Any dollars you hold will become increasingly worthless.
Dr. Stephen Leeb–
"$20,000 Gold, and Bye-Bye Petrodollar "
(Right-click title to see original story)
(Image source)
In a recent article on King World News, Dr Stephen Leeb explained how recent events and trends are moving the world away from the US dollar as global reserve currency. The move towards green energy and the push for growth in developing countries will lead to greater demand for resources. In turn, that increased demand will compel the world “to accept a reserve currency other than the dollar.” Any such new reserve currency will most likely consist of a basket of currencies that are backed by gold.
Dr Leeb states that, unlike most western governments and central banks, China understands the value and importance of gold. And since China is essentially “winning” the trade war, it remains in a relatively strong position vis-à-vis the US.
The US dollar’s status as the reserve currency is based on an agreement way back in the 1970s, in which Saudi Arabia agreed to sell oil only for dollars. Not only is that status outdated, it has also become weak and unreliable. Even the Saudis are said to be having second thoughts about the petrodollar. According to Dr Leeb, the historical reasoning behind the pricing of oil in dollars no longer applies. In fact, the end of the petrodollar is coming – coming quickly. The death of the petrodollar will signal the end of the dollar as reserve currency.
– Flash Points –
1 – The move away from the US$ is gaining momentum.
2 – Scarcity of resources will propel gold prices higher.
3 – China realizes the significance of gold.
– Synopsis –
Driving Away from US$
“The U.S. is becoming ever less important to the Chinese, making China’s goal of independence from the U.S. ever closer to fruition.”
(Image source)
Outdated, Weak, Unreliable … and Dying
– Insight from Outside –
For years now, China has been hoarding gold. Whenever the reserve currency starts to shift away from the US dollar, the Chinese will be ready with a gold-backed yuan.
China Strong, and Stronger
After about 2 decades of strong growth, China’s economic position is relatively stable and sustainable. Its internal economy is vibrant and resilient, meaning that it does not have to rely solely on exports to the US. Moreover, Chinese trade with its partners in the Belt and Road Initiative has already surpassed that with the US.
Gold Stronger, Dollar Weaker
The petrodollar will replaced, most likely by a basket of weighted currencies. The Chinese yuan will be among the strongest currencies, and it will most likely be backed by gold.
That means that the ever-scarce resource gold will jump in price. De Leeb foresees a gold price of at least $20,000. For a start.
In tandem, any dollars you hold will become increasingly worthless. (Image source)
Hmmmm.. This is so sad. The end is so near.
I know I ask too much questions. But my people say that any one who asks a lot of questions can never go in the wrong direction.
My question goes like this .
If you were to speculate, How long will it take for the dollar to lose soweight much value?
The reason behind this question is basically because it is easier to own the doLear than gold right now and my country's currency is. Losing its value as i speak to you. So dollar looks like a better deal even if the death is imminent.
2nd question
Are there any currencies that are backed by gold right now?
I asked a friend where I could get gold according to your advice but he wasn't sure about it.
It's very difficult to set a time for the dollar's collapse. Just understand that, over the past 100 years, the dollar has steadily lost value against gold. The only thing we know for sure is that the devaluation is now speeding up. We cannot give a timeframe for the future devaluation.
Currently, NO currencies are backed by gold.
As for buying gold, there are not many places that sell gold bars or coins. When I lived in India, I wanted to buy some silver, but could not find any shop / outlet that sold any. Finally, I found a place which sold gold bars, but only by order. In my home country of Canada, I could find only a few dealers throughout Southern Ontario. Considering that there are over 12 million people living in that region, the fact that I could find only a handful of precious-metal dealers indicates how undervalued those metals are.
Hope you can find some bars or coins. Best of luck!
I really hope so too..
Gold certificates vs gold bars .. is there any difference when it comes to value?
Yes!! Gold certificates are paper, which means they are worth nothing. For every single ounce of gold or silver, the banks can sell hundreds of certificates laying claim to that ounce.
When hundreds of people line up to claim that one ounce of gold, the first person will be lucky to get it. The other people will be told "Sorry," and given a valueless piece of paper.
Do not waste any money on gold certificates or ETFs. Buy only PHYSICAL gold or silver.
