Gold standard strategy and the collapse of dollar

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News Date: July 16, 2020

The dollar is no longer pegged to gold, but it is still the world's reserve currency. Over 60% of the foreign bank reserves are currently held in US Dollars.
There have been efforts by numerous countries (led by China and Russia) to dethrone the US Dollar as the world's reserve currency. China has been reducing its exposure to the Dollar for a long time, and both China, as well as Russia, have been stocking up on gold in recent times.
Central banks added 650 tons to their reserves in 2019, the second highest shift in 50 years, after the 656 tons added in 2018. Before the 2007-09 financial crisis, central banks were net sellers of gold worldwide for decades. Leading the recent spree has been China, Russia, Turkey, Kazakhstan and Uzbekistan.
China can escape the fate of a dollar collapse by tying the yuan to gold. There is little doubt she has access to sufficient gold. Currently, her interest is to preserve the dollar, not destroy it, because it is the principal means of Chinese foreign interests being secured.
Sources: www.fxstreet.com, uk.news.yahoo.com, seekingalpha.com

BRICS Currency is imminent

Sergey Glazyev, a great Russian economist and politician, foresees the imminence of the planned BRICS common currency.
"The emergence of a new settlement currency is inevitable because the current international monetary situation is irrational," the Russian economist stated.
Not only that the international monetary situation is irrational, but also the fact that the political and military chaos generated sanctions and forced the eastern states to de-dollarize.

Introducing the new global financial system

Answers provided by Sergey Glazyev, Russian Geoeconomics Tzar:
The world's new monetary system, underpinned by a digital currency, will be backed by a basket of new foreign currencies and natural resources.
And it will liberate the Global South from both western debt and IMF-induced austerity.
Transition to the new world economic order will likely be accompanied by systematic refusal to honor obligations in dollars, euro, pound, and yen.
In this respect, it will be no different from the example set by the countries issuing these currencies who thought it appropriate to steal foreign exchange reserves of Iraq, Iran, Venezuela, Afghanistan, and Russia to the tune of trillions of dollars.
Full article: Authored by Pepe Escobar via The Cradle

BRICS to create fairer payment mechanism

BRICS is exploring ideas to create a fairer payment system that reduces dependence on dollars, South African Foreign Minister Naledi Pandor has said.
South Africa is the current BRICS chair.
Source: indiatimes

Waller confirmed to Fed Board. WH supports Shelton

By a completely partisan vote of 48 to 47 (though Rand Paul voted against), The Senate confirmed Trump nominee Christopher Waller to the Federal Reserve Board of Governors - filling one of the two vacant slots on the influential economic body.
The White House remains confident that Ms. Shelton will be confirmed and is fully supportive of her candidacy, a White House spokesman said Thursday.
Her beliefs:
- eliminating the Feds independence and federal deposit insurance
- returning the U.S. to a gold standard
Sources: www.forexlive.com, www.zerohedge.com

Supreme Court could hit the tax system

The Supreme Court's decision to hear a pivotal tax case has profound implications for the future of the U.S. tax system.
At stake is the constitutionality of a proposed wealth tax, which could address economic disparities or dismantle key aspects of the existing tax framework.
A favorable ruling may promote social equity, while an adverse outcome could preserve individual economic freedom.
The case underscores the delicate balance between economic growth and fairness, making it a crucial moment in the nation's fiscal history with far-reaching implications.
The Supreme Court is expected to issue a decision by June 2024.