Gold, Dollar, USA and the World: A new Global Financial System Ahead? J.D. Vance and Trump fundamentally changing the US toward Multipolarity?

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I just watched the following very interesting interview on Tucker Carlson with Luke Gromen:


Gromen brings up many interesting ideas about what is currently going on in regard to Gold, while giving very interesting details about the current administration in the US and especially about J.D. Vance. It almost seems like Trump (with Vance maybe being one of the primary forces) is on a natural course where the US is being forced to change to another system, maybe out of pure natural necessity because of a changing world? What Gromen says about J.D. Vance is especially interesting. I'm telling ya, the more I see and learn about the guy, the more interesting he gets! Would like to hear what you all think about those very interesting speculations in the video above.

It almost seems to me like Vance maybe the one who realized rather early that the US has to change rather fundamentally, confronted with a new reality (multipolarity? Although he might not consciously see what he is doing as such?) in order for the US to stand any chance to survive, more or less without too much hurt? Basically, if I understood/speculate correctly on the above, there is a larger picture that has started to emerge even before Trump got into office in the first term and at least some very powerful global movers and shakers realized that early on as well. It might be partially what Putin calls multipolarity. And Vance, maybe along with others, was smart and wise enough to realize that early on? It seems like Vance already knew that the idea/fact of the dollar being the world reserve currency isn't only in danger of falling apart, BUT ALSO, that if the US itself continues to count on that premise itself, that it will hurt America greatly in the long run?! So, it seems like America and the world at large might, instead of finding a new (or several new reserve currencies) might switch to gold as the primary tool for exchanges between countries worldwide instead of the dollar (while local currencies still play their important roles within?)? It seems like that could also be some of the things the "multipolar world" is changing towards and/or would find to be an acceptable means for a future after the dollar dominance? It also seems like there are very powerful factions that are against such a change, not only in America? That paragraph is sort of my speculation on the above.

At least Tucker points out in the video, and I think correctly, that there are very powerful forces that will stop at nothing resisting any fundamental changes.
 
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(will watch later today but ) Too many moving parts for this question... Centralized gold backed asset institutions with a public facing cbdc infrastructure of some sort ? the gold model (in whatever form ) is still a scarcity model , so over time the later part would certainly take it over , and given the "nurture" of all things sts , seems only the public facing part of it would change , for far worse ofc. ( my 2x cents ) , maybe C.A.F has a better grasp on how this can go.
 
On an interesting side note:

If I remember correctly, Tucker shortly mentions that the CIA killed Kennedy adding, quote “likely with the help of a foreign country“. What country has Tucker in mind? My bet is on Israel.
 
I just watched the following very interesting interview on Tucker Carlson with Luke Gromen:

Here is a summary of that video:

The Hidden Truth About Gold: Why It Matters More Than Ever

Gold has been a cornerstone of human civilization for over 6000 years, serving as a medium of exchange and a store of value. Despite the rise of technology and cryptocurrencies, gold continues to hold a significant place in the global financial system. This article delves into the reasons behind gold's enduring appeal, the recent trends in gold reserves, and the implications for investors and governments alike.

The Historical Context of Gold

Gold's status as a store of value is unparalleled. While modern economies have shifted towards fiat currencies and digital transactions, central banks around the world have consistently maintained their gold reserves. This is particularly evident in the last decade, where global central banks have stopped increasing their holdings of Treasury bonds and instead have purchased significant amounts of gold.

Since 2014, central banks have sold approximately $300 billion worth of U.S. Treasury bonds while acquiring about $600 billion in gold. This shift raises questions about the future of fiat currencies and the role of gold in a rapidly evolving financial landscape.

Why Gold Remains Relevant

1. Practical Advantages of Gold

Gold possesses unique characteristics that make it an enduring form of wealth. It is easily divisible, portable, and does not rust, making it a practical choice for storing value. Unlike other commodities, gold's stock-to-flow ratio is high, meaning it is scarce relative to its demand. This scarcity contributes to its status as a reliable store of value, especially during times of economic uncertainty.

