Gold-Backed Yuan and Ruble Leave US Dollar in the Dust

The entire western monetary system is a fraud...says Peter Koenig, economist, geopolitical analyst, and former World Banker.

 The global de-dollarization trend is nothing new. Despite the provocative manner in which Peter Koenig states his message, calling the dollar-denominated monetary system “fraudulent,” this message doesn’t tell us anything the we don’t already know:

“The entire western monetary system is basically a fraud. It is privately made and privately owned. All international transfers have to transit through Wall Street banks and that is the only reason why the US can actually sanction as they say ‘countries that do not behave according to Washington’s dictate.’”

What’s important to think about are the implications that such a perspective might have on the future of our national economy, and what it might mean to your own personal wealth.

Do you have faith in your dollars? If so, is there anything worthy of “sound reason” backing your certainty? Your faith in the dollar would have to circularly point back to the system that supports it, as nothing backs the dollar other than the faith that it feeds on.

Apparently, neither China nor Russia believe in a faith-backed monetary system. And this fundamental doubt is what’s driving their actions to turn our own naivete against us by accelerating de-dollarization.

As Koenig told Sputnik News, “Both the ruble and yuan are 100 percent covered by gold, so this is just a part of a larger, fairly advanced scheme of the de-dollarization of their economies.” In fact, Sberbank, Russia’s largest bank, is planning to increase their gold supply by up to 10 - 15 tons next year. China already had been steadily increasing their gold imports since 2016.

Gold: an asset that can only harm those who don’t have it.

Gold plays a dual--almost paradoxical--role in our current geopolitical arena: a hedge against global uncertainty, it’s also a means to create global uncertainty; a safe haven asset, it’s also a legitimate economic arsenal; a defensive tool, it can also be wielded to aggressively establish dominance.

China and Russia both understand this...perhaps too well; and their actions prove that they know how to use it to their advantage.

In light of current geopolitical tensions, gold has been on the rise. In a recent Forbes article, GSI Exchange’s Anthony Allen Anderson was quoted, saying that “‘increasing tensions in the Korean Peninsula’ and ‘further deterioration in relations with Russia’ [are] providing tailwinds for gold prices.” All you have to do is look at a gold chart to see how the yellow metal has responded favorably to the uncertainties that are currently plaguing the world; how gold has been, and will continue to be, an “everything hedge.”

The message is clear: for those who seek a safe haven, gold preserves wealth; for those who seek capital appreciation, gold generates wealth; and for those who have the clarity, foresight, and ambition to gain an upper hand in the global economic arena, gold is wealth.

Our smartest rivals have figured this out. Why allow them to define and shape our economic future?