Monday, September 26th, 2016 MST

Canadian billionaire sees end of the dollar as the world’s reserve currency

The following video is a short clip from a presentation given by Canadian billionaire Ned Goodman concerning the end of the dollar as the world’s reserve currency.

When Nixon closed the gold window in 1971, severing the dollar’s final remaining link to gold, he did not destroy the currency’s international standing. In an ironic twist, it served to kick off the dollar’s rise to global hegemony, thanks to Henry Kissinger who convinced Saudi Arabia to sell its oil only for dollars. This was the birth of the so called Petrodollar in which oil profits measured in dollars made their way back through Western banks, ultimately creating an enormous source of demand for US Treasuries. The result has been a forty year debt based expansion of US power and influence saddled on the back of the dollar’s de facto use as the global currency.

Mr. Goodman believes that the dollar will soon lose that valuable status. He notes that in during the very first meeting with Vladimir Putin, China’s president Xi Jinping entered a deal to secure all of the oil that China needs – purchased directly with Renminbi. The eventual result will be a period of significant dollar based inflation as countries around the world increasingly transact without dollars. China has 3.5 trillion dollars which it is spending as quickly as it can. A course of action soon to be adopted by the United States and the rest of the world as the dollar loses its desirability.

In a separate interview Mr. Goodman stated that “I don’t wait for inflation. It’s hard to call, but it’s impossible for me to see the U.S. getting out of trouble without printing more money.” – A sentiment recently confirmed by Ben “no taper” Bernanke.

Take a look at the entire clip.

3 Responses to “Canadian billionaire sees end of the dollar as the world’s reserve currency”

  1. David

    There is a basic contradiction in his statement that holders of dollars are trying to get hard assets.

    The hard asset with the most liquidity is gold. Gold and silver have been hammered in the last few months. Where are the buyers during the takedowns in the metals markets? If China is spending their dollars as fast as possible for tangible assets, why is the price of gold so low? Wouldn’t a few million of constant gold buying keep the gold market buoyant?

    Are the Chinese money managers purposely avoiding the gold and silver futures markets and only buying bars with immediate delivery? Are the Chinese cooperating to suppress the price of gold so they can buy more for less? Dumping dollars and cheap gold don’t match up.

    Reply
    • Bill Haynes

      The questions are fair enough and deserve replies.

      David asks: Wouldn’t a few million of constant gold buying keep the gold market buoyant?

      The Chinese buyers are not standing toe to toe with the bullion house sellers, saying, “Hit me with your best shot.” The buyers are millions of individuals spread across China, not seeking to support the price of gold but to acquire it as cheaply as possible. Although many, they are small buyers off-takings small units.

      The sellers, on the other hand, are few and often unload huge quantities in short periods of time during periods when there is little activity in the markets. Further, the sellers are delivering 100-oz (and 400-oz) bars that have to be converted to small units that are later delivered. Under such circumstances, prices fall. But, falling prices do not mean that gold is not flowing to Asia. In fact, it is as numerous studies show.

      David also asks: Are the Chinese money managers purposely avoiding the gold and silver futures markets and only buying bars with immediate delivery?

      By “Chinese money managers,” does David mean the importers of gold into China or the persons running the People’s Bank of China, China’s central bank? Doesn’t matter.

      Yes, the Chinese avoid the US futures markets. They buy primarily out of Europe (Switzerland is the world’s largest refiner of gold.) And, when they buy, it’s physical gold not futures.

      So, there is a huge “mis-match” between the gold sellers and the the buyers. Further, while the buyers are not trying to support the price of gold but acquire it as cheaply as possible, there is strong evidence that the sellers are interesting in driving down the price. Because of the mis-match, the Chinese buyers cannot–in the short run–offset the sellers.

      Reply
    • Michael

      Central Bankers are manipulating the gold and silver markets. They are purchasing both metals with both hands at extremely “low” prices…when all is said and done, you better have precious metals in your possession, period!

      The Federal Reserve Bank (Rothschilds), $500 trillion dollars rich, control the metals market although they print worthless fiat currency…which “sheeple” believe is “money” when all it is currency. This currency is “debt” based along with the fractional banking system. The house of cards are crumbling…Just sayin!

      Reply

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