2. The Privacy Factor

In an age where digital currencies are often associated with surveillance and control, gold stands out as a private asset. Transactions involving gold can be conducted without a digital record, allowing for a level of anonymity that cryptocurrencies have yet to achieve. This privacy aspect raises questions about the transparency of gold flows between countries and the potential for manipulation in the global financial system.

The Geopolitical Dynamics of Gold

Gold is not just a financial asset; it is also a geopolitical tool. Countries like China and Russia have been increasing their gold reserves, viewing it as a strategic asset that can help them diversify away from the U.S. dollar. This trend is indicative of a broader shift in the global economic landscape, where nations are seeking to reduce their reliance on U.S. financial systems.

The Secrecy Surrounding Gold Reserves

The lack of transparency in gold reserves and movements raises concerns about potential fraud and manipulation. For instance, the official rankings of gold reserves often do not reflect the true holdings of countries like China and India, which are believed to possess far more gold than reported. This secrecy can lead to significant geopolitical implications, as nations vie for economic power and influence.

The Future of Gold in the Financial System

As the global economy faces increasing uncertainty, the role of gold is likely to become even more pronounced. The potential for a revaluation of gold as a neutral reserve asset could reshape the financial landscape, allowing countries to settle trade deficits without relying on debt-based currencies. This shift could lead to a more stable economic environment, where gold serves as a hedge against inflation and currency devaluation.

Recommendations for Investors

Given the current economic climate, it is advisable for retail investors to consider allocating a portion of their portfolios to gold. Experts suggest that holding 5-10% of net worth in gold bullion or coins can provide a safeguard against inflation and currency fluctuations. As central banks continue to accumulate gold, its value is expected to rise, making it a prudent investment choice.

Conclusion

Gold's significance in the global financial system cannot be overstated. As countries navigate the complexities of modern economics, the enduring appeal of gold as a store of value and a geopolitical asset will likely continue to grow. For investors, understanding the dynamics of gold and its role in the financial landscape is crucial for making informed decisions in an increasingly uncertain world.

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Generated by Galaxy.ai YouTube Summarizer

It does look like gold may become much more important again, either in the US or the BRICS, or in both. And it seems likely that the gold and silver prices will increase, maybe quite dramatically at some point.

However, the dominance of the US dollar in worldwide transactions and as a foreign reserve holding is still mostly unchallenged. China's yuan is at maybe 3-5% while the dollar is still at over 60%, with the rest being the euro, pound and various other Western currencies.

Furthermore, the BRICS have for now frozen the introduction of their new currency after Trump threatened 100% tariffs on them. I suppose if the conditions are right at some point, that BRICS currency could skyrocket in use pretty fast - especially if it will be backed by gold.

And while Trump outlawed the creation of a CBDC in the US, there are many possibilities to create a functionally similar system in other ways, eg. with Digital ID for everyone ("against election fraud and illegal immigrants") and stablecoins or some other crypto-related system.
 
Furthermore, the BRICS have for now frozen the introduction of their new currency after Trump threatened 100% tariffs on them. I suppose if the conditions are right at some point, that BRICS currency could skyrocket in use pretty fast - especially if it will be backed by gold.

From the little I have seen and know about the topic I got away with the assumption that it is pretty unlikely that BRICS will introduce or even want to introduce a new currency any time soon. Gold on the other hand could solve that problem (at least partially) not only for BRICS but also for the US, and not only respectively within each of the two “blocks“ but also in trade/relations between the two.
 
From the little I have seen and know about the topic I got away with the assumption that it is pretty unlikely that BRICS will introduce or even want to introduce a new currency any time soon.
That is what Lawrow (Russian foreign mininster) said a month ago, even though many expected that the BRICS currency would have been announced at their summit in Kazan in October.

