Posted on 10/29/2024 8:30:56 AM PDT by delta7
QUESTION: Marty, I know you will not say who you advise, but we know you were the only Western analyst called in by China during the Asian Currency Crisis. People have also seen you in India at that famous hotel that the terrorists attacked.
China even issued a white paper on how their central bank uses Capital Flow Analysis, which you invented. That said, my question is: The BRICS had everyone expecting a gold-backed currency if that failed. You also said in an interview that the new BRICS currency would not displace the dollar. Would you comment on why a gold-backed BRIC note would fail since they seem to have taken that position from you?
ANSWER: The BRICS currency was created for geopolitical reasons when the Neocons transformed the SWIFT system into an economic weapon and even threatened China that they would do the same to them if they supported Russia.
Once that occurred, the Neocons transformed the entire world’s monetary system into a weapon of war. That is why we have the BRICS. It had nothing to do with killing the dollar or backing their currency with gold.
Many hoped for an official announcement regarding a gold-backed currency, which failed to materialize. Look—a gold-backed currency would be massively deflationary. The money supply could not expand with the population or in times of need without new discoveries.
Just because a currency is gold does not eliminate inflation or deflation. All the gold discoveries during the 19th century in California, Alaska, and Australia caused havoc economically. Then there were wars. The fact that gold was the currency did not prevent inflation.
Spain defaulted 7 times. All the gold and silver they brought back from the New World caused massive European inflation. Those who preach that a gold standard is the answer know nothing about history.
They blame “fiat currency” as if this will solve all the problems by eliminating it. There were booms and busts throughout ancient times long before there was paper money. ALL currency is fiat, even when it is gold. I have shown that Southern India routinely imitated Roman gold coins because they had a premium over gold – fiat. Northern India and the Kushan Empire did issue their own coinage mainly because they traded more with China. Southern India stuck imitation Roman gold coins for about 250 years. That confirms that the Roman coinage was worth more than the metal content.
BRICS Will Not be a Gold-Backed Currency or a Dollar Killer
They made the same claims about the Euro. That, too, did not work out well. Why? The value of a currency is the productive capacity of its people—not its gold reserves. Japan and Germany lost the war and rose to the top of the economic food chain because their people were productive.
The United States has the largest CONSUMER-BASED economy, so everyone needs to sell their products here. That means that they must sell in dollars. The US is also strong militarily. That also adds to the foundation of the currency.
It is time we abandon all of these old, stupid economic theories, leftovers from the 18th and 19th centuries. The economy has evolved since then. The Neocons are destroying the dollar. They are undermining the future of the United States, and when we lose another one of their endless wars, the financial capital will shift from New York to Beijing. Just as war killed Britain, so will it kill the dollar and the United States.
We will be hugely at risk for all sorts of bad stuff between January 20th and, well, right now.
BRICS will not kill the dollar - American Government will.
“When Trump is reinstated as President, I am sure he will call upon Armstrong for some advice ( like he did during his last Presidency).”
Which country will Trump lead when the U.S. breaks up into several countries?
These kinds of thread always evolve into various scenarios that involve the word “collapse”.
No one ever defines collapse.
The dollar is created by the Fed in quantities that have no constraint other than the decision of the Fed. There is no gold backing. There is no GDP backing. It’s a Fed decision and their only design parameter is the dual mandate — control of inflation and unemployment.
Placing a value on this item called a dollar that is measured by a number of items of other currencies, also created by their own Central Banks with no constraints doesn’t really mean very much. It’s self referential. One item created from nothingness valued against other items created from nothingness.
Gold? This was rejected long ago. It places money supply under the control of some mining company CEOs who decide how much of that mineral comes out of the ground.
Monetary policy was laid bare by Bernanke, who initiated the procedure of NOT defining money creation to fit the demands of growing GDP — but rather . . . money creation to generate GDP. This is coordinated with fiscal policy that runs up 10 years of enormous deficit with the knowledge that bond vigilantes have now been rendered powerless by the reality of QE. Deficits can be, and have been, funded by the Fed.
And this stuff is always the stuff of eyes glazing over. Which they know. That’s how it has persisted.
US break up occurs further down the line.
“US break up occurs further down the line.”
Then you don’t believe Martin’s 2026 year?
“Gold? This was rejected long ago. It places money supply under the control of some mining company CEOs who decide how much of that mineral comes out of the ground”
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Wrong, only since 1971 when Nixon took us off the gold standard…in the timeline of history, it rules ( ruled) for 5,000 years….the fiat experiment created in 1971 is failing.
1) All socialists nationalized their Gold supplies, both in the ground and in circulation. I suspect Trump can mine, mine, and mine US deposits more -respecting private ownership. EO’s ( like drilling oil) can accomplish this.
2) It is wide spread fact and acknowledged ALL the world’s sovereign Central Banks are buying and accumulating Gold in HISTORIC amounts. The World’s Bank, IMF and BIS decreed two years ago physical Gold will become a Tier One Asset with ALL banks. They know something we do not, preparing.
3) ALL banks ( US included) have been ordered to establish GRA’s ( Gold Revaluation Accounts). As we see Gold rising to $2800 ounce, on the way to $5K, and higher, this unanswered action points to only one conclusion.
Now the nitty gritty, there is not enough Gold to establish a CONVERTIBLE Gold system, which is why Brics and other nations are only LINKING their currencies to Gold, and not the USD. As we see with Brics, there is no convertibility, just an alternate payment method.
