This page is focused on following articles that concern gold and the currency. Basel III states that all currencies must be asset backed. Articles found on this page will hopefully show that there is a concerted effort to globally change all the currencies and make them asset backed. We have detailed paperwork dating all the way back to 2002 showing that there is an organized effort underway to make this a reality and do away with all fiat currencies. So much has been done over the last fifteen years to set this process up to make it happen. We will not show all of those articles but will focus on the articles that are current and pointing us in that direction.
As with dominoes, it only takes one to start to make the dominoes all fall. So it is with the currencies. After one changes, the rest will change as well.
MARCH 22, 2017 from goldcore.com
"PEAK GOLD- BIGGEST GOLD STORY NOT BEING REPORTED"
– Peak gold – Biggest gold story not being reported
– Gold ‘Mining Zombie Apocalypse’ caused miners to slash exploration budgets
– Decline in gold production at world’s top 10 gold mining companies – Byron King
– “No new big mines being built in the world today” – Glencore CEO Glasenberg
– Primary global gold output declined in 2016 – Thomson Reuters via Mining.com
– 2016 was first year of fall in mine production since 2008
– Rising safe haven demand from ‘Trumpflation’ and geopolitical tensions and falling mine supply should lead to “much higher gold prices”
– What happens when the unstoppable force of robust global demand for gold meets the immovable object of a small, finite, rare and dwinding supply of physical gold?
South Africa Gold Production
We have written about ‘peak gold’ and the ramifications of the underappreciated peak gold phenomenon for the gold market since 2008. The risk of falling gold production and a consequent reduction in supply are slowly percolating into the mainstream and analysts are asking whether 2015 or 2016 marked the year of peak gold production.
Byron King has written about this increasingly important supply factor in the gold market and brings together the views and research of Glencore CEO, Ivan Glasenberg, Thomson Reuters GFMS and others.
The collapse in South African gold production (see chart above) is the ‘classic canary in the coal mine’ and likely foreshadows the coming decline in global gold production.
South Africa produced over 1,000 tonnes of gold in 1970 but production has fallen to below 250 tonnes in recent years (see chart above). This is a collapse as these are levels last seen in 1922 and happened despite the massive technological advances of recent years and more intensive mining practices.
Regarding global gold production, the world’s largest gold producer and now the world’s largest gold buyer China, has been the only major producer to see an increase in gold production in the last few years.
There has been a huge increase in Chinese gold mining supply in recent years. We wonder about the accuracy of some of this data and whether the figures are being exaggerated by gold mining companies in China and by bureaucrats. Gold mining companies sometimes exaggerate the scale of their assets in the ground and sometimes of their production as was seen in Bre-X, recently popularized in the movie ‘Gold’.
There is concern that gold production in China may actually be declining as older mines see reduced production.
From the Daily Reckoning:
Gold has performed exceedingly well since last Wednesday’s much-anticipated rate hike. It shot up about $25 Wednesday alone. Today it’s up another three bucks, to $1,233.
The most common argument for gold is fairly well-known. Trump’s massive new spending proposals will goose inflation, meaning a higher gold price.
But while most investors focus on the potential for increasing demand, few consider if supplies will be able to meet that demand. And if supplies can’t keep up with demand, that should lead to much higher gold prices.
After three years of drifting lower, gold prices began to recover last year. Still, despite last year’s gold price move, the world’s top 10 gold mining companies were focused more on cost cutting. The result was a decline in gold production from mines run by majors.
And Ivan Glasenberg, CEO of mining giant Glencore, says that “there are no new big mines being built in the world today.” That’s because the industry downturn between 2012 and 2015 — the Mining Zombie Apocalypse, as I like to call it — caused miners to slash exploration budgets, in essence storing up trouble for the future.
Thus, it’s worth taking note of a recent article at Mining.com by Frik Els — with whom I spent a week in the Yukon last summer.
Frik dissects a recent report by Thomson Reuters about how primary global gold output declined in 2016. Specifically, Mining.com sums up the report: “World gold mine supply fell by 22 tonnes, or 3%, year on year according to the GFMS Gold Survey, to 827 tonnes in the third quarter of 2016.
By all indications, mine supply contracted in the fourth quarter of 2016 as well.
That means 2016 was the first year of a fall in mine production since 2008.
And according to the Thomson Reuters report, there are “few new projects and expansions expected to begin producing this year, and those in the near-term pipeline are generally fairly modest in scale, hence our view that global mine supply is set to continue a multiyear downtrend in 2017.”
