Rise of the Petroyuan: The End Of The Petrodollar’s Reign And The Impact On Global Markets

Posted on by | 100 Comments
Rise of the Petroyuan: The End Of The Petrodollar’s Reign And The Impact On Global Markets
Spread the love

In 1967 the London Gold Pool collapsed due to a shortage of gold and increased demand for the metal. That’s because European central banks bought massive amounts of gold as they began to doubt the US government’s promise to back the dollar to gold at $35/ounce. The buying depleted the London Gold Pool’s reserves and pushed the price of gold higher.

In short, 1967 was the beginning of the end of the Bretton Woods international monetary system that had been in place since the end of World War 2. It ultimately led to severing the US dollar’s last link to gold in 1971. The dollar has been unbacked fiat confetti ever since—though the petrodollar system and coercion have propped it up.

The point is large global gold flows can be a sign that a paradigm shift in the international monetary system is imminent.

Central banks are the biggest players in the gold market. And now that we have just experienced the largest year for central bank gold purchases since 1967, it’s clear to me something big is coming soon.

Share This Post

Related Posts

100 Responses to "Rise of the Petroyuan: The End Of The Petrodollar’s Reign And The Impact On Global Markets"

Post Comment