Trump And A New Gold-Backed Dollar

Tyler Durden's picture

Submitted by Nick Giambruno via InternationalMan.com,

On August 15, 1971, President Nixon killed the last remnants of the gold standard.

Since then, the dollar has been a pure fiat currency, allowing the Fed to print as many dollars as it pleases.

Removing the US dollar’s last link to gold eliminated the main motivation for foreign countries to store large dollar reserves and to use the dollar for international trade.

At this point, demand for dollars was set to fall… along with the dollar’s purchasing power. So the US government concocted a new arrangement to give foreign countries another compelling reason to hold and use the dollar.

The new arrangement, called the petrodollar system, preserved the dollar’s special status as the world’s reserve currency.

In short, the US government made a series of agreements with Saudi Arabia between 1972 and 1974, which created the petrodollar.

The Saudis would use their dominant position in OPEC to ensure that all oil transactions would only happen in US dollars. And the US would guarantee the House of Saud’s survival.

It worked… for a while.

The petrodollar filled the void after the US severed the dollar’s last link to gold as the main prop to the dollar’s status as the world’ premier reserve currency.

So far, the petrodollar has lasted over 40 years. However, the glue is losing its stick.

I think we’re on the cusp of another paradigm shift in the international financial system, a change at least as fundamental as what happened in 1971 when Nixon severed the dollar’s last link to gold.

The relationship between Saudi Arabia and the US hit historic lows in 2016. I only expect it to get worse. Trump is the first president since the petrodollar system was enacted to be openly hostile toward the Saudis.

The death of the petrodollar system is my No. 1 black swan event for 2017.

It raises the question: What will fill the void when the petrodollar inevitably dies?

When that happens—and it may be imminent—something has to replace it. I think there are only two options.

Naturally, the global elite want to centralize more power into global institutions. In this case, that means the International Monetary Fund (IMF).

The IMF issues a type of international currency called the “Special Drawing Right,” or SDR.

The SDR is nothing new. The globalists have been slowly building it up since 1969. In the near future, it could be used as the premier international currency—the role the dollar has played since the end of World War 2.

The SDR is simply a basket of other fiat currencies. The US dollar makes up 42%, the euro 31%, the Chinese renminbi 11%, the Japanese yen 8%, and the British pound 8%.

It’s a fiat currency based on other fiat currencies… a floating abstraction based on other floating abstractions.

The SDR is not based on sound economics or the interests of the common man. It’s just another cockamamie invention of the economic witch doctors in academia and government.

The SDR is dangerous. It gives the government—in this case, a global government—more power. It’s a bridge to a powerful global monetary authority, and eventually a global currency.

Most decent people would consider this a bad thing. That’s why the global elite cloud their scheme with dull and opaque names like “Special Drawing Right.”

It’s an old trick. Governments have used it for eons.

The Federal Reserve is an excellent example. After two failed central banking experiments in the 1800s, anything associated with a central bank became deeply unpopular with the American public. So, central bank advocates tried a fresh branding strategy.

Rather than call their new central bank the Third Bank of the United States (the previous two were the First and Second Banks of the United States), they gave it a vague and boring name. They called it “the Federal Reserve” and managed to hide it in plain sight from the average person.

Nearly 100 years later, most Americans don’t have the slightest clue what the Federal Reserve is, what it does, or how it has eroded their standard of living.

I think the same dynamic is at work with the IMF’s “Special Drawing Right.”

The breakdown of the petrodollar is the perfect excuse for the globalists to usher in their SDR solution.

So that’s the first option. It’s the global elites’ preferred outcome. It would be a very bad thing for personal and economic freedom. It means more fiat currency, more centralization, and less freedom for the individual.

The second option is to simply return to gold as the premier international money. Here’s how it could happen…

Trump might play along with the globalists’ schemes, but I doubt it. He’s the first president who’s openly and sincerely hostile toward globalism. He’s denounced it repeatedly.

