Dollar Recycling Being Replaced By Gold

McAlvany Weekly Commentary

Morgan Lewis On Emerging BRICS / Gold Strategy Buffett Sells 2/3 Of His Apple Stock Gold Up 33% YTD Is Only The Beginning David: "Friends of mine will point to the legitimacy of one news source or another as if pedigree matters. And ironically, all pedigree gets you today is uniformity, is conformity, is educated imbecility. What matters is integrity, and the mainstream media has demonstrated it has none. News outlets are dying because they failed to see the need for respecting the truth more than what they're choosing as a priority, which is worshiping power and conforming to ideological pre-commitments." —David McAlvany Kevin: Welcome to the McAlvany Weekly Commentary. I'm Kevin Orrick, along with David McAlvany. David, I just really enjoy our Monday nights before we record the Commentary. The Talisker scotch is— A lot of times people say, "Well, why is it that you like Talisker?" And it's way too complicated to explain. It's not just the taste of the scotch, it's the years and years and years of friendship that went into it, and it's just become the taste of when you and I meet. David: Well, and it's something that I think many people would appreciate in those terms. If they don't like single malt, they certainly appreciate the depth of relationship and the ability to bob and weave and go lots of different places. We're going to start this morning by bobbing and weaving with Morgan Lewis. We just came out of a company-wide meeting, and I thought I'd ask him a couple of questions as it relates to foreign currency reserves, the BRICS nations, and kind of a continuation of last week's conversation on that topic. Kevin: Yeah. We had discussed last night, have Morgan come on, just because the Hard Asset Insights that he writes every week. They're fabulous, but this one in particular this week was really good. David: And it should be a part of everyone's weekly staple. That's a Saturday morning read along with the Credit Bubble Bulletin. Not to be missed. * * * Kevin: Morgan, thank you for joining us. David: In the office, we often talk about our debt issues. We talk about the transition for the US dollar system as it is today, as it could be tomorrow. And in last week's Commentary, we did spend a bit of time talking about the meeting in Kazan, Russia, the BRICS meeting. The significance of that we're still trying to figure out, we don't know what exactly will happen. We know the intent. We know the desire amongst the parties involved to see a shift in the status quo. Give us some perspective, Morgan, on the important points that you're connecting. Morgan: Yeah. Well, I mean, I would say that nothing profoundly new came out of the Kazan summit, but there's a lot we already know. And I think it confirmed some of the aspects that are powering the gold market, I would say, in particular right now. The BRICS, the criticism coming out of Kazan has been that they haven't announced some alternative reserve currency, but I think that misses the point. I don't think their intention is to create a US dollar-centric reserve currency model. David: Take me back to 2015 when we had sort of a clear intent expressed by leaders within the People's Bank of China as to the role that they saw gold playing in the future as they were literally just launching and developing this new thing, the Shanghai Gold Exchange. Morgan: Yeah. We know that they are interested in an alternative to the dollar. The PBOC member in 2015 wrote a piece that was titled "The World Needs a New Reserve Currency." In it, he referenced the intention to use the yuan for trade invoicing for commodities like oil and gas, and he said they would like to increase the uses of the yuan in trade using gold. So, this has been talked about for a long time. I think people get a little tired of— The King Dollar narrative is brought up frequently to belittle these claims. And the idea being that they really can't de-dollarize,