Great chart, as always. Any thoughts on the other development last week, the unwind of the Yen carry trade? If most of the Yen converted to dollars was then invested in T-Bills or bonds, the unwind of that trade may show up in upcoming auctions.
Thanks for this weekly feature. It's extremely useful.
Thanks, Laramie. I actually wrote about this earlier this week—didn't cover that specific angle, but it’s related (link below). I think you’re spot on, too.
China, like the other BRICS+ nations is amassing gold to back their Unit currency by 40% with gold. The BIS is encouraging and supporting all the BRICS+ nations in this. As Andy Schectman has pointed out, the BIS told their central banks to repatriate their gold from NY and London and keep it in their respective countries so they can back the Unit with it up to that 40%. When this fully materializes it will make the Unit a very strong and stable currency. When the international order of the day brings in a new financial system, they have often backed the new currency to 40% with gold (note Bretton Woods when it was backed by 25-40% gold). This ensures stability for the new currency. Europe also had significant gold quantities to back the debut of its Euro. Interestingly, according to James Rickards, a 40% gold backing of the current US$ (MI and M2) would give a gold price of around $27,000 per ounce. The question now is: Will we see the $ fall to that level in the near future? The BRICS+ will be discussing the implementation of the Unit next month in its next meeting and making an announcement the following month in October. We live in interesting times.
Great chart, as always. Any thoughts on the other development last week, the unwind of the Yen carry trade? If most of the Yen converted to dollars was then invested in T-Bills or bonds, the unwind of that trade may show up in upcoming auctions.
Thanks for this weekly feature. It's extremely useful.
Thanks, Laramie. I actually wrote about this earlier this week—didn't cover that specific angle, but it’s related (link below). I think you’re spot on, too.
https://www.crisisinvesting.com/p/yes-it-was-a-bloodbath-in-the-markets
Thanks. I read all your stuff. Not sure how I missed that one.
Thanks, Laramie. I'm very glad to have you as a reader.
China, like the other BRICS+ nations is amassing gold to back their Unit currency by 40% with gold. The BIS is encouraging and supporting all the BRICS+ nations in this. As Andy Schectman has pointed out, the BIS told their central banks to repatriate their gold from NY and London and keep it in their respective countries so they can back the Unit with it up to that 40%. When this fully materializes it will make the Unit a very strong and stable currency. When the international order of the day brings in a new financial system, they have often backed the new currency to 40% with gold (note Bretton Woods when it was backed by 25-40% gold). This ensures stability for the new currency. Europe also had significant gold quantities to back the debut of its Euro. Interestingly, according to James Rickards, a 40% gold backing of the current US$ (MI and M2) would give a gold price of around $27,000 per ounce. The question now is: Will we see the $ fall to that level in the near future? The BRICS+ will be discussing the implementation of the Unit next month in its next meeting and making an announcement the following month in October. We live in interesting times.
Very interesting times indeed. What’s in it for the BIS in all this, I wonder...
Ultimate control of the new monetary system. BIS is said to be the central bank of the central banks.