Trump recently said, “We will no longer surrender this country, or its people, to the false song of globalism.”

In my view, there’s only one way Trump could fight the global elites and their SDR plan: return the dollar to some sort of gold backing.

Trump has said favorable things about gold in the past. So have some of his advisers.

It wouldn’t be easy. He’d face one hell of a struggle with the globalists. And winning would be far from certain.

No matter what, the death of the petrodollar, just like the end of the dollar’s link to gold, will be very good for the dollar price of gold and gold mining stocks.

When Nixon took the dollar off gold in 1971, gold skyrocketed over 2,300%. It shot from $35 per ounce to a high of $850 in 1980. Gold mining stocks did even better.

Gold is still bouncing around its lows. Gold mining stocks are still very cheap. I expect returns to be at least as great as they were during that paradigm shift in the international monetary system.

All this is why what happens after Trump’s inauguration could change everything… in sudden, unexpected ways.

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Kefeer's picture

Your personal insecurities are revealed by your words; you will do better to change the tone or just something.  Even the name you chose manifest your insecurities about your self and much bitterness and anger - perhaps justified or not - don't know, but the observation is remarkable.  I hope you get to the point where you are able to cast your burdens upon Jesus Christ.

You are not alone; yours is very strong and that says to me you have suffered a lot of hurt - so sorry!

MASTER OF UNIVERSE's picture

It took me a solid 8 years to reverse engineer Wall Street & the Giant Vampire Squid in order to be able to take it down. Yes, I have suffered quite a bit in my life, but that's nothing compared to the suffering that the EU & America are about to experience. My words are a warning to those that are not in a trance state of denial about America's future. Moreover, I am a Christian and was a Christian long before I engineered the demise of the Western Empire. Instead of thinking I am articulating personal psychopathology why not entertain the notion that I am telling you the Gospel truth? America is no longer a superpower, and America is a Banana Republic that cannot pay creditor nations, or operating costs to run the USA. The Oligopoly has no more tricks up their sleeves, and America, and the EU, are going down, baby!

 

Put that in your pipe & smoke it.

MASTER OF UNIVERSE's picture

I am formally educated in Experimental Psychology, and am well versed in Psychopharmacology, Drugs & Behaviour, Addictions, Neuroscience, Behavioural Medicine, & Medical Anthropology. I am against Cocaine, and derivative Cocaine like 'Crack Cocaine' due to my knowledge of the damage it does to the brain, and body. I am well aware of the Historiography of illicit drugs, and how it all started. I have read Freud's Uber Coca on Cocaine, and I am well aware of the fallout after he published that paper in the late 19th century. I have never consumed Cocaine, or pharmaceuticals, in my lifetime. And I have only smoked weed & hash & contraband cigarettes.

 

Quit projecting!

MEFOBILLS's picture

America repay creditor nations?

Who created the debt instruments?  Why should fraud be rewarded by paying them?

In the case of China, they create Yuans with their state banks, then trade said Yuans for dollars won in trade imbalance.  

They then take those dollars and buy debt instruments on wall street.  They do not buy American main street goods. 

This is in contravention to the MFN trading status awarded to China by Clinton.  In other words, China is defrauding America, and hence the TBills they have bought cn be debt cancelled.

Banks that created debt instruments is another form of fraud.

You would have the future bend over into debt slavery, to pay for past fraud?

PUt that in your pipe and smoke it.

 

Fireman's picture

WTF? Instant analysis

UmbilicalMosqueSweeper's picture

Christ was busy, so Trump just cast our burdens on Obummer and the Clinton/Bush Mafia. Time for them to suffer a lot of hurt.

quax's picture

He really likes the color of gold and he really likes dollars, so it may happen.

Zang's picture

Doh don't they print GOLD !!!

onmail1's picture

Yes currency must be backed by physical assets

An unbacked currency is a vaporware

edifice's picture

Yes, it is biologically inert. It goes in one end and out the other. How'd you like to prospect for golden turds?

