Saturday, January 21, 2017

As Donald Trump speaks out against the dollar and globalism it could be setting the stage for a return of gold standard

Newly inaugurated President Donald Trump is a master when it comes to leverage, finance, and the use of credit to achieve great accomplishments.  But if ones listens to the media, they would not find a concise answer as to whether he actually understands the dollar or the economy.

This is because Trump stands at the middle of an ideological war where an establishment seeks to maintain its control over a debt based system.  And the foundation of that system is the establishment's ability to print unlimited amounts of fiat currency, manipulate markets and prices, and siphon the wealth of a nation into the hands of a select few.

(To validate this all one has to do is listen to Keynesian Nobel prize winning economists speaking today in Davos who are calling for the banning of cash and the implementation of an all digital cashless society)

Which brings the American people to the point where they must learn to read between the lines in discovering what President Trump's future direction for the dollar is headed.  And a couple of news stories out on Jan. 19 may provide that insight.

Trump and a New Gold-Backed Dollar
In an interview with The Wall Street Journal on Monday, Donald Trump uttered two words essentially never spoken by a president when describing the state of the U.S. dollar: "too strong." In describing how the U.S. is losing ground to China, Trump commented: "Our companies can't compete with them now because our currency is too strong. And it's killing us." It's incredibly rare for an American president to comment on the movement of the U.S. dollar, let alone advocate that it should fall. 
The movement of the dollar has a double-edged-sword effect on consumers. A stronger dollar, like we're experiencing now, gives U.S. consumers more buying power in overseas markets, and makes it less expensive for domestic businesses to import goods. 
On the other hand, a strong dollar makes U.S. exports less appealing to other countries where currencies have taken a beating, and can thus boost our national trade deficit and eventually slow growth. 
The dollar also happens to have an inverse relationship with gold. A stronger dollar often means weaker gold prices, whereas a weaker dollar leads to stronger gold prices. Trump's implying that the dollar is too strong might as well be a ringing endorsement for gold. - Fox Business
And from analysis from the well respected alt-economic Doug Casey...
The breakdown of the petrodollar is the perfect excuse for the globalists to usher in their SDR solution. 
So that’s the first option. It’s the global elites’ preferred outcome. It would be a very bad thing for personal and economic freedom. It means more fiat currency, more centralization, and less freedom for the individual. 
The second option is to simply return to gold as the premier international money. Here’s how it could happen… 
Trump might play along with the globalists’ schemes, but I doubt it. He’s the first president who’s openly and sincerely hostile toward globalism. He’s denounced it repeatedly. 
Trump recently said, “We will no longer surrender this country, or its people, to the false song of globalism.” 
In my view, there’s only one way Trump could fight the global elites and their SDR plan: return the dollar to some sort of gold backing. 
Trump has said favorable things about gold in the past. So have some of his advisers.
It wouldn’t be easy. He’d face one hell of a struggle with the globalists. And winning would be far from certain. 
No matter what, the death of the petrodollar, just like the end of the dollar’s link to gold, will be very good for the dollar price of gold and gold mining stocks. 
When Nixon took the dollar off gold in 1971, gold skyrocketed over 2,300%. It shot from $35 per ounce to a high of $850 in 1980. Gold mining stocks did even better. 
Gold is still bouncing around its lows. Gold mining stocks are still very cheap. I expect returns to be at least as great as they were during that paradigm shift in the international monetary system. 
All this is why what happens after Trump’s inauguration could change everything… in sudden, unexpected ways. - International Man
Russia has replaced OPEC over the past year in becoming the global leader for oil and natural gas, and China is not only the world's largest producer of goods sold around the world, but they are also the world's largest banker.  And both of these economies have invested vast quantities of resources towards buying gold at levels that far exceed the U.S.'s supposed 8,500 tons.  Yet in pursuing this course of action they have also sent a clear message to Washington in the past few years through their dumping of dollars at a record pace, and are signifying that the days of the U.S. currency remaining the sole global reserve is nearing an end.

Every indication shows that the fiat currency experiment that began with Richard Nixon closing the gold window in 1971 has reached a point where confidence in the dollar is no longer a sure thing, and even the newly inaugurated President has his doubts on the dollar being the catalyst for domestic growth and prosperity.  And as Donald Trump begins a new chapter today as the leader of the free world, and the world's largest economy, no one really knows what tools he plans to use to implement his agenda of protectionism, direct bi-lateral trade, and destroying the West's current trek towards globalism.  But perhaps what we do know that may give us insight is his understanding and appreciation for the power of gold as real and tangible money.


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