Turkey Will Repatriate All Gold From The US In Attempt To Ditch The Dollar

 

After VenezuelaGermanyAustria and the Netherlands prudently repatriated a substantial portion (if not all) of their physical gold held at the NY Fed or other western central banks in recent years, this morning Turkey also announced that it has decided to repatriate all its gold stored in the US Federal Reserve and deliver it to the Istanbul Stock Exchange, according to reports in Turkey’s Yeni Safak. It won’t be the first time Turkey has asked the NY Fed to ship the country’s gold back: in recent years, Turkey repatriated 220 tons of gold from abroad, of which 28.7 tons was brought back from the US last year.

According to the latest IMF data, Turkey’s gold reserves are estimated at 591 tons, worth just over $23 billion. This makes Ankara the 11th largest gold holder, behind the Netherlands and ahead of India. Continue reading

Iran Officially Switches From Dollar To Euro

 

Just two weeks after “panic” hit the streets of Tehran as the Iranian government attempted to ‘fix’ the freefall of the Rial against the US Dollar…

Middle East Monitor reports that Iran’s feud with the US is set to get worse after Tehran announced this week that it will start reporting foreign currency amounts in euros rather than US dollars, as part of the country’s effort to reduce its reliance on the American currency due to political tension with Washington. Continue reading

The US Fading into Irrelevance – A Good Thing for the World

 

Chaos reigns in the United States, spreading to its closest allies. The war amongst Western elites is in full swing, manifesting itself from commercial wars to failed diplomacy, empty threats of war, corruption, and announced military withdrawals and attacks.

To sum up the last few weeks of international events, it is worth comparing the direction taken by the multipolar troika of Russia, China and Iran, and the one taken by the fading unipolar order led by the United States, Israel and Saudi Arabia. Continue reading

The U.S. Should Be Reaching out to Russia — Not Risking War

 

There’s no greater villain in the world today than Vladimir Putin. He stands accused in the media and global public opinion of rigging his recent reelection, imprisoning his political enemies, murdering Russian spies turned double-agent, meddling in Western elections, seizing Crimea, destabilizing Ukraine, supporting a murderous dictator in Syria and exporting arms to terrorist nations like Iran.

The list of bad acts laid at Putin’s feet is much longer than the one just recited, but you get the idea. He’s no Mr. Nice Guy. Continue reading

Why A Dollar Collapse Is Inevitable

 

“Naturally, the smooth termination of the gold-exchange standard, the restoration of the gold standard, and supplemental and interim measures that might be called for, in particular with a view to organizing international credit on this new basis, will have to be deliberately agreed upon between countries, in particular those on which there devolves special responsibility by virtue of their economic and financial capabilities.” 

General Charles de Gaulle, February 1965

We have been here before – twice. The first time was in the late 1920s, which led to the dollar’s devaluation in 1934. And the second was 1966-68, which led to the collapse of the Bretton Woods System. Even though gold is now officially excluded from the monetary system, it does not save the dollar from a third collapse and will still be its yardstick.

This article explains why another collapse is due for the dollar. It describes the errors that led to the two previous episodes, and the lessons from them relevant to understanding the position today. And just because gold is no longer officially money, it will not stop the collapse of the dollar, measured in gold, again. Continue reading

Now, a Trade War — Is a Shooting War Next?

(Shutterstock)

 

A popular thesis since the 1930s is that a natural progression exists from currency wars to trade wars to shooting wars. Both history and analysis support this thesis.

Currency wars do not exist all the time; they arise under certain conditions and persist until there is either systemic reform or systemic collapse. The conditions that give rise to currency wars are too much debt and too little growth.

In those circumstances, countries try to steal growth from trading partners by cheapening their currencies to promote exports and create export-related jobs. Continue reading

Turkey Will Be Ground Zero in the Next Global Debt Crisis

(Shutterstock)

 

Turkey is a beautiful country with a rich history including Greek, Roman and Muslim influences that make it one of the most fascinating places on Earth. It is literally a bridge between East and West: The mile-long Bosporus Bridge just north of Istanbul connects Europe and Asia across the Bosporus Strait.

Turkey has been a magnet for direct foreign investment from abroad and dollar-denominated loans by international banks to local enterprises. This investment enthusiasm is understandable given Turkey’s well-educated population of 83 million and its rank as the 17th-largest economy in the world, with a GDP of just under $1 trillion. Continue reading

EU goes Head-to-Head with USA in growing currency war – ‘We are Concerned!’