Read article on Daily Reckoning
We live on a small, finite planet which is confronted by massive population growth, a near infinite growth in global currency supply and in financial instruments such as derivatives. We are consuming all our natural resources in a completely unsustainable manner.
Now might be a good time to ask the important question
What happens when the unstoppable force of robust global demand for gold meets the immovable object of a small, finite, rare and dwinding supply of physical gold?
By Mark O'Byrne
MARCH 2, 2017 from FORBES.com
President Trump: Replace The Dollar With Gold As The Global Currency To "Make America Great Again"
Inside President Trump’s otherwise “standard Trump stump speech” at CPAC
was nestled what might be a most intriguing observation:
"Global cooperation, dealing with other countries, getting along with other countries is good, it’s very important. But there is no such thing as a global anthem, a global currency or a global flag. This is the United States of America that I’m representing."
There's a keen insight in there that could, just maybe, transform our lives, America, and the world. No "global currency?" Was this, with the poetic observation that “there is no such thing as a global anthem…or a global flag,” just a trope? Or could it contain a political portent with potential high impact on world financial markets? Let’s drill down.
As it happens, there is a global currency.
It’s called the "U.S. dollar.”
Most international trade is priced in dollars. The Bretton Woods international monetary system invested the dollar, which then was defined as and (internationally) was legally convertible to gold at $35/oz, with global currency status. France’s then-finance minister, later its president, Valéry Giscard d'Estaing, called the “reserve currency” status of the dollar -- its status, along with gold, as global currency -- an “exorbitant privilege
By this d'Estaing was alluding to the fact, as summarized at Wikipedia
, that "As American economist Barry Eichengreen summarized: 'It costs only a few cents for the Bureau of Engraving and Printing to produce a $100 bill, but other countries had to pony up $100 of actual goods in order to obtain one.'" That privilege, which made great sense during the period immediately after World War II, became a curse.
In 1971 President Nixon
, under the influence of his Svengali-like Treasury Secretary John Connally
, "suspend[ed] temporarily the convertibility of the dollar into gold." That closure proved durable instead of temporary. The dollar became, and remains, the world's global currency.
a monetary system based on a reserve currency is unsustainable, since foreign official dollar reserves (for example) are acquired and must be repaid in goods. In other words, the increase in official dollar reserves equals the net exports of the rest of the world, which means it must also equal U.S. international payments deficits—an unsustainable situation.
In other words, if President Trump wishes to address America’s merchandise trade deficit (balanced to perfection, of course, by a capital accounts surplus) he will find that allowing the dollar to be used as the global currency is the real snake in the economic woodpile. The dollar’s burden as the international reserve currency, not currency manipulation by our trading partners or bad treaties, is the true villain in the ongoing melodrama of crummy job creation.
Mueller’s Wall Street Journal column enumerates the three options open to President Trump:
First, muddle along under the current “dollar standard,” a position supported by resigned foreigners and some nostalgic Americans—among them Bryan Riley and William Wilson at the Heritage Foundation, and James Pethokoukis at the American Enterprise Institute.
Second, turn the International Monetary Fund into a world central bank issuing paper (e.g., special drawing rights) reserves—as proposed in 1943 by Keynes, since the 1960s by Robert A. Mundell, and in 2009 by Zhou Xiaochuan, governor of the People’s Bank of China. Drawbacks: This kind of standard is highly political and the allocation of special drawing rights essentially arbitrary, since the IMF produces no goods.
Third, adopt a modernized international gold standard, as proposed in the 1960s by Rueff and in 1984 by his protégé Lewis E. Lehrman …and then-Rep. Jack Kemp.
To “muddle along” would, of course, be entirely antithetical to Trump’s promise to Make America Great Again. It would destroy his crucial commitment to get the economy growing at 3%+ -- vastly faster than it has for the past 17 years
-- which also happens to be the recipe for robust job creation and upward income mobility for workers. It also is the essential ingredient for balancing the federal budget while rebuilding our infrastructure and military.
To turn the IMF into a world central bank would, of course, be anathema to Trump’s economic nationalism. To subordinate the dollar to the IMF’s SDR would be equivalent to lowering Old Glory and replacing the American flag with the flag of the United Nations on every flagpole in America. Unthinkable under a Trump administration.
That leaves the third option, to “adopt a modernized international gold standard, as proposed in the 1960s by Rueff and in 1984 by his protégé Lewis E. Lehrman … and then-Rep. Jack Kemp” (whose eponymous foundation I advise). To this one should add, as Forbes.com
contributor Nathan Lewis has shrewdly observed
, the removal of tax and regulatory barriers to the use of gold as currency.
