POM called the China Mar-A-Lago visit 4 months ago. Let’s see what happens this week as Xi visits Trump on Thursday and Friday.
From the Dec 5 post:
“The stage could very well be getting set for a return to sound money principles with the establishment of semi-gold standards in not just China and America, but also Russia and India, and perhaps a few smaller players as well. It is obvious that the Trump machine is more aligned with these international players than the Anglo-American establishment which he just overthrew domestically.”
This also aligns with the recent announcement of coordination between China and Russia on monetary matters as the Central Bank of Russia opens a representative location in Beijing. The South China Morning Post is also reporting that Russia and China will be making transfers between their gold trading platforms more open and efficient.
Some are getting excited about this and promoting the concept that China and Russia are about to switch to gold-back currencies and completely by-pass the USD. I can assure you that this is not the case. Ease of trade between each others gold trading platforms does not support the leap of gold backed currency. But it could be a step towards some form of partial gold backing as was described in the POM post from last December.
America has to be a part of whatever path forward is taken. This is why Russia and China are working towards alignment with Trump on monetary and geopolitical matters. It will take the coordinated effort of both of the worlds largest economies, America and China, to rebalance the international monetary system.
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