EU USA

Washington and Brussels are locking horns in a dispute over currency, tax and trade [Getty]

 

THE EUROPEAN Central Bank has accused the US of manipulating exchange rates as tensions between Brussels and Washington continue to escalate wildly.

The ECB is concerned the US is attempting to exert “political influence” on exchange rates, with the issue set to explode into outright confrontation at an upcoming G20 meeting.

The eurozone bank said it was “certainly concerned” by perceived attempts to influence the exchange rate in favour of the US dollar.  Continue reading

66% of the Economy is Already Electronic & 99% of Money is Electronic

 

QUESTION: I loved your mention of how our money is not “printed”. You are THE ONLY financial expert to mention this. And you can’t understand our economy without understanding Electronic Money. I researched this 3 or four years ago and came up with, .003 physical currency vs the rest as Electronic Money. I later stumbled across an article on the same subject by an economics professor who put the ratio at .0003 physical. SO, who/where/how much/ and by who’s authority is E money created? E money is how the economy is propped up, and the amount is in TRILLIONS UPON TRILLIONS.

ANSWER: That is about correct. However, it is actually much worse. About 40% of the value of the paper currency of the United States circulates outside the USA. In fact, about 40% of the debt is also held outside the USA. Continue reading

Iran and Russia Just Revealed How They’ll Upend the Petrodollar

 

Iran and Russia just took a page out of Venezuela’s playbook.

Like Caracas announced on Dec. 4, Moscow and Tehran are looking into cryptocurrencies as a means of upending the U.S. petrodollar’s reign over the global oil market, Cointelegraph reported on Dec. 11.

For its part, crypto’s rise in popularity of late does make for an enticing investment choice, especially with Bitcoin’s 150% surge over the past month. Continue reading

EU To Restrict Movement of Cash

 

The EU is now developing strict rules for carrying cash when traveling to non-European countries and returning to Europe. The revision of the First Cash Control Regulation from 2005, which stipulated that EU citizens should register cash in excess of € 10,000 when leaving the EU or when returning to the customs authorities have to, is what is under review. They want to lower the number and include gold, gemstones, and cash debit cards. Continue reading

Russia May Turn To Cryptocurrencies For Oil Trade

Putin

 

Russia may be looking to use cryptocurrencies for oil trade to avoid payments in U.S. dollars and limit the impact of the U.S. sanctions, Russia’s government-backed outlet RT reports.

The bitcoin mania—on which the jury is still out whether it will be the biggest bubble in history or a success—could be a “fresh catalyst” for countries that want to ditch the U.S. dollar in oil trade, according to Stephen Brennock, an oil analyst at PVM Oil Associates. Continue reading

De-Dollarization Continues: China, Iran To Eliminate Greenback From Bilateral Trade

 

The more Washington lashes out in anger at those who will not bow to the unipolar world order, the more the rest of the world fights back. As the launch of its Yuan/Gold-settled oil futures loomsChina is escalating its de-dollarization scheme further by seeking a bilateral rial-yuan agreement with Iran.

As a reminder, nothing lasts forever… Continue reading

Maduro to Create Venezuelan Cryptocurrency ‘To Overcome the Financial Blockade’

Venezuelan President Nicolas Maduro / Getty Images

 

Venezuelan President Nicolas Maduro wants his own version of Bitcoin, announcing Sunday that his socialist government will create a cryptocurrency.

Maduro said on his television show that the new “petrocurrency” will be backed by reserves in oil, gas, gold, and diamonds, Bloomberg reports. Bitcoin, the world’s largest digital currency, hit new highs last week, and Maduro declared that his plan will counteract the economic disaster that is befalling the Venezuelan bolivar, which has experienced hyperinflation as the country’s economy has collapsed. Continue reading

China and Russia: Full Steam Ahead Towards a Cashless Society – Rory Hall

China and Russia: Full Steam Ahead Towards a Cashless Society - Rory Hall

 

We reported back in November 2016 – Cashless World: 1 out of 3 People Never Use Cash – fewer and fewer people understand the importance of using cash to protect themselves from an overarching government warlord. At the time, China’s use of digitized currency was growing at about 40% per annum. This means millions of people each year freely hand over their cash and opt to use their cell phone, online currency transfers or a plastic debit/credit card to make 100% of their purchases. We see this as nothing short of happily going into the gulag of digital enslavement. Continue reading