Donald Trump: “We used to have a very, very solid country because it was based on a gold standard,” he told
WMUR television in New Hampshire in March last year. But he said it would be tough to bring it back because “we don’t have the gold. Other places have the gold.”
Trump’s comment to GQ
: "Bringing back the gold standard would be very hard to do, but boy, would it be wonderful. We’d have a standard on which to base our money."
Trump has been misled to believe that “we don’t have the gold. Other places have the gold.” In fact, the United States, Germany, and the IMF together have about as much gold as the rest of the world combined
and America has well more than Germany and the IMF combined. [Note: This column has been updated to clarify that the United States has well more gold than Germany and the IMF combined but not, as originally stated, more than twice as much.]
We have the gold. Bringing back the gold standard would not be very hard to do.Trump's politically unique intuition that “We used to have a very, very solid country because it was based on a gold standard” is no trivial matter. It is true. And as I have written elsewhere
"People who had thought themselves condemned to be sharecroppers in the Alabama Cotton Belt or day laborers in the boot heel of Italy found opportunities they could never have imagined. The French called this period les trente glorieuses, the 30 glorious years. Germans spoke of the Wirtschaftswunder, the economic miracle, while the Japanese, more modestly, referred to “the era of high economic growth.” In the English-speaking countries, it has more commonly been called the Golden Age.
"The Golden Age was the first sustained period of economic growth in most countries since the 1920s. But it was built on far more than just pent-up demand and the stimulus of the postwar baby boom. Unprecedented productivity growth around the world made the Golden Age possible. In the 25 years that ended in 1973, the amount produced in an hour of work roughly doubled in the U.S. and Canada, tripled in Europe and quintupled in Japan.
"Ever since the Golden Age vanished amid the gasoline lines of 1973, political leaders in every wealthy country have insisted that the right policies will bring back those heady days. Voters who have been trained to expect that their leaders can deliver something more than ordinary are likely to find reality disappointing."
Levinson, whose column uses “Golden Age” as its leitmotif, strangely fails to make the connection between, or even explore, the fact that the era he calls the Golden Age correlated precisely with America (and the world) being on a form of gold standard, particularly the modified gold standard known as the Bretton Woods System. (Bretton Woods had the inherent flaw of using the dollar as an international reserve asset but, until that flaw undermined it, it served equitable prosperity.)
What would be the outcome of Trump's following his instincts and going for the gold?
Prosperity, that's what.
Former Fed Chairman Alan Greenspan just provided a barely noticed Big Reveal. In an interview with the World Gold Council’s Gold Investor
Chairman Greenspan, stating “I view gold as the primary global currency,” went on to explicitly reveal, for the first time to my knowledge, that “When I was Chair of the Federal Reserve I used to testify before US Congressman Ron Paul, who was a very strong advocate of gold. We had some interesting discussions. I told him that US monetary policy tried to follow signals that a gold standard would have created.
The period of "following signals that a gold standard would have created," called the Great Moderation under President Clinton, was one of the most equitably prosperous in modern American history. That era saw the creation of over 20 million jobs. Robust growth converted the federal deficit into a surplus. It was, if only virtually rather than institutionally, a golden age.
After the Fed abandoned its Great Moderation America experienced almost no net job creation under President George W. Bush and very mediocre job creation under President Obama. Sad!
I want the American Dream back. We all do, very much including President Trump.
How might President Trump go about turning this around? He has a unique opening to forcefully pivot America toward epic prosperity.
As Paul-Martin Foss of the Menger Center
astutely points out the Federal Reserve Board currently has three vacancies. If Trump were to fill those vacancies with three sophisticated gold standard advocates from the short list of Lewis E. Lehrman (whose eponymous Institute I formerly served), Dr. Judy Shelton (who served as an advisor on his presidential economic transition team), former presidential candidate Steve Forbes, and John Allison, former CEO of BB&T (preferably as vice chairman for regulation) the president would create a super “beachhead team” at the Fed to seriously restore equitable prosperity.
These appointments would be the safe and sure first steps out of economic stagnation for America. Couple these with a White House “Team B” to plan the enactment of the Jack Kemp Gold Standard Act and removal of the regulatory and tax barriers to using gold as currency. Then watch an American economic miracle take place.
Mr. President: “No such thing as a global currency?” The dollar is the global currency. Want prosperity? Heed Chairman Greenspan and do not just view but restore "gold as the primary global currency.” President Trump: replace the dollar with gold as the global currency to make America great again. We have the gold.
