Terrorism is the ultimate political weapon because nothing gets a rise out of people better than the fear of sudden death.
-Adolph Hitler
twocats on Sat, 16th Sep 2017 10:06 pm
@dave – if you keep enough reserves of gold to make a “run” all-but-impossible, then you will have solved the problem. I could take my liquid savings to a coin dealer tomorrow and convert it gold, but before the end of the day I’d probably want to buy something, after which I’d have to go back to the coin dealer and get some cash. no one really believes we are going to start walking around with gold. It’s just a way to say, “we won’t run the printing press day and night like ‘those other people'”.
The big hole in this theory of course is that china’s shadow banking system is pretty large as I understand it. everyone is going bankrupt all at once – it’s called peak oil.
deadlykillerbeaz on Sat, 16th Sep 2017 10:09 pm
Translation: Venezuela owes money to Russia and China.
Venezuela pays with oil.
makati1 on Sat, 16th Sep 2017 10:23 pm
dave, how much gold and at what price? China may have multiples of the amount the US has. Probably much more than they claim. I have seen sources that claim they may have over 30,000 tons. What does anyone have to sell that could burn up 30,000 tons at, say, $1,000,000 per ounce? Not a possible price? I would not bet on that. Nor would I bet that the US has any gold. No one has seen it for decades. Maybe just dusty, empty vaults and a lot of government bullshit?
No, I am sure the Chinese have thought out the entire process and are now ready to put it into use. I doubt real gold would be shipped around the world with every transaction. Just the ability to do so would be enough.
dave thompson on Sat, 16th Sep 2017 11:22 pm
Gold is finite, printing cash is infinite. Again I ask the question if you are spending a gold based currency, say buying oil, how long would the system last if the oil sellers turned around and wanted the gold for the currency?
Bertrand C. Jacobson on Sun, 17th Sep 2017 12:12 am
“I doubt real gold would be shipped around the world with every transaction. Just the ability to do so would be enough.”
Exactly. It’s a show of value behind the currency – not a dare to exchange oil for gold. Just as nuclear bombs are a value to military force available, not a dare to exchange missiles.
I think this new gold backed currency is a viable alternative to the petro dollar and we will see more countries buying oil in Yuan’s. Trump is a salesman explaining in insane tweets just how important it is for other countries to find ways around the USD, or else face the result of further empowering a fascist regime.
makati1 on Sun, 17th Sep 2017 12:37 am
dave, do they want it today? After all, why do central banks have gold if they have to move it? Why did Germany want her gold back? Maybe because it still has great value and they want it in their hands as the US is not trustworthy again.
No one would want it transferred at every transaction. Moving gold is expensive and can be a target for thieves. The system worked quite well before 1970 because everyone had faith that it “could” be gotten anytime they wanted it. It was only when the US wanted to spend more gold than it had that the French decided to change their US gold certs for real gold and the jig was up. Nixon had to stop the flow before the US was broke.
Besides, the gold system has only to last long enough to bankrupt the US. A few years at best. Then anything can happen.
Interesting times to live in. I’m enjoying the show. Better than any TV or Movie.
dave thompson on Sun, 17th Sep 2017 1:13 am
Again I ask the question, if a currency is truly “backed up” by gold it would mean the potential to turn in the currency for the gold, that would mean that you show up and get the gold by turning in the currency, so how long could such a currency last? Why do you think the US gave up on the gold/silver backing of the dollar? Because it will eventually lead to going bankrupt.
makati1 on Sun, 17th Sep 2017 1:59 am
dave, you seem to be parroting what I said. The price of gold was fixed by the US when it was under the gold standard. It was changed constantly during FDR’s reign. By the 70s, that was not possible. It was finally set @ $35/oz. At $1M/oz, it is a different story.
I suggest you wait and see how it unfolds. It seems that you are denying that it can happen. It IS happening. And will happen faster and faster as the rest of the world moves away from the USD and to a gold backed system.
BTW: @ $1M/oz. there is already enough gold in the world to be worth at least $6,400,000,000,000,000. or $6,400 trillion.
The world GDP for 2016 was $75 Trillion.
You do the math.
Cloggie on Sun, 17th Sep 2017 2:31 am
dave, you seem to be parroting what I said. The price of gold was fixed by the US when it was under the gold standard. It was changed constantly during FDR’s reign. By the 70s, that was not possible.
Actually it was the French president de Gaulle who in 1971 blew up the bluff of dollar-backed-by-gold by beginning to buy up large quantities of American gold:
http://www.huffingtonpost.com/charles-kolb/august-15-1971_b_4284327.html
It is likely that the US doesn’t have much gold left. Presidential candidate Ron Paul has repeatedly called for an audit of Fed gold reserves, but was always refused. You can tentatively conclude that they didn’t want to let it come out that they didn’t have much.
Again I ask the question, if a currency is truly “backed up” by gold it would mean the potential to turn in the currency for the gold, that would mean that you show up and get the gold by turning in the currency, so how long could such a currency last?
