The Golden Truth: The Global Move Out Of Dollars Continues

Wednesday, May 4, 2011

The Global Move Out Of Dollars Continues

as Mexico buys 100 tonnes of gold, China/Korea/Japan will study using local currencies for trade settlement and India will settle it's oil purchases from Iran in rupees.

The Financial Times reported the Mexico purchase: "The purchase is one of the largest by a central bank in recent history. The gold, worth $4.6bn at current prices, is equivalent to about 3.5 per cent of annual mined output." Here's the link, you may need to register for free to see the whole article: LINK Do not anticipate that U.S. media/CNBC will be reporting that one. Here is the link for the China/Korea/Japan article: LINK (you may need to copy the headline and paste it into a google search window and then click on the top link that comes up in order to see the article for free). And here is the article for the India/Iran news: LINK Iran is India's second largest oil supplier.

All three events are more evidence that the world is moving away from the U.S. dollar standard. Mexico is one of several large Central Banks buying significant amounts of gold with their dollar reserves and, I believe, is the first western CB to do so. This is very bad news for anyone out there who does not understand the risks of holding their wealth in U.S. dollars. One day many millionaires in this country will wake up to find that their millions sitting in banks and brokerages will be of no value to anyone except as fuel for heat...

8 comments:

PurewaterWednesday, 04 May, 2011
Hey, good news, the people at the food stamp office are keeping busy! Another rise in February...

http://tinyurl.com/3omvkvn
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AnonymousWednesday, 04 May, 2011
You know the boys in the Hamptons need some scratch for the beginning of the season..marina fees, golf memberships, lawn care...shit like that!

Out Come The Big Gunz: Interactive Brokers Advises Traders Of Yet Unknown, But Certainly Scary, Silver Margin Increase

http://www.zerohedge.com/article/interactive-brokers-advises-traders-yet-unknown-certainly-scary-silver-margin-increase?

I just want to know what happens when the TOOLS of the fed kill the paper market but physical trades higher?...what do they do?...mark to their market?...or the real physical market?....ooops...we already visited this issue with real estate on the banks balance sheets..I guess I answered my own question.

like Sprott said...
Sprott continues:

“I sort of regard the things that are going on in the (silver) market as basically some group of traders working to get the price down quickly, particularly the overnight action on Sunday night when it (silver) goes from $48 to $42 in whatever it was, 9 or 13 minutes. It’s a travesty of a trading system that would happen.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/3_Eric_Sprott_-_Sprott_Has_More_Physical_Silver_Now_Than_Ever!.html

A travesty of a mockery of a sham.

A travesty of two mockeries of a dozen shams...
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mabmanWednesday, 04 May, 2011
big divergence, SLV down big but silver miners aren't going down by the same % especially the cdn ones.
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AnonymousWednesday, 04 May, 2011
As the world turns......to gold!

German journalist Lars Schall attended the recent GoldMoney conference in Munich and interviewed GATA Chairman Bill Murphy, GoldMoney founder James Turk, and Egon von Greyerz of Matterhorn Asset Manager in Zurich about central banking's war on gold and silver. The interviews are headlined "The War on Gold (and Silver)" and you can find them at Schall's Internet site here:
The mainstream media system and The Powers That Be have one thing in common that they often label their critics as “conspiracy theorists“ dealing in “conspiracy theories.“iii What do you think about that?

That’s exactly what they do. They try to marginalize people that take on the establishment, take on the rich and powerful as conspiracy nuts, when in reality all we’ve done was documenting their actions and statements. It’s pathetic, but that is how they operate. Just look at the CFTC investigation of the Madoff scandal. There was a guy named Markopolos, who said for ten years that this whole thing was a big fraud, he laid it all out in great detail. For ten years. Then it became one of the biggest frauds in American history. And what happened? Business as usual. Everything is back the same, people forget about it, people get wiped out. It’s a terrible situation and it is not what America is supposed to be about, but that is what we have become.
James Turk: The reason why there is a war on gold is because it is the only true form of money, it is the only competitor to this fiat currency that central banks are issuing. There is a war against gold, yes. Central banks want to keep the gold price from rising to make their own currencies look better. Rather than taking sound policies like the Bundesbank used to do to preserve the purchasing power of the Deutsch Mark, central banks today are fighting that war by trying to cap the gold price.

http://www.larsschall.com/2011/05/04/the-war-on-gold/
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TiskTiskWednesday, 04 May, 2011
Who is selling these large quantities of gold? Where is it coming from? Anyone know?
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Dave in DenverWednesday, 04 May, 2011
Trying to find out. I'm sure they can find a big bank to sell them 100 tonnes of gold. I'm more interested to know if they took possession of it in Mexico or if they are keeping it in an "allocated" vault at a London bullion bank.
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AnonymousThursday, 02 June, 2011
wipe your ass with the dollar. save the toliet paper.
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man and van LondonMonday, 27 June, 2011
This is a very interesting blog, very instructive and informing in all. This post, in partucular, has been very helpful.
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Add comment

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.