Article by Necip YILDIRIM
The American state has an enormous control over the rest of the world by virtue of having the dollar hegemony. Countries cannot walk out of the dollar system. They get punished if they prefer to do that.
This is how geopolitical game worked so far, at the expense of many people.
The dollar has reached the end of its status as the means of global reserve.
You cannot print money forever. You cannot inflate to finance anything that the governments want to do.
If we get the collapse in the purchasing power of dollar and other currencies, we are likely to see the price of gold rocket: The relative difference between the purchasing power of gold increasing and the purchasing power of the dollar collapsing.
Have the central banks been controlled by the globalists?
Central banks have generated misery by debasing currencies. There will come a point when the reality impinges on the governments. Were central banks doing it independently or some other games were involved?
What if the dollar and currencies collapse? It is not to say that there will be an anarchy. Governments will continue to exist. But in order to exist, they will need finances.
When/If the dollar and other currencies collapse, what is the replacement going to be? If we say that it is Digital Money (Cryptocurrency), we simply say that central banks will cease to exist. Because they do not directly control that market. So, when currencies collapse, governments have no money. Governments are not going to like that at all. They are going to be forced to introduce something that will give them some sort of money. That basically means, they will monetize the only thing they have in hand, which is gold.
Digital Money might be a good store of value. But the problem with Digital Money is the fact that (1) the Central banks don’t own Digital Money, but they do own gold. The last thing they are going to resort is their gold reserves. (2) If you are borrowing money in order to invest in the production of something you need to know what the final value of that money is. If you borrow Digital Money for a certain period of time, you should know what the final price will be. In case of Digital Money, you do not have any understanding what the final price will be. That would rule out Digital Money as an investment medium in the industry.
As a practical money, you need flexibility. For flexibility the quantity of gold should not be decided by the government, but by the market. That flexibility is terribly important. Gold comes from two sources: One from the mine supply. Only about half of other gold stocks are actually held for so to say monetary purposes. The remaining are jewelry and other bits and pieces. If there is a demand for the gold from the market it can be fulfilled by an expansion of the quantity of the scrap.
Will countries like China, Russia and Turkey be in a much better position globally, if such a free market takes over?
In a more radical scenario, if even gold is demonetized by Digital Money, governments and central banks go entirely out of the business. They will be in a deadlock and cease to be relevant. They will be no longer fulfilling the social contract of John Locke: A major shift in Western government model. If this will be the case, the transition will not be easy and the alternative is simply “nothing”.
For governments to continue after the currency collapse, they will have to accept the fact that the fate of money is not going to be decided by them, but by the market.
A market where the rules are set furth by techies?
Such wild crypto versions notwithstanding, I do believe that gold is likely to be the money of the future. It is not because it has been the money in the past when everything failed. It is because the governments have it. It is the only means in which they can get their currency going, so that their governments continue. Also, gold is sound money because its purchasing power is not collapsing, you cannot print it as much as you wish and it is not inflating.
