China Wants the World’s Reserve Currency

By Michael Pento – Re-Blogged From PentoPort

In the aftermath of WWII the American economy was that shining city on a hill. After saving mankind from the Nazi’s, America had the only intact manufacturing base and was the repository for most of the world’s gold. Those circumstances propelled the US dollar to world’s reserve currency status. And for the past seventy years, this status has been the cornerstone for America’s power base and hegemony around the globe.

But the 1960’s ushered in a time of great fiscal mismanagement. President Johnson’s dual wars on poverty and Vietnam led to worldwide distrust about the greenback’s purchasing power in relationship to gold. This eventually led to Nixon’s baneful decision to close the gold window, which untethered the exchange between gold and the dollar.

Continue reading

Advertisements

Prospects For Gold Price

By Hugo Salinas Price – Re-Blogged From http://www.Gold-Eagle.com

The Chinese have announced that they have perfected a scheme, to be launched formally in the market by the end of the year, by means of which exporters of oil to China will accept the Chinese currency, the Yuan, in payment for the oil; for this deal, the Chinese have added an incentive: the Yuan received by the oil exporters will be exchangeable for gold. This gold will be “sourced” i.e. “purchased” outside of China, for the oil exporters.

Thus, the oil exporters’ Yuan will be offered in payment to the so-called “Bullion Banks” in London, who will provide the gold in exchange for Yuan.

We know that this much is part of the plan.

Continue reading

Central Banks And Gold

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

The very near future is likely to see a sea-change in central bankers’ attitude to the gold allocation in their reserves. The failure of G20 monetary policy since the financial crisis is causing a general rethink, which may eventually lead to a new policy direction. For now, that is undecided, beyond a growing acceptance that today’s monetary policy does not work and the assumptions of recent decades, that gold as money should be phased out, might have been a mistake.

The idea, that Western central banks could banish gold from the monetary scene over time, has been disrupted by the persistence of Asian demand, fuelled by the remarkable economic progress of ex-communist states embracing capitalist methods. Western financial markets have hardly begun to grasp the wider implications of the shift in economic power from the heavily-indebted welfare economies, to China, Russia and other members of the Shanghai Cooperation Organisation, and their consequences for gold.

Continue reading

Germans And Japanese Play “Rollover!”

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

After my last article we received two logical questions from readers.  The first one pertaining to “gaps” and the Deutsche Bank derivative exposure; the second pertaining to Japan’s strong currency with negative yields while the debt to GDP levels are astronomical.  Below is the first question.

“In the past you have warned about derivative exposure and now gapping.

One of my worst fears as a day trader on a derivatives platform is gapping. That is why I will never have an open position when the market is closed. Even then, that is not guaranteed.

A lot of trading platforms got hammered when the Swiss franc was revalued.

Could you put out a letter for your readers explaining why for example the Deutsche Bank derivatives exposure is so dangerous in terms of gapping.”

Continue reading

Fantasy Or Reality…Which Is It?

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

Last week was a true dichotomy of fantasy and reality. We witnessed a massive short squeeze and the best week for U.S. equities in over a year. While the markets were oversold and due a bounce, the “bounce” came with a backdrop of very dire news! Day after day brought forth new and consistently worse news.

In no particular order of importance; Deutsche Bank reported a $6.5 billion loss (10% of their net equity), UBS joined the derivatives implosion party and required a capital raise, Glencore ‘fessed up to $100 billion in debt versus the previous $19 billion (with three or four other major commodity firms in the same boat), the Bank of England required their banks to disclose how much of this debt they were exposed to, China’s yuan surpassed the yen in the settlement of global trade, China also went live with their alternative settlement of trade in yuan (non-dollars), Saudi Arabia and Norway disclosed they are now in deficit and thus no longer “buyers” of dollars (are they now sellers?) …and the U.S. was effectively kicked out of the Middle East! I might add that several recent economic reports even though fudged, massaged and outright falsehoods were unable to hide the reality of global AND U.S. recession and decline in the real economic sectors.

Continue reading

What Will Historians Say…?

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

Two weeks back I asked the question whether or not the “Final War” had started, between the EAST AND WEST.  I was called a number of politically incorrect names for suggesting the Tianjin explosion might have been an “attack” and took even more heat,… because I included the word “nuclear”.  Since then there have been many theories as to what happened, some of them pretty far-fetched.  Yesterday another article was published in Veterans Today, http://www.veteranstoday.com/2015/08/25/confirmation-tianjin-was-nuked/ which scientifically suggests the explosion was in fact “nuclear.”  I am inquiring as to whether the science used as proof is in fact sound.  In the meantime, I would like to hear from readers why or why not the science used in this article is correct or is not.  Please do not send me “opinion” or tell me Veterans Today is a poor source.  Please specifically attack the science!

Continue reading

Grandmaster Putin’s Gold Trap: Russia Is Selling Oil And Gas In Exchange For Physical Gold

Re-Blogged From http://www.Gold-Eagle.com By Dmitry Kalinichenko

Accusations of the West towards Putin are traditionally based on the fact that he worked in the KGB and therefore he is a cruel and immoral person. Putin is blamed for everything. But nobody ever accused Putin of the lack of intelligence.

Any accusations against this man only emphasizes his ability for quick analytical thinking and making clear and balanced political and economic decisions.

Continue reading