Maestro Maestro's picture

USA=ISIS

Trump is just another errand boy for the bankers, just like Putin is.

And you,

The only difference between you and a banker is your bank account.

You are the problem and you're looking for a solution?

USA=ISIS

YOU=USA

Maestro Maestro's picture

**Since neither the Americans, the Russians nor the Europeans can issue their own (national) currencies, none of you are sovereign countries, that is, free peoples. You are all the bankers' willing slaves. The manipulation of gold's price lower, is the principal method used by the bankers to hide this fact in plain sight. If gold is not money (alongside whatever else) than you are a slave, period. Read on.**

Worse than the bankers rigging gold and silver prices and not having the gold they sold you (or selling gold that they don't have via fraudulent COMEX Futures contracts), is the fact that we don't even have MONEY today.  Therefore all financial transactions and economic numbers predicated on the existence of money are FRAUD and FORGERIES currently.

Electronic digits and paper fiat currencies in use today are NOT money, according to the law of the country that issues the reserve currency of the world, the US Dollar (Article 1, Section 10 of the US Constitution); or by the tenets of the science of Economics (i.e., fiat currencies are not money because they are not a store of value nor a unit of account due to the fact that NOT ONE fiat currency's value is determined or stipulated in concrete legal terms).  Dollars and Euros and Yens are not even lawfully DEFINED as to what they are, what their economic worth and transactional value is, hence they cannot constitute the legal foundation of any lawful contract!

(Also, there cannot be either inflation nor deflation in the ABSENCE of money.  Both inflation and deflation are monetary events hence cannot take place where there is literally no money.)

What we have today is massive GLOBAL FRAUD mascarading as a monetary system based on the (fraudulent) US dollar -- all fiat currencies are basically a derivative of the US dollar, including the Euro, the Yen, the Yuan, the Rouble, the Shekel and the Riyal.

Furthermore,

Why do a few people get the right to print fake fiat money out of nothing and buy your goods and  services with it, whereas you have to WORK to obtain the same worthless money created out of nothing?

THAT is the question at the heart of the matter.  That the bankers manipulate interest rates or the price of gold via fraudulent Futures trading (by selling gold that they don't have) with fiat money is a moot point.

To put it differently: why do the bankers get to have anything that they want without working for it and you, you don't?

All this talk about market rigging, monetary theory and fraudulent (paper) gold trading is a cover-up for INJUSTICE.

The US Constitution FORBIDS the use of debt as money; the US Constitution proscribes (debt) notes which is what the US dollar is presently.  Think, all other currencies are just another name for the US Dollar.

What passes for money today is a CRIME, no more no less.

 
People,

you are all aiding and abetting this crime every time you buy, sell or get paid.

And then you ask, Why our leaders, the politicians, the bankers, and our military men and women are EVIL?

The answer is, because YOU are feeding the enemy!

rahrog's picture

Gold is not the only precious metal on which to base currencies.

 

Of course, The Ruling Class will blow up the world before they give in to "hard" money & "sound" banking.

 

Trump will have his hands full just bailing water out of a sinking ship.

 

No matter where you live, a tsunami of debt is headed your way.

 

After the prearranged collapse of the almighty petro-dollar, most of humanity will beg for SDRs as they will be sold to the public as a form of "free bailout".

 

Damn this kool-aid is goooooooooood!

 

SECEDE while you still can. SECEDE...SECEDE...SECEDE!!!

 

Rollo57's picture

Once bitten twice shy, the masses will not allow the banks to push their SDR or their 'cashless', we will INSIST on Sovereign Money created by Government, with banks using THEIR own money, for their trade?

If banks had been told to use THEIR money from day one, we wouldn't be in this situation! 

We need to start making a LIST of all those complicit in the banks fraud! Lets start at the top:

Nixon;......and every President, Senator, PM and MP since! NOT ONE OF THEM HAVE STOOD UP FOR THE PEOPLE!

