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Pittsburg, Kansas | Ken Rogoff is starting to sound like Jim Rickards. If you read his quotes in the left hand collumn on page 69 and a page or two before, he is essentially saying, in not so many words, to devalue the dollar against gold. This is what Rickards has been saying what will evevtually happen for 6 or 7 years now.
Rogoff says mideast countries should use their dollars to buy gold, essentially increasing the price of gold in relation to dollars. Or in other words, in USD terms, devalue the dollar against gold.
I had not heard these statements from Rogoff before reading this report. This is a case where the FED has to do nothing. Foreign entities just trade a portion of their stash of USD reserves for gold essentially inflating the price of gold in relation to USD.
Interesting. Did not ever expect to hear that from acedemic Rogoff.
China and Russia have been doing just that to a degree. Just not a very big degree yet. Not enough to move the gold market in USD much. Not enough to affect its current safe haven strength. You don't find out who is swimming naked till the tide flows out.
John
Edited by John Burns 6/4/2017 16:30
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gold, commodities and the stock market
