On Donald Trump's "Madness" & A New Gold Standard

Authored by Hugo Salinas Price via Plata.com,

Way back in 1995, when Mexico was in the throes of another financial crisis, I figured out the problem of the existing world's monetary system, based on the paper dollar as the fundamental currency of the world.

In my ignorance, I did not know that a man named Triffin had already pointed out that problem, which became known as "Triffin's Dilemma".

The problem is really very simple:

If the dollar - such as it is - is going to be the basis of the world's monetary system, and therefore required by all Central Banks as Reserves, there is only one way that these CBs can obtain those Reserves: their countries are forced to undersell all US producers, in order to be able to sell more to the US, than they buy from the US.

The difference between the dollars they get from sales, is more, than the dollars they spend to buy from the US. That difference - known as the US Trade Deficit - flows to the CBs of the world and swells their Reserves.

So if Mr. Trump wants to cut down, or even ideally abolish the Trade Deficit, that would mean that foreign CBs would have to find it much harder to obtain dollars for their Reserves. Mr. Trump apparently does not want to have foreign CBs use dollars as Reserves, by making it very difficult to obtain those dollars - which they can only get if the US runs a Trade Deficit.

What that great world monetary system based on the paper dollar has done to the US, was quite unexpected: it consists in obtaining foreign goods by tendering paper money in payment, something that is fundamentally fraudulent. And that fraud has come back to haunt the US, quite unexpectedly.

The unexpected result of Triffin's (or "Hugo's") Dilemma, has been the de-industrialization of the US, as the world geared up to undersell all US producers wherever they could do so, in order to obtain the indispensable US Dollars.

Mr. Trump is wildly alienating all the rest of the world, with the threat of Tariffs in order to reduce the Trade Deficit. What he does not understand, is that the Trade Deficit is built-in to the US economy, because the world´s CBs need Dollars for their Reserves: that is the System.

There is one way, and only one way, to do away with the Trade Deficit and renew the productivity of the US: abandon  the present International Monetary System (derived from the original Bretton Woods Agreements of 1944) and return to the gold standard.

There are no "Trade Deficits" under the Gold Standard, because all countries have to pay Cash Gold for their imports, and collect Cash Gold for their exports. Result: Balanced Trade. No Trade Deficits.

A question in the back of my mind: Is Mr. Trump's "madness" really leading to the Gold Standard? Is that what he really wants? Because if he continues to undermine the present US Dollar as the World's Reserve Currency, by making it impossible for CBs to obtain Dollars through the US Trade Deficit, that would appear to be the likely final outcome.

Comments

secretargentman Helena Bonham-Carter Sun, 06/17/2018 - 23:34 Permalink

Eh, #47 could be used instead. 

 

That being said, I don't think a gold standard is the answer because a gold standard merely means fiat currencies have to be "backed" by gold. And we all know how trustworthy those banksters are... always willing to engage in fraud if it will make them another buck. 

 

Personally, I'd prefer a gold or silver coin standard. 

In reply to by Helena Bonham-Carter

Oh regional Indian tribune Mon, 06/18/2018 - 01:05 Permalink

As some have hinted above, there are two very different things re. gold...

1) Gold in every-man's hand and a commonly understood weight&measure+price. Life is good.

2) Gold standard : Jew banker's wet dream. Their gollum dream, that people beg for the gold backed fiat again (under which two world wars were fought, BTW). Back in their hands and backing their fiat, bad idea.

Twists and turns and secrets around their precious....

https://aadivaahan.wordpress.com/2010/10/18/an-opportunity-and-a-golden…

In reply to by tribune

are we there yet Oh regional Indian Mon, 06/18/2018 - 02:46 Permalink

A fairly good change to this delima is to ban all people of jewish ancestry, or names from Wall Street, the FED and financial industries, as well as the political lobby industry. This was partially done briefly in the middle of last century in some brokerage houses. yes, this is discriminatory. It will never be done. It would be easier to eliminate the FED.

In reply to by Oh regional Indian

BigCumulusClouds Helena Bonham-Carter Mon, 06/18/2018 - 03:49 Permalink

The only problem with what Price is saying is that you don’t necessarily have to sell goods to the USA to acquire dollars. You can buy dollars and treasuries on the open market. Of course this requires that the sovereign sell its own currency to do so, which would make it less valuable. So the only real way to obtain them without wrecking your purchasing power is to sell your products to the reserve currency nation. He’s therefore correct. 

