Monday, January 8, 2018

Well respected precious metal analyst believes China and Russia returning to a form of a gold standard an intrinsic key to taking down dollar hegemony

Those in power often have a tendency to take historical facts and often twist them to their benefit.  Case in point is how nearly every economy in the West runs on a Keynesian monetary policy in which debt to stimulate growth is good, and fiduciary responsibility through the use of a gold standard is bad.

But sadly John Maynard Keynes never said disconnecting from a gold standard was either bad or necessary, and in fact he simply stated that using a gold standard with a fixed price to gold prior to World War I was untenable.  And it is this key... the allowance to either float or reprice gold as necessary for monetary expansion in a particular economy, that would allow for a return to a gold standard in some form or fashion even today.

And according to well respected precious metals analyst Ronan Manley, this may be exactly what Russia and China are planning to do since they appear to believe that it may be the only course of action feasible to ending dollar hegemony and the world residing under a single unipolar reserve currency.

The gold accumulated by China and Russia could be seen as part of a strategy to move away from international trade denominated in US dollars, according to Singapore’s BullionStar precious metals expert Ronan Manly. 
Manly exclusively told RT that there is a shift occurring regarding the two countries building up their gold reserves, to perhaps returning to gold-backed currencies in the future and a move away from the global dominance of the US dollar, which is no longer supported by gold. 
China and Russia have both been aggressively accumulating their official gold reserves over the last 10 - 15 years,” he said, adding that only a decade ago each of them held around or less than 400 tons. “But now both these nations hold a combined 3670 tons of gold.” 
“Interestingly, both Russia and China publicize and promote their accumulations of gold and publicly refer to gold as a strategic monetary asset. They make no secret of this. But on the flipside, the US does the opposite, and constantly downplays the strategic role of gold.” 
According to Manly, for Russia and China gold is the only strategic monetary asset that could provide independence from the US dollar. – Russia Today
Ironically even countries like Venezuela, Turkey, and perhaps soon Iran could themselves be moving towards backing their sovereign currencies with gold, even if it is through the creation of a cryptocurrency as is being constructed right now in Caracas.  And as the fiat currencies of the world, including that of the dollar, reach the end of their tethers, the demand for sound money is ringing out a clarion call, and the ones who back theirs first could come out on top during the next change in the global monetary hierarchy. 


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