GSR general discussion, page-95

Not siding with the politics just putting up what BIS has already established which we should all be aware of with a basket of currencies including gold as international reserves, and as such has Reserve status now. That is much an outcome of free trade agreements on a global scale for efficiencies just as Reserve currencies have disappeared with direct currency swaps eg. Australia /Yuan that Gillard put in place and then supported by Hockey i.e. both sides of politics. Stirling was surpassed by the US dollar. There is a history of change right from the 1800's with promissory notes. Gaddaffi did not have Bank of International Settlement blessing Dingo Borat. Its certainly a power game.

The world is a competitive place for scarce resources. Nixon dumped the gold standard on the basis of the strength of the dollar and inflated out of war debts. Unfortunately, things have changed. You have to know what. That is why Trump wanted to make America great again. Now further quantitive easing by Biden puts further pressure on the US dollar. China holds trillions of US dollars in reserve given the trade surplus they had with the states. They have operated with a fixed rate of exchange that is too low IMO and have captured market share while everyone was so eager to trade with them. Technology and manufacturing was outsourced to China because it was cheaper to do so by our leaders in the past. Being a command economy they can make any rule they like. They don't use the same rules as Western economies. America is a great country and very powerful militarily so I think in this day and age a compromise will be met. Covid is the spanner in the works.

Aside from that, in tough times people look to protect with defensive assets. Gold is a little higher on the list now. Keep safe.