I’d venture to guess that all the Ag that was bought recently by JPM might be used to back the currency. Plus there is all the Chinese gold we stole from the Philippines when WW2 ended. 

In reply to by Helena Bonham-Carter

gdpetti Helena Bonham-Carter Mon, 06/18/2018 - 10:40 Permalink

Main Street doesn't need WallStreet.... the various and often 'crashes' are mostly all based in the financialization.. i.e. Wall Street and all similar streets from London to Berlin et al.. and financialization is always marks the end of empires.... that and Mother Nature... which affects Main Street, from farmers to all cities, towns and villages that get affected.

How things work is the problem, which is the name of the game here in 'Purgatory'... Earth after the 'Fall'.... the 'jewish' thing is just an old group of 'Satanists'... but like most Christians, Buddhists etc, very few know WTF is going on.. and most people simply aren't interested. There were more tribes following the ways of the pig god, so why do they call themselves 'Jews' i.e. from the tribe of Judea, and not the other tribes? Why do they allow themselves to be named after the tribe that was well known as the 'black sheep of the family'? the troublemakers?

Is it any different here in the States? We learned from our British parents in the ways of empire buildiing... exterminate the local peoples, call them names, call them uncivilized and barbaric when they are too peaceful and easy to prey upon...

The Chosen People aren't just from the 'Jewish' ancestry, but those that have CHOSEN the 'dark side', the negative polarity, Satan, Lucifer, Baphomet etc.... they can be of any religion, color or 'ism... none of which matter against the real CHOICE... thus 'purgatory', not 'paradise'... a school in gaining greater self awareness... no pain, no gain, thus the 'attraction' of 'schools'.... greater challenge... but the predators rule here, and it is they that setup and run the system... training all making the same choice below them in the pyramid of power... everyone else, goyim, or whatever the oligarchs in any country call them, are their prey.... it's how the herd learns.. learns to tell the difference and then form bias and then make that CHOICE... and then empower it.... which is what those of the real 'jewish' ancestry are doing.. gaining enough credits to 'graduate'... same for those that choose the other side on the Tree of Life... those seeking the Light and  not the Darkness.... who choose to leave this 'purgatory' or Cave of Plato's story.

And those crashing the OWO system are those CHOSEN PEOPLE of satan... as they out/expose/get rid of their OWO as they prepare to 'let the dogs out' of their NWO.... which they want in place before Mother Nature arrives to 'clean house'... as the geologic/archeological records attest to... 6th extinction they call it... 'graduation day'... etc... the return of the 'old gods'.. in various forms... all needing to attend the 'ceremony'.... being tied 'at the hip' so to say.... with a hyperdimensional understanding of 'time'.

In reply to by Helena Bonham-Carter

Terminaldude wadalt Mon, 06/18/2018 - 08:32 Permalink

Trump was talking about auditing and possibly ending the Fed during the campaign. 

This whole mess has taken a long time to build.  I think Trump knows what he is doing.  Trade wars ARE bringing money back to the US and will fuel the rebuilding of industry.

Ending trade deficit will bring about the end of the "Dollar" hegemony around the world and pass all the problems derived from it onto China for one and possibly others as well.  THAT IS NOT A BAD THING for the average citizen.  It will suck for the deep state MIC War mongers though.

Its a slow process and is just one more step President Trump and the people guiding him are taking.  There has been NO major "PerP" walks yet, I believe, because they have to be careful NOT to take down the whole Government.  They are using the indictments to glean information to take down "The system" rather than the individuals.  Much better in the end. 

Notice that countries in the EU are finally getting the balls to say NO to migrants?  Merkel is on the verge of being ousted.

Things ARE changing and "Biggly", but most people have had their brains transformed by Instant Messaging and texting to have NO PATIENCE anymore.  Patience people.  It is getting done and going back to the Gold standard for international trade would put everyone on the same footing..........IF THEY HAVE ANY GOLD. 

