"If you want to have a great reset, you blow up asset prices, you weaponize the dollar, you incentivize the world to move away from the dollar," said Andy Schectman.
Andy Schectman: How a Great Reset Happens and What it Means for Goldyoutu.be
Andy Schectman, president of Miles Franklin, has been watching the trend toward de-dollarization for years, and he believes the world is approaching an inflection point.
Speaking to the Investing News Network at the Rule Symposium, he ran through a number of announcements that together point toward a global reset that could end the US dollar's dominance.
"I've been watching things unfold really since 2017 in a line that has got me very concerned about where we are ultimately heading, and it all centers around de-dollarization," Schectman explained.
He touched first on how globally many central banks have not only been repatriating their gold, but also buying more of it. Amid this activity, the Bank of International Settlements reclassified gold as a tier one reserve asset.
In addition, Schectman spoke about the petrodollar system, where US dollars are paid to oil-exporting countries.
"Since 1974, the agreement between Henry Kissinger and the Saudi kingdom is: we will protect you, and for that you will denominate oil through OPEC globally in US dollars," he said.
However, with Saudia Arabia thinking about joining the BRICs nations (Brazil, Russia, India, China and South Africa), there's the possibility that it could start issuing oil in other currencies. If that happens, Schectman believes dollars would flood back to the US, resulting in a jump in interest rates.
"When that happens, what is inversely correlated to a rise in interest rates? Everything — stocks, bonds and real estate," he said. "If you want to have a great reset, you blow up asset prices, you weaponize the dollar, you incentivize the world to move away from the dollar. And that's what's happening."
Schectman emphasized that Saudi Arabia is not the only country that may move against the dollar — Russia and China are working on a new reserve currency with other BRICs countries.
"It is my opinion that what you're going to see is a massive coalition move against the US dollar," he said.
Watch the interview above for more, and click here for the full Rule Symposium playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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