There has been a large increase in the share of gold in central bank purchases since 2009 at the expense of fiat currencies. In fact, by the end of 2023, gold has overtaken the euro, while the next currency to challenge is the US dollar. The dollar’s share of total reserves appears to be slowly …
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De-dollarization is constantly being strengthened
The dollar is still a primary currency for spending, liquidity and foreign exchange. But it’s no longer the top savings asset. Gold (now a Tier-1 asset…) will continue to be a high-value reserve (ie, it holds its wealth) better than any amount of money. In any case, the dollar and US Treasuries are now quantitatively …
China: The Strategic Moves, Trade and Sanctions It Prepares for Currency War Against the Dollar
Financial security has become an integral part of China’s national security strategy since the Asian financial crisis of 1997 – when the so-called Asian Tigers collapsed. Rising geopolitical tensions with the US and the West in general since 2018 and Western economic sanctions against Russia have further prompted Chinese policymakers to strengthen the economy’s financial …
Central banks are creating poverty with real estate, stock and over-indebtedness ‘bubbles’
Due to loose monetary policy (quantitative easing), financial assets appreciate without being supported by proper fundamentals while real estate becomes investment vehicles and the lower income strata are excluded from ownership. Despite what the conventional narrative about the economy holds, central bank monetary policies are a form of distortive government intervention in the economy. Their …
At extreme levels of market valuations (bubbles), everything portends a crash
Lately there has been growing concern over the valuation of the US stock market, warning that it is currently overvalued. This analysis delves into the reasons behind this rating and explores the various factors that contribute to the perceived overvaluation. By trying to understand the basics of what “overvalued” means, we shed light on the …
“Mesoeconomics” or the study of the “middle” space between micro- and macroeconomics
Understanding the network helps to understand the economy. Supply chains have always been seamless and therefore “boring”. Now, however, geopolitical, environmental, social and political upheavals are bringing supply chains to the fore. A consequence of this is the emergence of what is called “mesoeconomics”, or the study of the “middle” space between micro- and macro-economics, …
China cancels US tariffs by devaluing the yuan
China is actively promoting its plan for de-dollarization, promoting the yuan as the dominant currency in world trade, effectively challenging the long-standing dominance of the US dollar. China is trying to promote the yuan as a medium of international trade, implementing the basic principle of de-dollarization – reducing dependence on the dollar. China once relied …
Gold is the only lifeline from inflation – Inflation is implicit government bankruptcy
The money supply (the M2 index) in the US is rising again and persistent inflation is no longer a surprise. Price inflation occurs when the quantity of currency increases significantly above private sector demand. For investors, the worst decision in this currency disaster environment is to invest in government bonds and hold cash. The destruction …
How will the BRICS common currency affect the USD?
The BRICS alliance has aimed to dethrone the US dollar from the international market and make local currencies dominate. Developing countries are steadily and organizedly seeking to break ties with the US dollar and strengthen their domestic economies by putting their local currencies forward. In this light and from the US side, the change in …
The consumer, the average citizen, continues to suffer…
In April, former US Treasury Secretary Larry Summers drew laughs from investors when he said the Fed’s next move might be tightening, not easing. In other words, Mr. Summers is predicting another rate hike, which could cause the markets to… explode. And the truth is that few traders are still laughing. Of course, the likelihood …