QUESTION: Marty, I do know you’ll not say who you advise, however we all know you have been the one Western analyst known as in by China in the course of 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 Move Evaluation, which you invented. That stated, my query is: The BRICS had everybody anticipating a gold-backed forex if that failed. You additionally stated in an interview that the brand new BRICS forex wouldn’t displace the greenback. Would you touch upon why a gold-backed BRIC notice would fail since they appear to have taken that place from you?
QB
ANSWER: The BRICS forex was created for geopolitical causes when the Neocons remodeled the SWIFT system into an financial weapon and even threatened China that they’d do the identical to them in the event that they supported Russia. As soon as that occurred, the Neocons remodeled your entire world’s financial system right into a weapon of struggle. That’s the reason we’ve got the BRICS. It had nothing to do with killing the greenback or backing their forex with gold.
Many hoped for an official announcement concerning a gold-backed forex, which didn’t materialize. Look—a gold-backed forex 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 forex is gold doesn’t remove inflation or deflation. All of the gold discoveries in the course of the nineteenth century in California, Alaska, and Australia prompted havoc economically. Then there have been wars. The truth that gold was the forex didn’t stop inflation.
Spain defaulted 7 instances. All of the gold and silver they introduced again from the New World prompted large European inflation. Those that preach {that a} gold customary is the reply know nothing about historical past.
They blame “fiat forex” as if this may clear up all the issues by eliminating it. There have been booms and busts all through historic instances lengthy earlier than there was paper cash. ALL forex 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 challenge 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 value 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 forex is the productive capability of its folks—not its gold reserves. Japan and Germany misplaced the struggle and rose to the highest of the financial meals chain as a result of their folks have been productive. The US 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 be robust militarily. That additionally provides to the inspiration of the forex.
It’s time we abandon all of those outdated, silly financial theories, leftovers from the 18th and nineteenth centuries. The financial system has developed 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 countless wars, the monetary capital will shift from New York to Beijing. Simply as struggle killed Britain, so will it kill the greenback and america.