{"id":18903,"date":"2019-09-16T06:03:57","date_gmt":"2019-09-16T06:03:57","guid":{"rendered":"https:\/\/thepatientinvestor.com\/?p=18903"},"modified":"2019-09-16T07:56:04","modified_gmt":"2019-09-16T07:56:04","slug":"the-tectonic-shift-threatening-the-global-reserve-currency-system","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2019\/09\/16\/the-tectonic-shift-threatening-the-global-reserve-currency-system\/","title":{"rendered":"Tectonic shift threatening the global reserve currency system"},"content":{"rendered":"<p>As Mark Carney observed at Jackson Hole: the global reserve currency system is broken &#8212; it has been since Nixon defaulted on gold backing for the Dollar in 1973 &#8212; and there is no fix. We have to find a replacement along the lines of Carney&#8217;s suggestion. On Macrovoices, two experts on the EuroDollar system, Jeffrey Snider and Luke Gromen discuss the massive tectonic shift facing the global financial system.<\/p>\n<p><a href=\"https:\/\/www.macrovoices.com\/683-macrovoices-184-luke-gromen-jeff-snider\">https:\/\/www.macrovoices.com\/683-macrovoices-184-luke-gromen-jeff-snider<\/a><\/p>\n<p>This is a complex topic but it is important that we grasp the implications before a tsunami appears on the horizon.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As Mark Carney observed at Jackson Hole: the global reserve currency system is broken &#8212; it has been since Nixon defaulted on gold backing for the Dollar in 1973 &#8212; and there is no fix. We have to find a replacement along the lines of Carney&#8217;s suggestion. On Macrovoices, two experts on the EuroDollar system, &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2019\/09\/16\/the-tectonic-shift-threatening-the-global-reserve-currency-system\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Tectonic shift threatening the global reserve currency system&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,41,26,29,33,34],"tags":[443,4121,1072,4119,4120],"class_list":["post-18903","post","type-post","status-publish","format-standard","hentry","category-the-fed-banks-interest-rates","category-china-hk","category-russia-former-ussr","category-the-big-picture","category-uk-europe-countries-regions","category-us-canada-countries-regions","tag-bis","tag-de-industrialisation-of-the-us","tag-dollar","tag-euro-dollar","tag-reserve-currency"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tectonic shift threatening the global reserve currency system - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tectonic shift threatening the global reserve currency system - the patient investor\" \/>\n<meta property=\"og:description\" content=\"As Mark Carney observed at Jackson Hole: the global reserve currency system is broken &#8212; it has been since Nixon defaulted on gold backing for the Dollar in 1973 &#8212; and there is no fix. We have to find a replacement along the lines of Carney&#8217;s suggestion. On Macrovoices, two experts on the EuroDollar system, &hellip; Continue reading &quot;Tectonic shift threatening the global reserve currency system&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2019\/09\/16\/the-tectonic-shift-threatening-the-global-reserve-currency-system\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-16T06:03:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-09-16T07:56:04+00:00\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/09\\\/16\\\/the-tectonic-shift-threatening-the-global-reserve-currency-system\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/09\\\/16\\\/the-tectonic-shift-threatening-the-global-reserve-currency-system\\\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"Tectonic shift threatening the global reserve currency system\",\"datePublished\":\"2019-09-16T06:03:57+00:00\",\"dateModified\":\"2019-09-16T07:56:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/09\\\/16\\\/the-tectonic-shift-threatening-the-global-reserve-currency-system\\\/\"},\"wordCount\":104,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"BIS\",\"de-industrialisation of the US\",\"dollar\",\"Euro Dollar\",\"reserve currency\"],\"articleSection\":[\"Banks &amp; Interest Rates\",\"China &amp; HK\",\"Russia &amp; Former USSR\",\"The Big Picture\",\"UK &amp; Europe\",\"US &amp; Canada\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/09\\\/16\\\/the-tectonic-shift-threatening-the-global-reserve-currency-system\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/09\\\/16\\\/the-tectonic-shift-threatening-the-global-reserve-currency-system\\\/\",\"name\":\"Tectonic shift threatening the global reserve currency system - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"datePublished\":\"2019-09-16T06:03:57+00:00\",\"dateModified\":\"2019-09-16T07:56:04+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/09\\\/16\\\/the-tectonic-shift-threatening-the-global-reserve-currency-system\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/09\\\/16\\\/the-tectonic-shift-threatening-the-global-reserve-currency-system\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2019\\\/09\\\/16\\\/the-tectonic-shift-threatening-the-global-reserve-currency-system\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Tectonic shift threatening the global reserve currency system\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\\\/2009 and 2020 bear markets well ahead of actual events. