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Well! Well! Well!
China is proposing getting rid of the US dollar to be replaced by a new
global currency that would become the new international reserve currency. China wants to see stability in the currency markets and the US dollar is not providing
this. Actually, China is very concerned about the new dollars being printed
and their future impact on inflation.
Wow! China believes in the potential
of inflation? At least they are smart enough to recognize what it is and call
a spade a spade. And China is worried about that two trillion it presently is
holding of foreign exchange reserve in US dollars.
Demand for gold is soaring.
So far investors have purchased close
to 3 billion dollars worth, The highest demand on record. Because of
financial markets collapsing investors are beginning to experienced real
fear. Especially since they have already witnessed there 401 portfolios lose
over 50& of their value.
The onset of a global recession and
falling stock markets have triggered a stampede for gold – the
traditional safe haven during times of uncertainty. There is not one state
left in the United States that is not in a grim recession. . We were just all
talking a few months ago about the discussion of a new reserve currency and
everyone laughed. Well, they're not laughing now. Don’t think so.
What’s happening? The world is getting tired of our debtor
status. Now, because of our great debt to other countries the United States is learning just what it means to be a slave to the lender. And the more
paper dollars the US create those chains will only become stronger.
Are your knees weak? Do you see
now where world events are now taking the United States? Forget about your
knees and consider your long term standard of living. Anyway, our goose is
cooked. Where is hope? What now are our expectations? As has been said
a million times those with no debt and sitting on cash will make out well in
the ensuing years. Providing the system holds together nominally and we don’t
find ourselves back in the Stone Age. But we never know.
There are those predicting now the end
of the world in 2012. I think the last time the world ended was the year
2000. But like I say who knows for sure? All we do know for sure is that our
life times here on this earth is very short and it’s not long before we
return to the dust from which we came. Did you know that everything on this
planet, its entire makeup, came from the depths of an exploding star?
That’s exciting to think about. Gold’s origin is from the depths
of an exploding star. Wow! Makes you stop and wonder.
.
America’s reputation is now ruined and in
the outhouse. Well, the question now is what new international currency will
save the day? The dollar is about toast. Whets going to replace it? We need
to secure global financial security and economic growth?
Let’s find a solution. Will
the US ever pay off its incredible debts to foreign countries? I doubt
it. Don’t think that was ever in the plan. For the most part the United States has considered the rest of the world fools. And what is China going to do? I’m sure they are now feeling a great deal of fear and
uncertainty over the near high possibity of losing all the US assets they hold. But so it goes for suckers. And now let’s see what Russia is up to.
Russia is calling for a partial restoration of the Gold
Standard to bring back discipline to the world financial system. Arkady
Dvorkevich, the Kremlin's chief economic adviser, said Russia would favor very much including gold bullion in the basket weighing of a new world
currency. Both the Russians and the Chinese are preparing to get down to work
and to plan strategy and a debate to seek with all seriousness a new
alternative to the US dollar.
Mr. Dvorkevich wants to see gold with
a seriously considered new role in the new currency system. And what do
we have when gold is not considered in a basket of currencies held by
nations? You find paper currency with zero backing standing behind it.
According to the World Gold Council, exchange traded funds are the main
beneficiary of the flight to safety.
Gold brings financial discipline to
the financial system. And as I said before the nations of the world are
growing tired of the fantasy that more borrowing is the answer to the debt
crisis. Russia seems very serious in wanting the world to return back to
gold. And it’s not just the Chinese and the Russians wanting a new
currency. A United Nations panel of expert economists also are to
replace the US dollar with a more stable and less volatile currency based
system.
And of course the foreign aid the US is receiving is what is keeping up the grand life styles of Americans. A nice little
transfer of trillions of dollars of wealth at practically zero interest is
being transferred to the US. Even the International Monetary Fund thought the
idea of a new rerserve currency was an excellent idea and plans to pursue the
discussion in the coming months.
Seems like the United States is losing some of her autonomy. And laughing all the way to the bank George
Sorus chuckled that he made $1.1 billion last year as everyone else suffered.
There remains a large contingent that
really believes the economy will be made as good as new with a little sum
like 13 trillion dollars Should the new reserve currency rest on the silver
standard, the Gold Standard or the old Bretton Woods System. One thing is
certain for sure. Those closest to retirement remain wiped out but the
younger generation believes yet that they will be able to recoup their losses
over time.
The dollar is dying a slow and painful
death giving the illusion strength still remains in its muscle. It is
sad that the world population do not know how important it is yet to get into
gold and silver. How much more money and savings have to be lost before
people wake up and realize this financial crisis is for real? Depression is
upon us as manufacturing around the world is in free fall. As the stimulus
packages increase by leaps of a trillion dollars a crack the rest of the world
just will no longer be able to fuel the increasing US debt.
Russia says it has never seen such strong demand for
investment coins.While the U.S. Mint says sales of its one-ounce American
Eagle gold bullion coin sales s rocketed over 400 percent to 710,000 ounces in 2008. Unprecedented is the demand for gold and silver now. All estimates is
the gold and silver prices will be greater in 2009 than 2008
Gold, accept no substitute. Live your
dreams. And don’t be left behind.
David Vaughn
Editor,
Gold Letter, Inc.
www.goldletterdv.com
All
articles by David Vaughn
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