The reshaping of the global monetary system is happening, one gold bar at a time. Between 2022 and 2024, central banks bought more than 3,000 tons of physical gold — possibly the most intense period of accumulation of the precious metal since the 1970s. This is not nostalgia for the Bretton Woods era, but a …
Tag: central banks
Gold buying frenzy is reshaping global foreign exchange reserves
A historic gold buying spree by central banks is reshaping global foreign exchange reserves, signaling a broader shift away from the dollar amid growing geopolitical and economic uncertainty. Silent inventory reallocation Central banks buy more than 1,000 metric tons of gold annually, with much of that buying unreported. Heightened fears of the dollar being weaponized, …
Why don’t central bankers want private money? – The stablecoins revolution
In a recent speech in Portugal, Christine Lagarde — president of the European Central Bank (ECB) — gave a stern warning about the emergence of stablecoins, stating that they could lead to the creation of “new private currencies.” These stablecoins, which are tokens (digital tokens) backed by government currencies (fiat), pose a serious threat to …
Central banks are geometrically increasing their purchases of gold and are abandoning the dollar
Record gold purchases by central banks signal a major shift in the monetary order – a shift in foreign exchange reserves and significant cracks in the dominance of the US dollar. Last week, the price of gold soared to another record high. While much of the buying has come from investors seeking safety in safe-haven …
The trade war is becoming monetary – Dilemma whether to devalue their currency
Uncertainty over US policy has led to a flight from the dollar and US bonds, with the dollar index down more than 9% so far this year. The dollar’s decline has led to other currencies appreciating against it, notably safe havens such as the Japanese yen, the Swiss franc and the euro. Currency depreciation is …
Tariffs and the $3 trillion held by Asian central banks that make them punishers in the US bond market
Great turmoil, great situation – to use a phrase from former Chinese President Mao Zedong to sum up the trade war declared by President Trump. The dollar extended its biggest plunge in three years on Friday, April 11, after China raised tariffs on U.S. goods to 125% from 84%, a step up in tensions that …
Gold is a formidable monetary weapon – the mysteries of Fort Knox and China
One of the most significant long-term effects of this War in Ukraine, regardless of when a peaceful settlement is reached, will be on gold and the dollar. That is, in the realm of an ongoing currency war. When Russia launched its military operation in Ukraine, it overlooked the fact that its central bank had about …
Return to the gold standard when Western central bankers dislike gold?
Donald Trump and Elon Musk have been particularly vocal about what’s been going on at Fort Knox lately, the location where America keeps its official gold reserves. Both have said they will visit the place soon to check it out and make sure the gold is there. According to Trump and Musk, they want to …
Trump sets limits on Powell and the crucial battle with inflation
“Relief in Prices for American Families and Combating the Cost of Living Crisis” is the title of one of several executive orders issued by President Donald Trump in his first week back in the Oval Office. This executive order directs federal agencies to “provide extraordinary price relief” to the American people by reducing federal regulations …
Inflationary money: foundation of uncontrolled state growth – destruction of economic & social freedoms
The rulers and the ruled in the Western world have long succumbed to a particularly demonic temptation: the replacement of commodity (or precious metal) money with unbacked, state-issued money, known as fiat money. In a sense, they have been seduced by the alluring prospect of securing the power to increase the quantity of money arbitrarily …