We're going to see some more Central Bank cognitive dissonance: they ridicule BTC but own substantial amounts of gold.
Why? BTC is out of their control and gold isn't
This past month CB's purchased gold at their highest rate in 3 years
Why? BTC is out of their control and gold isn't
This past month CB's purchased gold at their highest rate in 3 years
The gold market is extremely opaque
@jkylebass took $1bn gold delivery and figured out that the COMEX was fractional. They had ~$80bn of open interest and $2.7bn in the warehouse
Some believe CBs manipulate gold price through these futures. No comment
@jkylebass took $1bn gold delivery and figured out that the COMEX was fractional. They had ~$80bn of open interest and $2.7bn in the warehouse
Some believe CBs manipulate gold price through these futures. No comment
Meanwhile USD reserves at Central banks are at a 4 year low and have fallen from 67%of reserves in 2015 to 62% in the last quarter.
Central banks are posturing for power
Central banks are posturing for power
Game theoretically, this is fascinating
Gold adoption would undermine fiat currencies, but other countries collaborating on a politically-neutral currency may be the only way to degrade the USD
The benefits of debasing the USD may be > negative impact to each country's currency
Gold adoption would undermine fiat currencies, but other countries collaborating on a politically-neutral currency may be the only way to degrade the USD
The benefits of debasing the USD may be > negative impact to each country's currency
Because USD is the world's reserve currency, many countries have USD denominated debt-- effectively a short position on the USD
This allows the US to "weaponize the USD" by increasing rates, which creates a short squeeze on these countries.
This is happening now
This allows the US to "weaponize the USD" by increasing rates, which creates a short squeeze on these countries.
This is happening now
