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
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Gold, accept
no substitute. Live your dreams. And don’t be left behind.
David Vaughn
Editor, Gold Letter, Inc.
www.goldletterdv.com
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articles by David Vaughn
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