‘ECB President Christine Lagarde Is Making Some Sense … Buy Gold?’ ‘The End Of The Petrodollar’s Reign’
A new geopolitical reality may well lie ahead, which could have profound implications for central bank policymaking.
Grateful to @CFR_org for inviting me and thanks to CFR President @RichardHaass for the insightful discussion. Watch back https://t.co/K38CyXPiWe pic.twitter.com/lefhssBmYY
— Christine Lagarde (@Lagarde) April 18, 2023
ZeroHedge reported the following:
Mish: As Amazing As It Sounds, ECB President Christine Lagarde Is Making Some Sense
April 18, 2023
Please consider a speech by Christine Lagarde, President of the ECB, on Central Banks in a Fragmenting World
The global economy has been undergoing a period of transformative change. …
We are witnessing a fragmentation of the global economy into competing blocs, with each bloc trying to pull as much of the rest of the world closer to its respective strategic interests and shared values. And this fragmentation may well coalesce around two blocs led respectively by the two largest economies in the world. …
During the Pax Americana after 1945, the US dollar became firmly ensconced as the global reserve and transaction currency, and more recently, the euro has risen to second place. This had a range of − mostly beneficial − implications for central banks.
But new trade patterns may have ramifications for payments and international currency reserves. …
Anecdotal evidence, including official statements, suggests that some countries intend to increase their use of alternatives to major traditional currencies for invoicing international trade, such as the Chinese renminbi or the Indian rupee. We are also seeing increased accumulation of gold as an alternative reserve asset, possibly driven by countries with closer geopolitical ties to China and Russia.
There are also attempts to create alternatives to SWIFT. …
These developments do not point to any imminent loss of dominance for the US dollar or the euro. So far, the data do not show substantial changes in the use of international currencies. But they do suggest that international currency status should no longer be taken for granted.
… it’s not just the BRICs (Brazil, Russia, India, and China) attempting to get around US sanction madness. …
The only cooperation we have had was in weaponizing the US dollar. That’s something Lagarde failed to mention. …
It is the US weaponizing the US dollar that directly led to many of the key points that Lagarde made.
What Does China Do With a Dollar That’s No Longer Risk Free? Buy Gold?
So, the head of the European Central Bank sees a lot of changes taking place. Do not think that Europe will simply remain on the side of the USA. It will take steps of its own. The Europeans do not want their euro to go down with the USA dollar.
As far as steps in Europe and elsewhere, notice also the following:
Rise of the Petroyuan: The End of the Petrodollar’s Reign and the Impact on Global Markets
Did you know that central banks bought more gold last year than any year in the past 55 years—since 1967?
Though most don’t realize it, 1967 was a significant year in financial history, mainly due to the events at the London Gold Pool.
The London Gold Pool was an agreement among central banks of the United States and Western European countries to stabilize the price of gold. The goal was to maintain the price of gold at $35 per ounce by collectively buying or selling gold as needed.
However, in 1967 the London Gold Pool collapsed due to a shortage of gold and increased demand for the metal. That’s because European central banks bought massive amounts of gold as they began to doubt the US government’s promise to back the dollar to gold at $35/ounce. The buying depleted the London Gold Pool’s reserves and pushed the price of gold higher. …
It ultimately led to severing the US dollar’s last link to gold in 1971. The dollar has been unbacked fiat confetti ever since—though the petrodollar system and coercion have propped it up.
The point is large global gold flows can be a sign that a paradigm shift in the international monetary system is imminent.
Central banks are the biggest players in the gold market. And now that we have just experienced the largest year for central bank gold purchases since 1967, it’s clear to me something big is coming soon. …
According to the Financial Times, the big buyers of gold in 2022 were China and Middle East oil producers. That’s not a coincidence, as these countries will be at the center of the changes to the international monetary system. …
Beijing has been waiting for the right moment to pull the rug from beneath the US dollar. And now is that moment…
The key to understanding it all is Chinese President Xi’s recent historic visit to Saudi Arabia and other Gulf Cooperation Council (GCC) states to launch, in his words, “a new paradigm of all-dimensional energy cooperation.” … any oil producer can sell its oil for something besides US dollars… in this case, the Chinese yuan.
The INE yuan oil futures contract provides a new pricing benchmark for the global oil market, which the US dollar has traditionally dominated. By trading in yuan, the contract is expected to increase the use of the Chinese currency in global trade and reduce the reliance on the US dollar. …
Here’s the bottom line.
The end of the petrodollar system is imminent.
For over 50 years, this arrangement has allowed the US government and many Americans to live way beyond their means.
The US takes this unique position for granted. But it will soon disappear.
