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Rickards: Asia/Mid-East “Axis of Gold” Emerging on World Stage

Daily Reckoning  ( Original )
MAY 25, 2018

There has been no commentary from the US government on the industrious repatriation and accumulation of gold by Asian and Middle Eastern governments.

But China, Russia, Turkey, and Iran, both in words and deeds, have been vocal about their desires to do business in a currency that is not the USD. Turkey has taken back all their gold from US vaults, and China and Russia both continue to add to sovereign hoards. The Iranian theocracy’s antipathy toward the US encompasses all facets of commerce and culture.

Regardless of its public silence, the US must be aware that there is a cadre of international counterparties allying to dilute the dollar’s trade dominance.

A major blind spot in U.S. strategic economic doctrine is the increasing use of physical gold by China, Russia, Iran, Turkey and others both to avoid the impact of U.S. sanctions and create an offensive counterweight to U.S. dominance of dollar payment systems.

This is the Axis of Gold.

This gold-based payments system will dilute and ultimately eliminate the impact of U.S. dollar-based sanctions.

Gold offers adversaries significant defenses against these dollar-based sanctions. Gold is physical, not digital, so it cannot be hacked or frozen. Gold is easy to transport by air to settle balance of payments or other transactions between nations.

Gold flows cannot be interdicted at SWIFT, the international payment system. Gold is fungible and non-traceable (it is an element, atomic number 79), so its origin cannot be ascertained.

We have a lot of data to support the claim that the Axis of Gold exists and is gaining strength.

ORIGINAL SOURCE: Why negative interest rates are inevitable… by Tom Lewis at The Gold Telegraph on 5/12/18