- Jim Willie: Gold Trade Usage & Price Effect
by Jim Willie, http://www.goldenjackass.com/, via http://www.goldseek.com/
Some basic logic must come to the table in the Gold pricing mechanism. The easiest way to keep the Gold price down is NOT TO USE IT IN TRADE, NOR IN BANKING RESERVES, and to relegate it to the sidelines as the barbaric metal. Some deep amusement comes always in hearing that Gold does not have value, does not earn a yield, and has no uses. Watching the destruction in bond principal value leads the observer to note how Gold holds its value in times of crisis, and even rises against the general paper tide. The bond market crisis is global this time, unlike in 2008. Each debt downgrade to BBB, within the context of fallen angels, brings a realized loss in bond value. All this occurs with a rising Gold price, even with pauses for consolidation. The best way to lift the Gold price is TO USE IT IN TRADE AND IN RESERVES MANAGEMENT. The actual usage further motivates the proper value to be instilled, regardless of type of usage.
BELT & ROAD IN NON-USDOLLAR
Bear in mind that the Belt & Road projects, led by China and with participation across the entire Eastern Hemisphere, can qualify as a Global Economic RESET basis. The BRI full 2019 year trade payments hit an impressive $1.34 trillion, after reaching the $600 billion level for the first six months. It is all all ALL non-USDollar in trade payments. Thus witness the acceleration. It should reach $3 trillion in the next few years, with the inclusion of the European Union, either in large sections or in its totality. These nations observe the nasty USGovt sanctions, the vicious SWIFT exclusion, pressured political tactics, in addition to hot wars across the globe in defense of the decaying corrupted USDollar. Not even US allies are spared, all targeted like Germany and Saudi Arabia.
Think in simple self-interested terms for the two parties. If China sets up broadbased systems for trade payments in Gold, then the Beijing crew will surely gather tremendous bounty in gold bullion. Nation after nation has a trade deficit with China. The accumulation will be great and in impressive volume, which the Chinese will want to be priced properly. They will wish to establish a new banking system with a prudently monetized system based upon gold. The transactions on the street and shops will not be in gold coins or bars, but the monetary basis will be gold. The point is that the Chinese Govt will want gold properly priced, since they will hold large vaults of gold. They will want their gold reserves valued as high as possible, but in realistic terms. Simple point, indisputable point, inevitable outcome!
GOLD & SILVER DUE TO RISE
The true save haven is precious metals. Their price could rise double or triple quickly. The Basel End Game Plan calls for the major central banks to accumulate gold, to convert impaired sovereign bonds to Gold reserves, and then finally to push the Gold price up 10-fold, like over $10,000 per oz. The Basel hive is executing this plan right here right now, in the Jackass opinion. They are using closely aligned financial firms to do the Gold purchases, and using false accounting with double books to conceal their activity. The personal Jackass desired outlook is to see a universal acceptance of Gold Trade Note for trade payment, and a $2500 Gold price aside a $50 Silver price later this current year. As for a forecast, hard to say since so many corrupt factors are at work, like political obstacles, trade sanctions, regional wars, and basic murders.