The
world is facing a currency war and the only hedge against the crash
of the US dollar is real gold, a precious metal analyst has told RT.
With geopolitical power shifting from West to East, US dominance may
be ending.
The
world is facing a currency war and the only hedge against the crash
of the US dollar is real gold, a precious metal analyst has told RT.
With geopolitical power shifting from West to East, US dominance may
be ending.
“Central
banks moved their gold because they felt threatened by the USSR and
saw the USA as their natural ally. The fact that central banks are
repatriating their gold shows that this has changed. It also implies
that they don’t see Russia as a bigger threat than the USA any
longer. Europe stands in the center of this geopolitical power shift
and some countries obviously believe it’s wise to store the gold in
their home countries,” he told RT.
The
world has been living in crisis since 2008, while a currency war
started even earlier, notes Grass. Central banks have been printing
trillions of dollars out of thin air, while central banks are
coordinating the debasing of currencies and pouring money into all
kinds of financial assets, real estate and bonds.
“Nonetheless,
it is obvious that the systematic problems are not solved, on the
contrary, the risks became bigger and more fragile than a decade
ago,” said Grass. “As you know more than 65 percent of all
monetary reserves in the central banking system are held in the world
currency reserve, which still is the USD. Therefore, holding physical
gold is definitely the best hedge against a crash of any paper
currency, and therefore also against a crash of the USD.”
The
global debt has soared to $230 trillion, as the global economy has
got stuck in “Monopoly-Game” system, that is based on debt and
financial leverage, the analyst notes. “The last geopolitical
shift that started with WWI and ended with WWII put the US in this
dominant position, because they owned and stored 70 percent of the
gold reserves of the free world. This was also the main reason, why
the USD became the world currency reserve. For the past 30 years we
can witness another geopolitical power shift going from West to East.
As you know, everything operates in cycles,” Grass said.
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