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The Gold Standard 2.0 is Coming
The world is on
its way to a Gold standard again.
This is not
mere conjecture or prediction. It’s fact. Utah has already passed a bill
allowing Gold and Silver to be used as legal tender. Similarly, Virginia has
passed legislation (though the Governor has yet to sign the bill) that would
permit the state to mint its own Gold and Silver coins.
You can see
this on the international stage as well. China’s Gold demand rose 500% last
year. And world central banks became net buyers of Gold for the first time in
2010 as well.
These are of
course baby steps. China and all central banks’ reserves are only minimally
invested in Gold at this time. However, these changes DO mark the beginning of
necessary structural changes to the global monetary system that will eventually
culminate in a Gold standard of some kind being adopted again.
It’s not difficult
to see why. We’ve been on this insane “paper only” since the early ‘70s. While
everyone wants to claim we’ve seen a massive boost in GDP and stocks since that
time, the reality is that when you account for inflation, it’s clear that most
GDP and stock strength has been a result of inflation, NOT real organic growth.
Indeed, Bill
King, Chief Market Strategist M. Ramsey
King Securities recently published the following chart comparing REAL GDP
(light blue), GDP when you account for inflation (dark blue), and the Dow
Jones’ performance (black) over the last 30 years.
What follows
is a clear picture that since the mid-70s MOST of the perceived stock gains
have come from inflation. You should also note that MOST of the GDP growth we’ve
seen since the early ‘70s has been the result of inflation as well (REAL GDP,
the light blue line, is MILES below the “claimed” GDP, dark blue line).
What does
all of this mean? That the inflationary system in place for the last 30+ years
is crumbling, that paper money is going to become more and more worthless, and
that we’re going to return to some kind of Gold standard in the coming years.
Prepare Now!
Graham
Summers
PS. If
you’ve yet to take steps to prepare your portfolio for the coming inflationary
disaster, our FREE Special Report, The
Inflationary Catastrophe explains not only why inflation is here now, why
the Fed is powerless to stop it, and three investments that absolutely EXPLODE
as a result of this.
All in all
its 14 pages contain a literal treasure trove of information on how to take
steps to prepare AND profit from what’s to come. And it’s all 100% FREE.
To pick up
your copy today, got to http://www.gainspainscapital.com
and click on FREE REPORTS.
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Worth adding to your reading list: www.dgcmagazine.com
BEIJING - China will achieve a major breakthrough in full convertibility of the yuan over the next five years, Hu Xiaolian, deputy governor of the People's Bank of China, said on Friday.
However, no detailed timetable has yet been set.
"Conditions for the yuan's convertibility under the capital account are improving and the fast development of yuan-based cross-border trade settlements will help push the process forward," Hu told a news briefing.
Xia Bin, an adviser to the central bank, recently said that China should aim to achieve full convertibility of the currency by 2020 given the country's rising economic power.
He also urged reform of the country's exchange-rate regime by integration with the floating exchange rates of the international system. Xia said China should aim to make the yuan account for about 3 to 4 percent of the total international reserves by 2020.
China is actively pushing the internationalization of its currency by allowing its companies to make overseas investments in yuan. The central bank is also considering giving foreign companies the green light to make yuan investments in China.
However some economists warned that under current market conditions a more convertible yuan could lead to substantial appreciation of the currency and huge capital inflows.
"China needs to make its exchange-rate regime more flexible to ward off those risks," said Chen Daofu, senior economist of the Financial Research Institute at the State Council's Development Research Center.
Meanwhile, there is speculation that China will speed up the pace of yuan appreciation to ease the high inflationary pressure.
The consumer price index (CPI), a major gauge of inflation, rose 4.9 percent year-on-year in February, according to the National Bureau of Statistics.
"A faster rate of appreciation is a policy tool that could be used to ease inflationary pressure, given that imported inflation remains a source of concern to the government," Jian Chang, an economist at Barclays Capital, said in a report.
"We continue to look for a gradual yuan appreciation versus the US dollar at a pace of around 5 percent a year," Chang said.
However, the central bank governor, Zhou Xiaochuan, said at Friday's news briefing that exchange-rate policy is not major tool to tame inflation, although changes in the exchange rate will influence the overall level of domestic prices.
