A new Gold Standard is being born..the USD died and nobody noticed..
The world is moving step by step towards a de facto Gold Standard, without any meetings of G20 leaders to announce the idea or bless the project.
Some readers will already have seen the GFMS Gold Survey for 2012 which reported that central banks around the world bought more bullion last year in terms of tonnage than at any time in almost half a century.
They added a net 536 tonnes in 2012 as they diversified fresh reserves away from the four fiat suspects: dollar, euro, sterling, and yen.
The Washington Accord, where Britain, Spain, Holland, South Africa, Switzerland, and others sold a chunk of their gold each year, already seems another era – the Gordon Brown era, you might call it.
That was the illusionary period when investors thought the euro would take its place as the twin pillar of a new G2 condominium alongside the dollar. That hope has faded. Central bank holdings of euro bonds have fallen back to 26pc, where they were almost a decade ago.
Neither the euro nor the dollar can inspire full confidence, although for different reasons. EMU is a dysfunctional construct, covering two incompatible economies, prone to lurching from crisis to crisis, without a unified treasury to back it up. The dollar stands on a pyramid of debt. We all know that this debt will be inflated away over time – for better or worse. The only real disagreement is over the speed.
The central bank buyers are of course the rising powers of Asia and the commodity bloc, now holders of two thirds of the world’s $11 trillion foreign reserves, and all its incremental reserves.
It is no secret that China is buying the dips, seeking to raise the gold share of its reserves well above 2pc. Russia has openly targeted a 10pc share. Variants of this are occurring from the Pacific region to the Gulf and Latin America. And now the Bundesbank has chosen to pull part of its gold from New York and Paris.
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you can smell something faint in the air..but you cant quite see it yet..but you know something died..game over..the only thing left to do is publicly announce the death and have the funeral..but i have a feeling they want to keep this quiet for a while..
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You make it sound like this is a bad thing and we should be sad or something. We should rejoice at the death of the dollar!! One step closer to a world currency, which what we really need.
Never said it was bad did I?
The article was wholly centred on the fact that nobody noticed. That was the point of the post. Did you read my comments?
“One step closer to a world currency, which what we really need.”
uhm no. we need open competition among currencies. if currencies operated in an open market, people would automatically go for currencies which are backed by hard assets, and avoid credit-backed or fractional reserve currencies. ‘one world currency’ just means one group is in charge of everything.
this..
“‘one world currency’ just means one group is in charge of everything.”