Why The Chinese President Called Dollar system a”Product of the Past”

When America became the stewards of the world reserve currency, we gained a huge responsibility. With it came the potential to abuse our position for personal gain. And abuse it we did. In fact we have been abusing it for at least 30 years. It gave us the ability to expand our money supply at a much higher rate than the rate of growth in our economy without generating the inflation that it would have created otherwise. But the world has woken up to our abuse. It has woken up bruised and bleeding, tired of the way it is treated and is starting to want out of the broken relationship. The problem is that this will be one of history’s most painful divorces ever. No one will get out of this relationship whole. Possibilities only whispered about a year or two ago are being discussed openly by world leaders. Gold is being remonetized by the reserve banks, as indicated by their change in policy from being sellers of the ancient relic to active buyers into one of histories longest commodity bull runs. It is a run that has a long way to go if gold has a part to play in monetary systems in the future.

The rules are changing, so the world is changing. Our corrupt politicians broke trust with us and with the world at large. You can’t really blame them though. It was a trust that begged abuse. It was a trust that never should have been given. It was putting the wolf in charge of the sheep fold. I guess we must have read”Never Cry Wolf” and believed it too. When the dollar goes to its intrinsic value, what fiat currency will the crowds turn to? Who are you going to trust if the once God-fearing USA proved that the temptation was far too great? Obviously, commodities will be likely to play a much bigger roll in backing any unit used for international trade in the future, and the commodity that does that best still glitters.

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