Mexican Civic Association Pro Silver
MAR 8, 2018
There is a massive advantage to minting the default currency of worldwide commerce. And only the United States has this advantage.
The Exorbitant Privilege of the US, the production of the world’s fundamental currency - which allows it to purchase anything in any amount, in any place, at any price – produces automatically the fundamental need of foreign countries to undersell US producers.
Make it impossible for them to do so (like by tariff) and you provide massive motivation for the world to come up with an alternative to mandatory dollar denominated trade. Gold is ready and waiting to fill the void:
Good show, Donald old boy! With your enthusiasm for trade wars, you are furthering the arrival of the Gold Standard, and China is, on cue, about to initiate on March 26, their famous Petro-Yuan deal (which they have postponed several times). The Petro-Yuan leads into the Petro-Yuan-Gold deal, where the oil exporters will be able to turn Yuan – which they don’t need – into gold.
The current theme of whether “Trade War” is good for the US, misses the point entirely. The US collapse into the “Trade War” syndrome only obfuscates the real outcome: the end of the US dollar as the world’s fundamental currency. If countries are unable to obtain dollars for their Central Bank reserves, they will have to look for a substitute. And the only substitute will have to be GOLD.
ORIGINAL SOURCE: Bad 'Karma' Brings Bad Consequences for Those Who Practice It by Hugo Salinas Price at Mexican Civic Association Pro Silver on 3/8/18