Yes, the US is in the process of losing its unique “petrodollar” role. The US dollar will one day be worth no more than the scrap or novelty value of its cotton-paper stock.
What about gold?
Here is part of item #14 of my list of 23 items to prophetically watch in 2023:
14. Gold
While some economists have called gold a ‘relic,’ it still has value internationally.
Alex Stanczyk observed:
Crypto has made its own place in the world by making an amazing leap forward as a medium of exchange, with thus far unrivaled capabilities. But crypto is not gold, and can never be gold. I suggest that BTC and Crypto are better as a medium of exchange, while gold is a better medium for storing value.
This is not because of some dogma I have for the metal. Some will trot out “you are just talking your book” when I mention this.
The simple fact is, out of the near 185,000 tons of estimated above ground gold, someone owns, all of it. Every fine gram of gold above ground belongs to someone already, whether that be in the form of bars, coins, jewelry, the thin layer on astronauts helmets that protect them from solar radiation, or the gold plated contacts in the mining rigs used to mine crypto. New gold mined from the ground is usually spoken for before it ever hits a refinery. My job as a physical gold fund manager is not to convince people to buy gold, that job has already been done.
The reason crypto can never replace gold lies in physics: Gold cannot be destroyed
Everything else can. Computers. Exchanges. Mining Pools. Wallets. Powergrids. Internets. Nations. You name it. If you blew up the planet earth, the gold atoms would still be there.
Unlike anything else you can invest or store money in, gold doesn’t rely on any external force for this to continue to be true over time. It is sort of like a battery with no expiration date.
Gold exists as atomic number 79 on the periodic table. It is chemically inert and does not interact with oxygen. It is the only element with properties that make it completely immune to the forces of entropy. The only way to destroy it would be to fire it into the sun, or somehow put it in the middle of an equivalent fusion reaction that took the atoms apart at a subatomic level. (Stanczyk A. A Gold Guys View of Crypto, Bitcoin, and Blockchain. Medium.com, December 10, 2017 https://medium.com/@alex.stanczyk/a-gold-guys-view-of-crypto-bitcoin-and-blockchain-26e42eeab6b7)
Its ‘permanence’ from a physical perspective is reassuring to many. But the fact it is not a food and provides no calories shows its value has severe limits.
‘Czech Republic To join Poland And Hungary In Central European Gold Rush’
‘Why Gold Will Benefit From The Inevitable Reshaping Of The International Monetary System’ & France Repatriates
‘Gold & Geopolitics … If this is Putin’s plan, the consequences for Western fiat currencies are likely to be devastating’
‘Russia’s Putin declares an end to Western currencies, says world moving towards “real reserves” including “land, food, gold”’
Yes, Russia and others are looking to gold. Fiat currencies, like the USA dollar and British pound are backed by nothing. Many know this and think that will last forever–well the monetary system will not stay as it has been.
The Bible prophesies King of the North will get gold which end time Babylon will trade with:
37 He shall regard neither the God of his fathers nor the desire of women, nor regard any god; for he shall exalt himself above them all. 38 But in their place he shall honor a god of fortresses; and a god which his fathers did not know he shall honor with gold and silver, with precious stones and pleasant things. 39 Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain. 40 “At the time of the end the king of the South shall attack him; and the king of the North shall come against him like a whirlwind, … 43 He shall have power over the treasures of gold and silver, and over all the precious things of Egypt … (Daniel 11:37-39,43)
10 … ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’ 11 And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore: 12 merchandise of gold and silver, precious stones and pearls, fine linen and purple, silk and scarlet, every kind of citron wood, every kind of object of ivory, every kind of object of most precious wood, bronze, iron, and marble; 13 and cinnamon and incense, fragrant oil and frankincense, wine and oil, fine flour and wheat, cattle and sheep, horses and chariots, and bodies and souls of men. 14 The fruit that your soul longed for has gone from you, and all the things which are rich and splendid have gone from you, and you shall find them no more at all. 15 The merchants of these things, who became rich by her, will stand at a distance for fear of her torment, weeping and wailing, 16 and saying, ‘Alas, alas, that great city that was clothed in fine linen, purple, and scarlet, and adorned with gold and precious stones and pearls! (Revelation 18:10-16)
While the Bible is clear that gold will, for a time, not be wanted but tossed (Ezekiel 7:19), it is obvious that into the Great Tribulation (Matthew 24:21-22), which starts in verse 39 of Daniel 11, gold will have value (see also The Plain Truth About Gold in Prophecy. How Should a Christian View Gold?).