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\/2009 and 2020 bear markets well ahead of actual events. 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No other country is even remotely interested in running the massive trade deficits needed to supply financial markets with sufficient currency to meet international demand. US trade deficits (below) now exceed\u2026","rel":"","context":"In &quot;Gold &amp; Precious Metals&quot;","block_context":{"text":"Gold &amp; Precious Metals","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/gold-precious-metals\/"},"img":{"alt_text":"US Trade Deficit","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-01-22-tradedeficit.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-01-22-tradedeficit.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-01-22-tradedeficit.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":40679,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/02\/01\/gold-rises-on-central-bank-purchases\/","url_meta":{"origin":18903,"position":2},"title":"Gold Rises on Central Bank Purchases","author":"Colin Twiggs","date":"February 1, 2023","format":false,"excerpt":"Demand for gold is rising, reaching 1,337 tonnes in the fourth quarter of 2022. The primary reason is an uplift in central bank purchases, exceeding 400 tonnes in each of the last two quarters. Economist Daniel Lacalle attributes the increase to central banks moving to protect their balance sheets from\u2026","rel":"","context":"In &quot;Gold &amp; Precious Metals&quot;","block_context":{"text":"Gold &amp; Precious Metals","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/gold-precious-metals\/"},"img":{"alt_text":"Gold: Central Bank Purchases","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-01-31-gold-cb.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-01-31-gold-cb.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-01-31-gold-cb.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":41372,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/03\/25\/luke-gromen-another-ust-bailout\/","url_meta":{"origin":18903,"position":3},"title":"Luke Gromen | Another UST Bailout","author":"Colin Twiggs","date":"March 25, 2023","format":false,"excerpt":"Luke Gromen's FFTT newsletter quotes this March 19 article from Bloomberg: Fed and five global Central Banks announce move to boost USD funding The Federal Reserve and five other central banks announced coordinated action Sunday to boost liquidity in US dollar swap arrangements, the latest effort by policymakers to ease\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"Foreign Investment in US Treasuries","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-24-ust-foreign.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-24-ust-foreign.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-03-24-ust-foreign.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":60957,"url":"https:\/\/thepatientinvestor.com\/index.php\/2025\/02\/14\/gold-the-long-game-2\/","url_meta":{"origin":18903,"position":4},"title":"Gold, the long game","author":"Colin Twiggs","date":"February 14, 2025","format":false,"excerpt":"A timeline since 1960 shows that the price of gold tends to rise in waves, typically triggered by an event that unsettles global financial markets. These waves are interspersed with long periods when the Federal Reserve succeeded in suppressing the price of gold despite persistent inflation. In the 1960s, a\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"Gold Timeline","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-13-gold-timeline.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-13-gold-timeline.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-13-gold-timeline.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-13-gold-timeline.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":58773,"url":"https:\/\/thepatientinvestor.com\/index.php\/2024\/10\/29\/in-gold-we-trust-2\/","url_meta":{"origin":18903,"position":5},"title":"In gold we trust","author":"Colin Twiggs","date":"October 29, 2024","format":false,"excerpt":"Gold has enjoyed a strong uptrend since its breakout above $2000 per ounce in November 2023, but how much further can it go? Many factors have contributed to the sudden increase. First, increased purchases by central banks (pink below) added to demand. Second, purchases by Chinese private investors rocketed after\u2026","rel":"","context":"In &quot;Gold &amp; Precious Metals&quot;","block_context":{"text":"Gold &amp; Precious Metals","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/gold-precious-metals\/"},"img":{"alt_text":"Spot Gold","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-10-28-gold.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-10-28-gold.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-10-28-gold.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/18903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=18903"}],"version-history":[{"count":5,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/18903\/revisions"}],"predecessor-version":[{"id":18914,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/18903\/revisions\/18914"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=18903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=18903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=18903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}