“Over the past 15 months, I have made light of Fed Governor Jerome (Jay) Powell because of his answer to a question I had asked him at a symposium presented by the Chicago Global Initiative. I asked Governor Powell, ‘Who guarantees the balance sheet of the ECB?’ Without hesitating, Powell said, ‘THEY HAVE A PRINTING PRESS.’ If this is his answer to issues of debt overhang I will be closely watching the precious metals if Powell actually became Fed Chairman. Janet Yellen has proven far more competent than Jerome Powell would be under any top of stressful central bank situation .. In my mind Powell would prove to be a new G. William Miller: A weak Fed Chair that was inept in a crisis situation. The current global financial situation is too fraught with danger for Powell’s PRINTING PRESS ..
There was a major article in the Nikkei Asian Review titled, China Sees New World Order With Oil Benchmark Backed By Gold. The article begins: ‘China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.’
This has the POTENTIAL to be a great disruptor because China is the world’s largest oil importer. This can have major consequences for the entire global macro world for many reasons. First, the DOLLAR will have an alternative for its status as the benchmark for global commodities. Second, the ability for countries laboring under the threat of U.S. sanctions that are imposed through the SWIFT transfer system can not be avoided by receiving payment in YUAN while being guaranteed by gold. Third, China recently initiated a GOLD CONTRACT settled in YUAN so large OIL EXPORTERS will have the ability to hedge their revenues in a liquid contract further undermining the power of U.S. exterritoriality and quickening the demise of Pax Americana. Fourth, China’s ability to MONETIZE GOLD is a direct assault on the United States’ ability to manipulate the global financial system to its advantage, a remnant of the Bretton Woods Post-World War II global system. The monetization of GOLD really has piqued my interest. It certainly sheds light on the theory that China has been accumulating GOLD. Now, let’s see if they are bi-metalists that can bring SILVER into the equation. XI, what say you?”
Disclaimer: The views or opinions expressed in this blog post may or may not be representative of the views or opinions of the Financial Repression Authority.
Source: Financial Repression Authority