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Financial Times/Robin Harding/3-10-2022
“Zoltan Pozsar of Credit Suisse argues that the central bank freeze marks the death of the post-Bretton Woods system, born after Richard Nixon took the US off the gold standard in 1971, and the start of a new monetary order ‘centred around commodity-based currencies in the east.’ If your dollars can vanish at the whim of the issuer, the logic runs, then a reserve must exist outside the dollar-based financial system.”
USAGOLD note: The gist of this article is that, despite Pozsar’s warning, nation-states have little choice but to stick with the dollar as the primary reserve currency, and that very well could turn out to be the case. At current prices, gold is too small a portion of most countries’ nominal reserves to serve as an effective defense mechanism. The fact of the matter is that the price would have to be substantially higher to serve to meet that need. That said, the indigenous population must still find a means for protecting their own assets under such circumstances. That is where gold can serve a useful purpose.
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