Much to think about, much is being hidden as to the historic shift we are witnessing.
Let me help the less informed out.
https://www.mining.com/web/gold-revaluation-the-hidden-motive-behind-central-banks-gold-buying/
“ Gold revaluation & the hidden motive behind central banks’ gold buying…”
This is an older article, but explains what is happening. Hundreds of recent articles can be found as we near Gold’s revaluation. MSM will not broadcast this, it is up to you to stay informed.
This is what usually happens with the gold people.
“2) It is wide spread fact and acknowledged ALL the world’s sovereign Central Banks are buying and accumulating Gold in HISTORIC amounts. The World’s Bank, IMF and BIS decreed two years ago physical Gold will become a Tier One Asset with ALL banks. They know something we do not, preparing.”
ChatGPT disagrees:
While many central banks have been increasing their gold reserves in recent years, not all of them are buying gold. Central banks in regions such as Asia, the Middle East, and Eastern Europe have been particularly active in purchasing gold. Countries like China, Russia, India, and Turkey are notable for consistently increasing their reserves. This trend is largely driven by a desire to diversify away from the U.S. dollar, hedge against inflation, and increase financial stability amid global uncertainties.
However, some central banks are less active or even static in their gold holdings, particularly those in developed Western nations with more established reserve assets, such as the U.S., Canada, and several European countries. These banks may view their existing gold reserves as sufficient and rely more on other assets like foreign currencies or government bonds.
The surge in gold purchases is not universal but reflects the specific financial and geopolitical strategies of each country’s central bank.
“3) ALL banks ( US included) have been ordered to establish GRA’s ( Gold Revaluation Accounts). As we see Gold rising to $2800 ounce, on the way to $5K, and higher, this unanswered action points to only one conclusion.”
ChatGPT disagrees:
A Gold Revaluation Account is essentially a way for central banks to track gains or losses from changes in the price of gold on their balance sheets without having to sell their physical reserves. The European Central Bank (ECB), for instance, mandates that eurozone countries use GRAs to account for fluctuations in gold prices. However, the Federal Reserve in the U.S. does not revalue its gold holdings regularly. The gold on the Fed’s balance sheet is valued at a fixed statutory price of $42.22 per ounce, far below the current market rate, and it hasn’t adjusted this price for decades.
The U.S. doesn’t currently follow the GRA approach, although some policymakers have occasionally proposed revaluation or other methods to recognize the market value of gold. But so far, there has been no official requirement for the Federal Reserve or other U.S. banks to establish GRAs.
When you say all banks have been ordered to do this GRA activity . . . by whom?
A lot of bad analysis and advice in this.
Then you don’t believe Martin’s 2026 year?
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I do, and even have all his paper ECM charts since 2000. How to explain? Analyzing his ECM charts hindsight since then, the cycle shifts occur incrementally, not instantly overnight on the exact date ( tho some have panned out to the exact day). His turning points stated start out with an event mostly unnoticed, small, then increase in size and intensity.
All that said, I do believe as his ECM states, the world’s wealth fully shifts away from the West to the East ( China?) by 2030-2032, with the US becoming irrelevant ( due to wars and debt).
At my stage in life, I am not “ rich”, but have prospered following his ECM cycles. All I need to know is the “Great Reset” now being talked about openly is near. Having corresponded often ( and even took his classes) with the legend Mr Sinclair( before he died), his knowledge and forecasts were much in line with Armstrong’s cycle.
His recent forecast showing this election may be our Republic’s last, is met by ridicule from many. Only time will tell, they haven’t made two movies about Martin Armstrong and his forecasts for no good reason.
Please do your own research on GRA’s. I have no idea what your Chat thingy is. Here is one ( outdated) of hundreds that will help you out. Not worth arguing over, either you believe or don’t. You have been warned, I can’t spoon feed you.
https://www.thegoldobserver.com/p/world-bank-report-highlights-advantage
I am no economist but it seems that saying a given socio/economic issue is due to one reason, to the exclusion of others, is flawed and simplistic reasoning.
“””””I am no economist but it seems that saying a given socio/economic issue is due to one reason, to the exclusion of others, is flawed and simplistic reasoning.”””””
It does attract a customer base of simple minded readers with cult follower traits though.
I suppose you mean that simplistic reasoning is flawed.
When anticipating decisions and actions by various governments, especially governments trying to protect their own currencies, expect them to use flawed simplistic reasoning. Trying to get the world to swing over to their new gold-backed currency and away from the US dollar is just the kind of simplistic reasoning I would expect of the BRICS nations.
Of course you are right, but in a way you are wrong.
-The Civil War was fought to free the slaves? Simple answer yes! Complicated answer from understanding the inherent weakness in the constitution and the geopolitics and macroeconomics of the day? No. Well, sort of.
-The assassination of Archduke Franz Ferdinand started the Great War? Simple answer yes. You know it was more complicated than that.
-The great depression was started by the crash of ‘29? Simple answer yes. You know it was more complicated than that.
I am not a good enough writer to know if I am making my point, so please correct me.
Regards!
BrianD
you were the only Western analyst called in by China during the Asian Currency Crisis.Self aggrandizing pomp. This is Armstrong writing a fan mail to himself as he does all the time. Armstrong was never asked by any country or institution for any advice. He spent 11 years in jail for fraud.
Me: Then you don’t believe Martin’s 2026 year?
You: I do,
Then why did you say it wouldn’t?
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