BY BYRON KING POSTED JULY 26, 2017 The Dollar’s Slow Demise Continues in Plain Sight “The end of the world’s present monetary system is already taking place,” says one of Mexico’s leading, hard-money economists, Hugo Salinas Price. “The U.S. is losing influence in the world… The end of the dollar as the basis of the international monetary system means the end of the U.S. as we have known it.” You may or may not know of Salinas Price, but he’s a serious player at high monetary levels. He’s not nearly as famous as most television talking-heads on mainstream U.S. media. However, he’s been following monetary issues for many decades. He’s a Mexican business magnate and founder of the Mexican retail chain, Elektra. He also happens to be a historian of money. According to Salinas Price, “The present monetary system of the world, based on the dollar, is on its death-bed. A fiat currency — such as the dollar — cannot be replaced by another fiat currency,” he explains. “Therefore, the world will necessarily have to take up (precious metals) as the world’s money.” Salinas Price does not foresee the U.S., or other leading Western nations, taking the lead in resolving their own currency issues. Instead, he thinks, “it is likely that the Eurasian Bloc will initiate the monetary transformation of the world, in due course.” Specifically, he foresees China and Russia creating a gold- and/or silver-backed currency to conduct trade. Salinas Price himself has long urged Mexico to adopt a silver-based currency, to retain value inside that nation’s economy, using the peso. Globally, there’s an obvious flight to hard currency. Whatever may happen with the day-to-day price of “paper gold,” all of the physical metal, from every mine, mill and refinery in the world, has a buyer for every ounce. A Different Kind of Russian Collusion Just follow the data for proof… China, Russia and India are all accumulating massive amounts of gold. Other large amounts of gold are moving into the Middle East, and other Asian nations. For example, below is a recent graph, showing Russia’s steady accumulation of gold over the past decade. This kind of gold buildup in Russia is no accident. Russia has a clear, national policy to accumulate gold within its state treasury. That’s because Russian policy makers are concerned about U.S./Western actions, including economic sanctions, NATO expansion, near-constant and long-term bellicose rhetoric and more. Russian
This is the basic information about the global economy. We all know that the global currencies, fiat currencies all of them, are going to collapse. If the currency budget bill in congress passes as it stand and the Dodd Frank bill is gutted, this will represent the first domino in the chain of events toward collapse. Watch this course. There are 24 clips from 2 minutes to 20 minutes long. You’ll be glad you did. The Crash Course has provided millions of viewers with the context for the massive changes now underway, as economic growth as we’ve known it is ending due to depleting resources. But it also offers real hope. Those individuals who take informed action today, while we still have time, can lower their exposure to these coming trends — and even discover a better way of life in the process. We’ll show you how. Prepare your financial self and buy gold and silver now. Buy Gold Here Buy Gold Here Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit
The Wall Street Journal China Real Time Report China’s effort to make the yuan an international currency is running into complications, including the deeply ironic outcome that it is actually boosting the country’s massive stockpile of foreign currency. As awareness builds of these unintended consequences, prominent voices are now calling on Beijing to take a step back and slow the pace of yuan internationalization. The yuan drive is partly due to Beijing’s frustration with reliance on the U.S. dollar as a global currency in the aftermath of the U.S. financial crisis. Since it began on an experimental basis in 2009, yuan trade settlement has grown rapidly, rising more than 20-fold from a year earlier to reach 7% of China’s total foreign trade in the first quarter. But dollar dependence is proving a hard habit to kick. Yu Yongding, a former central bank adviser turned strident central bank critic, is the latest to raise questions about the wisdom of rapid yuan internationalization. Rather than reducing China’s accumulation of foreign exchange reserves, yuan trade settlement is actually having the opposite impact, and the process needs to managed carefully, Yu wrote in an essay published on Monday by the Chinese Academy of Social Sciences. This perverse state of affairs arises because people outside of China are keen to accept yuan as payment, believing it will appreciate. For the same reason, they are less keen to pay for goods with yuan — and don’t have much of it on hand in the first place. Analysts estimate around 80% of current yuan trade settlement is to pay for imports. As more and more imports are paid for in yuan rather than dollars or euros, less foreign currency is drained from the Chinese economy, leaving Beijing at the end of the day holding more foreign currency reserves than it otherwise would. Mark Williams, an economist at Capital Economics, estimates this effect contributed around $40 billion to China’s foreign currency stockpile – equal to roughly 20% of growth in the reserves– in the first quarter. That is a particularly vexing outcome for Mr. Yu, who has emerged in recent years as one of the world’s biggest critics of U.S. Treasury bonds, an asset in which a large proportion of China’s foreign exchange reserves are invested. In a separate essay last month, Mr. Yu denounced U.S. Treasury bonds as a giant ponzi scheme supported by Federal Reserve purchases.