The advantage of the US having the dollar as the world’s reserve currency is that it creates demand for dollars. Countries accumulate dollars and tend to invest them in US bonds, keeping US borrowing costs low. The curse, especially since Nixon ended the convertibility of the dollar into gold (1971), is that there is no …
Tag: dollar
Currency War III – After tariffs, the FED is occupied with… General Miran to save the dollar
The trade war is just one phase of a broader currency war that has been going on for less than 20 years. Last week, President Donald Trump made a significant move. He appointed Stephen Miran, head of the White House Council of Economic Advisers, to a position on the Board of the Federal Reserve (Fed). …
Gold is the future of “healthy” money for these 15 reasons
If gold…were judged in an impartial monetary court, the jury would unhesitatingly declare that the precious metal is a superior form of money. The proponents of fiat currency (paper money without any equivalent) would lose both the legal battle and the theoretical argument, while the defenders of “sound money” would present overwhelming evidence and irrefutable …
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 …
The US-China currency war is putting the final nail in the coffin of the global economy
The U.S. economy has not faced such a tariff regime in nearly 80 years. It is in a situation without historical precedent and therefore without the possibility of “ready-made recipes.” Given the absence of recent historical precedent, the Federal Reserve is waiting for more evidence that consumer prices are not rising sharply due to tariffs …
The Five reasons for gold’s sudden jump and the slow death of the dollar
Gold is not just a hedge against risk in the midst of an economic crisis – it is becoming a core asset class in the modern investment playbook – The Triffin Dilemma and the Weakening Dollar. In more detail: The past six months have been marked by unprecedented turmoil for the global economy and financial …
The abandonment of the gold standard and inflationary money destroyed prosperity in the West
The monetary history of the twentieth and twenty-first centuries shows us how the US government, step by step, removed the gold standard and introduced fiat currency (paper dollars without any counterpart), to finance its growing political power and the strangulation of civil society through economic management. All advanced economies followed suit. The cost that American …
Why has gold already surpassed the dollar in importance as a reserve currency for central banks?
The increasing frenzy in gold purchases by central banks suggests that the effects of Donald Trump’s fiscal policy are only just beginning to be felt. As the world’s leading monetary authorities accumulate gold at historically high prices, the real goal of the above move is to reduce exposure to the dollar. This dynamic belies US …
Gold became real money again on July 1st.
As of July 1, 2025, gold is officially classified as a Tier 1, high-quality liquid asset (HQLA) under Basel III regulations – This means that U.S. banks can count physical gold at 100% of its market value as part of their core capital reserves. For decades, many have rightly argued that gold is not just …
The disastrous plan for a strong euro will destroy the economy of Europe and its economically weak member countries
The European elite has recently been expressing the arrogant ambition that the euro will benefit from the decline in the dollar’s power as a reserve currency. They are selling this fairy tale, of course, to impose their suicidal geopolitical orientation against Russia, the incredible austerity that the program for the rearmament of Europe will bring, …