As Donald Trump shatters the global rules-based order, official institutions (and private investors) are scrambling to buy gold: the share of the asset in central banks’ reserves has doubled in the past decade to more than a quarter, the highest level in almost 30 years.
Although this partly reflects the soaring bullion price, experts say central banks are also stuffing their vaults as an insurance policy in a volatile world. Many are also rushing to repatriate gold stockpiles held overseas, and slashing their exposure to the US dollar.
“We have moved from Pax Americana to global discord, geopolitically. It is the law of the jungle when we see what the US are doing,” says Raphaël Gallardo, the chief economist at the asset manager Carmignac.
“Investors – private and sovereign – believe their strategic reserves are no longer safe in dollar terms, as they can be confiscated overnight. The dollar is losing the credibility as the nominal anchor of the global monetary system because the Fed is losing credibility, and US Congress is losing its credibility.”
The newspapers and media companies play along, but are owned by billionaires who could force congress to impeach Trump.
But they are also the dumbest motherfuckers who have ever walked the earth. You don’t need to be smart to be an oligarch.
Some heirs are, but the majority of billionaires is clever enough to understand that alienating all allies will destroy their fortunes.
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There are about 1,000 billionaires in the US, competing with 1,000 in China. That competition will keep them grounded in reality. They can only go with fascism if that keeps them competitive.
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Yes, competing for power.
Yes, I think they are grounded in reality. To maintain their power they have to keep their companies competitive.
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Said by Warren Buffett, a billionaire.
The competition grounds them. If they make the wrong decisions they lose their power.