Wednesday, May 17, 2006

DOLLAR COLLAPSE IMMINENT... GOLD STANDARD TO RETURN?

Interesting set of articles on the coming crash of the US dollar. We should all be prepared for this as its eventuality looks more and more likely. Our world ready to shift. We need to be ready for this collapse and everything that comes along with it. Start planning now. By the time you realize the shift is upon us, it may be too late to do anything....

From the article Huge Gold Action and Earth Shaking Change Imminent...
The world is about to change radically... in every way, and you and your life are going to be directly affected, and soon too.

[...]

...this year we face the imminent demise of the USD system combined with a world energy war brewing in the Middle East. When I say the USD system, I mean the fact that it is the world's reserve currency. The demise of the USD system will have apocalyptic economic consequence for YOU.

[...]

Another factor driving gold in 2006 is the imminent change from the US dollar system as a world reserve currency. The fact that the US has twin trade and fiscal deficits are really only part of the reason that gold is rising vs the USD. The real reason gold is rising so rapidly this year is because the world is looking at the probable demise of the whole USD SYSTEM. The fiscal deficits are a side show to this potential sea change for world economics.

As a matter of fact, the impending demise of the USD system is so serious that there is actual fear among world central banks as to the implications. There is not just concern, there is fear.

The last time the world saw a major change in a world reserve currency, it had no less than the great depression of the 1930's. Right after that depression which enveloped the world, there was a world war that decimated Europe, much of Asia, the Pacific, Russia.
That war had well over 100 million casualties and changed the world forever.

We are now looking at a similar situation to the events just preceding the Great Depression of the 1930's followed by World War Two. Gold is specifically reacting to fear in many parts of the world. Not just fear of a depression or recession or unemployment, or just a USD crisis. It is fear of two things.

So... what does this mean? What will happen as the USD crumbles as the reserve currency of the world? Check out this piece from MoneyWeek for the answers....
While Keynesians see the rise of gold as temporary - and will continue to assert their naysayer views as gold rises further - it will soon come to light that the 'world reserve currency' idea was the temporary thing, an anachronism of the industrial age.

The world reserve currency concept is tied to the notion of a single all- powerful superpower. That is a 20th-century idea that is going away. It is also tied to the idea of a single economic powerhouse striding atop the rest of the world. That idea is going away too.

[...]

Gold, on the other hand, steps up with a number of advantages. It is already regarded as a hard asset safe haven and a key barometer of financial anxiety. Its value is easily understood and appreciated by the masses. It can function without the need for a complex financial system to guide and regulate transactions.


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