Original Title: Alasdair Macleod: Deja Vu? 1971 Suspension of Bretton Woods vs 2023 Suspension of US Debt Limit

Publish Date: June 3, 2023

Daryl Payne, CEO of As Good as Gold Australia, interviews Alistair McLeod, Head of Research at Gold Money, about the ongoing issue of raising the US debt ceiling. They discuss how the debt ceiling has been repeatedly raised without addressing the larger issue, leading to potential disastrous financial collapse. They compare the current situation to Nixon’s suspension of the gold standard in 1971 and discuss how the US’s financial and military power has become limited. Alistair also mentions that there is disinformation going on and that there are forward thinkers in the Gulf Cooperation Council who have been preparing for a world where China is more important in the longer term than America.

The speaker discusses the current geopolitical situation, including tensions between China and Taiwan and escalating tensions between the US and Iran. They also discuss the changing global movement to end reliance on the US dollar, with central banks buying gold and leading economies seeking to transact with each other without using the dollar. The speaker suggests that the meeting of the BRICS in late August will be a continuation of this trend. The speaker also brings up the issue of gold leasing and the possibility that up to 14,000 tons of central bank gold reserves could be out on lease. They suggest that the amount of physical gold in the world may be greater than the reported above-ground stocks due to leasing and swapping.

The leasing of gold has continued, but a lot of the leased gold has not left certain vaults, such as the Bank of England, resulting in a shortage of actual gold. This could cause a panic as people rush to get gold at any price. The BRICS nations, apart from Brazil, have been building up their gold reserves dramatically, with at least 20 other nations wanting to join them. As the price of gold goes up and the value of the US dollar collapses, it is important to have a share of both gold and silver. The degradation of purchasing power in credit comes from the government expanding credit at the central bank level, which destroys the value of all credit in an economy. Central banks around the world are moving towards real legal money, such as gold, but there is an issue with letting citizens hold it. It is suggested to be your own central bank and hold onto gold reserves as they are the only reserves that make sense.