If they make a peg to gold even slightly believably, then it could damage the dollar. I doubt anyone will believe a peg until it survives a real test, though.
The way I understand it today, most of the trouble started under Johnson around '65, when Euros started asking to swap paper to gold, but it wasn't honored nor addressed and Nixon inherited not only a mess, but a bunch of allies that were pissy. Must have really sucked.
I'm still slowly studying this though, so I may revert this preliminary idea.
'65, when Euros started asking to swap paper to gold, but it wasn't honored nor addressed
it was both honored and addressed.
Honored: in the plenty of Europeans got their gold back (that story of French warship is probably fake, and the French repatriated gold from NYC all the way through the 1960s)
Addressed: the gold market imbalances, and gold flowing out of the U.S., was the constant talking point of the 1960s.
I spent a few hours the other week for my fiat job tracing the history/evidence of that, and it's mostly just rumours on top of rumours... (you'd expect such an event to at least have a NYT picture or two??)
and then in formal French reports there's a steady transfer of gold holdings from New York to Paris already from 1963.
That I agree. That is also why I don't mind shills peddling crypto shitcoins. Monetary darwinism is desirable basically to neuter the power of individual central banks and people getting aware that there are good money and there are bad money, and there are choices they have to make.
So yeah if new forms of money force questioning the status quo...all the better.
The world has changed since 1971.
Fort Knox is empty.
China has won the trade war.
USA cannot now fight a war of any scale without Chinas support and supply of refined rare earths.
China is Irans and Russia and Saudis biggest customer today.
Note all three are members of BRICS and mBridge.
Monetary dominance inevitably follows trade dominance.
China already provides trade payments routing for Russia, Iran and others outside the USD/SWIFT system- the USD/SWIFT system is at the same time dependent upon Chinas participation since GFC when China became a member of the IMFs reserve currency issuers board because Chinas economy was the only thing holding up the sinking USD/IMF/World Bank/SWIFT legacy system.China has the US over a barrel and is patiently developing its global institutional and protocol dominance (spearheaded by BRICS) that logically follows from it now being the dominant productive economy.
US Exceptionalists are mostly in tragic denial that their dominance is waning and a new world order is emerging...but Trump is already abandoning free trade and NATO and embracing state capitalism and autocracy in his desperate attempt to hold back the tide.
USA cannot now fight a war of any scale without Chinas support and supply of refined rare earths
The petrodollar emperor has no clothes and China is giving the world time to adjust to the new reality and consequences of its serial Trillion dollar Trade Surpluses and mercantile supply chains hegemony.
If they make a peg to gold even slightly believably, then it could damage the dollar. I doubt anyone will believe a peg until it survives a real test, though.
What is a real test anyway? Anyone would be an absolute moron to believe it.
I don't even believe the Hong Kong dollar peg against USD, let alone some corruption governments' peg against gold.
It would have to be similar to what Nixon faced, but they'd have to actually make good on the redemption.
The way I understand it today, most of the trouble started under Johnson around '65, when Euros started asking to swap paper to gold, but it wasn't honored nor addressed and Nixon inherited not only a mess, but a bunch of allies that were pissy. Must have really sucked.
I'm still slowly studying this though, so I may revert this preliminary idea.
it was both honored and addressed. Honored: in the plenty of Europeans got their gold back (that story of French warship is probably fake, and the French repatriated gold from NYC all the way through the 1960s) Addressed: the gold market imbalances, and gold flowing out of the U.S., was the constant talking point of the 1960s.
Really? Is nothing what we were told it was?
pretty much.
I spent a few hours the other week for my fiat job tracing the history/evidence of that, and it's mostly just rumours on top of rumours... (you'd expect such an event to at least have a NYT picture or two??)
and then in formal French reports there's a steady transfer of gold holdings from New York to Paris already from 1963.
@denlillaapan wrote a SN post about this.
#764988
man, that is a good piece. Just re-read it.
I used to be quite good. Now I'm just a FT/Bloomberg rehasher
Considering that you're probably reading those pieces anyway, writing up a summary/rant about them is probably the more efficient use of time.
that's what I tell myself at least... especially, too, on days when there's a BIG sats pot available
The gold is in the discussions this week, lol.
Love that one.
And those so called allies are still allies after Nixon pulled the rugpull of the century? They did not even make a sound?
The blessings of military might and 4 year election cycles? Don't know. Nice follow-up research project - at this pace, I'll start on it in 2035 haha
Competition isn't necessarily a bad thing. It has the possibility to be a catalyst that drives better performance to keep up.
That I agree. That is also why I don't mind shills peddling crypto shitcoins. Monetary darwinism is desirable basically to neuter the power of individual central banks and people getting aware that there are good money and there are bad money, and there are choices they have to make.
So yeah if new forms of money force questioning the status quo...all the better.
brix is important
view on www.youtube.comNot exactly countries I would put faith in...
The world has changed since 1971. Fort Knox is empty. China has won the trade war. USA cannot now fight a war of any scale without Chinas support and supply of refined rare earths. China is Irans and Russia and Saudis biggest customer today. Note all three are members of BRICS and mBridge. Monetary dominance inevitably follows trade dominance. China already provides trade payments routing for Russia, Iran and others outside the USD/SWIFT system- the USD/SWIFT system is at the same time dependent upon Chinas participation since GFC when China became a member of the IMFs reserve currency issuers board because Chinas economy was the only thing holding up the sinking USD/IMF/World Bank/SWIFT legacy system. China has the US over a barrel and is patiently developing its global institutional and protocol dominance (spearheaded by BRICS) that logically follows from it now being the dominant productive economy. US Exceptionalists are mostly in tragic denial that their dominance is waning and a new world order is emerging...but Trump is already abandoning free trade and NATO and embracing state capitalism and autocracy in his desperate attempt to hold back the tide. USA cannot now fight a war of any scale without Chinas support and supply of refined rare earths The petrodollar emperor has no clothes and China is giving the world time to adjust to the new reality and consequences of its serial Trillion dollar Trade Surpluses and mercantile supply chains hegemony.
🤣
US Exceptionalists are hysterical.