Reserve Currency

Tyler Durden's picture

Ron Paul On Gold & The Fed's Failed 'Utopian Dream'





Over the last 100 years the Fed has had many mandates and policy changes in its pursuit of becoming the chief central economic planner for the US. Not only has it pursued this utopian dream of planning the US economy and financing every boondoggle conceivable in the welfare/warfare state, it has become the manipulator of the premier world reserve currency. All this effort by thousands of planners in the Federal Reserve, Congress, and the bureaucracy to achieve a stable financial system and healthy economic growth has failed. It must be the case that it has all been misdirected. And just maybe a free market and a limited government philosophy are the answers for sorting it all out without the economic planners setting interest and CPI rate increases. A simpler solution to achieving a healthy economy would be to concentrate on providing a “SOUND DOLLAR” as the Founders of the country suggested.

 
GoldCore's picture

Currency Wars - Russia Buys 20.7 Tonnes Of Gold In December; Netherlands Refutes IMF Gold Data





Given that Russia perceives itself to be under financial and economic attack from the West, there is the possibility that they are accumulating more gold than they are declaring officially to the IMF.

De Nederlandsche Bank, the Dutch central bank has denied reports in Reuters, Bloomberg and picked up by GoldCore, that the bank had increased its gold holdings for the first time in sixteen years. IMF data had shown that the Dutch had increased their holdings to 622.08 tonnes.

 
Tyler Durden's picture

Seven Decades Of Data Prove This Is A Really Dumb Idea... (But They'll Do It Anyway)





It's a common story throughout human history. There’s almost always an elite, or government, with a ‘scarcity’ mentality that believes in the zero sum game, i.e. for anyone to be a winner, someone else has to be a loser. When they’re short of cash, governments almost invariably raise taxes. Of course, the numbers show that raising taxes rarely affects total tax revenue. There’s a very looooong history which clearly establishes this point. And you’d think that a government would look at the data and recognize the obvious truth: their scarcity mentality doesn’t work. But no. Sadly, in the face of such overwhelming data, the Obama administration is now pushing to raise tax rates once again...

 
Tyler Durden's picture

Lazy Greeks At Fault?? These Two Charts Suggest Otherwise!





Well things are gonna change in Europe.  Greece just voted in a majority no bullshit government. But what is it that needs to get done in Greece?  That’s really the $64K question.  On the surface it seems as though Greece is simply a bunch of lazy sponges.  But we caution you to look at the facts before making a final judgement.  Remember Greece was once upon a time the genesis of democracy.  These people have been doing democracy longer than any other nation on earth.  And so we have a hard time accepting all of sudden after thousands of years they simply got too lazy to carry on the pride of the people who created the concept of a self-governed and free populace.  We just don’t buy it.  Let’s look deeper...

 
Reggie Middleton's picture

Stab, er... I Mean... Beggar Thy Neighbor - It's ALL OUT (Currency) WAR! Pt 2





The Japanese fire at the Europeans. The Europeans fire at the Japanese & Chinese. The Chinese fire scattershot at everybody else in Asia. England & America prep to teach those they consider muppets not to play with guns. It's World War Money, if you know what I mean...

 
Tyler Durden's picture

De-Dollarization Complete: Iran Abandons US Dollar In Foreign Trade





Since last May (and likely long before) when the topic of "de-dollarization" was first uttered in official circles (and not just tin-foil-hat-wearing blogs), the rest of the world (un-isolated as they are) has been warming to the idea that perhaps - just perhaps - it is time to de-dollarize (more or less depending on the despotic region in question). From currency swap agreements to bi-lateral trade agreements to selling US Treasuries and greatly rotating USD reserves into gold, the world's nations (small and large) appear less and less comfortable holdings dollars in this tempestuous world. Among the supporters of that first "de-dollarization" meeting were China and Iran and while the former continues to work down its exposure, the latter - Iran, according to Tasnim news agency, has almost entirely eliminated USDollars from its reserves and is no longer using dollars in foreign trade. De-dollarization complete...

 
Phoenix Capital Research's picture

The $9 Trillion US Dollar Carry Trade is Blowing Up





The US Dollar rally, combined with the ECB’s policies are at risk of blowing up a $9 trillion carry trade.

 
 
GoldCore's picture

Bundesbank Announces Repatriation of 120 Tonnes of Gold from Paris and New York Federal Reserve





The Bundesbank, Germany’s powerful central bank, announced very publicly this morning the further repatriation of some of it’s gold being held in foreign locations – namely in Paris and New York with the Bank of France and the Federal Reserve.

