{"id":1740,"date":"2022-09-06T03:39:11","date_gmt":"2022-09-06T03:39:11","guid":{"rendered":"https:\/\/prendergast.net\/?p=1740"},"modified":"2022-09-06T03:39:11","modified_gmt":"2022-09-06T03:39:11","slug":"50000-gold-is-likely-once-the-monetary-system-returns-to-a-gold-standard-john-butler","status":"publish","type":"post","link":"https:\/\/prendergast.net\/?p=1740","title":{"rendered":"50000 gold is likely once the monetary system returns to a gold standard  John Butler"},"content":{"rendered":"<div id='post-thumb'><img alt='' src='https:\/\/markethive.com\/uploads\/david-ogden\/images\/blog_338701.gif' style='height:1px; width:1px' \/><\/div>\n<h1><span style=\"font-size:18pt\"><span style=\"font-family:&quot;Liberation Sans&quot;,sans-serif\"><strong>$50,000 gold is likely once the monetary system returns to a gold standard &ndash; John Butler<\/strong><\/span><\/span><\/h1>\n<p><iframe loading=\"lazy\" frameborder=\"0\" height=\"329\" src=\"https:\/\/www.youtube.com\/embed\/EcShJyh1M5s\" title=\"$50k gold, how and when? John Butler\" width=\"730\"><\/iframe><\/p>\n<p>s the world transitions to a gold standard monetary system, the price of gold will skyrocket to $50,000 per ounce, said John Butler, Head of Treasury at TallyMoney and author of The Golden Revolution, Revisited.<\/p>\n<p>&ldquo;Today, the gold price is too low to allow markets to clear, because assets are over-valued vis-&agrave;-vis gold,&rdquo; he said. &ldquo;According to my calculations, you&rsquo;re talking about something in the region of $50,000 per ounce being [reasonable] if you go back to a gold-backed international monetary system.&rdquo;<\/p>\n<p>Butler claimed that the process of transitioning to a gold standard is inevitable as the U.S. loses its economic dominance and the world become multipolar.<\/p>\n<p>&ldquo;Gold solves for the game-theoretic monetary equilibrium for a multipolar world that is, nevertheless, hugely dependent on international trade,&rdquo; he explained. &ldquo;At the end of the Second World War, the U.S. economy was roughly half the entire global economy. By activity today, it&rsquo;s only 20 percent&hellip; If you just extrapolate this trend, ultimately, it&rsquo;s going to tip the balance regardless of whether the U.S. retains military superiority or not.&rdquo;<\/p>\n<p>Butler spoke with David Lin, Anchor and Producer at Kitco News.<\/p>\n<p>Fed policy and gold<\/p>\n<p>On August 26th, Federal Reserve Chairman Jerome Powell gave a hawkish speech at the Jackson Hole Symposium, stating that it would require &ldquo;pain&rdquo; to bring inflation down to 2 percent.<\/p>\n<p>The latest data show that U.S. inflation was 8.5 percent in July.<\/p>\n<p>Opinion is divided on whether the Fed will pivot on its tightening cycle. Butler said that Powell would reverse rate hikes, which could benefit gold.<\/p>\n<p>&ldquo;[The Fed&rsquo;s hawkish moment] is taking place right now,&rdquo; said Butler. &ldquo;When it goes, and markets reassess in a substantial way that central banks are far more powerless to act on inflation than they thought, I think gold is going to recover all of its losses this year, and indeed reach new highs.&rdquo;<\/p>\n<p>He added that Powell&rsquo;s hawkish Jackson Hole speech was merely a &ldquo;credibility restoration exercise,&rdquo; and that &ldquo;The U.S. economy is unable to last with strength if interest rates continue to rise,&rdquo; which would cause &ldquo;The Fed to blink sooner than most people believe.&rdquo;<\/p>\n<p>BRICS: a new reserve currency?<\/p>\n<p>The BRICS nations (Brazil, Russia, India, China, and South Africa) are allegedly developing a new reserve currency, based on a basket of BRICs currencies, to rival the U.S. dollar.<\/p>\n<p>Butler said that although the claim of a new reserve currency &ldquo;has been a rhetorical talking point for an awfully long time,&rdquo; that &ldquo;a heightened degree of geopolitical tensions around the world&rdquo; could mean more progress towards the BRICS&rsquo; goal.<\/p>\n<p>&ldquo;If [the BRICS] decide to somehow come up with a way to trade bilaterally, and to use each others&rsquo; currencies as reserves, or to create a basket of their own currencies and use that as reserves&hellip; that would be a world historical event,&rdquo; he said.<\/p>\n<p>In his book, Butler wrote that the BRICS countries would likely choose &ldquo;a gold-backed currency of some sort&rdquo; as &ldquo;an objective reference currency that can be trusted and accepted by all.&rdquo;<\/p>\n<p>&ldquo;The fact is that nobody can print gold, and nobody can create gold,&rdquo; said Butler. &ldquo;It&rsquo;s nice to know that Mother Nature determines how much gold is available&hellip; [Gold] facilitates all the good things about international trade while mitigating the potential bad things about monetary manipulation.&rdquo;<br \/>\n&nbsp;<\/p>\n<p>To find out Butler&rsquo;s thoughts on Bitcoin, watch the video above<br \/>\n&nbsp;<\/p>\n<p>By Cornelius Christian<\/p>\n<p>For Kitco News<\/p>\n<p><a href=\"https:\/\/kms.kinesis.money\/signup?referrer=KM13461268\" style=\"color:#000080; text-decoration:underline\"><span style=\"color:#3b5998\"><span style=\"font-family:Tahoma\"><span style=\"font-size:x-large\"><u><strong><span style=\"background-color:#ffffff\"><strong>Time to buy Gold and Silver on the dips<\/strong><\/span><\/strong><\/u><\/span><\/span><\/span><\/a><\/p>\n<p>\n&nbsp;<\/p>\n<p><\/p>\n<p>Tim Moseley<\/p>\n","protected":false},"excerpt":{"rendered":"<p>$50,000 gold is likely once the monetary system returns to a gold standard &ndash; John Butler s the world transitions to a gold standard monetary system, the price of gold will skyrocket to $50,000 per ounce, said John Butler, Head of Treasury at TallyMoney and author of The Golden Revolution, Revisited. &ldquo;Today, the gold price &hellip; <a href=\"https:\/\/prendergast.net\/?p=1740\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">50000 gold is likely once the monetary system returns to a gold standard  John Butler<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[290,291],"_links":{"self":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/1740"}],"collection":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1740"}],"version-history":[{"count":0,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/1740\/revisions"}],"wp:attachment":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}