Dollar
Woes
Hugo Salinas Price:
Decline in world's monetary reserves signals end to dollar as reserve currency
The decline of the monetary reserves of central banks since August 2004 suggests a consensus that the U.S. dollar's role as the world reserve currency is coming to an end because the United States now consistently produces far less than it consumes from the rest of the world.
That's what Hugo Salinas Price, president of the Mexican Civic Association for Silver, writes tonight, elaborating that the IOUs being created by the U.S. government increasingly are being used by foreign governments to purchase gold, a monetary asset without such counterparty risk.
Salinas Price writes: "The U.S. government thought that by manipulating the price of gold to keep it low and driving it down when it has risen a bit, it would dissuade the world from investing in gold. It has not realized that it has been dealing not with simple and ignorant private investors but with intelligent individuals who can easily see through the charade mounted by U.S. authorities. The low price of gold has been an excellent incentive to investment on the part of the Russians, Chinese, and other Orientals.
Conclusions:a) The heyday of the Dollar is over.
b) The world is moving toward currencies redeemable for stated fixed amounts of gold, which will be, in the future, the determining characteristic of the various breeds of money.
c) Human nature being what it is, at some point a rush into gold may take place, and cause the price of gold to go into "backwardation", i.e. a condition where no amount of promises of future delivery will influence the rising price of gold, until it reaches multiples of its present, artificially low price in dollars.
DYI: Unless America has a complete
100% about face with our self destructive governmental policies the U.S. dollar
will go into a secular [long term] decline against nations with stable hardened
currency.
Nations
such as Russia are aggressively purchasing gold for their central bank AND with
the repeal of their 20% value added tax for gold bar purchases is an inducement
for the well healed plus their corporations [there is zero VAT on coins for the
average Russian citizen]. This savings in gold advantage is zero exponential growth
of debt. Increase savings in banks in
order to earn interest they lend out more rubles [Russian currency] hence you
have an indebted nation. This huge
change in Russian policy goes a long way to explain all of the B.S. coming out
of our governmental propaganda outlet the main stream press.
Simply
put as Hugo Price time reference of April 2014 as the kick off historically for
the dollar’s slide appears to me to be spot on.
Gold’s cyclical decline ended on December 16, 2015 at $1050 a mere 19
months later. Despite all of the shenanigans
that are played to suppress gold and its cousin silver it remains only a
delaying action slowing the rise in gold/silver prices. America’s days are numbered as the world’s reserve currency AND will end
our world military domination. America
will remain a powerful country economically and militarily, however domination
is no longer possible as far too expensive [same fate as the Romans] to
maintain.
Till
Next time
DYI
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