The absence of statesmanship and continued shipment of Western weapons and cash instead of peace mediators to Ukraine recommend that this war runs an increasing danger of nuclear brinksmanship. Such an unreasonable danger in a world with over 13,000 nuclear weapons and nearly no management is beyond the pale.
What can be managed, nevertheless, is financier acknowledgment of, and preparation for, the poisonous profile of international financial obligation levels. Considering that 1971, international financial obligation has actually blown up from $7 trillion to over $300 trillion. This is overshadowed by an almost $2-quadrillion international derivatives market. When determined in gross counterparty terms instead of net direct exposures, the BIS fiction of ‘safe’ international acquired direct exposure totally disregards the severe danger of these monetary weapons of mass damage.
When it comes to the impact such distortions have on international markets, Matt sees growing desperation behind our leaders and their damaged currency and inflation designs. One example of this is the wrongly telegraphed great news of a pattern towards reserve bank digital currencies. Existing rate policies to eliminate inflation are a similarly flawed concept. Egon and Matt exchange ideas on how these broken designs will continue to ruin international credit and currency markets.
Naturally, the distortions and imploding markets (home, credit, equity, money) indicate a blowing up gold rate. As Eastern banks and countries turn progressively towards physical gold, the misdirected West appears history-blind as the sluggish relocation far from the United States dollar continues its indisputable pattern.
In other words: 2023 seems heading into much deeper and more hazardous area for which gold uses apparent security.