Tuesday, May 31, 2016

GOLD Breakout 2016: The Reign of the Almighty Dollar is Over


Gold Price: The Single Greatest Determinant of the Upcoming Monetary Breakdown and Currency Collapse

SOTN Special Note:
Since time immemorial gold has functioned as the universal currency.  Whatever its value was considered to be by a kingdom or nation effectively functioned as the benchmark against which everything else was valued.

The price of gold in modern civilization is no different.  It is universally regarded as the barometer of the general economic health of the world.  When the price of gold is high, there is much insecurity in the global marketplace; when the gold price is low, investors have much more confidence in future economic activity.
Because the US dollar was artificially propped up as the world reserve currency with the post World War 2 Bretton Woods Agreement, the petrodollar in particular began to function as the new benchmark.  While this unsustainable arrangement guaranteed great prosperity for the USA, maintaining it exerted a tremendous amount of pressure on the worldwide system of currency valuation. The ever-increasing monetary stresses in the aggregate which resulted have now put the health status of the U.S dollar at great risk.

Every day that passes throughout 2016 will only see this precarious situation become more fraught with currency volatility and financial instability.  In fact many of the armed conflict and military maneuverings across the planet are due to this underlying dynamic. The Federal Reserve’s over-reliance on what is basically a dollar printing press has significantly cheapened the value of all the greenbacks in existence.

As more countries decouple their payment systems from the petrodollar and sell their dollar-denominated debt, the FED has resorted to printing even more money out of thin air.  Other nations, particularly those that are vulnerable to energy price fluctuations, suffer greatly due to this fatally flawed American monetary policy.  Whenever the FED implements another round of quantitative easing to cure its financial flu, the rest of the world comes down with pneumonia…to the extent that they are married to the petrodollar. Venezuela is a perfect example of a nation not far from ‘respiratory failure’.
Why Gold Always Goes Up In The Wake Of Quantitative Easing

The Bottom Line:

It is in times like these, when economic instability and financial insecurity abound everywhere, that people and nations alike will reflexively move their money into gold and silver. Gold especially is respected as the best hedge against all types of market crashes and economic collapses.  For this reason the citizens of India, China, Japan and the like have been purchasing gold and silver bullion at unprecedented rates.  Such buying sprees have exerted even more pressure on the highly manipulated gold and silver markets.  For these and other important reasons a gold breakout is not “If?” but “When?” … … … in 2016.

GOLD BREAKOUT 2016: It’s Only A Matter When, Not If

The explanations posted below present some essential background on how the world got put into this perilous position—an especially dangerous place for the U.S. economy.

State of the Nation
May 29, 2016

China’s Market-Shaking Gold Strategy Rocks Anglo-American Financial Domination

1 comment:

Anonymous said...

"The dollar will continue to be the most popular world reserve currency. It’s share of total reserves may decline, but the absolute number of dollars held by foreign countries will continue to rise. This will help keep our interest rates lower than they otherwise would be. It does not, however, prevent our interest rates from rising in a global market."


"The only trend at work here is the same thing why people are buying gold. When you do not trust the government, you seek alternatives. From ancient times, fringe countries have sought the money of the dominant economy. It has never been some clandestine plot – just human nature. All of these countries that the conspiracy theorists were so concerned about and blaming the USA, were politically in turmoil. People in such conditions seek to preserve capital the same as people buy gold right now.
With respect to the admirable Mr Armstrong giving much insight into the phenomenon reserve currencies: - Can the World Really Abandon the Dollar As A Reserve Currency? (Also find a very interesting reference to the owl symbol and its use in ancient Greece.)


RE Armstrong's reference to Cicero:

"Mr. Speaker, the record shows that in all ages where republican forms of government have been lost, it has been through the pretense of a share-the-wealth program, a blind faith in public officials, and apathy on the part of those who could act but did not. To mention only one of many, many examples from past history, may I quote from a statement made by Cicero over 2,000 years ago:

The budget should be balanced, the treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt, the mobs should be forced to work and not depend on government for subsistence.

History reveals that public officials heeded not the warning — therefore, the government collapsed."

"""""Those words were never uttered by Cicero, however, and the reason no one ever quoted them as such until about fifty years ago is because they weren't written until 1965. They sprang from the pen of Taylor Caldwell, a fiction writer...""""


"Speculation has begun about whether the U.S. dollar could be supplanted by the RMB." By William T. Wilson, Ph.D. Senior Research Fellow Asian Studies Center