As economist Daniel Lacalle points out, the rising dollar price of gold does not mean the US dollar is on the way out. Things are a bit more complicated than that in a fiat currency world with no exit ramps.
The same sources that show soaring gold demand also show that there is no true “dedollarization” in the sense of a fiat‑to‑fiat substitution. This also makes sense. The US dollar is the world’s strongest weak currency because it has a higher level of liquidity, more independent institutions, and better legal and investor security than any alternative. The US dollar is losing its place as a global reserve to gold but not losing its position relative to the euro, yen, pound, or yuan.
IMF COFER figures show that the US dollar’s share of allocated FX reserves remains at 59.6%, and when adjusted for exchange‑rate moves, the IMF itself concludes that the dollar’s share has been broadly stable, with recent declines explained mostly by valuation effects, not active selling. The euro, at 20.3%, is not even close to being a contender.
Sometimes a cigar is just a cigar.
We’re not running away from a currency. We’re running toward gold.
Of course there is no fiat to fiat substitution, worthless paper for worthless paper isn’t worth the freight. There is trend away from fiat in general, the BRIC’s are working on a net-net gold settlement, that will prove fatal to all western fiats. Thank God Canada has
adequateno gold reserves.Yes and it was Trudeauzeau that did it!
Another fiscal flop from the laurentian fop!!
https://thedeepdive.ca/trudeaus-decision-to-sell-canadas-gold-reserves-has-now-cost-canada-over-149-million/
Trudeau doesn’t even know what gold is. His “economic” advisor at time of gold sales was one ugly little man, Mark Carney. Coincidentally, England sold her gold too, while the same ugly little man ran the BoE. The arrogance of this troll, or lack of imagination is astounding. The European banking cartel centered in the City of London requires a fiat system to maintain their grift, and Carney thought they would win. They are losing, bigly.
He thinks Gold runs a really cool gym.
This ….
“MMT supporters state that monetary sovereign nations can issue all the debt they want without inflationary and confidence risk. However, monetary sovereignty is not a given; it is not perennial and governments face three limitations when it comes to issuing debt. Domestic and global confidence in sovereign issuers begins to decline once they surpass those limits.”
… gets it all wrong. MMT supporters state you can print as much money as you want as long as it doesn’t lead to inflation. Economists state that printing money leads to inflation. In other words if you print money, you get inflation, therefore MMT leads to inflation. But it is not allowed to or it doesn’t work. This is the loop that Spock uses to blow up the alien computers.
Confidence is a problem that MMT won’t touch. Instead they point to Japan. Well, now Japan’s debt has become a problem. And confidence in the Yen is collapsing.
The reason gold and silver have gone up so much is that countries are preparing (hoping) for a change in the world’s reserve currency. What will it be? Nobody knows. That is why everyone is buying gold. But they are buying gold with fiat currency that is being printed like never before. 80% of all US dollars in circulation have been created since COVID. In six years 80% of all US dollars have been created. Let that sink in.
Gold IS a fiat currency.
Does Ron Paul own precious metal stores where he sells precious metals in exchange for American $Dollars?
Yes he does.
Do Ronulans ever ask themselves why Ron Paul is willing to part with his shiny ‘Precious’ for paper American $Dollars?
No they don’t.
Do you want a world where Gold is the currency?
Where South Africa, Russia, and Communist China have the most GOLD and are the countries which produce and export the most GOLD?
Ponder that and Let that sink in.