Gold on the other hand could solve that problem (at least partially) not only for BRICS but also for the US, and not only respectively within each of the two “blocks“ but also in trade/relations between the two.
I think one of the issues is that there is not enough gold for all that or gold would have to be revalued (go up in price a lot). That is possible at some point or maybe even likely.

And the whole CBDC scheme still pursued by many countries (including Russia and China) seems to be meant as a "solution", either instead of gold or maybe with gold backing in some cases.
 
A part of this discussion is , also , that debt is a ( deliberate ) tool . According to Michael Hudson the Rosetta stone is in part a declaration of debt release ( jubilee ) , which somehow is never mentioned , not even by the British museum page ( to point out that) as long as the model is one of scarcity , debt always grows faster, so this cycle repeats....
 
More information on the topic. The guy being interviewed also thinks that likelihood of war in Europe is very high.


Ripple company's XRP ledger and the native cryptocurrency token XRP that's running on it might have already been chosen to serve as digital train tracks to deliver and represent gold in the new financial system.
Maybe that's why Bitcoin the first cryptocurrency ever created was created by the anonymous entity Satoshi Nakamoto. To bring digital currencies into the global mind and be a stepping stone towards a digital financial system, that seems like it's gonna be gold based.
That would be a kinda funny dichotomy, return to real money (gold) in the form/medium of a digital currency/data.


 
From the little I have seen and know about the topic I got away with the assumption that it is pretty unlikely that BRICS will introduce or even want to introduce a new currency any time soon. Gold on the other hand could solve that problem (at least partially) not only for BRICS but also for the US, and not only respectively within each of the two “blocks“ but also in trade/relations between the two.
I’m reminded of the way Gonzalo Lira and Pepe Escobar described it (before Lira was killed by Zelensky): “A basket of currencies.”
 
According to this article from Investers News Network, returning to the gold standard isn't straight forward. The beginning of article goes into some of the history of the use of the gold standard to back currency until the Bretton Woods agreement after WWII, acknowledges Trumps interest in returning to the gold standard and names supporters of the idea and then addresses the problems with returning to the gold standard now, and it's not yet known exactly how much gold the US currently has in reserve despite the claims of the article:

Would it be feasible for the US to return to the gold standard?​

Trump’s first term as president passed without a return to the gold standard, and the consensus seems to be that it’s highly unlikely that this event will come to pass — even with him at the helm once again.

Even many ardent supporters of the system recognize that going back to it could create trouble.

As per the Motley Fool’s Williams, economists largely agree that moving to a lower-key version of the gold standard in 1933 was “a big reason why the US emerged from the Great Depression,” and a return would be a mistake.

But if Trump or a future president did decide to go through with it, what would it take?

According to Kimberly Amadeo at the Balance, due to trade, money supply and the global economy, the rest of the world would need to go back to the gold standard as well. Why? Because otherwise the countries that use the US dollar could stand with their hands out asking for their dollars to be exchanged for gold — including debtors like China and Japan, to which the US owes a large chunk of its multitrillion-dollar national debt.

Is there enough gold to return to the gold standard?​

The fact that the US doesn’t have enough gold in its reserves to pay back all its debt poses a huge roadblock to returning to the gold standard. The country would have to exponentially replenish its gold reserves in advance of any return to the gold standard.

"The United States holds around 261.5 million troy ounces of gold, valued at approximately $489 billion. The total US money supply exceeds $20 trillion, necessitating about 272,430 metric tons of gold at current market prices," explained Ron Dewitt, Director of Business Development at the Gold Information Network, in a June 2024 LinkedIn post.

"The supply remains insufficient, even including global gold stocks, which total around 212,582 metric tons."

In addition, it's understood that returning to the gold standard would require the price of gold to be set much higher than it is currently. What would the price of gold need to be worth if the US returned to the gold standard? Financial analyst and investment banker Jim Rickards has calculated the gold price would need to jump up to at least US$27,000 an ounce.

