As Donald Trump shatters the global rules-based order, official institutions (and private investors) are scrambling to buy gold: the share of the asset in central banks’ reserves has doubled in the past decade to more than a quarter, the highest level in almost 30 years.
Although this partly reflects the soaring bullion price, experts say central banks are also stuffing their vaults as an insurance policy in a volatile world. Many are also rushing to repatriate gold stockpiles held overseas, and slashing their exposure to the US dollar.
“We have moved from Pax Americana to global discord, geopolitically. It is the law of the jungle when we see what the US are doing,” says Raphaël Gallardo, the chief economist at the asset manager Carmignac.
“Investors – private and sovereign – believe their strategic reserves are no longer safe in dollar terms, as they can be confiscated overnight. The dollar is losing the credibility as the nominal anchor of the global monetary system because the Fed is losing credibility, and US Congress is losing its credibility.”
I haven’t heard anything sensible being said by any billionaire. They’re all delusional. Unless they’re just pretending.
How exactly are they grounded in reality?
Said by Warren Buffett, a billionaire.
The competition grounds them. If they make the wrong decisions they lose their power.
I’m not sure I get what you mean.
The reality is that they are destroying the planet. Literally.
And they are most certainly not grounded in this reality.
They are only destroing the climate that is suitable for farming. The coal comes from forrests that grew on earth while CO2 levels were high.
They may not care about humanity but they care about maintaining their power.
According to them climate change is a hoax. That’s not being grounded in reality. That’s denying reality.
So in other words, they are “grounded in their own delusional reality”. Not the real reality.
There are 1,000 billionaires. Not all will believe it. E.g. why has Musk pushed electric cars?
Even if they say they don’t believe if, that can be deception. Climate change is useful for the northern shipping route, or to create bigger changes like triggering a new ice age and make north Africa green again, or just to soften nuclear winter.
There is no open discussion about why global warming was not stopped in 1970 when people knew and things could have been changed.