Last month we reported that the Chinese government has launched a pilot program for a digital version of the yuan. The virtual currency ups the ante in the war on cash and creates the potential for the government to track and even control consumer spending.
China isn’t alone in using COVID-19 as an excuse to push people away from physical cash. Other countries are pushing narratives to drive the movement toward a completely digital economy – one where governments can track and even control what we buy. The war on cash has been going on for years, but the pandemic has put efforts on hyperdrive.
As we’ve been reporting, central banks around the world are aggressively adding to their gold reserves. During an interview on RT’s Boom Bust, Peter Schiff talked about this move toward gold and said these central banks are preparing for a dollar crisis. The world is looking for an alternative to the dollar and the best alternative is gold.
The US dollar has rallied over the last few weeks. The dollar index closed above 93 on May 8. This represents about a 5% increase from the low this year of just above 88. On the year, the dollar is up about 1%, although it is still off about 6% from its highs in 2016.
In his latest podcast, Peter Schiff called this a “bear market rally.”
There hasn’t been any good economic news that would explain the strength of the dollar.”