gold investment symposium 2012 - dan denning - the daily reckoning
DESCRIPTION
Title: Exter's Prophecy: A former central banker shows how the financial crisis will endTRANSCRIPT
![Page 1: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/1.jpg)
Exter's Prophecy: A former central banker shows how the
financial crisis will end
The Gold Symposium 2012
Luna Park, Sydney
By Dan Denning
![Page 2: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/2.jpg)
![Page 3: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/3.jpg)
![Page 4: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/4.jpg)
![Page 5: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/5.jpg)
![Page 6: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/6.jpg)
The Original Oracle of Omaha
“For if human liberty is to survive in America, we must win the battle to restore honest money. There is no more important challenge facing us than this issue – the restoration of your freedom to secure gold in exchange for the fruits of your labours.”
![Page 7: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/7.jpg)
The Roles and Requirements of a Reserve Currency
• Medium of exchange
• Store of value
• Unit of account
• Deep and liquid debt markets
• Backed by a strong economy
• Sustainable (moral) fiscal policy
• Stable monetary policy and sound money
![Page 8: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/8.jpg)
The Four Competitors
![Page 9: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/9.jpg)
Chinese Steps Toward Internationalising the Remnimbi
• Dim Sum Bonds
• Currency swaps
• Iron ore contracts between FMG and steel producers denominated in RMB
• Off shore trading centres
• Bi-lateral trade conducted in RMB
![Page 10: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/10.jpg)
Paths to a new world reserve currency
• Orderly
• Disorderly
• Non-existent
• More of the same
![Page 11: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/11.jpg)
![Page 12: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/12.jpg)
![Page 13: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/13.jpg)
![Page 14: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/14.jpg)
Turning Debt into Equity
• The Bank of England
• The Resolution Trust Corporation
• Debt must be extinguished: creditors prefer deflation, debtors and voters prefer inflation
• Look for Fed adaptation, not dollar capitulation
![Page 15: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/15.jpg)
Extinguishing Debt Through Gold
• Gold as the ultimate Tier-1 capital in the banking system
• Revaluation of central bank gold reserves
• Gold-backed government bonds
![Page 16: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/16.jpg)
The DNA of a liberal order
• Sound money
• Free markets (value discovered in exchange)
• The rule of law (right over might)
• Private property
• Low taxes
![Page 17: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/17.jpg)
106 &207: Surveillance State 101
![Page 18: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/18.jpg)
![Page 19: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/19.jpg)
“If you wish to destroy a nation, you must first corrupt its currency. Thus must sound money be the first bastion of a society’s defence.”
Adam Ferguson, When Money Dies: The Nightmare of the Weimar hyper-inflation
![Page 20: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/20.jpg)
![Page 21: Gold Investment Symposium 2012 - Dan Denning - The Daily Reckoning](https://reader034.vdocuments.site/reader034/viewer/2022051817/5478707cb4af9f87108b4d18/html5/thumbnails/21.jpg)
Thank you!
www.dailyreckoning.com.au