QUESTION: Marty, I do know you’ll not say who you advise, however we all know you had been the one Western analyst known as in by China through the Asian Forex Disaster. Folks have additionally seen you in India at that well-known resort that the terrorists attacked. China even issued a white paper on how their central financial institution makes use of Capital Movement Evaluation, which you invented. That stated, my query is: The BRICS had everybody anticipating a gold-backed foreign money if that failed. You additionally stated in an interview that the brand new BRICS foreign money wouldn’t displace the greenback. Would you touch upon why a gold-backed BRIC observe would fail since they appear to have taken that place from you?
QB
ANSWER: The BRICS foreign money was created for geopolitical causes when the Neocons remodeled the SWIFT system into an financial weapon and even threatened China that they might do the identical to them in the event that they supported Russia. As soon as that occurred, the Neocons remodeled the whole world’s financial system right into a weapon of warfare. That’s the reason we have now the BRICS. It had nothing to do with killing the greenback or backing their foreign money with gold.
Many hoped for an official announcement concerning a gold-backed foreign money, which did not materialize. Look—a gold-backed foreign money could be massively deflationary. The cash provide couldn’t increase with the inhabitants or in instances of want with out new discoveries. Simply because a foreign money is gold doesn’t remove inflation or deflation. All of the gold discoveries through the nineteenth century in California, Alaska, and Australia induced havoc economically. Then there have been wars. The truth that gold was the foreign money didn’t stop inflation.
Spain defaulted 7 instances. All of the gold and silver they introduced again from the New World induced large European inflation. Those that preach {that a} gold commonplace is the reply know nothing about historical past.
They blame “fiat foreign money” as if this may resolve all the issues by eliminating it. There have been booms and busts all through historic instances lengthy earlier than there was paper cash. ALL foreign money is fiat, even when it’s gold. I’ve proven that Southern India routinely imitated Roman gold cash as a result of they’d a premium over gold – fiat. Northern India and the Kushan Empire did situation their very own coinage primarily as a result of they traded extra with China. Southern India caught imitation Roman gold cash for about 250 years. That confirms that the Roman coinage was price greater than the steel content material.
BRICS Will Not be a Gold-Backed Forex or a Greenback Killer
They made the identical claims in regards to the Euro. That, too, didn’t work out effectively. Why? The worth of a foreign money is the productive capability of its folks—not its gold reserves. Japan and Germany misplaced the warfare and rose to the highest of the financial meals chain as a result of their folks had been productive. The USA has the biggest CONSUMER-BASED financial system, so everybody must promote their merchandise right here. That implies that they have to promote in {dollars}. The US can also be sturdy militarily. That additionally provides to the inspiration of the foreign money.
It’s time we abandon all of those previous, silly financial theories, leftovers from the 18th and nineteenth centuries. The financial system has advanced since then. The Neocons are destroying the greenback. They’re undermining the way forward for america, and once we lose one other one in all their infinite wars, the monetary capital will shift from New York to Beijing. Simply as warfare killed Britain, so will it kill the greenback and america.
