JP Morgan in a secret Report Warns its Elite Clients to Sell USD and Buy Gold

Max Keiser and Stacy Hurbert recently discussed how JP Morgan in a secret report is telling only their elite clients that the dollar is unlikely to remain the global reserve currency.The report was only meant for their private wealthy clients , people worth more than twenty million dollars.This is what they are telling their elite clients while going into the press in the US and telling the ordinary american , do not worry everything is great. JP Morgan’s recent report for their private wealth clients, asking: “Is the dollar’s ‘exorbitant privilege’ coming to an end?” The bank makes the case that the rise of China will dent this privilege. They present data that demonstrates China had, for thousands of years, a major share of world trade until its encounter with the then narco-state of Great Britain in the mid 1800s when the UK and the East India Company used military force to impose opium on the population. China’s military defeat sank the country into rapid economic decline from which they are only now emerging. JP Morgan recommends reducing client exposure to the dollar and increasing exposure to gold and Chinese renminbi. The report goes on saying : The U.S. dollar could lose its status as the world’s dominant currency. How does this affect investors?. The US dollar has been the world’s dominant reserve currency for almost a century. As such, many investors today, even outside the United States, have built and become comfortable with sizable US Dollar overweights in their portfolios. However, we believe the dollar could lose its status as the world’s dominant currency (which could see it depreciate over the medium term) due to structural reasons as well as cyclical impediments. As such, diversifying dollar exposure by placing a higher weighting on other currencies in developed markets and in Asia, as well as precious metals makes sense today. This diversification can be achieved with a strategy that maintains the underlying assets in an investment portfolio, but changes the mix of currencies within that portfolio. This is a completely bespoke approach that can be customized to meet the unique needs of individual clients. It is commonly perceived that the U.S. dollar overtook the Great British Pound as the world’s international reserve currency with the signing of the Bretton Woods Agreements after World War II. The reality is that sterling’s value was eroded for many decades prior to Bretton Woods. The dollar’s rise to international prominence was fueled by the establishment of the Federal Reserve System a little over a century ago and U.S. economic emergence after World War I. The Federal Reserve System aided in the establishment of more mature capital markets and a nationally coordinated monetary policy, two important pillars of reserve-currency countries. Being the world’s unit of account has given the United States what former French Finance Minister Valery d’Estaing called an “exorbitant privilege” by being able to purchase imports and issue debt in its own currency and run persistent deficits seemingly without consequence. There is nothing to suggest that the dollar dominance should remain in perpetuity. In fact, the dominant international currency has changed many times throughout history going back thousands of years as the world’s economic center has shifted. After the end of World War II, the U.S. accounted for biggest share of world GDP at more than 25%. This number is brought to more than 40% when we include Western European powers. Since then, the main driver of economic growth has shifted eastwards towards Asia at the expense of the U.S. and the West. China is at the epicenter of this recent economic shift driven by the country’s strong growth and commitment to domestic reforms. Over the last 70 years, China has quadrupled its share of global GDP to around 20%—roughly the same share as the U.S. and this share is expected to continue to grow in the years ahead. China is no longer just a manufacturer of low cost goods as a growing share of corporate earnings is coming from “high value add” sectors like technology. End of Quote .









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