Publicly the so called authorities remain in a state of denial about the systemic debt crisis. The idea for the need of a new monetary order already lives very silently in the big shadow of the false perception buildings for the past 20 years. It all started in 1993/1994 with the implementation of the Gibson Paradox (Summers/Rubin). The National Bank of Belgium (with 1,350 tonnes of gold reserves) was the first to start, in the coordinated program of central bank gold reserve sales, leading to the birth of the ECB and €. Most of the European central bank (CB) gold reserve sales went to China, through the BIS as the globe’s CB gold settlement organizer. 1993-2003 was another decade of CB gold reserve distribution, that already started before and during the London Gold Pool period when the US’ as greatest world gold reserve holder (28.000 tonnes) was drained from gold by the EU (and Middle East). The European system of central banks sold some of its gold to China for the purpose of the multilateral development of a new monetary order. China now demands its righteous place in the international organizations (IMF, WB, BIS) that govern the world’s monetary affairs. That’s why so many gold-facts took place in the recent 2 decades after 15 years of relative gold calm (1980-1994).
A steady rising gold price is reinforcing all states that have gold on their CB balance. Ask yourself why the € (/RMB) remains strong against the $. What exactly is driving the strength of the euro’s exchange rate. Imagine other countries/currencies having the same pro free-floating-gold attitude like the ECB. What if this concept must be part of the new monetary order.
The US’ main defense for maintaining the $-reserve status is breaking the steady gold price revaluation (2011) and postponing the needed new monetary order. Note, that even the abolishing of the Glass Steagall Act could not prevent gold to rise double in value versus the Dow Jones (since 1971/1973). What does this say about the system of debt-driven economies!
By letting the gold price produce the wrong conflicting signals, the initiative to start a new monetary internationally balanced order is being postponed. A convertible RMB would break the back of the dollar’s world reserve system with many far reaching consequences.
Today, not one monetary block can enforce the other to accept any new monetary order as happened in 1944 Bretton Woods, when the entire devastated world had to accept the US$ dictate. Today’s catch-22, economic-monetary-financial-political situation, has first to deteriorate much further before it is opportune for all parties (EU/US/China) to agree on a new monetary order.
In the mean time the positive perception building goes on unabated as to avoid a sudden dramatic fall in the animal spirits of the consumption economies and cause unacceptable sudden economic deterioration.
Today’s conflicting gold price management is recognized and understood as such by those with deep system insights. That’s what the ongoing private gold metal accumulation is all about. It will continue and eventually go parabolic up until the circumstances for a new monetary order are in place. The chances that further economic deterioration can be avoided are now extremely thin.
Source In Gold We Trust