Jean-Claude Trichet is a great French mamamouchi with a perfect career! He is the archetypal senior official and absolutely ticks all the boxes!
Graduated from Science Po, then from ENA, he began his career as a Financial Inspector. In 1978, he was technical advisor at the Élysée, under the chairmanship of Valéry Giscard d’Estaing. In 1986, he was director of the cabinet of Édouard Balladur at the Ministry of Finance. Between 1987 and 1993, he was Director of the Treasury. In 1993, he became governor of the Banque de France.
On November 1, 2003, succeeding Wim Duisenberg, he became the second president of the European Central Bank.
It is therefore not just anyone Jean-Claude Trichet, and, even if today our Jean-Claude is put away money cars, his word is still important.
It is above all the fruit of decades of experience spent at the highest level.
In his last intervention in the economic daily La Tribune, he had exhausted Bitcoin in particular and crypto-currencies in general.
He also prefers the English term crypto-asset to crypto-currency. Crypto-asset could translate to crypto-asset. Yes why not.
Bitcoin is indeed not a currency, so qualifying it as an asset is fairer insofar as it effectively meets the definition of a “financial” asset which in its simplest acceptance gives the following explanation: ” a financial asset is a security or a contract, generally transferable and negotiable (for example on a financial market), which is likely to produce for its holder income or a capital gain, in return for a certain risk taking“.
So goes for crypto-asset or crypto-asset for us who want to speak French!
Trichet’s charge against Bictoin has therefore been widely relayed, by me as well, but a small comment from him still frankly went unnoticed and I wanted us to stop there today.
“Supreme liquidity remains gold”
“There is an obvious bubble to me. It is a bubble that resembles those of Dutch tulips. It is a little sad and it is the mark of a very disturbing world evolution. Some would say it’s the same with gold. But it is not quite the same. There is a certain regulation, there is industrial consumption of gold. From a strategic perspective, in the context of a world war, the supreme liquidity remains gold. “
Supreme liquidity remains gold!
It is not nothing as a statement.
So among us the “goldeux” of the first hour, the genetic goldeux, it is obvious that gold is the supreme liquidity!
Crypto-assets as attractive as they are technologically speaking and we will probably talk about it again when quantum computers allow “cheating” in the blockchain or when we do the energy “balance” of these things, do not exist and are therefore an imaginary, virtual convention.
To go a step further, we can say that in the event of a power failure or major problems on the global computer network there will undoubtedly be some major difficulties in accessing its crypto-assets, even if they are a little monetary. . They will be especially in limbo of the “cloud”!
Gold is the supreme liquidity because gold does not oxidize, it only melts at high temperatures, it moves easily in its weight / value volume, and is tradable worldwide and that it has a physical existence. These are just a few of its characteristics and qualities.
Gold is not just a currency.
As Jean-Claude Trichet says, it is the supreme liquidity.
He is what is left when nothing works.
He is what survives when all conveniences and conventions collapse.
When Jean-claude Trichet talks to you about the risk of war by saying ” in the context of a world war“, He doesn’t talk to you about gold in light times.
He tells you about the great History, the one that builds and destroys fortunes, but above all lives.
It doesn’t tell you about the averages on which all models are built.
The history of humanity is never the sum of the averages! It is the fruit of violent ruptures, sudden changes, accidents.
Gold is the supreme liquidity, it is the supreme assurance, the ultimate assurance of your wealth.
Bitcoin will never be anything other than a convention based on more or less serious collective beliefs.
This doesn’t mean that you can’t make a fortune with crypto assets.
It just means that when the winds of history blow, the ultimate liquidity remains gold.
It is the former boss of the second largest central bank in the world who says so.
This is also the reason central banks around the world buy and hold billions in gold.
As inflation threatens, gold must find its place in your wealth strategy more than ever. On this subject, see the article in today’s edition, devoted to the fall of the Turkish lira.
It is already too late, but all is not lost. Prepare yourselves !