Any dollars you hold will become increasingly worthless.
Dr. Stephen Leeb–
"$20,000 Gold, and Bye-Bye Petrodollar "
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(Image source)
In a recent article on King World News, Dr Stephen Leeb explained how recent events and trends are moving the world away from the US dollar as global reserve currency. The move towards green energy and the push for growth in developing countries will lead to greater demand for resources. In turn, that increased demand will compel the world “to accept a reserve currency other than the dollar.” Any such new reserve currency will most likely consist of a basket of currencies that are backed by gold.
Dr Leeb states that, unlike most western governments and central banks, China understands the value and importance of gold. And since China is essentially “winning” the trade war, it remains in a relatively strong position vis-à-vis the US.
The US dollar’s status as the reserve currency is based on an agreement way back in the 1970s, in which Saudi Arabia agreed to sell oil only for dollars. Not only is that status outdated, it has also become weak and unreliable. Even the Saudis are said to be having second thoughts about the petrodollar. According to Dr Leeb, the historical reasoning behind the pricing of oil in dollars no longer applies. In fact, the end of the petrodollar is coming – coming quickly. The death of the petrodollar will signal the end of the dollar as reserve currency.
– Flash Points –
1 – The move away from the US$ is gaining momentum.
2 – Scarcity of resources will propel gold prices higher.
3 – China realizes the significance of gold.
– Synopsis –
Driving Away from US$
“The U.S. is becoming ever less important to the Chinese, making China’s goal of independence from the U.S. ever closer to fruition.”
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Outdated, Weak, Unreliable … and Dying
– Insight from Outside –
For years now, China has been hoarding gold. Whenever the reserve currency starts to shift away from the US dollar, the Chinese will be ready with a gold-backed yuan.
China Strong, and Stronger
After about 2 decades of strong growth, China’s economic position is relatively stable and sustainable. Its internal economy is vibrant and resilient, meaning that it does not have to rely solely on exports to the US. Moreover, Chinese trade with its partners in the Belt and Road Initiative has already surpassed that with the US.
Gold Stronger, Dollar Weaker
The petrodollar will replaced, most likely by a basket of weighted currencies. The Chinese yuan will be among the strongest currencies, and it will most likely be backed by gold.
That means that the ever-scarce resource gold will jump in price. De Leeb foresees a gold price of at least $20,000. For a start.
In tandem, any dollars you hold will become increasingly worthless. (Image source)
