Conflict and competition ahead for the world

THE EDITOR: It is an erratic epoch. The covid19 pandemic and the global economic emergency are emblematic of a perilous time. Global debt in the first quarter of 2020 was 331 per cent of GDP.

Canada, France and Norway saw the biggest increase. Debt in mature markets reached 392 per cent of GDP from 380 in 2019, according to the Institute of International Finance.

Gold on January 2 was at US$1,527.10 an ounce. On July 27 it was at US$1,949, which is a 27.6 per cent increase from the beginning of the year. For the 21st century it increased from US$279. 29, which is a 597.8 per cent increase.

Ever fiat currency has lost value compared to gold. The world reserve currency, the US dollar, has lost 98 per cent of its value from 1971 when it left the gold standard.

On March 31, 2019, the Bank of International Settlement, the central bank for all central banks, reclassified gold as a tier 1 asset equal to cash with zero risk. This is a major move to reset the global monetary system, similar to what happen in the Bretton Wood agreement in 1944.

Silver is also on an upward trajectory. The large increase in the price of gold is indicative of the hard economic times ahead. Look out for the US dollar becoming weaker and its future as the world reserve currency being seriously questioned.

The struggle between the US and China will continue indefinitely because China will never open its economy and let US corporations dominate. Therefore we must adjust strategically to this global reality.

US interest is usually guided by business and China’s socialist ideology is nationalistic. The future holds confrontation, conflict and competition.

BRIAN E PLUMMER

via e-mail

Comments

"Conflict and competition ahead for the world"

More in this section