That means the US dollar would be severely devalued, causing inflation, and since global trade uses the US dollar as a reserve currency, it would grind to a halt. Conversely, returning to the gold standard at a low gold price would cause deflation.

What would silver be worth if the US returned to the gold standard? It's not a guarantee that silver would follow in gold's footsteps if a gold standard was re-established due to its many industrial and technological applications. While silver has a long history as a precious metal and played an important role as currency for much of human history, its value today is intrinsically linked to that demand as well.

What would happen if the US returned to the gold standard?​

Returning to the gold standard would have a huge impact on all levels of the US economy and make it impossible for the Fed to offer fiscal stimulus. After all, if the US had to have enough gold reserves to exchange for dollars on an as-needed basis, the Fed’s ability to print paper currency would be incredibly limited.

Supporters believe that could be the perfect way to get the US out of debt, but it could also cause problems during times of economic crisis. It’s important to remember that because 70 percent of the US economy is based on consumer spending, if inflation rose due to the gold price rising, then a lot of consumers would cut spending.

That would then affect the stock market as well, which could very well lead to a recession or worse without the ability of the government to soften that blow via money supply. "Transitioning to a gold standard during an economic crisis would severely limit monetary policy options and could lead to economic instability," Dewitt warned.

For that reason, a return to the gold standard would also expose the US economy to the yellow metal’s sometimes dramatic fluctuations — while some think that gold would offer greater price stability, it’s no secret that it’s been volatile in the past. Looking back past the metal’s recent stability, it dropped quite steeply from 2011 to 2016.

Moreover, speaking to Congress on this issue in 2019, Fed Chair Jerome Powell warned against a return to the gold standard.

“You’ve assigned us the job of two direct, real economy objectives: maximum employment, stable prices. If you assigned us (to) stabilize the dollar price of gold, monetary policy could do that, but the other things would fluctuate, and we wouldn’t care,” Powell said. “There have been plenty of times in fairly recent history where the price of gold has sent a signal that would be quite negative for either of those goals.”

As can be seen, returning to the gold standard would be a complex ordeal with pros and cons. The likelihood of the US bringing back the gold standard is slim, but no doubt the question will continue to be up for debate under future presidents.

the gold model (in whatever form ) is still a scarcity model

Maybe, that's what we've been led to believe and that belief would serve as protection of gold valuation. It's probably worthwhile to question that idea though given that we've been led to believe that fossil fuel resources are finite and there are some theories stating that they are perhaps renewable and the earth continues to produce them.

Gold can occur in three basic forms that we know of - gold ion as a caton that is water soluble, the stable metal, and the noble gas. Then there is this interesting bacteria, Cupriavidus metallidurans, that turns toxic gold ions in water into the stable metal by stealing electrons from another metal like copper and adding it to the gold ion and it then sheds gold that crusts on the outer surface of the bacteria forming nuggets.

March 4th 1995
A: Every thing cycles fully

May 20th 1995
A: Remember, all is structured in cycles and circles.

So maybe gold is renewable, however we don't yet know how long the cycle is or what elements are necessary to complete the cycle.
 
I am highly influensed by Matt Ehret take on the history and are in the park where the British empire when underground after WWII. They are still the prime aggresor against Russia. Their latest act of piracy is loaning out sieged assets from the russians to Elensky. Alex Krainer has a very interesting take on the latest episode of this reality show. Basicly he says that the Bank of England is out of assets and soon insolvent so it needs to get hold on new resources fast. This is where they make a deal with Elensky, the 100 years deal. What is not stated official in this deal is that Elensky signs of future acces of ukraininan ressources and authority over their ports to GB. Trumf and Putin know this and know that the lattest round of european leaders and Elensky visiting WH was a rouse to keep US in the game on false premises. And friday Trumf slammed it in the floor.

 
Will the big money oligarchs, whether they have gold or computer bits as a currency, end up owning US public assets? Also consider that in the producer-consumer cycle the currency and wealth aggregate to the producer which over time is consolidated in fewer and fewer hands.

