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Back in 2017, President Trump said 

 “Bringing back the gold standard would be very hard to do—but boy, would it be wonderful. We’d have a standard on which to base our money.”

No wonder the left - and China - wanted to see him gone. By any means possible. If Trump had been able to bring back the Gold Standard, things would be very different for China. 

 If America had changed back to the Gold Standard, then this could have led to a huge change in world economic terms. And the biggest loser would have been China.

In August 2019, China announced that it was almost ready to launch its fiat Yuan. Since then, China has been quietly testing platforms where the digital yuan can be freely traded with other fiat currencies.

Can you imagine how their plans could be scuppered if America had returned to the gold Standard?

Oil would have to be bought with Gold reserves. So would Coal.

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Source: USGS. The world’s gold reserves in-situ in 2020, tonnes

If we look at the " burn rate " of gold, China is not in happy place. 


China is facing a rapid depletion of its current estimated domestic gold mineral reserves. Reserves-to-production (R/P) ratio that represents the “burn rate” of proven reserves of mineral commodities when applying current levels of domestic mine production shows that China is in the “red zone” for future supplies of yellow metal. China is burning through its mine gold reserves fastest in the world. source 

President Trump wanted to return to the Gold Standard. 

Trump had to go. Why? Because this would be catastrophic for China's economy. 

And, no wonder Australia is such a prize..... we are rich with gold reserves. We are a rich nation, though we may not realise it. 

But China does. 

It's always about the money.

So let me explain how everything slots into place if you accept the basic premise that it is all about the money. 

With the gold standard, countries agreed to convert paper money into a fixed amount of gold. A country that uses the gold standard sets a fixed price for gold and buys and sells gold at that price. That fixed price is used to determine the value of the currency. For example, if the U.S. sets the price of gold at $500 an ounce, the value of the dollar would be 1/500th of an ounce of gold.

The gold standard is not currently used by any government. Britain stopped using the gold standard in 1931 and the U.S. followed suit in 1933 and abandoned the remnants of the system in 1973.
The gold standard was completely replaced by fiat money, a term to describe currency that is used because of a government's order, or fiat, that the currency must be accepted as a means of payment. source

I will try and explain this as simply as possible because I have spent some time trying to get my head around it. It started with the The Bretton Woods Agreement, which was negotiated in July 1944 to establish a new international monetary system. Under the Bretton Woods System, gold was the basis for the U.S. dollar and other currencies were pegged to the U.S. dollar’s value.

In a nutshell, the dollar was an equity based asset because it was tied to the price of gold and a country’s gold reserves. The strength of a currency would rise and fall, depending on the level of gold reserves.

The International Monetary Fund and the World Bank were both set up under the Bretton Woods Agreement.

According to Investopedia, The purpose of the IMF was to monitor exchange rates and identify nations that needed global monetary support. The World Bank, was established to manage funds available for providing assistance to countries devastated by World War II. In the twenty-first century, the IMF has 189 member countries and still continues to support global monetary cooperation. Tandemly, the World Bank helps to promote these efforts through its loans and grants to governments.

But something went wrong. Countries started printing more money than could be covered by their gold reserves.

When Nixon abandoned the Gold Standard in 1971, America had fought a series of long and expensive wars – such as Korea and Vietnam. If the money in circulation had been called in there simply were not enough gold reserves to cover the dollars that had been printed. The Bretton Woods System pretty much came to an end in the early 1970s when President Nixon announced that the U.S. would no longer exchange gold for U.S. currency

It could be argued that this was a form of fraud – like writing IOU’s when you had no reasonable expectation of ever being able to pay on the IOU if someone called it in.

So, instead of making the dollar a promise in expectation of gold, the American government guaranteed the dollar – they “bought the IOU “ and it became the property of the American Federal Government. Nixon explained it by saying that as long as Americans continued to buy American cars, American refrigerators and holidayed in America, their dollar would be worth the same. It was only going to be an issue if Americans failed to support American.

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Needless to say, that expectation has long passed its use-by date. 

Trump tried to rectify this by re-invigorating American manufacturing..... now defunct under the current so-called administration. 

Enter the fiat petrodollar.

The fiat ( of no value ) petrodollar system, where the U.S. and Saudi Arabia agreed to set oil prices in U.S. dollars. meant any other country that purchased oil from the Saudi government would have to exchange its currency into U.S. dollars before completing the sale. That led the remaining OPEC countries to follow suit and price their oil in U.S. currency.

On 24 September, 2000, Saddam Hussein emerged from a meeting of his government and proclaimed that Iraq would soon transition its oil export transactions to the euro currency. 

A few years later he was dead.

Until then, no OPEC country violated the petrodollar oil price arrangement. As long as the dollar was the strongest international currency, there was little reason to consider other options. 

In 2011, it became apparent that Muammar Gaddafi in Libya was attempting to develop a currency that could compete with the Dollar or the Euro.

A few years later he was dead. 

China is a major importer of oil.

The South China Sea is a vast reserve of oil.  Undiscovered oil reserves could be as high as 213 billion barrels, according to a U.S. Energy Information Administration report in 2008. Presently, Brunei, China, Malaysia, Taiwan, the Philippines and Vietnam claim maritime rights over this area. However, China is now building a presence in this area that has the " locals " concerned. 

It is interesting to consider that the current virus has shut down world trade, seen country's economies collapse and industries brought to a standstill.

If Gold had been brought back as the global currency, China would not be in a happy place. It has little to offer where gold and oil are concerned.  

Instead, we - through global warming and climate change propaganda, pandemic paranoia and United Nations and WHO concerns, are shutting down and giving China a free reign to plunder our planet?

I wonder: is it just about money? 

If so, we must ask ourselves this question: 

What is our dollar worth? Is it just an IOU to China? I wonder. 

 Further reading

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