Pettis essentially argues the US unilaterally closed the gold window as a BENEFIT to foreign creditors who were demanding US gold. That is wrong, obviously.

Sometimes satire is the best way of illuminating flaws in an argument.

Up-thread from @GraphFinancials comment below, Pettis essentially argues the US unilaterally closed the gold window as a BENEFIT to foreign creditors who were demanding US gold.

That is wrong, obviously.

Luke Gromen

⁦‪@LukeGromen‬⁩

Sometimes satire is the best way of illuminating flaws in an argument.

Up-thread from ⁦‪@GraphFinancials‬⁩ comment below, Pettis essentially argues the US unilaterally closed the gold window as a BENEFIT to foreign creditors who were demanding US gold.

That is wrong, obviously.

8/22/23, 9:35 AM

Luke Gromen

⁦‪@LukeGromen‬⁩

2/ Framed this way, the whole mainstream narrative that “We’re doing the world a favor by running these deficits” is revealed to be a total canard.

If Wash DC hated running these deficits so much, it need only say “We will settle all future deficits in gold, at a floating price”

8/22/23, 9:39 AM

WordPress’d

Luke Gromen

⁦‪@LukeGromen‬⁩

3/ This is what Zoltan (& others) see that many others miss:

The BRICS have been allowing trade flows & gold to absorb imbalances instead of US financial assets, leaving US banks & the Fed to finance US deficits (the side effects of which have become more obvious since 2020.)

8/22/23, 9:42 AM