Normally nobody will use his cash to buy up gold. Gold in itself is useless, the only interesting thing about it is its scarcity. You only buy up gold if you have good reason to suspect that your money reserves could become worthless overnight. Gold is used as a means of rescue of last resort. In normal times there is not much demand for it other than as wedding rings.
Cloggie on Sun, 17th Sep 2017 2:55 am
This little piece is certainly making the rounds. Who has the most to gain from such unsubstantiated gibberish? The US has 20 mb/d of the world’s refining capacity, and if anyone needs that finished product they will be buying it with US dollars. If they want to sell raw crude to those refineries they are going to get paid in US dollars. Until this little irregularity changes the Petrodollar isn’t going any place.</
Huh? The US is a net oil importer and the US refining capacity matches US consumption.
https://www.eia.gov/tools/faqs/faq.php?id=727&t=6
https://www.eia.gov/tools/faqs/faq.php?id=33&t=6
US refineries, let alone its net imports are NOT the backbone of the petrodollar.
The petrodollar is the agreement between the US government and the, at the time, largest oil producer KSA, that the latter would sell its oil only in dollar. In return the US would protect KSA, read the "House of Saud". In return KSA would use its excess dollar reserves to buy US arms. That was 1974.
https://www.bloomberg.com/news/features/2016-05-30/the-untold-story-behind-saudi-arabia-s-41-year-u-s-debt-secret
It was a smart move by Nixon-Kissinger and prolonged the lifespan of the US empire and its global aspirations. But meanwhile everybody is catching up with US power (forget these carriers) and sees through this money printing scam and begins to prepare for the retreat from the dollar as the world's single currency in international trade ("de-dollarization").
I have nog proof but I would not be surprised if this latest Venezuelan stunt was whispered into their Venezuelan ears by Russia and/or China. And why wouldn't Venezuela accept Yuan, as China has meanwhile an economy with a broad product palette where these Yuan's can be spend on?
makati1 on Sun, 17th Sep 2017 3:07 am
Cloggie, yes, it was the French who suspected the US was going broke and started the end of the gold standard.
I agree will all of your observations about gold and the Venezuelan situation. China is the Walmart of the world today. It sells almost everything that anyone can need or want. I hold yuan as a possible future need as I am China’s neighbor. I also hold yen, rupees, etc. Just in case. LOL
dave thompson on Sun, 17th Sep 2017 3:32 am
My conclusion about all of this gold standard biz is still the same, backing a currency with gold, will eventually mean that you will have no more gold to back the currency, because the currency over time will be turned in to get the gold. What would you rather have, a piece of paper or a piece of gold?
makati1 on Sun, 17th Sep 2017 3:47 am
dave, a piece of gold anytime! Gold does not rust, corrode, shrink or evaporate. All the gold that was ever mined still exists. It will always hold real value for its many uses, not to mention it is a beautiful thing to wear. Ask any woman. Have you ever been to the gold souks of Dubai? I have. Beautiful!
https://images.search.yahoo.com/search/images;_ylt=A0SO8wnFNb5ZTPkAC61XNyoA;_ylu=X3oDMTEyOXNrZ2NrBGNvbG8DZ3ExBHBvcwMxBHZ0aWQDQjQxMjZfMQRzZWMDc2M-?p=gold+souk&fr=mcafee
Cloggie on Sun, 17th Sep 2017 4:18 am
dave, a piece of gold anytime!
Nah, it depends on the price. I am busy dumping my gold, because I can get 4 times what I paid for it, with little inflation in between. It doesn’t make sense to take it with you in the grave. Better spend it while you can.
My motto:
https://www.amazon.com/Die-Broke-Radical-Four-Part-Financial/dp/0887309429/ref=sr_1_1
I bought that book in 1998 and have internalized its creed until today.
Still want to see Siberia and China by train, but for the rest I have no wishes other than a decently furnished living room at guaranteed 21 degrees Celsius with an internet connection, a computer to write programs I still want to write and a large collection of books, a vegetable garden behind the house and that’s about it with material wishes that already have materialized and endless amounts of time to think and read and write about energy, geopolitics and history.
And in between using this and other forums forum as a testing ground for theories. 😉
It’s a pity that on history matters nobody offers any resistance whatsoever other than repeating the platitudes of the US empire and its media.
MD on Sun, 17th Sep 2017 4:47 am
It appears that China holds the gold, as in real possession. Go ahead and try to take it from them now. Short term it might not mean that much. Long term though…
deadlykillerbeaz on Sun, 17th Sep 2017 4:49 am
Place one troy ounce of gold, a minted US gold coin, next to 13 100 dollar bills, see which is chosen.
The 13 100 dollar bills will be more fungible than the gold.
Paper money will win.
I read a ditty about someone who bought a bitcoin from a friend for ten dollars, held it, the friend was in dire need for cash to repair a mechanical failure in his car, the owner of the bitcoin paid for the repairs with the bitcoin.
Thousands of dollars worth of repair for ten bucks is better than holding gold for a rainy day.
No wonder governments don’t like bitcoin, it has far more value than paper money.
makati1 on Sun, 17th Sep 2017 5:02 am
Bitcoin is digital. What happens to it when the internet goes down, forever? And it will. Ditto for any money exchange that requires the internet. ATMs go down often. Not to mention that the governments control them and can end you ability to buy at any time, for any reason. Only cash in hand is for sure. Or at least better than vaporous digits.
