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Brendan Bernstein @BMBernstein
, 5 tweets, 2 min read Read on Twitter
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
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

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
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
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
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