Return of the Gold Standard as World Order Unravels
The unthinkable is happening
On one side of the Atlantic, the eurozone debt crisis has spread to the countries that may be too big to save – Spain and Italy – though RBS thinks a €3.5 trillion rescue fund would ensure survival of Europe’s currency union.
As the twin pillars of international monetary system threaten to come tumbling down in unison, gold has reclaimed its ancient status as the anchor of stability.
On the other side, the recovery has sputtered out and the printing presses are being oiled again. Brinkmanship between the Congress and the White House over the US debt ceiling has compelled Moody’s to warn of a “very small but rising risk” that the world’s paramount power may default within two weeks. “The unthinkable is now thinkable,” said Ross Norman, director of thebulliondesk.com.
Fed chair Ben Bernanke confessed to Congress that growth has failed to gain traction. “Deflationary risks might re-emerge, implying a need for additional policy support,” he said.
The bar to QE3 – yet more bond purchases – is even lower than markets had thought. The new intake of hard-money men on the voting committee has not shifted Fed thinking, despite global anger at dollar debasement under QE2.
Fuelling the blaze, the emerging powers of Asia are almost all running uber-loose monetary policies. Most have negative real interest rates that push citizens out of bank accounts and into gold, or property. China is an arch-inflater. Prices are rising at 6.4pc, yet the one-year deposit rate is just 3.5pc. India’s central bank is far behind the curve.
“It is very scary: the flight to gold is accelerating at a faster and faster speed,” said Peter Hambro, chairman of Britain’s biggest pure gold listing Petropavlovsk.
“One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money.” source – Telegraph UK
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George Soros Prophecy On US Dollar Coming True Rapidly
about 2 years ago - 6 comments
Weakness in the US dollar, which is causing everything to go up—including gas prices, food and stocks—is unlikely to go away soon as a selling frenzy hits the currency market.
The greenback is approaching pre-financial crisis lows and threatening to smash through its all-time low when measured against the world’s predominant national currencies. A combination of factors accounts for the weakness, with the Federal Reserve’s easy-money policies, huge national debts and deficits and the consequential possibility of a debt downgrade because of the financial mess in Washington leading the way.
Hu calls currency system ‘product of the past’
about 2 years ago - 1 comment
As we watch the decline of the American dollar, it is no surprise that China is making a move towards taking over as the nation to hold the world’s new reserve currency.
about 1 year ago
What does it say in Rev. 6:6 – And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine. That will equate to a day’s wages. When these economies collapse, all but those in control will being in bread lines. “Please have your mark visible before making your purchases.”, and “No mark, no service!” will be the signs in the stores and eating establishments. People get ready, Jesus is coming, to take from this world, His own.
about 1 year ago
India has bought tons and tons of gold regularly every year. Indonesian citizens never trusted the banks, especially the Muslim ones. We all have physical gold. We don’t save in deposits or paper assets. Gold and silver is all we trust. The west is far behind regarding their attitude towards precious metal. They tend to think, “You can’t eat gold. Why buy gold.” Sad.
about 1 year ago
A bag of gold for a loaf of bread, only if you have the mark….. thanks, Ill pass. Jesus answered, “It is written: ‘Man does not live on bread alone, but on every word that comes from the mouth of God.’” Matt 4:4. Ill stand on the Word and go hungry, for my rewards are stored up and my hunger will seem short.
about 1 year ago
I think what would be most apt is Ron Paul’s approach of eliminating the Federal Reserve system, legal tender laws, and removing the sales tax on gold and silver, allowing the free market to decide on the monetary standard rather than the government deciding for us, especially being that whatever standard the market decided on accepting as payment would also likely become the standard for payment used for employment as well.