The Euro is backed by gold

Truth, like gold, is to be obtained not by its growth, but by washing away from it all that is not gold.
Leo Tolstoy

Have you read War and Peace or Anna Karenina by Count Lev Nikolayevich Tolstoy? This Russian writer, regarded as one of the greatest authors of all time, is often referred to in English as Leo Tolstoy. I particularly enjoy his quotes like “Wrong does not cease to be wrong because the majority share in it” and “The two most powerful warriors are patience and time.” Leo had a hard youth, and went through drastic changes over a short period. It influenced his work and shaped him into a magnificent writer. Wisely, he analogized truth to gold. You obtain truth from reality in the same way you obtain gold from the earth…by panning, by washing away all the lies, soot, and gravel it sits in. While Leo Tolstoy’s home country will not be getting a gold star this year on its global report card, it may be changing forever the course of history. Just ask the Lady of Fátima.

Since Russia was cut off from the rest of the world, unfriendly nations can only buy their gas and other resources with rubles and gold. As I pointed out in earlier posts, this is a critical piece of the coming reset. But there’s more to the story I’d like to share. While Nixon detached the dollar from gold in 1971, the euro was set up to partially float on a bed of gold. A Belgian-American economist by the name of Robert Triffin (1911-1993) was responsible for this arrangement. He is best known for his critique of the Bretton Woods financial system, where world currency exchange rates were pegged to the U.S. dollar which was pegged to physical gold. His critique became known later as Triffin’s dilemma or Triffin paradox, which I explain below.

The global reserve currency is what facilitates “growth” in the global economy. Triffin explained that the country with the global reserve currency (currently the United States with the U.S. dollar) must run trade deficits. In other words, it has to export more and more of its currency outside of its domestic economy, which causes manufacturing to decline in the country and debt to explode. This is a self-destructive process—the U.S. is damned if it prints dollars and damned if it doesn’t. If it prints, then it eventually undermines the currency by creating monetary instability through surplus supply and inflation. If it doesn’t print, then it slows global business and creates social instability in the world. Eventually, the U.S. loses global reserve currency status, which ends in economic collapse.

Triffin’s solution was to create a global reserve currency that wasn’t tied to any one country. While he wasn’t able to do this in his lifetime, he played a significant role in designing the euro on a partial gold standard, assuming gold would play a role in the brave new world. All member nations of the EU had to subscribe to the Euro system to get their euros, and initially they had to put up 15% of their required subscription reserves in the form of physical gold. That was in 1998 when gold was at $250, so the Euro was born with a 15% gold backing. But now that backing is a lot higher because gold has gone up in value, and it will keep going up, which is actually the currencies going down. Very few people understand or even know this fact, so consider yourself blessed, and pass it forward. Europeans owe much to the brilliance of Robert Triffin.

In a nutshell, Robert Triffin designed the euro to survive the demise of the dollar. So while it’s looking rather grim now as the U.S. dollar soars against other currencies…just wait. I don’t know exactly when, but something big is on the way, and it’s going to involve gold. Remember, we are coming off a period of great population rise (800% over 150 years) due to the Age of Oil. Our entire economic system is built on oil, and this mother of all resources is declining, and has been for awhile. Effectually, all natural resources are declining since it takes big oil-fueled machines to mine, manufacture, and move everything we need for the global economy to function. Society depends on it. It’s a no-brainer that real resources will dramatically rise in value while financial-digital assets and assets backed by credit-debt will collapse. Gold and silver have no counter-party risk and 100+ nations officially hold 35,589 tonnes of physical gold.

Nothing more to say but take care and pray. The world is going to need lots of prayers over this decade, as we are heading over a cliff with various catastrophes converging. A few authors to read, if you’re interested in understanding the future, and where man is leading us (over a cliff): Michael Ruppert, James Howard Kunstler, Jared Diamond, and Joseph Tainter. They’ll make you think…hard. Also the Bible (various authors). They’ll help you understand what really matters underneath all the propaganda and hype, and what will matter most in the years to come. Things are not as they seem, and it’s time to wake up. Welcome to the brave new world where MMT (the Magic Money Tree) dies and energy (oil) will no longer be taken for granted. Be safe and well on your travels.



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