Zhou said that the central bank will keep the yuan's exchange rate stable and will continue to gradually push forward exchange rate reforms.
http://usa.chinadaily.com.cn/china/2011-03/12/content_12159916.htm
FROM JIM SINCLAIR:
Dear Friends,
Here is my New Years gift to you, my extended family.
There is no way that the CONSEQUENCES of the largest creation of paper money since it was invented can be avoided or even modified. Odds now favor Alf Field’s price objective.
January 14th 2011 to June 21st, 2012:
The best part of this gift is not the one you already know, which is January 14th 2011, but rather the date that a new currency form will replace the form of the US dollar as you know it today which is the third week of June 2012.
Don’t laugh! Write this down and do not forget about it!
Happy (sort of) New Year,
JIM SINCLAIR
The Reagan Diaries, which follows Ronald Reagan's 8 year term through
his daily dairy entries, and lo and behold, early on at page 25 comes this obvious bombshell
from economist Arthur Laffer: "Art Laffer dropped a grenade on his colleagues when he said we weren't
going to solve the fiscal program until we returned to convertibility of money for gold. I would have
liked to heard the discussion among the economists after I left" - Ronald Reagan
he left since the puppet doesnt get to hear how the script is debated...
F'kin Annunaki stole my stash! I hear my women are next.
I always suspected you were little over the edge know I know for sure. Citing the actions of Utah legislators as authoratitive? Your mind is gone sir. Three quarters of those idiots are related to each other. Two main families Ramptons and Mathesons with some real odd balls thrown in like old man Holding. After 150 years of marrying your first cousins it begins to show. Anyway those people are as crazy as they come and not worth listening to. Glen Beck is also a scoop if I am not mistaken. Just plain crazy. Too inbred.
He didn't say the gold standard is smart. He said it is starting to get popular.
Paul Bogdanich
a true merkin ,, you are clueless of the utah leg, and coming from a trailer talk sand lot person , are your sure your daddy is wilt ,
OK, so you want to ridicule the article based upon genealogy?
.
and how are our ruling elites any less inbred? take a survey, fuckwit. ;)
What are you a scoop? Sure sounds like it. As to being inbread who would inbreed with jug ears or his cow of a wife? Mooooo.
Takes one to know one, fuckwit (spellcheck much?)!
+1
Absolutely correct. I had the decided misfortune of having been born there and lived there off and on for near 17 years. As a Catholic mind you. To this day I wonder what in the world my parents were or were not thinking. In my estimation it is the most repressive place in the United States. In the early 1970's it was not so bad but Presidents Kimball, Benson, Hunter and Hinckley were basically authoritarians at best and fascists at worst. I have no idea about ths new guy and don't care. Will never go there of my own free will ever again. As to spell checking I never touch the stuff.
Well I might think the pope is dumb but I'm not going to judge the politics or monetary policies of Rome or Italy based on it. Nor am I going to bring up the fact that a lot of Priests like to have sex with little boys, it's just irrelevant.
Your comments amount to: 'I'm a bigot and I hate mormons' so just say it. SAY IT!!!
I think Utah Mormons are the best Mormons. so many of them that they don't care if your view is different. they smile and go about there day. The exception being Salt Lake City. SLC Mormons are hard core. less converting attempts in three years in Utah then in 2 weeks in California. I'm only speaking form my experiences with the Mormon culture and in no way feel they are any better or worse then any other organized religion.
Get serious. My post amounts to my opinion that the author is grasping at straws citing the inferred good judgement of the Utah legislature in making a very specious point. Also when you say, "Well I might think the pope is dumb but I'm not going to judge the politics or monetary policies of Rome or Italy based on it." Why wouldn't you? That's like saying Obama is corrupt but this does not effect the policies or government of the United States. Of course it effects the policies and operations when the system is rotten at the top. Yu mentioned Rome look at it. Berlesconi is a real peach ain't he? Maybe the pope is dumb or marginalized so much so that he can't even do something about that. You can tell something about a people by the leadership they accept. That's just a fact.
So your argument is that everyone in utah is inbred and stupid (except you), so there will be no return to gold standard. Yet you fail to address virginia or china (or the us which happens to have saved their gold for a rainy day).
Currency will go back to being backed by assets rather than liabilities before this is over.
you won't have seat at the NWO without gold
fantastic! desperately needed. it will end most of the covert market influences. this is the best to happen in my lifetime.
http://covert2.wordpress.com
food standard is coming...gold and silver is ash in 8 hours.