17 July 2023
The analysis explores the impact of the dollar wars and Western sanctions on various countries, highlighting the negative consequences for those challenging the dominance of the U.S. dollar. It emphasizes the potential role of gold as an alternative and its significance in countering the influence of the dollar.
The first two dollar wars targeted Iraq and Libya, both major energy powers that threatened the petrodollar by seeking to sell oil in currencies other than the dollar. These actions led to military intervention and devastating outcomes for these countries. Gold played a role in both cases, with Saddam Hussein and Muammar Gaddafi challenging the legitimacy of the dollar and proposing alternative currencies backed by gold.
Russia, as another energy powerhouse, indirectly faced a dollar war through the conflict in Ukraine. To reduce its reliance on the dollar, Russia began liquidating its holdings of U.S. Treasury bonds and pursued trade agreements using national currencies, including gold-backed agreements with some countries. The article suggests that gold plays a crucial role in empowering individuals, markets, and disempowering governments, as it limits their ability to manipulate currency and create inflation.
The analysis argues that gold already functions as a form of money, having been used for thousands of years and potentially continuing to do so in the future. It asserts that gold needs a free market without the manipulation seen through government interventions in futures contracts, derivatives, and gold swaps. Exposing these subversions of free markets in monetary metals has been the focus of organizations like GATA.
The article further discusses the potential for a currency backed by gold within the BRICS nations, which could increase demand for monetary gold and lead to its remonetization. However, it also acknowledges challenges in creating such a currency, including the variability in commodity prices and differences of opinion within the BRICS group.
In summary, the analysis underscores the significance of gold as an alternative to the U.S. dollar and highlights its potential remonetization. It discusses how gold empowers individuals and markets while limiting government control over money creation and inflation. The article acknowledges the challenges of implementing a gold-backed currency but suggests that gold’s role as a form of money will continue in the future.