The Zero Discount Value of Gold and Dethroning the Dollar

By Michael S. Rozeff, GoldSeek

A truly major change in the global monetary system is beginning to materialize. The dollar is starting to be dethroned. Foreign governments and central banks are going to do the dethroning.

I have no prediction as to how slowly or quickly this process will take. The major dethroners, the Chinese, are on record as favoring a slow process. The transition is already occurring, however. Now that attitudes have shifted among the dethroners, they are likely to keep at it.

The transition will be away from the dollar’s use in international exchange and toward the use of stronger and/or more stable currencies. International deals are being made already in non-dollar currencies or through barter.

The catalyst for reducing the dollar’s role is the insolvent U.S. banking system combined with the massive government and FED efforts to reflate the system. The weakness of the emperor has been fully revealed. Foreign players are going to press their advantages.

The U.S. monetary system has failed. This is not just another stumble. The world is not going to be led forward by a country with problems as large as have surfaced in America.

There may not be any viable heir to the throne, and the present king may remain seated for quite some time. There will be many intervening ups and downs of currencies and gold. But the nobles and court are going to be busy forming new coalitions and jockeying for becoming #1.

This movement is going to be BIG. Entire economies are going to restructure. But my focus here is on one part of the financial side of things, namely, central banking and gold.

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