I totally agree with you, yet there is one nagging feeling that makes me wonder... Would people be that well informed to make that choice or be persuaded to continue using the petrodollar. Based on my talks with friends on crypto, I think many would still prefer what is convenient and approved by the government.. which is sad.
Of course, people will continue to use the dollar as long as it has value and as long as it is convenient. But if it plummets in value, it won't be very "convenient," will it.
Gold and silver are not very convenient as everyday money, but as a store of value, they cannot be beat – especially in these times.
Nowadays, cryptocurrencies are still a bit inconvenient, but the reason is that they are still a relatively new form of currency. As bitcoin adoption increases, it will become increasingly user-friendly and a very convenient method of payment / exchange.
I enjoyed reading every part of this excellently written article, although I find it very hard, perhaps due to my own ignorance, to agree that the Chinese Yuan will be a replacement for the USD even though I've got no doubt that the latter is growing feeble by the day. As you know, the gold standard was abandoned when president Nixon realised that it was no longer sustainable. If the Yuan ever becomes a reserve currency, I am afraid that history will repeat itself as it might also have to abandon the gold standard. I will like to know what your thoughts are in this regard. Cheers!
From what I understand, the Chinese are NOT actually trying to have the yuan become the new global reserve currency. I believe they'll be satisfied if the US$ is dethroned, and then let the chips fall where they may.
China has plenty of gold, and it will back the yuan with gold. That might give the yuan the status of reserve currency, even tho it will not be as dominant as the US$ has been for the past half century.
And if the Chinese do establish a new gold standard, I believe they will do so in such a way that they will not have to abandon it. Nixon did not have to abandon the gold standard, but he did so anyway. At the time, China apparently commented on the foolishness of the move. I doubt that they'd make such an idiotic and foolish move themselves.
(I read that comment – China's criticism of Nixon's move – a few years ago, but now, I cannot find it. If I ever do find it, I'll definitely include it in one of these Do$ posts.)
Thanks for the enlightenment in your comment above. Now, I understand your arguments quite well and can say it makes sense to me. Pardon the troubles from this Coconut-headed fellow. Cheers boss!
In my opinion, comparing gold with gold with the dollar is not so simple because gold is a metal which has limited demand, while the dollar is a currency which is backed by a financial system, China has gained ground but the standard of living lacks freedom and I doubt that the world's great millionaires want a communist system.
Of course, there are many factors to take into account. But gold has been a valued commodity for thousands of years. Currently, the demand may be limited, but it retains its value.
The dollar, on the other hand, has value and is in demand primarily because of its common use and it's status as reserve currency. But those bases are weak. Like all fiat currencies, the dollar is being devalued. That means its usefulness will plummet, and consequently, its value will drop.
As for those "great millionaires," they clearly "want" any system that they can exploit.
I am very motivated with you, for your constant positive evaluations of my publications. Thank you. God will always be with you. Hugs from Venezuela. Success for you is my sincere wish this Christmas.
My pleasure. Actually, I've not been very active for months now. I do some manual curating, plus a constant barrage of automatic curating. But I have not posted for 4 months now. I'm waiting for the price to rise, to give me a bit of motivation.
All the best to you, during this not-so-festive holiday season, and during the new year. Let's hope, pray, and ensure that the world gets better. CHEERS!
Thanks for your opinion. In any case, I sincerely hope you have success. Your valuation work will always be important to us because it is motivating. Every day you learn at Hive. Certainly sometimes great efforts are made in the publications and the values are few, however we continue to put effort into it. Generally I publish here in Venezuela at 2 in the morning on for now about #yoga and #food. Hugs. Merry Christmas, despite adversity. God bless you. I would always like to be in contact with you.
Thanks for sharing this story. Knowledge found. Good morning, how are you?
Glad you found it, and hope the knowledge helps you.
Thanks 😊
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I strongly agree with you, the fate of the oil dollar seems to have had its time, despite the Federal Reserve's attempts to continue printing green papers in large quantities to line the world without any kind of support ...
There is no longer a Bretton Woods treaty that manages to stop the return of the gold standard and the arrival of a hard and reliable currency such as Bitcoin ... Someone said: "no one destroys empires, empires commit suicide" ... Greetings
Thank you
interesting
👍
thanks for sharing