I am just thinking “out of the box” for a moment.  U.S. Treasury Secretary Steven Mnuchin made an “out of the blue” visit to Fort Knox back in August in order to check on a portion of the U.S. gold stash. What is there or not there is not my concern. Apparently, it is of concern for the Treasury Secretary.  I am interested in a bigger picture. Due to the expected move by China to introduce a Petroyuan/gold connection by the end of this year, what if the U.S. plans to reintroduce some form of a gold-backed USD in order to buffer the impact by China’s chess move?

Judy Shelton (@judyshel) is an economist, the author of “Money Meltdown,” and senior fellow at the Atlas Network.  She served on the Trump transition team and recently penned a WSJ article where she stealthily recommends, as usual, gold backing as a Trump administration option…

Woodpeckers for Sound Money – Fed doesn’t need a “hawk” or a “dove,” but someone to hammer away for dollar’s integrity…  “The crux is that the next Fed chairman will likely be confronted with currency market pressures, and the usual labels and criteria may not prove helpful. The task ahead is not only to forge a monetary path that reconnects the availability of credit to the needs of the real economy, but also to ensure the dollar is sound. Forget hawks and doves—this job needs a woodpecker, someone who’ll hammer away at the importance of stable money. The goal: not a strong dollar or a weak dollar, but a dependable dollar. The proven formula for economic growth requires all elements working together to support entrepreneurial endeavors. When the dollar was linked to gold during the 1950s and ’60s—the central tenet of a rules-based international monetary system—middle-class income gains were dramatic. The 2015 Economic Report of the President refers to that era of stable exchange rates as an “Age of Shared Growth” with rising labor productivity and falling income inequality.” – WSJ, Oct. 12

In the meantime, my China petroyuan vs. petrodollar link garden continues to grow over at my Twitter feed…

  • Russia & Saudi Arabia to set up $1bn energy fund – RT, Oct. 2
  • Venezuela suggests global oil trade in Russian ruble & Chinese yuan – RT, Oct. 4
  • A Failing Empire, Pt 2: De-Dollarisation – China & Russia’s Plan From Petroyuan To Gold – ZeroHedge, Oct. 4
  • The Gold Worm on the Yuan Hook – Hugo Salinas Price, Oct. 6
  • Is The World About To Take A “Gold Shower?” – David Kranzler, Investment Research Dynamics, Oct. 7


  • China establishes yuan-ruble payment system – Reuters, Oct. 12
  • Oil for gold – The Real Story – Alasdair Macleod, Oct. 12
  • Chinese Assault on Petrodollar – AntiMedia, Oct. 13

On to the gold, silver, and USD charts.

Gold bigger picture…

Still BULLISH:  zooming in, take note of the most important feature of this chart.  The 50/200 EMA Golden Cross is taking place ever so slowly.  Not to be redundant, but I’ve been talking about this threat for a few months and cannot stress enough, once again, how important this is on a weekly chart.  Technical analysts across the financial sphere are watching.  Once it takes hold decisively, big money steps in for a ”yuge” long-term sweet spot momo trade.  The rest of the story is annotated on the chart.  To view a larger version, right-click on the image and choose “view image.”

Silver bigger picture…

Still turning BULLISH: silver will follow along with whatever direction gold takes, but the percentage gain is much larger.  The rest of the story is annotated on the chart.  To view a larger version, right-click on the image and choose “view image.”

USD bigger picture…

Still BEARISH: to view a larger version, right-click on the image and choose “view image.”

Plan Your Trade, Trade Your Plan

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