What is the Gold Standard

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News Date: July 7, 2020

Gold standard, monetary system in which the standard unit of currency is a fixed quantity of gold or is kept at the value of a fixed quantity of gold. The currency is freely convertible at home or abroad into a fixed amount of gold per unit of currency.
In an international gold-standard system, gold or a currency that is convertible into gold at a fixed price is used as a medium of international payments. Under such a system, exchange rates between countries are fixed; if exchange rates rise above or fall below the fixed mint rate by more than the cost of shipping gold from one country to another, large gold inflows or outflows occur until the rates return to the official level.
President Franklin Roosevelt suspended the gold standard in 1933, a move which is widely credited with helping the country climb out of the Depression.
Sources: youtube.com, www.cbsnews.com

The Central Bank of China Extends Gold Buying

China Extends Gold Buying With Fresh Flows to Central Bank.
The People's Bank of China raised its holdings by 30 tons in December, according to data on its website on Saturday.
This follows November's addition of 32 tons, and brings the nation's holdings to a total of 2,010 tons.
Sources: bloomberg

Trump vows Greatness in the months ahead

Former President Donald Trump sent out an email blast after the Senate acquitted him on a 57-43 vote.
At one point in his statement, Trump says "Our historic, patriotic and beautiful movement to Make America Great Again has only just begun. In the months ahead I have much to share with you, and I look forward to continuing our incredible journey together to achieve American greatness for all of our people. There has never been anything like it!"
Full text below:
I want to first thank my team of dedicated lawyers and others for their tireless work upholding justice and defending truth.
My deepest thanks as well to all of the United States Senators and Members of Congress who stood proudly for the Constitution we all revere and for the sacred legal principles at the heart of our country.
Our cherished Constitutional Republic was founded on the impartial rule of law, the indispensable safeguard for our liberties, our rights and our freedoms.
It is a sad commentary on our times that one political party in America is given a free pass to denigrate the rule of law, defame law enforcement, cheer mobs, excuse rioters, and transform justice into a tool of political vengeance, and persecute, blacklist, cancel and suppress all people and viewpoints with whom or which they disagree. I always have, and always will, be a champion for the unwavering rule of law, the heroes of law enforcement, and the right of Americans to peacefully and honorably debate the issues of the day without malice and without hate.
This has been yet another phase of the greatest witch hunt in the history of our Country. No president has ever gone through anything like it, and it continues because our opponents cannot forget the almost 75 million people, the highest number ever for a sitting president, who voted for us just a few short months ago.
I also want to convey my gratitude to the millions of decent, hardworking, law-abiding, God-and-Country loving citizens who have bravely supported these important principles in these very difficult and challenging times.
Our historic, patriotic and beautiful movement to Make America Great Again has only just begun. In the months ahead I have much to share with you, and I look forward to continuing our incredible journey together to achieve American greatness for all of our people. There has never been anything like it!
We have so much work ahead of us, and soon we will emerge with a vision for a bright, radiant, and limitless American future.
Together there is nothing we cannot accomplish.
We remain one People, one family, and one glorious nation under God, and it is our responsibility to preserve this magnificent inheritance for our children and for generations of Americans to come.
May God bless all of you, and may God forever bless the United States of America.

The End of the Dollar Empire

Gazprom says it has signed a deal for China to pay for Russian gas in national currencies.
Russia's Gazprom said on Tuesday it had signed an agreement to start switching payments for Russia's gas supplies to China to yuan and roubles instead of dollars.
Sources: reuters.com

A Financial System by Nonbank Financials, Fintech, and Innovation

Fintech stands for financial technology.
On February 3, 2017, Donald Trump issued a Presidential Executive Order on Core Principles for Regulating the United States Financial System.
Full order:whitehouse.gov
The report of U.S. Department of the Treasury was prepared on July 2018, set A Financial System That Creates Economic Opportunities Nonbank Financials, Fintech, and Innovation.
Nonbanks are well integrated into the U.S. payments system and play key roles such as facilitating back-end check processing; enabling card issuance, processing, and network activities; and providing customer-facing digital payments software.
This report includes a limited treatment of blockchain and distributed ledger technologies.
Treasury report: treasury.gov

Gold and Silver benefit from FED policy, inflation

Gold prices are hovering around a two-week high as of Friday, showing the biggest weekly gains in over two months as the US Federal Reserve keeps key policy rates unchanged, engendering investors optimism about commodity markets.
The Fed balance sheet is one of the drivers to the expanding money supply. The Feds monetary tools are used to keep rates low and cheap credit flowing. If the Fed keeps up the monetary stimulus, it will continue to drive inflation higher.
If the Fed were to ever try and taper, allowing longer-term rates to rise, it will put pressure on many areas of the economy, including the federal deficit.
In either case, Gold and Silver should benefit from high inflation if the Fed keeps printing or a shrinking economy if the Fed tapers.
Sources: schiffgold.com