Written by Ralph Benko - Contributor
MARCH 30, 2017 from www.politicalvelcraft.com
"Moscow & Beijing Establish BRICS Monetary Transactions Framework In Gold: It All Begins"
Trading in local currencies has already started — and lays the groundwork for facilitating BRICS transactions in gold.
Recent progress made in streamlining trade in local currencies has brought Moscow and Beijing closer to creating a financial architecture that could facilitate transactions in gold.
As we reported last week, Moscow and Beijing took another step towards de-dollarization with the opening of a yuan clearing bank in Russia. And earlier this month Russia’s Central Bank opened its first-ever foreign branch in Beijing to allow for better communication between Russian and Chinese financial authorities.
The Dollar Is Coming Home To Die: Dumped By The World
Russia’s Landmark Speech: "New Centers Of Economic Power" ~ As China, Japan, Belgium, Switzerland, & Saudi Arabia Dump The Rothschild Fiat U.S. Dollar.
3/2017 India World’s Largest Importer Of Gold Surges 82%: India Shrugs Off IMF Modi Digital Scheme
According to an article published yesterday by Sputnik, progress made in promoting bilateral trade in yuan is the first step towards an even more ambitions plan — using gold to make transactions:
The clearing center is one of a range of measures the People’s Bank of China and the Russian Central Bank have been looking at to deepen their co-operation. […]
One measure under consideration is the joint organization of trade in gold. In recent years, China and Russia have been the world’s most active buyers of the precious metal.
On a visit to China last year, deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries.
The possibility of trading in gold has been discussed by Russian officials over the last year. Last April, First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS:
“BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets.”
Future plans to facilitate transactions between Moscow and Beijing in gold would certainly explain why the two countries are leading gold producers and buyers. Creating a BRICS “gold marketplace” would be an excellent way of bypassing the dollar while also using a “currency” that could be easily recycled for trade with other member nations.
And while trading in gold won’t happen overnight, BRICS states have already moved towards creating a “new financial architecture” that “tackles the dominance of the U.S. dollar in global finance”:
Shanghai Shock April 19, 2016: "Yuan Based Gold Standard Established"
China Locked In The Zionist Controlled Dollar Death By Launching Their Own Gold Price Exchange
The initiatives taken by the member nations of BRICs (Brazil, Russia, India, China, and South Africa) to set up a new financial architecture at its eighth summit held in October 2016 in India have recently been under the spotlight.
In order to avoid the International Monetary Fund (IMF) type of loan conditionalities and tackle the dominance of the United States (US) dollar in global finance, the new institutions set up by the BRICs are expected to provide a much needed change in the global financial architecture.
These institutions include the New Development Bank (NDB), the BRICS-led Contingency Reserve Fund (CRF), and the Asian Infrastructure Investment Bank (AIIB).
China’s AIIB To Radically Change The World Competing Against Rothschild’s IMF.
As one financial expert noted recently:
In recent years, the BRICS countries – Brazil, Russia, India, China and South Africa – have been taking small steps to reduce the primacy of the dollar in international trade. China has been leading this effort in recent years.
I recently came across this headline published by the South China Morning Post: “Moscow and Beijing join forces to bypass U.S. dollar in world money market.” You see, Russia and China have been working towards stronger economic ties for years.
The latest sign of this cooperation happened March 16, when the Central Bank of Russia opened its first overseas office in Beijing. The local news called this “a small step forward in forging a Beijing-Moscow alliance to bypass the U.S. dollar in the global monetary system.”
Trading in yuan is just the first step.
There are much bigger plans in the works.
[FYI: Genghis Khan ~ The Mongol Empire:
August 21, 1264 Kublai Khan becomes the Great Khan.
After a protracted civil war, Ariqboqe surrenders to Kublai Khan at Shangdu. This solidifies Kublai Khan’s power and allows him to once again begin campaigns of conquest. He finally defeats the Song Dynasty in southern China and puts his own regime in place, called the Yuan, which makes the Mongols the first non-Chinese people to conquer all of China. ”
The word “yuan” means “origin of the universe.”
1368 The Ming Dynasty reclaims China and the Mongol Empire ends.
After Kublai Khan, the Mongols disintegrate into competing entities and lose influence, in part due to the outbreak of the Black Death. In 1368, the Ming Dynasty overthrows the Yuan, the Mongols’ ruling power, thus signifying the end of the empire.]