RE: Has gold topped?31 Jan 2023 13:30
Seeing that you take interest in US economic matters Pokerchips, you should find this interesting and something to consider for the months ahead - Saudi Arabia, oil and the dollar.
This man is worth listening to. He taught economics at Washington University, he was an Associate Editor of the Wall Street Journal, he was the Assistant Treasury Secretary to President Ronald Reagan, he was the man who devised "Reaganomics" and Forbes magazine named him in their list of the one hundred most influential Americans.
"Washington’s Power Will Decline With the Dollar"
https://www.paulcraigroberts.org/2023/01/30/washingtons-power-will-decline-with-the-dollar/
It begins with a brief history of the petrodollar and Bretton Woods, and since you are probably familiar with that story, to save you some time, this is what it goes on to say after that brief history -
"In recent years Washington has so abused the dollar’s reserve currency role with sanctions and asset seizes that many countries desire to settle their trade imbalances in their own currencies in order to escape Washington’s ability to threaten and punish them for serving their own interests rather than Washington’s. If Saudi Arabia abandons the petrodollar, the demand for dollars and the dollar’s value will fall.
This is a major threat to Washington’s power and to the financial power of American banks.
It is possible that the Saudis are sending a signal to Washington that Washington’s failure to comply with some Saudi concerns or interests can have undesirable consequences for the US. In other words, the Saudis might be using their leverage to get what they want from Washington.
Time will tell. If the Saudis do drop the petrodollar, Americans will face stiff inflation and high interest rates necessary to finance US budget deficits, unless the Fed itself finances the deficits by printing money, in which case monetary inflation would be added to inflation caused by the drop in the dollar’s foreign exchange value resulting from declining foreign demand for the US dollar.
Should this come to pass the implication for the US is massive austerity."
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