The old Worldwide Church of God published the following:
Of course, since gold is regarded as a disaster hedge by many investors, prudence might dictate that perhaps a small fraction of your liquid assets be in gold: (Caulkins J. WHEN MONEY FAILS. Good News, October-November 1979) In Revelation 18, we are given a graphic description of Europe at its future economic peak. Remember this prophecy occurs after the United States, Canada and other Israelitish nations have been conquered and brought into subservience. … In verse 11, Europe’s coming economic wealth and scope is described as John sees it, shortly before the final crisis (to occur at Christ’s coming) takes place. “And the merchants of the earth shall weep and mourn over her, for no man buyeth their merchandise any more: The merchandise of gold and silver … (Catherwood CA. Europe and Our Prophetic Message. Good News, October-November 1979)
Yes, gold will outlast the US dollar and the European Beast power will have it.
In terms of world events, understand that Germany has been repatriating gold–and even did so ahead of schedule (watch Germany, Gold, and the US Dollar). Europeans have a lot of gold (see The Plain Truth about European Gold) and want more. The continental European gold reserves listed amount to about 11,353.4 tons of gold–that is almost as much as the USA and China combined.
In 2017, I published the following in my book Donald Trump and America’s Apocalypse:
Gold will set records in US dollar terms.
It did on August 6, 2020:
“The price of gold shot up to an all-time high of US$2,067.15 per ounce on Aug. 6” (Woodall T. Gold surges to new highs as US dollar weakens despite growing macro risks. S&P Global, August 10, 2020).
Gold will be an item or value in 2023 and at least a few years beyond.
Nations in Asia, Europe, and even Africa will look to increase gold reserves.
Gold will break records in US dollar terms.
But there may be ups and downs before it does again.
The coming Babylonians European Beast power will trade with nations like China who will also end up with gold (cf. Revelation 18).
Are you paying attention to what is going on in the world?
This will not end well for the USA nor its British-descended allies.
Probably within the next decade.
Some items of possibly related interest may include:
23 items to prophetically watch in 2023 Much is happening. Dr. Thiel points to 23 items to watch (cf. Mark 13:37) in this article. Here is a link to a related sermon: 23 things to prophetically watch in 2023. Here is a related sermon in the Spanish language: 23 Temas para observar proféticamente en 2023.
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? Does God have 7,000 year plan? What year may the six thousand years of human rule end? When will Jesus return? 2031 or ? There is also a video titled 6000 Years: When will God’s Kingdom Come? Here is a link to the article in Spanish: ¿Tiene Dios un plan de 6,000 años?
Might the U.S.A. Be Gone by 2028? Could the USA be gone by the end of 2028 or earlier? There is a tradition attributed to the Hebrew prophet Elijah that humanity had 6,000 years to live before being replaced by God’s Kingdom. There are scriptures, writings in the Talmud, early Christian teachings that support this. Also, even certain Hindu writings support it. Here is a link to a related video: Is the USA prophesied to be destroyed by 2028? In Spanish: Seran los Estados Unidos Destruidos en el 2028?
When Will the Great Tribulation Begin? 2023, 2024, or 2025? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? Here is a version of the article in the Spanish language: ¿Puede la Gran Tribulación comenzar en el 2020 o 2021? ¿Es el Tiempo de los Gentiles? A related video is: Great Tribulation: 2026 or 2027? A shorter video is: Can the Great Tribulation start in 2022 or 2023? Notice also: Can Jesus return in 2023 or 2024? Here is a video in the Spanish language: Es El 2021 el año de La Gran Tribulación o el Grande Reseteo Financiero.
Is a Great Reset Coming? Klaus Schwab of the World Economic Forum has proposed a societal change that has been basically endorsed by the Vatican and many world leaders. Does the Bible prophesy a major reset? Here is a link to a related video: Will there be a “Great Reset”?
Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? Where did those people come from? Can you totally rely on DNA? What about other peoples? Do you really know what will happen to Europe and the English-speaking peoples? What about Africa, Asia, South America, and the Islands? This free online book provides scriptural, scientific, historical references, and commentary to address those matters. Here are links to related sermons: Lost tribes, the Bible, and DNA; Lost tribes, prophecies, and identifications; 11 Tribes, 144,000, and Multitudes; Israel, Jeremiah, Tea Tephi, and British Royalty; Gentile European Beast; Royal Succession, Samaria, and Prophecies; Asia, Islands, Latin America, Africa, and Armageddon; When Will the End of the Age Come?; Rise of the Prophesied King of the North; Christian Persecution from the Beast; WWIII and the Coming New World Order; and Woes, WWIV, and the Good News of the Kingdom of God.
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