Thank God the Canadian Government still has all our gold.......OH WAIT.......FUUUUUUUUUUUUUUCKKKKKKKKKKKK

 

In reply to by wadalt

tion Terminaldude Mon, 06/18/2018 - 09:46 Permalink

My President is a Stable Genius. Not in the unrounded intellectual yet idiot sort of only high IQ way, but he is Very High EQ as well. He has had decades to consider these issues. The stakes are very high. If he can maintain a state of surrender to a Higher Understanding he will succeed unthinkably bigly. May the Lord please shield him from the Wicked.

Ephesians 6:18 And pray in the Spirit on all occasions with all kinds of prayers and requests. With this in mind, be alert and always keep on praying for all the Lord’s people.

 

Going from ‘he who has the printing presses makes the rules’ to ‘he who has the gold makes the rules’ will still be bad for the people at large. I pray to see a multipolar order built where individuals and nations can voluntarily choose how they wish to transact with their choice of currency that is not subject to the FRN privilege/obligation paradigm, gold/silver, cryptocurrencies, barter. 

Sovereign nations bartering goods of value for goods of value? Why not?

https://www.zerohedge.com/news/2017-08-07/indonesia-will-barter-coffee-tea-and-palm-oil-russian-fighter-jets

 

My President does like gold though

http://www.marketwired.com/press-release/donald-trump-accept-gold-bullion-lieu-dollars-on-apmex-lease-40-wall-street-1561591.htm

 

In reply to by Terminaldude

Dexter Morgan tion Mon, 06/18/2018 - 11:21 Permalink

Hello from earth, you are completely insane.  "Going from ‘he who has the printing presses makes the rules’ to ‘he who has the gold makes the rules’ will still be bad for the people at large."  

The rest is too stupid to comment on.  Believe and pray, I'm sure that will end well for you.  lmfao  

In reply to by tion

Terminaldude tion Mon, 06/18/2018 - 11:26 Permalink

All excellent points.   Praying for the President and all good people is a good start.  

 

I have said said it before.    People need to read:   "The Creature from Jekyll Island", all about banking, the making of the Fed. And the Rothschild control of people in power (along with the Mossad etc)

 

keep Red Pilling people.  It is paying off all around the World.   The Germans are finally on the verge of getting rid of Merkle and her ilk.   Italy is refusing Migrants and Austria is calling out Soros.    There may actually be a future for us regular citizens after all :-)

 

 

In reply to by tion

dexterfarmer snblitz Mon, 06/18/2018 - 07:59 Permalink

“Money as Debt.”   There are a lot of books, articles, and documentaries out there that help to explain the same thing.   In terms of time spent to understand the big picture, this is one of the best I’ve found.  I’ve used it for many years to ‘red-pill’ many curious-minded folks.   It's not quite this simple, but this is a great start to opening eyes.  https://www.youtube.com/watch?v=0K5_JE_gOys

 

 

In reply to by snblitz

Albertarocks Cryptopithicus Homme Sun, 06/17/2018 - 23:47 Permalink

Yes, from the practical standpoint it really is that hard to use actual gold coins.  Because right now for every person on this planet there is only 9/10 of one ounce of gold in existence.  And for every person on this planet there is only $50 worth of silver in existence.  So in truth there isn't enough physical gold in existence to spread around.  If you wanted to give another person $5 worth of gold, the piece would be so small you could barely see it.  Not practical at all. 

But to use gold as backing for paper dollars, that would be fine.  Those paper dollars would no longer be "fiat", but real money.  Or at least they would truly represent real gold.  And just as was the case before the Fed was created, you could actually go into a gold dealer (not a criminal bank) and exchange your paper dollars for its exact value in gold.  And the amount of gold that your $50 bill would represend would be printed right on the currency.  Actually, silver would probably be even more practical.

In reply to by Cryptopithicus Homme

secretargentman Albertarocks Mon, 06/18/2018 - 00:01 Permalink

There are simple solutions to those objections. Here are a few:

1) Make the small value coins 1% gold, 99% copper. (better with silver)

2) Replace banks with money warehouses which would be required to have 100% reserves at all times, subject to surprise inspections.

3) Money could be sent electronically by going to the money-warehouse app. Upon your instruction, the coins would be deducted from your account and added to the account of the person you're paying.

4) All this is true and much better with Silver.

In reply to by Albertarocks

litemine Algo Rhythm Mon, 06/18/2018 - 01:57 Permalink

Those that count the Money....sure know how it works.

It's not very funny when those that count the money make more than those that actually produce the wealth. kind of like how  the metric system made everything easier based on 10 .

