Loading ...What Happened ?
Like the FED Day..Initial reaction to NFP was Dollar negative and Gold and PMs wee flying
Then …Like the FED Day…everything suddenly reversed
The Dollar is UP a full point on the Yen
The NFP was weak
So what news moved the Dollar back up and PMs Down ?
TIA
The G20 is meeting in in Hangzhou China this weekend (Sept 4th and 5th). This meeting continues the implementation of the IMFs SDR to replace, over time, the USD as the Global Reserve that was agreed by the G20 back in 2010.
That said, I would assume that the Wall Street Boyz want the USD to appear as strong as it can going into that meeting to enhance the US negotiating leverage this weekend.
http://philosophyofmetrics.com/no-death-but-transformation-of-the-dollar-freepom/
Well we now have SDR Bond and the yuan inclusion in the SDR in October.
I still don’t understand how SDR will solve the problems of dollar, euro, pound, yen and soon yuan when it is a composite of the problem.
I don’t believe this is an exact repeat of the FED day. Silver is remaining strong, HUI is coming back, and Gold is holding on.
Game, Using the SDR rather than a domestic Currency like the USD solves Triffin’s Dilemma.
http://lexicon.ft.com/Term?term=Triffin-dilemma
Here is another link to a PDF that provides more detail on SDR substitution for the USD and how the SDR solves Triffin’s Dilemma.
http://www.cdfund.com/wp-content/uploads/2016/08/SDR-Special-aug2016-DEF.pdf
Also, here is an excerpt from the link above which is from Jim Rickards that sums it all up very nicely.
“The brilliance of the SDR solution is that it solves Triffin’s dilemma. Recall that the paradox is that the reserve-currency issuer has to run trade deficits, but if you run deficits long enough, you go broke. But SDRs are issued by the IMF.
The IMF is not a country and does not have a trade deficit. In theory, the IMF can print SDRs forever and never go broke. The SDRs just go round and round among the IMF members in a closed circuit. Individuals won’t have SDRs. Only countries will have them in their reserves. These countries have no desire to break the new SDR system, because they’re all in it together. The United States is no longer the boss. Instead, you have the “Five Families” consisting of China, Japan, the United States, Europe and Russia operating through the IMF.
The only losers are the citizens of the IMF member countries—people like you and me—who will suffer local-currency infla- tion. I’m preparing with gold and hard assets, but most people will be caught una- ware, like the Greeks who lined up at empty ATMs in June 2015. This SDR system is so little understood that people won’t know where the inflation is coming from. Elected officials will blame the IMF, but the IMF is unaccountable.
That’s the beauty of SDRs—Triffin’s dilemma is solved, debt problems are inflated away and no one is accountable. That’s the global elite plan in a nutshell.”
I don’t know if we can trust Rickards. I like him but he is an insider. The SDR is a good solution for the US.
Let’s hope the US are still holding their gold and that the IMF really holds 2814 mT of gold.
It will be nice to see how China will play this game of poker like Rickards likes to say.
I can suggest some lecture for the week-end:
https://wealth.goldmoney.com/images/media/Files/Insights/Reserve_currency_curse_GoldMoney_Insights.pdf
Sounds like a new world order to me where all of us get pawned…
Well done Gabe,
Rickards is a CIA agent/ asset, and therefore ABSOLUTELY not to be trusted… better not to listen to him at all than try to sort out what’s honest/ not !!!
And more for you Gabe,
Of course you like him… because he’s a snake oil salesman.
There’s a pretty good description of such at Wikipedia (a wholly unreliable source):
“Snake oil, originally a fraudulent liniment without snake extract, has come to refer to any product with questionable or unverifiable quality or benefit. By extension, a snake oil salesman is someone who knowingly sells fraudulent goods or who is themselves a fraud, quack, or charlatan….
The snake oil peddler became a stock character in Western movies: a traveling “doctor” with dubious credentials, selling fake medicines with boisterous marketing hype, often supported by pseudo-scientific evidence. To increase sales, an accomplice in the crowd (a shill) would often attest to the value of the product in an effort to provoke buying enthusiasm. The “doctor” would leave town before his customers realized they had been cheated. This practice is also called grifting and its practitioners are called grifters.”
Paul,
of course i like him. I don’t want to be thrown under the bus !
Dear Gabe,
Buses can indeed be dangerous objects, and sometimes people even throw themselves under them.
That’s why I come here… one of the few honest places left on the web.
Price-Time-Volume charts don’t lie – although they are subject to interpretation – and here we can enjoy a profusion of insightful and challenging interpretation by experts, such as Professor Surf.
Of course one can learn a lot of interesting things from Mr. Rickards, but I reckon you could learn the same from less prejudiced sources.
I’m sure you’re familiar the ‘limited hangout’ and the ‘mofified limited hangout’ method, a favourite CIA modus operandi. Although Wikipedia is not a reliable source, they have a pretty good definition here:
https://en.wikipedia.org/wiki/Limited_hangout
… just saying.
The price action going into the close this evening – and after hours was quite strong for physical and miners, and flat for dollar and copper. I think that bodes well for Monday.
All best and good luck…
I understand that Rickards is an insider and connected with the CIA so one needs to be careful. That said, if you read his quote above, it very accurately describes Triffin’s Dilemma or Paradox with respect to the USD (or any domestic Currency like the British Pound before it).
It also accurately describes how the SDR will be used to avoid Triffin’s Paradox. Back in 1944, at the Bretton Woods agreement, Keynes and Triffin argued that the USD should not be used for this very reason and Keynes pushed for the “Bancor” which was very similar to the SDR basket of currencies.
The Bancor would be held by Central Banks only and could be printed at will without triggering Triffen’s paradox. This was a Keynesian and Central Bankers “wet dream” come true.
Professor Surf reporting in…. 😉
Thanks Professor Surf,
I admire your critical, insightful, and independent analysis very much – and study all of your charts carefully.
Good luck next week…
The BEST showtime is about to begin. We have the best seats upfront.
Get your tickets everyone. 🙂 I got mine.
So the Bottomz Inn ?
What about my HUI Doomsday Chart ?
Jeez…just when I thought I figured it out
🙂
Dear Fully,
Can we please have a ‘Jim Rickards free week’ here at the Tent ??
… sheesh !!