The Golden Truth: Another Country Abandons The Dollar

Wednesday, October 28, 2009

Another Country Abandons The Dollar

Sourced from tonight's Midas report at http://www.lemetropolecafe.com/:

Turkey to use national currencies in trade with Iran, China

.ANKARA, October 28 (RIA Novosti) - Turkey is switching to national currencies in trade with Iran and China, ending dependence on the U.S. dollar and the euro for about 20% of its commodity turnover, local media reported on Wednesday.

Turkey has already switched to settlements in national currencies with Russia amid weakening confidence in the greenback as the world's major reserve currency. The move was initiated by Turkish President Abdullah Gul during his visit to Moscow in February…Here's the news link: News Link

Regardless how much denial is issued by the various parties - and the typical "pooh-pooh" or cover-up in the U.S. media - the fact remains that the world is withdrawing its use of the U.S. dollar as a "reserve" trading currency. By the time most people in the U.S. understand this, many of them will not be able to afford more than ounce or two of gold because the price in U.S. dollars will be much higher than it is now.

2 comments:

Julia WongWednesday, 28 October, 2009
Hey Dave, check this out yet?
http://www.zerohedge.com/article/next-step-bank-implosion-cycle
My comment as "juliawong" at the bottom regarding how the likes of TBTFs are channeling money to GS/JPM via the help of Fed/FDIC.

At this rate, the WHOLE freakin world is going to abandon the Dollar as a medium of exchange.
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Dave in DenverWednesday, 28 October, 2009
JW, that's a great observation. GS/JPM are indeed using the US taxpayer as an ATM via the socialization of their counterparty losses.

It extends well beyond interest rate swaps. I was just discussing with Jesse of Jesse's Cafe Americain earlier today that it will be interesting to see how these interest rate swaps put on over the past few years, especially by JPM, hold up under an eventual sharp move up in rates at the long end of the curve.

I actually get Reggie Middleton's daily free email report. It's worth signing up for if you haven't do so already.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.