The pivot from the dollar has been in place for some time, and Fed policy is only going to accelerate the…
Tom welcomes back Simon Hunt to discuss the global economy and the rapidly declining trust between governments.
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Simon notes that global trust is rapidly disintegrating, and often that trust is replaced by war. The Western economies are quite likely to flat line or enter into recession by the end of the year. Central Banks are more fearful of recession trends than inflation. In the end, their choice is either hyperinflation or recession. This winter we will see huge food inflation, driven both by policy and environmental problems. The world is going to have moderate growth, but inflation will be persistent across everything. It is human nature to stock up when prices are rising, which will exacerbate supply problems.
Russia has determined that the West will not listen to their concerns. Therefore, they are taking steps to ensure their own survival. The American policy is clearly to control and collapse foreign economies. The BRICS nations have been trying to create alternatives to the West’s systems. Simon is concerned with how America will respond when alternative currencies appear. Saudi Arabia has announced their intention to join the BRICS.
Putin has recently stated, “The economy of mythical entities is inevitably being replaced with one of real value and assets.”
The pivot from the dollar has been in place for some time. Fed policy is only going to accelerate the process. By the middle of 2023 we will probably see a big fall in the dollar index. This will happen when Russia, China and others start operating with a new currency.
Commodities under a new BRICS currency system will be used as a benchmark, and this will include gold.