Make U.S. Assets Great Again

Even this publicity visit has not captured all of the gold news lately. On a more serious note, Scott Bessent the U.S. Treasury Secretary said recently that “within the next twelve months, we’re going to monetize the asset side of the balance sheet for the American people. We’re going to put the assets to work.” There has been so much focus on the liability side of the balance sheet (basically the $38 trillion in national debt) that it’s refreshing to hear a senior official talk about the asset side.

The liberal critics will wail that Bessent plans to sell Yosemite National Park to real estate developers. Nothing like that will happen but the U.S. does have ample assets it can sell, lease or otherwise monetize without invading national parks or wilderness areas. These include mineral and mining rights, intellectual property, airwaves, rights of way, flight paths, and, yes, property development rights and land sales in non-sensitive areas. No one has any idea what all of this is worth, but it’s certainly worth in the trillions of dollars and can be monetized for the benefit of the American people including paying down the national debt.

 
It seems that XRP as an idea predates Bitcoin and is the real purpose behind the cryptocurrency project.


The History of Ripple

The idea behind Ripple and its native token predates the crypto industry and Bitcoin itself. In 2004, John Fugger launched a peer-to-peer (P2P) financial network called RipplePay. The goal was to capitalize on the financial relations between network participants to eliminate the need for banks. In essence, if participant A trusts participant B, then B can act as a third-party whenever A wants to transact with another participant trusted by B.
This concept would later serve as the cornerstone of the crypto model that Jed McCaleb — an early Bitcoin pioneer and founder of Mt. Gox exchange — proposed as an alternative to Bitcoin back in 2011. McCaleb concluded that Bitcoin mining was an excessively resource-hungry and expensive system that would eventually undermine the usefulness of Bitcoin. And so he approached Fugger with a plan to evolve RipplePay into a crypto network. In 2012, Fugger officially handed over RipplePay to McCaleb and Chris Larsen — a serial entrepreneur and today, Ripple’s executive chairman.
Shortly after the handover, the team started building the first iteration of Ripple, called OpenCoin. Subsequently, the company’s name changed twice between 2012 and 2015. Notably, the project also underwent a series of cultural and systemic changes. The most significant was the switch to the Ripple Gateway system.

Recall that Ripple had initially opted for a peer-to-peer architecture. In the course of evolving their ideas, the team came to believe that reputable businesses, of a sufficient size, would be needed to ensure users’ trust. These businesses are what Ripple calls Ripple Gateways. This change in architecture marked a sharp shift towards a hybrid system that combines traditional banking structures with a peer-to-peer network.

This combination would later prove to be pivotal to the project’s popularity in the traditional financial sector, as established financial institutions viewed it as a less unfamiliar route into engaging with the crypto and blockchain industry.

Ripple, the for-profit company headed by Chris Larsen, soon began to secure high-profile partnerships and the number of financial institutions using RippleNet to facilitate cross-border payments began to steadily increase.

This guy explains it well in this short video. He says that Fugger family is an old banksters family (and likely with ties to secret organisations) and that Bitcoin BTC was just a beta test coin and likely created by intel agencies like CIA or NSA. Nakamato Satoshi = NSA, and that XRP was always meant to be the final product to be used as a one world currency.

 
He says that Fugger family is an old banksters family (and likely with ties to secret organisations)
Yes, the Fugger family were sort of the Medici of Germany - though I think both are officially not that rich anymore.

Personally, I don't know what the point of Ripple or XRP is anyway. It is a centrally controlled payment network similar to Paypal and many others. They do have a crypto token, unlike Paypal, but this token seems to be just for meaningless speculation since it is not a share of the company or anything like that.

I think CBDCs or even the "stablecoins" are more likely to gain prominence than the XRP payment system and its token. Though there is a lot of hype around XRP being included in the US "strategic crypto reserve".
 
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