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The World Order is Due for a (Gold) Reckoning

Gold Standard
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A major reset in the global financial system has begun. Its impact will be global. Its effects will be permanent. And for most nations, it will be devastating.

Whether you admire or despise President Trump, the fact remains that he’s accomplished quite a few things that no previous US president has thought possible. But of all the things he’s done, the most brilliant accomplishment comes directly from a playbook that’s 100% Trump: disrupting the Federal Reserve, usurping all its power, and reining it in under the full control of the US Treasury.

President Trump and Treasury Secretary Steve Mnuchin’s Fed takeover was a dazzling display of political maneuvering. In 1963, President Kennedy tried to rein in the Fed’s powers using a piece of legislation--Executive Order 111100. It failed. Trump’s takeover took less than three months--a chess-like gambit on the back of the COVID-19 crisis that saw several moves ahead when everyone else was still trying to grasp the basic rules of the game.

How did they accomplish this in such a short amount of time? They changed the rules--a brilliant strategy.

Their ultimate goal: to reclaim America’s global economic supremacy by reintroducing the Gold Standard as the world’s monetary standard. Here’s how it’s unfolding, blow by blow.

The Opening Position

It’s no secret that President Trump has had the Fed in his crosshairs ever since he took office. Criticizing the Federal Reserve for being “wrong so often,” and describing Fed Chair Jerome Powell as a “clueless” chairman with a “horrendous lack of vision,” Trump eventually nominated one of his economic advisors, economist Judy Shelton, a long-time staunch stalwart of the sound money movement, to the Federal Reserve board in 2019.

Despite Shelton’s frequent and vehement criticism of the Federal Reserve’s interventionist policies, everyone took notice when her position, along with President Trump’s, changed in favor of lowering interest rates. To many, this might have appeared as an about-face betrayal of sound money principles, but little did anyone know that it was part of a very elaborate scheme--one that nobody saw coming, and one that fortuitously accelerated in the beginning of 2020, when COVID-19 plunged the globe into a medical and economic crisis.

The Critical Gambit

As the coronavirus pandemic plunged the global economy into chaos, with self-imposed lockdowns taking the US toward the brink of another Great Depression, monetary and fiscal stimulus was not a question of “if” but “how much,” “when” and “where.” It was at this critical point that President Trump and Secretary Mnuchin made their move.

With interest rates near zero, liquidity spigots opened and running, and with stimulus measures exceeding monetary restrictions toward direct corporate funding (a fiscal move not traditionally the domain of the Fed), Trump and Mnuchin knew they had the Federal Reserve in their crosshairs.

With the Fed’s money printing machines running on overload, ballooning the nation’s debt, Trump and Mnuchin essentially forced the Federal Reserve to bankrupt itself, knowing well that the effect of all this money printing will eventually meet a devastating end.

Here’s the maneuver, as stated in the  Federal Reserve’s website--and notice by the way that the URL is no longer federalreserve.org but federalreserve.GOV--meaning, it’s now part of the government:

“The Federal Reserve will finance a special purpose vehicle (SPV) to make loans from the PMCCF to companies. The Treasury, using the ESF, will make an equity investment in the SPV.

Did you catch that? The Treasury is buying these positions and backstopping the loans with the Federal Reserve as its banker. Blackrock has been selected to handle the trades on behalf of its owner--The US Treasury.

The US Treasury now virtually “owns” the Federal Reserve.

And President Trump is “functionally” its new chairman.

With monetary policy now under his control, Trump has more economic and political leverage over Congress than any other president in US history. There’s very little that opposing politicians or the media can do at this point.  And that’s just the opening game.

The Middle Game

The purpose of reining in the Federal Reserve is to stop our currency’s purchasing power from eroding itself into oblivion. Since 1971, when President Nixon took the dollar off the gold standard, allowing it to float and be subject to the Fed’s monetary manipulations, the US dollar had lost 81% of its purchasing power. What cost us $100 then, would now cost us over $639.

Federal Reserve policy actions have contributed more to economic inequality than almost any other economic or socio-political force in US history. It’s inflationary effects are insidious and so systemic that most Americans have “normalized” them to the point of non-recognition. The damage the Fed has done to the Americas lifestyle is virtually invisible to most Americans--yet it is omnipresent.

To fix the damage, President Trump has to “fix” (literally and figuratively), the currency. And once Judy Shelton’s Federal Reserve nomination is approved, President Trump is likely to bring back the Gold Standard.

Once the Gold Standard has been returned, the US dollar will no longer depreciate. The dollar will not be subject to manipulation, and America’s reliance on money printing and credit will be abolished for good.

This systemic change will not only establish a renewed way of living and prospering in the US, it has serious global ramifications, establishing yet another “new” world order. And that’s the final endgame of Trump’s play.

The End Game

On the other side of the globe, the International Monetary Fund is gearing up for its October 12 - 18, 2020 meeting regarding its Special Drawing Rights, or SDR, which was born out of distrust for the US Presidency in 1969. The IMF is reputed to be a Rothschild conglomerate. It created the SDR to replace the US dollar as the world’s reserve currency. For over half a century, the IMF has been waiting for the opportunity to topple the dollar at a moment of severe dollar weakness. That moment is now.

If the US bungles its approach to countering the IMF’s offensive maneuvers, it can permanently lose its world’s reserves status and with it much of its global power as most countries in the world may no longer invest in or trade with the dollar. The value of the US dollar will plunge and with it your purchasing power and overall wealth--all reduced to a mere fraction of what it was in the months leading up to October 2020.

Right now, your money is stuck in a place comparable to the purgatory in Dante’s Divine Comedy. If the IMF wins, your money will be under the centralized control of the IMF--in other words, a “Nationless” state controlled by the Rothschild group. The US will have almost no veto rights, if any at all, once the dollar is no longer included within the currencies that make up SDRs.

President Trump’s play aims at disrupting this flawed strategy. After all, fiat is fiat. No matter how many “stable” fiat systems converge to form a global currency, the inherent weakness in each system will only result in a conglomeration of artificial strength. There’s only one composite form of sound money in existence--gold and silver. And that may be Trump’s ace in the hole.

Once the US Treasury takes full operational control of the Federal Reserve, it will own all central bank requests for credit across 186 foreign nations. And the dollar, once again, will be backed by the Gold Standard. The US owns the largest gold reserves in the world. This final move will seal America’s position as the most dominant economic superpower in the world, and no nation or conglomerate of nations can simply inflate their way to challenge this supremacy since, after all, you can’t “print” gold.

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All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

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