re: "gold has taken a major step towards becoming the currency of choice when it comes to international trade."
The world's Central Bankers remdind me of a bunch of guys trying to stand on small, leaky, and increasingly precarious rafts floating in the ocean. They've stayed afloat so far . . . somehow . . . but you KNOW it is only a matter of time. The things they are doing today to keep the various economies going are just too bizarre to be manageable.
In recent weeks, we've seen that Europe is bailing out Greece. The United States is bailing out Europe. China has just about stopped bailing out the United States, and because of the zero interest rates, Americans aren't interested in buying U.S. bonds either. So, who does that leave?
It leaves the Federal Reserve, buying U.S. debt with newly created money.
And there's no plan for changing anything - except, of course, that they'll HAVE to change things. This is ultimately going to destroy the buying power of Americans' savings - not that they HAVE any as we just saw in that chart of the decade that Nemo found. I guess if no one has any savings, they don't really care if the dollar's buying power erodes.
Those CB's have quite a challenge ahead of them. With problems worsening at an accelerating pace, how will they keep their balance?? Greece might not take them out . . . but Portugal lies just ahead. They'll need to deal with it THIS YEAR.
And we wonder why the Federal government is rapidly assigning itself all sorts of new dictatorial powers???
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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