Commodity Trade Mantra

Posts Tagged ‘Reserve Currencies’

Push Gold Prices Higher to Unleash Inflation - The Elite’s Master Plan

Yesterday, I explained how the monetary elites are looking to engineer higher gold prices to generate inflation since nothing else has worked. That’s the first answer. Today, I show you the second part of their plan, which may already be underway. The plan now is to have much larger budget deficits. When the government spends & deficit finances it, it will eventually produce inflation.

The Significance Of The Coming Revaluation Of Gold

Whatever expedients are implemented, the final outcome of the unprecedented economic contraction in the world will have to be the revaluation of gold reserves, as desperate governments of the world resort to gold to preserve indispensable international trade. The revaluation of gold does not mean that prices of goods and services will rise in tandem with the higher price of gold.

Internationalization Renminbi Requires Increase In Gold Reserves

China has a great interest to support the renminbi with gold, having an x amount of tonnes at the PBOC, to give their currency trust and credibility. A gold backed renminbi is completely unrealistic at this point because the renminbi is still in it’s infancy – capital controls need to be lifted, full convertibility needs to implemented, etc.

The New Fed Sheriff Means More Dollar Destruction

Consider Triffin’s Dilemma and what it means for the dollar’s future as the world’s reserve currency. Do you remember a time when the dollar wasn’t the king of currencies? Here is the US currency in historical context that gives us an idea of what comes next.

Hyperinflation of The Reserve Currency And The US Reaction

That all fiat currencies end the same is no secret. Reserve currencies are not immune – Just as every fiat currency has fallen in the past, the same goes for every reserve currency. What makes the dollar special is that we are living through the last 1% of its purchasing power.

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