Weird that the USA didn't adapt to that new system yet they hold the Military to enforce World Court and  Laws as well as the main branch of the Money Changers.

Again like the Robertson Screwdriver that was simplified and thus making my job easier. Don't know how many times my flat bladed screw driver slipped or my Phillips screw stripped. I always replace these for Robertson's.

Someone once told me that you just can't fix Stupid.

In reply to by Algo Rhythm

Balance-Sheet FIAT CON Mon, 06/18/2018 - 01:20 Permalink

No one would accept fiat against gold if it was clear the fiat was going to be withdrawn. People sell gold for fiat now because we have a fiat system, your taxes are in fiat, and few will accept Gold which they in turn have to swap for fiat. Right now the Gold dealer has a fiat margin of profit on sales no different from any other retailer and this is the basis of the business. When Peter Schiff files his taxes the accounting is all in fiat and taxes paid are as well. When he buys another shipment of gold coins he pays in fiat.

In reply to by FIAT CON

HRH of Aquitaine 2.0 Balance-Sheet Mon, 06/18/2018 - 01:36 Permalink

I don't think so. First the Fed Reserve was created, then there was the Bretton Woods agreement, then in 1971 the US left the gold standard for the petro dollar. Was that to make the US stronger? Was that meant to empower the US? No. Of course not. I think everything was going exactly as the globalists intended until Trump was elected. As the master of bankruptcies, I hope he can figure out this mess!

Kennedy attempted to turn control of the money supply back to the Treasury. They killed him. Will they do that to Trump, too? I think if that is tried it will be a bad move.

In reply to by Balance-Sheet

Terminaldude HRH of Aquitaine 2.0 Mon, 06/18/2018 - 08:58 Permalink

Kennedy was killed for a multitude of things (Just like Trump is doing), but a VERY big reason that is NEVER talked about is the fact that Kennedy was denying Israel the ability to obtain Nuclear Weapons.

Kennedy and David Ben Gurion were having it out over Kennedy refusing to allow Israel "the bomb".

Ever wonder what ethnicity Meyer Lansky was (Mafia involved in Killing, as well as the CIA)?  After Kennedy was killed, LBJ gave Israel "the bomb".   Hmmmm

Just another small note of history that few ever mention or think about.

Trump IS on the right track, if he isn't killed.  He knows what is going on though, since he has been using his own body guards ever since he was Elected, just so no "accidents" happen.

In reply to by HRH of Aquitaine 2.0

Balance-Sheet HRH of Aquitaine 2.0 Mon, 06/18/2018 - 10:59 Permalink

You see some of the elements. During the 1907 Financial Crisis the USG was small and weak and the private banking system was paramount. The real J.P. Morgan barely kept the system together with the help of J.D. Rockefeller. The Fed was created because the US economy was too large to be handled exclusively by private bankers.

After WW2 most countries were bankrupted by victory or their currencies were ruined completely and were useless so the USD was proposed as the World Dollar until such time as the major economies recovered. Today there are a number of useful currencies.

The Gold Standard was dead by 1925 in practice and was included in Bretton Woods as a talking point on the understanding that major trading countries would NOT actually redeem their reserves at the Fed Gold Window.

If the Saudis wanted to they could sell oil and accept anything as payment including Argentine Pesos but it would be rude to simply refuse that so it is said that purchasing oil requires a USD account.

Kennedy had too many defects for The Swamp circa 1960 including serious, chronic disease, drug abuse, etc. so he did have to go- that much has to be admitted.

In reply to by HRH of Aquitaine 2.0

dexterfarmer HRH of Aquitaine 2.0 Mon, 06/18/2018 - 13:36 Permalink

Aquitaine,    You know your history.   Articulate and 100% spot on with: 

"First the Fed Reserve was created, then there was the Bretton Woods agreement, then in 1971 the US left the gold standard for the petro dollar. Was that to make the US stronger? Was that meant to empower the US? No. Of course not. I think everything was going exactly as the globalists intended until Trump was elected. As the master of bankruptcies, I hope he can figure out this mess!

Kennedy attempted to turn control of the money supply back to the Treasury. They killed him. Will they do that to Trump, too? I think if that is tried it will be a bad move."

In reply to by HRH of Aquitaine 2.0