Never in the last few years have we seen more Reset-news than in the last 24 hours. A monetary reset is a set of events over a period in time, and not a binary one. Only in the rear view mirror a monetary reset can be recognized clearly ..
we have to look for signs of ever increasing stress in the current monetary systems ..
let’s name a few:
- TIC report show more and more foreigners have stopped buying US treasuries in recent years ( U$ banking structures now have to buy 2/3 of all new treasuries)
ever increasing pressure to dollar-system, now extreme stimulus is needed. US Budget deficit $3 Trilion and counting
- repo(funding)-crisis started in September 2019, 2 months after BoE chief Carney said (Jackson Hole) we needed to find a successor for the $ for coming reset ..
If the people ever allow private banks to control the
issue of their currency, first by inflation, then by deflation, the
banks/corporations which grow up around them will
deprive the people of all property until their children wake up
– Thomas Jefferson #TBRchapter2
Worked (on average) 12 hours a day the last 10 years. People called me crazy. But had a goal in mind. Grow our fund to EUR 100mln. In March we were just 30 .. now we’ve reached 85 mln. Almost there. Then I can retire and start working 40 hours a week. Probably till I die 😄🤓
Started the fund with the help of two partners in 2008. They loved the bull (2009/2011) but couldn’t fight the bear long enough (2011/2019).
All of our staff was hired in 2011. They learned Mining stocks go down always. (Exeption: 6 months in 2016) Now they are 😳
Even in the long bear market we showed discoveries will always be bought out. Reached 63 takeovers in our portfolio, since 2008. But dilution and low valuations lowered profit and yields. ( warrants valued down to zero). In a bull market they all start to rocket higher.
US always used future markets (COMEX) to control gold prices, by flooding the market with ‘paper gold’. This worked perfectly for almost 50y. Physical deliveries were low so Wall Street traders could control the price for most of the time
There’s no limit to central bank expanding its balance sheet in
– Dennis Lockhart, Chairman of the board of the Federal
Reserve Bank of Atlanta (2012) #TBRchapter1
Inflation is a more fundamental danger than speculative investment. Some countries seem to be in the unusual situation where they are trying to create inflation. They will come to regret that.
– Paul Volcker (2013) #TBRchapter1
The West is experiencing its worst crisis since WW2. They can and will print more and more ..
I am scared for all poor countries who will be hit even more and don’t have flexible CB balance sheet.
This time the IMF is not able to help because the US doesn’t want them to help!
US is facing a HUGE crisis as well. It’s economy (68% consumption), with little industry (most of the jobs in the service sector) is like a fast moving train crash now. 30mln lost jobs might be very hard to create again. Add the obesity/health crisis and it gets scary indeed ..
Add a looming/returning EURO-crisis and an escalating US-ChinRussia (fin/eco) war to the mix, to understand we are about to enter a second phase even more dangerous phase of this Corona crisis.
Tuesday’s judgment marks a turning point in many ways. For the first time, a German court has voiced fundamental disagreement with a major European ruling over integration.
In unusually harsh and unflattering terms, the constitutional court has stated that the European Court of Justice, in its judgment of December 2018, has exceeded its competence to assess the validity of the Bundesbank’s participation in the ECB’s asset purchases.
This throws doubt not just on the future of the five-year-old €2.2tn public sector asset purchase programme, the focus of the lawsuit, but also on the shape and size of the €750bn pandemic emergency purchase programme decided in March,
Probably not a one-time event, but a series of important changes coming to the International Monetary System (IMS), which started in 1944 (Bretton Woods Conference), when the $ became the anchor for the IMS.
The US promised the dollar would be ‘as-good-as-gold’ and could always be exchanged for Gold at $35 per ounce. Russia and China chose not to be part of the new IMS. All was well till the 1960’s.
So under the Bretton Woods Rules, gold was the basis for the dollar and other currencies were pegged to it. The Bretton Woods System effectively came to an end in the early 1970s when President Nixon announced that the US would no longer exchange $$ for Gold.
1- CENTRAL BANK DIGITAL CURRENCY (CBDC)
Numerous monetary authorities around the world consider introducing (experiment with) retail CBDCs: their introduction would mean that private sector agents’ money holdings could be held as an electronic central bank liability.
2- Commercial banks have held their reserves in electronic form at their central bank accounts for decades, which is conform with the CBDC definition and just being confined to banks. imf.org/en/Publication…
3- An unregulated introduction of CBDC creates the risk of a cliff-effect threatening to undermine financial stability. It is conceivable that the benefits of CBDC will not immediately be internalized by private sector agents.