How screwed are we? I guess we’ll know soon.
Russia confirms that they are launching a BRICS currency backed by #gold.
It will be on the agenda at the BRICS South Africa meeting in August. Many other countries have applied to join BRICS.
De-dollarization is accelerating.
— Wall Street Mav (@WallStreetMav) July 8, 2023
Saddam threatened it and we invaded and killed him. Gaddafi threatened it, we invaded and killed him. They would just assume kill us all before they would let anyone undermine their means of global control.
And most likely it will be Gold backed Digital Currency.
To me it doesn’t matter with what they back this new Currency, it’s still a CAGE, although a gilded one.
Actually, digitizing gold in blockchain is the perfect currency. For one thing this destroys the argument that there isn’t enough gold to run the world–there is if you can atomize it numerically.
Yes, the big question is how much will it resemble the cage that is CBDCs? If we are pessimists we say they will be the same. If we are optimistic we believe finally there is the return of real money, and it even allows for a degree of credit.
Certainly, there seems to be a critical mass of interest. This is Russia and China executing their nuclear financial option against USD hegemony. Zoltan Poszar called it some time ago. Ironically, everyone has worried about how the wounded Russian bear would lash out if cornered. Now we know.
Worse, how will a wounded eagle lash out under threat of checkmate?
https://new.thecradle.co/articles/finance-power-integration-the-sco-welcomes-a-new-global-globe
Right now there is $1.6trillion in US currency in circulation. At the current price of gold, this is equivalent to 1.282 billion oz of gold. Fort Knox reportedly holds 147.3 million oz. This means the US government would have to go into the market and buy 1.135 billion oz of gold, or 32,174 metric tons. Since the world’s existing stock of gold — the amount of gold ever mined since the beginning of human activity — is estimated at 174,200 tons, this would be 18% of all the world’s gold — just to cover the bank notes. If you want to push the price of gold up to $10,857 an ounce, in which case the gold in Fort Knox would cover the cash currency (but still not the bank deposits).
And that’s just for the US. There simply isn’t enough gold in existence for even the US to go back onto the gold standard, much less the whole world.
Stan respectfully: The price of gold is not “pushed up”. The value of the fiat currency is devalued. No one in Zimbabwe or the Weimar Republic ever thought they could or should square their currencies against hyperinflation by revaluing gold, did they? No they didn’t because that was absurd. Rather, they revalued their currency by removing zeros, or else disposed of their fiat completely and started a new one. The value of gold is constant throughout history. Since 1974 precious metals prices have been dictated by the futures market, not by the demand for physical. Therefore your numbers are skewed from the start. True price discovery would only reveal the true worth of fiat in gold terms. Last I checked the paper to physical ratio was north of 100 paper ounces for each physical ounce.