05/23/2016 - Jim Rickards: How Central Banks May Raise Inflation To Address The Burden Of Government Debt
Jim Rickards highlights that government authorities are beginning to talk about bidding up the prices of gold to bolster inflation rates in an attempt t inflate away government debt .. “The global monetary elites had a conference in Zurich, Switzerland, last week. Among the speakers were William Dudley, president of the Federal Reserve Bank of New York, and Claudio Borio, chief economist of the Bank for International Settlements. The topic of the conference was the prospect of multiple reserve currencies in the international monetary system. The speakers generally agreed that a system with more reserve currencies (such as the Australian dollar, Canadian dollar and possibly certain emerging markets’ currencies in addition to the Chinese yuan) would be a desirable one. There’s only one problem… It’s a zero-sum game. All of the reserve currencies in the world add up to 100% of the reserve currencies. If new currencies have a larger share, then the U.S. dollar must have a smaller share. It’s just basic math. That means a long-term process of selling dollars and buying the new reserve currencies. That selling lowers the value of the dollar and imports inflation into the U.S. .. It also means a higher dollar price for gold. The elites won’t tell you that, but it’s true .. The key takeaway is that a higher dollar price for gold is just a lower value for the dollar. And that’s what the elite’s want. It’s part of their global inflation plan.”
