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The beginning of the end to Fiat Currency?

OmOm

By OmOm,
in Investment & Financial Matters

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OmOm

OmOm

5th Gear

The swiss go to the polls this weekend (30 Nov 2014) to vote on whether their central bank (the Swiss National Bank) should increase its gold holdings to 20 percent from the existing 7 percent.

 

A "yes" result will send gold prices soaring and also signals the start of the restoration of the gold standard in the global monetary system.

 

What are your thoughts on this?

 

http://www.cnbc.com/id/102223258#.

 

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Sabian

Sabian

Turbocharged

The way fiat money is being debased...

 

It's a long time coming.

 

Gold will keep everybody in line and on their toes as you cannot print gold or your way out of trouble.

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KR81

KR81

4th Gear

7% to 20% is a big leap, they'll overtake Italy, France, Russia and China.

 

Not sure what their purchasing plan is, they planning on increasing their holdings over a period of 5-7 years if the referendum goes through? Am guessing there will be a short term gain in the gold price in the aftermath of a 'Yes' vote otherwise gold may just hover around its current price range; unless other 'big' countries follow suit.

 

http://en.wikipedia.org/wiki/Gold_reserve#Officially_reported_gold_holdings

 

post-125624-0-03878000-1417186577.png

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CH_CO

CH_CO

6th Gear
(edited)

The idea of fiak currency coming to an end has being always the talk since many years ago , unless Eur crashes which i think can happen in the near future , else it is highly unlikely that people would switch back to gold standards especially when china is slowly floating their currencies. One must consider their debt to floating currency ratio along with their gold holdings.

 

Any changes to fiak currency , china would be the worst affected followed by US , the euro nations which are debt ridden would be the ones celebrating since they are already heavily in debt. Any reset of buttons are welcomed.

 

That said , it is always good to hold some gold , even gold leaves and 1 g gold bars are welcomed should we return to gold ages. Gold is always a liquid currency to me regardless its worth.

 

Unlikely to happen but god knows.

Edited by CH_CO
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Goldbug

Goldbug

6th Gear

The swiss go to the polls this weekend (30 Nov 2014) to vote on whether their central bank (the Swiss National Bank) should increase its gold holdings to 20 percent from the existing 7 percent.

 

A "yes" result will send gold prices soaring and also signals the start of the restoration of the gold standard in the global monetary system.

 

What are your thoughts on this?

 

http://www.cnbc.com/id/102223258#.

 

 

makes it more pertinent for oil price to be depressed to force Russia to dump gold

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Solar

Solar

Turbocharged

 

makes it more pertinent for oil price to be depressed to force Russia to dump gold

Some conspiracy theory to fix Russia by fixing oil prices, ie. Send it down.

Gold being commodity is getting depressed, so whoever trying to make payments in gold will not get good rates. Like some say, economic warfare.

 

Would be interesting to see one day folks in MCF say they buy cars in gold coins and gold bars lol!

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Goldbug

Goldbug

6th Gear
(edited)

Some conspiracy theory to fix Russia by fixing oil prices, ie. Send it down.

Gold being commodity is getting depressed, so whoever trying to make payments in gold will not get good rates. Like some say, economic warfare.

 

Would be interesting to see one day folks in MCF say they buy cars in gold coins and gold bars lol!

 

Shanghai gold surprise in store

 

one school of thought

says that Tiongs wanted to internationalized RMB backed by gold

 

http://www.theaustralian.com.au/business/opinion/shanghai-gold-surprise-in-store/story-fnciihm9-1227080738095?nk=4ab3301ec83559b982ca8a447c0ca0db

Edited by Goldbug
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Joseph22

Joseph22

Turbocharged
(edited)

 

Shanghai gold surprise in store

 

one school of thought

says that Tiongs wanted to internationalized RMB backed by gold

 

http://www.theaustralian.com.au/business/opinion/shanghai-gold-surprise-in-store/story-fnciihm9-1227080738095?nk=4ab3301ec83559b982ca8a447c0ca0db

I doubt China will want to do something so suicidal. they had rejected it in the past. they will reject that move in the near future.

 

they know that their currency is not strong enough yet to be THE CURRENCY

Edited by Joseph22
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Goldbug

Goldbug

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I doubt China will want to do something so suicidal. they had rejected it in the past. they will reject that move in the near future.

 

they know that their currency is not strong enough yet to be THE CURRENCY

 

it's geo politics... to displaced Pax Amerika

http://finance.yahoo.com/blogs/daily-ticker/death-of-money-131434755.html

 

U.S. Treasury Secretary Jack Lew's interview this week about lobbying Chinese leaders to reverse course on devaluing Chinese currency serves as a reminder that currency squabbles between countries continue.