OCnStiggs's picture

Alan Greenspan has been suggesting we go back on the gold standard as our "only hope."

I think he knows a lot more about the subject than the keyboard snipers on this board.

I have heard rumors that the planning and initial preparations are already underway for just such a move. Others in the market point to the huge amount of market manipulation in metals that has gone unprosecuted as a means to artificially lower the price to allow the last of the "haves" to grab all they can at a good price before it skyrockets.

If it walks like a duck... Just sayin'.

MEFOBILLS's picture

What?  Using Alan Greenspan?

This is the guy who responsible for the housing bubble, because he is a confused Ayn Rand cultist?

Greenspan even admitted to congress the he was wrong.

How do you know about the keyboard snipers?  

Could it perhaps be the opposite, that some keyboard snipers actually know MORE than Alan Greenspan?

Greenspan will go down as one of the fools of history, and indeed is already considered as one.  Since Greenspan is a tribester, then why is it surprising that when it comes ot money, virtually everything that comes out is going to be fraud.

The tribesters called gold very very good for us in the Protocols.   They later used it to ride their credit on top.  Then they convinced goverenment that their bank credit was money.  Then they got governments into debts for their bank credit.  Now they want gold again.

You cannot make this sort of con game up...everything out of their mouth is a lie.

The TRUTH you don't want to hear, is that money is law, and is part of the commons.  It has to channel correctly, be of the right type, and be in volume relation to goods and services.

For sure, few jews will tell you this, because their family business is money manipulation.  It is part of the crime family secrets.  

A few good ones like Irving Fisher have existed in the past, so not all of our friends are evil.  But, pleeezze.  Greenspan - really?

Rollo57's picture

Greenspan was being paid to do what he did and said! SIMPLE as that!

brushhog's picture

Thats not going to happen.

amor terra's picture

I wouldn't bet against it.  The fraud that is the financial system is slowly being brought to the light of day.  If the regular guy on the street actually recognized that we are paying a handful of evil bastards perpetual, ever-increasing interest on their imaginations, I think it would end rather quickly.  And quite badly for the evil bastards.

 

UmbilicalMosqueSweeper's picture

Simple solution...just return to the constitutional rquirements for money.

amor terra's picture

...while avoiding being assassinated by those who wish to keep their power under the current system.

 

UmbilicalMosqueSweeper's picture

Get a few wetwork teams to take them out first.

TheLastMan's picture

The essence of a "backed" currency is the binding effect upon those "in charge".

The purpose of a "backed" currency is enforced monetary restraint.

Budgetary restraint ties the globalists' hands from reshaping the world through military carnage, IMF loan sharking, government leveraged bonding schemes (bondage), etc.

Many innocent people have suffered since August 15, 1971.

Therein are crimes of treason and genocide.

 Warfarism, welfarism, corporatism and patronage abound when monetarily unfettered.

In regard to "gold", exchange value is the determinant of honest commerce.

Gold as a thing is merely derivative of a value.

All value is derivative of the total labor (mental and physical) to produce that thing.

When exchange value is distorted via fiat banking, the discounted present value of future labor in current exchange terms is distorted, but hidden into the future.

If a group of individuals can arbitrarily alter the exchange value of your labor through currency inflation, then you have not only been economically captured, you have been physically captured.

Why?  Because your existence is in time and your time is in your labor.  

 

Fiat banking is slavery.

vikingvista's picture

First of all, there are several different things meant by people 's use of the phrase "gold standard", and most of it never existed and never could.

Second, a realizable gold standard didn't stop disastrous government malfeasance in the past, nor would it in the future.

The problem has nothing to do with the type of money, fiat or not. It has everything to do with the political monopolization of money.

The gold standards that worked historically worked because competing banks issued their own competitive notes based upon a decentralized emergent commodity standard, mostly gold.

A government monopoly gold standard would only lead to another government-induced financial disaster, with subsequent  permanent consensus of "See, gold standards don't work."

