Sunday, June 3, 2018

If he who owns the gold makes the rules, then he who produces the gold determines the ruler

There are two very old axioms that state that 'He who owns the gold, makes the rules', and also that 'The debtor is slave to the lender'.  And here in the 21st century, it is quite interesting to see that both of these apply to the United States, but sadly in a negative connotation.

Ever since 1971 when America invariably shattered what remained of the Bretton Woods agreement by closing the gold window to the rest of the world, a clock began to tick down on how long they would be able to hold onto their control over the world's reserve currency.  And some 47 years later, and at least $21 trillion more in foreign and central bank held debt, the days over that control are indeed becoming numbered.

History has shown two proofs over time in its scribing of human events, with the first being that gold for the most part has provided very good price stability and monetary protection.  And the second of course is that no fiat currency has every survived for a long period of time, and that it inevitably returns to its intrinsic value which is that of zero.

So taking history into account, we can potentially expand upon the first axiom mentioned above and show that not only does 'them that holds the gold make the rules', but also that 'them that produces the gold determines the rulers'.

Major Russian gold mining companies are planning to almost double production. The increase could make Russia the world's second largest producer of the precious metal. 
The country is currently third in the global rating of gold miners after Australia and China. However, that could change in less than a decade, according to Mikhail Leskov, deputy CEO at the Moscow-based Institute of Geotechnology, as quoted by Vedomosti. 
In 2017, Russia extracted 8.8 million ounces, accounting for 8.3 percent of total global production, according to data by the UK consultancy Metals Focus, as quoted by the media. The newly discovered gold deposits will reportedly allow miners to increase extraction by half in seven years. By 2030, extraction is expected to grow by nearly eight million ounces. - Russia Today
The battle lines are being drawn worldwide over who will follow the U.S.'s long time domination over the financial system and become a major player in the next configuration of the global monetary system.  And the two opposing sides are invariably being those who have and are accumulating gold, and those who have little, or are selling off their own.

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