Lew, for his part, wants China to keep moving further towards the direction of a market-based exchange rate. "If they want the renminbi to be a world currency some day, if they want it to be a reserve currency some day, they need to demonstrate that," Lew told CNBC Wednesday.

"From our perspective, it is something that is very important in preserving a level playing field for trade in the world."

The China-U.S. currency dynamic is just one issue James Rickards, author of the bestselling book Currency Wars, revisits and pushes forward in his new book, "Death of Money: The Coming Collapse of the International Monetary System".

Currency Wars detailed a Pentagon-sponsored excercise Rickards took part in back in 2009 -- the Pentagon's first-ever financial war game -- where players could not use actual, physical weapons like bombs, but could only use financial weapons like stocks, bonds and derivatives to destroy the enemy.

Related: Tensions between Russia and U.S. heat up again: Which country has more to lose?

Rickards played on the China team, which created a scenario where Russia and China combined forces, and used their gold to issue new, gold-backed currency and turn their back on the dollar.

Related: Don't write off gold just yet: Jim Rickards

"We were actually laughed at by some of the Harvard types at the time," he tells us in the video above. "But since then...things are actually playing out the way we told the Pentagon in 2009."

He cites Russia increasing their gold reserves by 70% and China increasing their gold reserves by several hundred percent since that time as evidence.

But as Jack Lew pointed out just this week, China is still a long way away from becoming a reserve currency given other issues with the convertability of the renminbi.

Rickards concedes that China is not there yet, but says there are a lot of things going on, a number of "important straws in the wind that weaken the dollar at the margin."

Check out the video to see why Saudi Arabia could pull the rug out from under the dollar, according to Rickards.

Also, we ask, why this book now? The U.S. dollar has been strengthening, and central banks in the U.S. and Europe aren't worried about inflation (the type that pundits have warned could erode confidence in a currency like the dollar), they are concerned about the lack of inflation or even the threat of deflation. Rickards response? Watch the video to find out.

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Joseph22

Joseph22

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Will they want to risk killing their biggest customer???

 

 

it's geo politics... to displaced Pax Amerika


http://finance.yahoo.com/blogs/daily-ticker/death-of-money-131434755.html

 

U.S. Treasury Secretary Jack Lew's interview this week about lobbying Chinese leaders to reverse course on devaluing Chinese currency serves as a reminder that currency squabbles between countries continue.

Lew, for his part, wants China to keep moving further towards the direction of a market-based exchange rate. "If they want the renminbi to be a world currency some day, if they want it to be a reserve currency some day, they need to demonstrate that," Lew told CNBC Wednesday.

"From our perspective, it is something that is very important in preserving a level playing field for trade in the world."

The China-U.S. currency dynamic is just one issue James Rickards, author of the bestselling book Currency Wars, revisits and pushes forward in his new book, "Death of Money: The Coming Collapse of the International Monetary System".

Currency Wars detailed a Pentagon-sponsored excercise Rickards took part in back in 2009 -- the Pentagon's first-ever financial war game -- where players could not use actual, physical weapons like bombs, but could only use financial weapons like stocks, bonds and derivatives to destroy the enemy.

Related: Tensions between Russia and U.S. heat up again: Which country has more to lose?

Rickards played on the China team, which created a scenario where Russia and China combined forces, and used their gold to issue new, gold-backed currency and turn their back on the dollar.

Related: Don't write off gold just yet: Jim Rickards

"We were actually laughed at by some of the Harvard types at the time," he tells us in the video above. "But since then...things are actually playing out the way we told the Pentagon in 2009."

He cites Russia increasing their gold reserves by 70% and China increasing their gold reserves by several hundred percent since that time as evidence.

But as Jack Lew pointed out just this week, China is still a long way away from becoming a reserve currency given other issues with the convertability of the renminbi.

Rickards concedes that China is not there yet, but says there are a lot of things going on, a number of "important straws in the wind that weaken the dollar at the margin."

Check out the video to see why Saudi Arabia could pull the rug out from under the dollar, according to Rickards.

Also, we ask, why this book now? The U.S. dollar has been strengthening, and central banks in the U.S. and Europe aren't worried about inflation (the type that pundits have warned could erode confidence in a currency like the dollar), they are concerned about the lack of inflation or even the threat of deflation. Rickards response? Watch the video to find out.

 

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Ake109

Ake109

6th Gear

The US found out long ago that pegging the currency to 'Number of Aircraft Carriers' is way more efficient (for the issuing Govt.) than gold.

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