 
Tyler Durden's picture

Russia Just Pulled Itself Out Of The Petrodollar





When the price of crude started its self-reinforcing plunge, such a death would happen whether the petrodollar participants wanted it, or, as the case may be, were dragged into the abattoir kicking and screaming. It is the latter that seems to have taken place with the one country that many though initially would do everything in its power to have an amicable departure from the Petrodollar and yet whose divorce from the USD has quickly become a very messy affair, with lots of screaming and the occasional artillery shell. As Bloomberg reports Russia "may unseal its $88 billion Reserve Fund and convert some of its foreign-currency holdings into rubles, the latest government effort to prop up an economy veering into its worst slump since 2009." "Together with the central bank, we are selling a part of our foreign-currency reserves,” Finance Minister Anton Siluanov said in Moscow today. “We’ll get rubles and place them in deposits for banks, giving liquidity to the economy."

 
Tyler Durden's picture

It Begins: IRS Launches International Data Exchange Service





Yesterday, the IRS announced the International Data Exchange Service. If you’ve not heard of it, it’s is an outgrowth of the Foreign Account Tax Compliance Act (FATCA), which requires every single bank in the world to get in bed with IRS to share information about customers. We’ve said this over and over, FATCA is probably the dumbest law in the history of the United States. And we don’t say that lightly, because there’s definitely stiff competition. Like any other bankrupt government, the US government has taken to intimidating its own citizens and the entire world in an attempt to make ends meet. But the fact is that tax revenues actually haven’t improved at all. It doesn’t take a rocket scientist to realize that the rest of the world is one day going to create its own alternative system. One that would no longer rely on the US dollar.

 
Tyler Durden's picture

2015: The Year Of The Slump?





There is compelling evidence that 2015 will see a global slump in economic activity. This being the case, financial and systemic risks will increase as evidence of the slump accumulates. It can be expected to undermine global equities, property and finally bond markets, which are currently all priced for economic stability. Even though these markets are increasingly controlled by central bank intervention, it is dangerous to assume this will continue to be the case as financial and systemic risks accumulate. Precious metals are ultimately free from price management by the state. Furthermore, they are the only asset class notably under-priced today, given the enormous increase in the quantity of fiat money since the Lehman crisis. In short, 2015 is shaping up to be very bad for fiat currencies and very good for gold and silver.

 
Tyler Durden's picture

Oil Price Blowback: Is Putin Creating A New World Order?





"This is why Putin is Public Enemy Number 1. It’s because he’s blocking the US pivot to Asia, strengthening anti-Washington coalitions, sabotaging US foreign policy objectives in the Middle East, creating institutions that rival the IMF and World Bank, transacting massive energy deals with critical US allies, increasing membership in an integrated, single-market Eurasian Economic Union, and attacking the structural foundation upon which the entire US empire rests, the dollar." Up to now, of course, Russia, Iran and Venezuela have taken the biggest hit from low oil prices; but what the Obama administration should be worried about is the second-order effects that will eventually show up...

 
Tyler Durden's picture

Empirical Proof Of The Giant Con





For those of you not familiar with the giant con, it is the idea that our economy is growing when, in fact, it hasn’t had growth in decades with the exception of the late 1990?s.  The giant con is entirely a function of debt. The cost to the working class of falsify economic growth is beyond redemption.  In the end, the path is set and there is no escaping from the debt trap in which we snagged ourselves.  And so we bide our time until the weight of exponentially increasing debt collapses in on us.  But then we rebuild.

 
GoldCore's picture

OUTLOOK 2015 – Uncertainty, Volatility, Possible Reset – DIVERSIFY





  • Global Debt Crisis II – Total Global Debt to GDP Ratio Over 300% - Risk of Bail-Ins in 2015 and Beyond - Currency and Gold Wars - $1 Quadrillion “Weapons of Mass Destruction” Derivatives - Cold War II and New World Order as China and Russia Flex Geopolitical Muscles - Enter The Dragon – Paradigm Shift of China Gold Demand - Forecast 2015: None. Forecast 2020: Gold $2,500/oz and Silver $150/oz
 
GoldCore's picture

Prepare for Property Prices to Fall Globally





At the start of the New Year, there are increasing signs that the recovery seen in property prices in many cities in western countries -- namely New York and other U.S. cities, and Dublin, London and other UK cities -- is beginning to peter out ... 

 
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