It is better to oppose another government monopoly gold standard and instead work toward the reform of the numerous existing government regulations (legal tender laws, tax laws, anticounterfeiting laws, banking laws) that forcefully inhibit the emergence of competing monies.

Rollo57's picture

Sovereign Money!

This is what Hitler was using after the Weimar collapsed, he rebuilt Germany and was named 'Time Magazine Man of the Year 1938.' This is what really kicked off WW2. They were making goods cheaper and better than the west, and the banks couldn't make profit on them!

Kaliningrad, which is now Russian, was at the time, German and it was seperated, as is now, from the mainland by Poland. The Poles were murdering Germans in Kaliningrad, genocide, Hitler warned them to stop, when they didn't he went in, the British [BANKS] used this as an excuse to go to war!

WE NEED TO GET RID OF ROTHSCHILD BANKS and their control of world currency! Only the people can do this, the Governments are being bribed by Rothschild and co, this is why we can't get any 'high up' Pedophiles behind bars!

TeethVillage88s's picture

Was just thinking there is a problem with FX, having bankers in power some place determine if Columbia, Argentina, Mexico, Cuba, or Venezuela should be valued further down.

In effect China or European-American Bankers can screw with other people. And wondered if an SDR would address this problem.

"The SDR is dangerous. It gives the government—in this case, a global government—more power. It’s a bridge to a powerful global monetary authority, and eventually a global currency.

Most decent people would consider this a bad thing. That’s why the global elite cloud their scheme with dull and opaque names like “Special Drawing Right.”

It’s an old trick. Governments have used it for eons."

Rollo57's picture

Exactly, the Banks & Corporations are pulling the strings and the majority are to busy working, or thick, to see and the media don't help because they don't 'inform' what is going on!

IF, we revert to 'gold backed' and Sovereign, [as BRICS want to trade with] currencies, it wouldn't matter what the 'trade' levels were of countries, as long as they owned gold which their currency related to. The more gold they own the better their 'exchange rate'.

The 'Global Government' are trying to push for 'cashless' which would only give them more power as they produce 'digital currency' of NO VALUE, except control of the masses.

The US have introduced their TPP-TTIP-CETA Treaties in order to 'block' the BRICS. These Treaties, once all signed, will unite all those nations as ONE Single Market against BRICS, who would be forced in by war, Financial, Sanctioned or Military.

The BRICS want to trade world wide, using gold backed currency, this will threaten US Hegemony and Dollar, which is why they are in conflict all around the world!

Rollo57's picture

The SDR is just another scam, what the people SHOULD demand, is a return to gold backed currencies AND each nation to have it's own Sovereign currency! This monopoly the Rothschilds have had, HAS to come to an end! Creating money from thin air and charging interest, while making Governments the 'guarantor' of these 'deals', has to stop!

We are being pushed towards a One World Government, with Banks & Corporations as our controllers? Why should the world be dictated to by Corporations? Once we establish a 'rate' for the gold, each nation can print their own currency and it will be limited to the price of one ounce of gold, that that nation owns!

It's about time the people fought back, this world is for the people, not just the money men!

allthegoodnamesaretaken's picture

For one thing Rothschid will not allow his gold to be used and the US has none, or at the very best, little, of its own.  So, if backed by gold there will be a seriously lot less dollars around.  Prices will sky rocket, people will starve.  Nope, isn't going to happen.  Nixon, actually did a trick when he got the Banker to agree to a Petro Dollar, it is the sole reason we are so prosperous today.  Nothing motivates greed like gold, people with it want all of it, our Banker King is no different, only worse.  The world needs a real Jubilee year, not a Jubilee year where the banker rakes it in but a Jubilee year wherein his Corporations and Banks allow all debt to pass and a new beginning to happen.  Won't do it though, because he, the Banker King, like his religion, is just so much fake bs, funny, were it all not so damn deadly.  Were he not so damn deadly.  To start over we will have to leave the Banker King and his system in the dust, start over, so, what's the odds of that happening?