Paul Brodsky: Fed gooses dollar to gain control over worldwide monetary reset

Section:

9:30p ET Wednesday, December 28, 2016

Dear Friend of GATA and Gold:

The economist Paul Brodsky of market analysis firm Macro-Allocation Inc. in Tampa, Florida, writes this week that the Federal Reserve is strengthening the dollar, despite its deflationary influence, so that the central bank can draw more capital to U.S. banks and asset markets in preparation for hyperinflation and a worldwide monetary reset, which the Fed will be more able to control if more wealth is held in dollars and assets denominated in dollars.

In a paper headlined "It's the Dollar, Stupid!," posted tonight at Zero Hedge, Brodsky writes:

"This is not the first time the Fed has had to actively increase the exchange value of the dollar. Paul Volcker's Fed had to hike overnight rates to 20 percent in 1980-81 so the dollar would be reaffirmed as a store of global value for U.S. trading partners, including OPEC.

"We believe the Fed is doing the same today, in spite of its de-stimulative impact, because it wants to attract global capital to U.S. banks and asset markets. Doing so would ensure U.S. dollar hegemony, which would be necessary if and when global leverage leads to hyperinflation and multilateral trade and currency wars.

"Once substantial wealth is held in dollars and dollar-denominated assets, the U.S. political dimension and the Fed, through the Bank for International Settlements and International Monetary Fund, would be able to control the terms of a global monetary reset, which in turn would de-leverage balance sheets across currencies and economies in a controlled manner -- in effect, a pre-packaged bankruptcy in real terms."

Brodsky's paper is posted at Zero Hedge here:

http://www.zerohedge.com/news/2016-12-28/its-dollar-stupid

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org



ADVERTISEMENT

We Are Amid the Biggest Financial Bubble in History;
When It Bursts, Bullion Owned in the Safest Way Will Protect Wealth

With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong.

Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed.

Crucial guides to storage in Singapore and Switzerland can be read here:

http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore

http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland

GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals.

Email the GoldCore team at info@goldcore.com or call our trading desk:

UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010.

Visit us at: http://www.goldcore.com



Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16