The idea that everyone would take a bunch of paper instead of gold is a Western delusion. Try that in any country that is not Western indoctrinated and see how fast the gold disappears. If it had no value, it would not be held by every country in the world. lol
shortonoil on Sun, 17th Sep 2017 5:14 am
“Huh? The US is a net oil importer and the US refining capacity matches US consumption.”
Typical Coggy make believe. The US imports 6 mb/d and exports 6 mb/d of finished products. It is the largest exporter of finished products in the world. 30% of China’s bank loans are non performing, and the world is going to entrust its money to them? Good luck with that!
Mick on Sun, 17th Sep 2017 5:18 am
Good point short! Id. Be getting the heck out
if I lived there or at least hiding the cat or dog
shortonoil on Sun, 17th Sep 2017 5:23 am
“Huh? The US is a net oil importer and the US refining capacity matches US consumption.”
Coggy wants to see the fall of the US so badly that the idiot thinks he can make up data to support his fantasy. This is not about the fall of the US, it is about the fall of the World. The oil age is ending! No matter who you are or where you are, you are going down with it!
Boat on Sun, 17th Sep 2017 6:36 am
shortonoil
“Huh? The US is a net oil importer and the US refining capacity matches US consumption.”
“The US imports 6 mb/d and exports 6 mb/d of finished products”.
https://www.eia.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_w.htm
What week are you using?
Still waiting for that demand to drop. Your running out of EPT time.
Davy on Sun, 17th Sep 2017 6:36 am
makat and clog, do everything in their power to diminish the US including warping the truth. They are flaming anti-Americans who hilariously promote their home regions as the next superpowers who will experience a coming golden age. Somehow in this mental lite process the US will be utterly and completely destroyed. Their binary minds have difficulty with multidimensional reality. It is always hard to warp the truth for purposes of economic and political agenda. This is why it is so easy to shoot down their propaganda.
Davy on Sun, 17th Sep 2017 6:40 am
Gold works in a stable growing environment but not in the current dysfunctional economics where the only way governments and businesses function is on debt. Globalism is dynamic and requires financialization with exotic instruments to work at the tempo it does today. Gold makes excessive debt
difficult because it is a standard that must be adhered to. Without gold liquidity is arbitrary but with it liquidity becomes more fixed. Gold ties the hands of central banks and governments. We may want that but what about we want them to fix things. Gold is not going to make a difference anymore until all
that debt can be mopped up and a majority of nations come to some kind of agreement on a new currency regime that includes gold.
Boat on Sun, 17th Sep 2017 6:46 am
gold reserves by country
http://www.usfunds.com/investor-library/frank-talk/top-10-countries-with-largest-gold-reserves/#.Wb5furKGPZ4
Imagine that, the US has the biggest gold reserves.
makati1 on Sun, 17th Sep 2017 6:55 am
Boat, and you believe what the US claims? Funny, no one has seen it for decades. LOL
makati1 on Sun, 17th Sep 2017 6:57 am
Davy, debt can be “mopped up’ over night. It’s called “collapse”. Personal debt can be discharged by bankruptcy. Poof! Gone! So can the debt of countries. Poof!
Boat on Sun, 17th Sep 2017 8:21 am
mak,
Show me your link.
Boat on Sun, 17th Sep 2017 8:24 am
mak,
Gold can be moped up by debt. Borrow and buy.
creedoninmo on Sun, 17th Sep 2017 8:25 am
John Williams at shadow Stats has been saying for the last 5 or 6 years that we will have a hyper inflation event next year. With de-dollarization becoming a thing, the reality may be getting closer. The central bank in the U.S. supposedly printed up two trillion dollars to buy assets this year. Doing this year after year should have an effect at some point.
Shortend on Sun, 17th Sep 2017 8:32 am
The Gold standard was a factor in the Great Depression, along with the currency exchange.
This can not end sell, more destabilizing of the financial system…war is next on the agenda!
makati1 on Sun, 17th Sep 2017 6:37 pm
Short, war is ALWAYS the end result of a failing Empire. Always. The only question is how bad and who. This time it will truly be “the war to end all wars” as it will turn nuclear, if it doesn’t start out that way. It will be on American soil also not confined to “those other places”. Today’s Americans cannot begin to understand what that means.
When? Maybe a few more years, if we are lucky. Maybe it will not happen because the US will just collapse and die peacefully. I don’t give that option much of a chance. Too many insane war hawks running the US show today. Our only chance is is the US collapse quickly enough and deep enough to prevent it because they have too much trouble at home. That is my choice so that the rest of the world has a chance. Then CC will be the only possible species killer.
makati1 on Sun, 17th Sep 2017 6:38 pm
Boat, you don’t “borrow and buy” in a collapsed financial system. Gold will be used to back up trade, not market speculation.
Harquebus on Sun, 17th Sep 2017 7:26 pm
“no one really believes we are going to start walking around with gold.”
I do.