INTERESTING ARTICLE FOR THOSE WHO ARE INTERESTED—Describes how the theory that China had been manipulating Gold and keeping it low and pegged with the SDR of the IMF:
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In a recent article, Jim Rickards, the author The Road to Ruin and the more recent book Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos, mentioned that someone appeared to be maintaining a peg between the IMF’s reserve currency the Special Drawing Right or SDR and gold. In Aftermath, he spells it out in much more detail. I quote:
Has a global monetary reset already happened? ...snip...
Likewise, the Chinese peg of SDR900 per ounce of gold is too cheap to sustain, given the scarce supply of gold and the growing supply of SDRs. More to the point, the IMF will print trillions of SDRs in the next global financial crisis, which will prove highly inflationary unless the IMF conditions the distribution of SDRs on the receipt of gold.
China would have to sell precious gold reserves to maintain an SDR900 price. This would reprise the U.S. depletion of its gold reserves by 11,000 tons from 1950 to 1970 to maintain the Bretton Woods gold peg to an overvalued dollar.
Still, this is an historic development. Even if the peg is non-sustainable in the long run, it’s a clear short-run signal that China is betting on the SDR and gold, not the yuan or the dollar. An important pillar of a global monetary reset seems already in place.
End of quote.
Rickards is an extraordinary thinker and deeply entrenched in the US financial, business and government worlds. He brings extraordinary insight to his writing. I commend Aftermath to you.
Richard
http://www.richardpresser.com/wordpress/has-the-sdr-been-secretly-pegged-to-gold/
MORE ON THE MONETARY FRONT—I have been searching to see what could be going on while everyone is distracted by the FEAR PORN WhuHuFlu—well here’s some stuff I had not seen before:
WASHINGTON — The head of the International Monetary Fund said Friday it is clear that the global economy has now entered a recession that could be as bad or worse than the 2009 downturn.
IMF Managing Director Kristalina Georgieva said the 189-nation lending agency was forecasting a recovery in 2021, saying it could be a “sizable rebound.” But she said this would only occur if nations succeed in containing the coronavirus and limiting the economic damage.
https://abcnews.go.com/US/wireStory/imf-head-global-economy-now-recession-69843184
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Is the Fed Preparing to Topple US Dollar? – F. William Engdahl
September 3, 2019 Richard Presser UncategorizedNo comments
Another excellent article by F. William Engdahl:
Unusual remarks and actions by the outgoing head of the Bank of England and other central banking insiders strongly suggest that there is a very ugly scenario in the works to end the role of the US dollar as world reserve currency.
In the process, this would involve that the Fed deliberately triggers a dramatic economic depression. If this scenario is actually deployed in coming months, Donald Trump will go down in history books as the second Hebert Hoover, and the world economy will be pushed into the worst collapse since the 1930s. Here are some elements worth considering.
http://www.richardpresser.com/wordpress/is-the-fed-preparing-to-topple-us-dollar-f-william-engdahl/