Economist’s “News and Views” Monday 9-30-2024
Gold Wars: Here’s the Reason a Monetary Reboot Is Inching Closer Reveals Insider
Daniela Cambone: 8-30-2024
“I am worried that we have entered a period of higher and higher inflation and we have all the secular pressures for that,” David Daglio, former CIO of Mellon and strategic advisor for TwinFocus, reveals to Daniela Cambone.
He highlights that we might be approaching a “Bretton Woods moment,” indicating a significant shift in the global economic order reminiscent of the 1944 Bretton Woods Conference.
Daglio emphasizes the pivotal moment of seizing $600 billion from Russian citizens during the Ukraine war, which marked the U.S.'s first use of currency as a geopolitical weapon.
This bold action has sent shockwaves through global markets, fundamentally changing how countries view the reliability of the U.S. dollar. In light of these instabilities, David asserts that gold “is the most overlooked straight-up asset I have ever seen.”
Watch the eye-opening conversation to learn about the future of our global economy and the potential impact on your investments!
CHAPTERS:
00:00 Why hasn’t Wall Street embraced gold?
3:00 The Fed’s rate cutting
6:36 Jay Powell’s ego
7:29 Bretton Woods II moment
9:15 Investment strategies
10:11 US debt
12:06 Economic outlook for next 5 years
Now it's oil: China, BRICS and OPEC+ build new trading system, locking out US suppliers and banks
Geo Flux: 9-30-2024
China, the BRICS countries (Brazil, Russia, India, China, and South Africa), and OPEC+ are making moves to challenge the dominance of the US dollar in global oil trade.
The expansion of BRICS to include oil-rich nations like Saudi Arabia and Iran could be a strategic move to challenge the petrodollar system.
China and India are increasingly making deals to buy OPEC+ oil in currencies other than the US dollar, such as the Chinese yuan (petroyuan). Russia is seeking to diversify its energy partners to circumvent Western sanctions, with the BRICS countries now accounting for 90% of Russian energy export payments.
Saudi Arabia, a traditional US ally, has moved closer to China and Russia under Crown Prince Mohammed bin Salman and is considering joining BRICS. The BRICS nations are looking to establish a new reserve currency backed by a basket of their respective currencies, which would allow them to assert their economic independence and compete with the US dollar-dominated international financial system.
This could potentially lead to a decline in demand for the US dollar (de-dollarization) and significantly impact its global dominance.