Tuesday, January 28, 2014

More Sign Posts for Monetary System Change

If there is going to be major monetary system change such as a major global currency reset, something major is going to have to happen to shake up the status quo.

I get asked, What things do we watch for (keep an eye on so to speak)?

That is the purpose of this blog. To watch and report anything we see that might matter. We have already noted in a post below that keeping an eye on what happens with the vote to change the power structure at the IMF is something to keep an eye on. That assumes the present monetary system stays in tact and is changed in an orderly fashion over time.

But what events might alter that? What things could speed up the time frame and result in a disorderly change? Things like a sudden unexpected crisis. A derivatives blow up at major financial institutions. A stock market crash. Sudden volatile currency movements all over the world. These type events.

We can keep an eye on some things that might hint ahead of time if something significant and unexpected is headed our way.

Right now there are reports that there are large amounts of cash being taken our of large US Banks. That bears watching. Recently, there was un uproar that HSBC started limiting cash withdrawals from customers and required a letter of explantion to take out cash over a set limit. Some later reports indicate HSBC reversed this policy after taking heat about it. If you see widespread reports of many banks limiting cash withdrawals, keep an eye on that news. What is your bank doing?

Large movements of physical gold bear watching as well. While western Central Banks don't think much of gold publicly, it is still a very important reserve asset around the world at Central Banks. Large amounts of gold are reported moving to China. Koos Jansen tracks the movement of gold out of the Shanghai Exchange for example. Mainstream media like Bloomberg also reports the flow , but tints its articles along the lines that the gold bull in the West is over despite demand from China and India.

Who is right? That is what you need to keep an eye on! Stay informed, follow events, and see who gets it right over time. That is what we intend to do here.

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