Monday, April 18, 2016

Gold Is The Spectre Haunting
The Monetary System
Jim Rickards* essay on the efforts by the "elites" to eliminate monetary gold from the financial system .. It began in 1914, with the UK’s entry into the First World War - The Bank of England wanted to suspend convertibility of bank notes into gold. "Despite formal convertibility of sterling to gold, the Bank of England successfully discouraged actual conversion." .. In 1971, U.S. President Richard Nixon ended convertibility of U.S. dollars into gold by the trading partners of the U.S.. "Closing the gold window was said by Nixon to be temporary. Forty-five years later the window is still closed." .. on where we go from here: "The Chinese yuan and Russia ruble are not true reserve currencies. The only feasible benchmarks for a new system are the IMF’s world money, called special drawing rights, and gold. Critics claim there is not enough gold to support the financial system. That’s nonsense. There is always enough gold, it’s just a matter of price. Based on the M1 money supplies of China, the eurozone, and the US, and with 40% gold backing, the implied non-deflationary price of gold is $10,000 per ounce. At that price, a stable gold-backed monetary system could be sustained. When it comes to monetary elites, watch what they do, not what they say. While elites disparage gold at every opportunity, they are buying it, hoarding it, and preparing for the day when one’s gold determines one’s seat at the table of systemic reform. It’s past time to claim your seat with an asset allocation to physical gold."
LINK HERE to the essay

1 comment:

Anonymous said...

Naah ...... Cliff Kules Notes is the spectre haunting the Monetary system.