With $7 trilliion in official Forex Reserves owned by emerging, non-members of the G-7 Old Boys Club of global banking elites that’s largely denominated in US$ and Euro, this chart shows the track record of the 5 major currencies reflected by the historic denominator of money...gold.
The Nobel Peace prize committee has made another remarkable choice that boggles the mind. In 2009 they gave it to Obama just for getting elected, and this year its going to the EU – for its role in “uniting the continent,” contributions “to the advancement of peace and reconciliation, democracy and human rights in Europe.” How ironic that Norway – home of the committee, was one of the few to refuse to join the EU.
The political elites of the US, UK & Europe have flooded the emerging world with their paper in exchange for goods and resources to fuel a virtual industrial revolution in one generation. Those paper holders will ultimately call the shots on the ongoing viability of that paper in due course.
Look at the trends above, or indeed the chart I often show in my talks that takes the same data right back to 1946. That is the track record of ‘currency management’ by the elitist “old boys club”
of the Central Bankers, IMF, BIS and World Bank. For individuals, private ownership of gold is clearly a preferred vehicle for long-term preservation of purchasing power for so long as all the paper issued by the old boys club sports negative real returns.
With a global slump underway, the merging leaders have their hands full at home, and with the US elections now and German election next Spring, they are keeping their heads down to avoid any politically motivated retaliation. But they are taking bilateral steps to settle trade in their own currencies to stem the buildup of their US$ and Euro holdings, which will have big Western consequences down the road.”
About Ian McAvity:
"Ian McAvity...he is one of the best technical analysts around.". I think I saw one of his marvelous, hand-drawn charts in Richard Russell’s Dow Theory Letters, and that led to my subscription to Deliberations. Ian’s timely advice helped me to profitably navigate the gold and gold stock bull market of the 1970s.
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