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@PrestonPysh @RealVision @hendry_hugh 1/I agree. More likely, it will just be the world's 2-3 biggest oil exporters selling oil in CNY (already done), and the system (ie the gold market) adjusting, relative to oil (see the gold/oil ratio) & the USD (see the gold/USD ratio.)

No explicit pegs will be needed...
@PrestonPysh @RealVision @hendry_hugh 2/ Every nation will be free to print as much to finance their deficits as their political hearts desire, to be reflected in the valuation of their currency v. gold, and through the gold link, v. everyone else's currencies, a lot like what Zoellick said:

reuters.com/article/us-gol…
@PrestonPysh @RealVision @hendry_hugh 3/ "The former U.S. trade representative, who served in several Republican administrations, said such a move “is likely to need to involve the dollar, the euro, the yen, the pound and (a yuan) that moves toward internationalization and then an open capital account."
@PrestonPysh @RealVision @hendry_hugh 4/ “The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values,” he added.

IMO the only thing that will be pegged is how many bbls of oil it takes to buy an oz of gold.
@PrestonPysh @RealVision @hendry_hugh 5/ And that peg is likely to settle at a ratio that is an order of magnitude higher than where the gold/oil ratio sits today.
@PrestonPysh @RealVision @hendry_hugh 6/ Lastly, the US might not like a neutral reserve asset system, but the alternative is that China wins going away, which as far as I can tell is a red line for the DoD & the intelligence services, so IMO that's what we'll get.
@PrestonPysh @RealVision @hendry_hugh 6a/ "That's what we'll get" = its actually in the US' interest for a neutral reserve asset system (which implies a MUCH weaker USD) so we can start to reindustrialize and compete again v China.
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