By TMH
Well, this explains why the central banks have been buying up gold like crazy, inflating the price even further. As that eases, and the banks all have achieved their gold reserve goals, the gold bubble will deflate somewhat.
The BRIC Summit, held on 14 April in Sanya (People’s Republic of China), brought together the leaders of Brazil, Russia, India, China and South Africa. The key to understanding the summit may be found in the joint statement, which refers to “the inadequacies and deficiencies of the existing international monetary and financial system….” Without question, this statement is about eliminating the U.S. dollar as the global reserve currency. Therefore, the BRIC countries are asking for “the reform and improvement of the international monetary system, with a broad-based international reserve currency system providing stability and certainty.”
It appears, with the addition of South Africa to the BRIC alliance, that gold is being contemplated as a means for backing a new reserve currency.
China and South Africa are the two leading gold-producing countries. Russia is the sixth leading gold producer, and Brazil is 15th. By now it should be apparent that Russia and China intend to launch an attack against the U.S. dollar.
Do we yet realize that such an attack is possible? And have we reckoned the political consequences? As these words are written, a small minority of persons inside the United States are trying to stir up a revolution. If the economy continues to function, these people have no chance of success. But if the U.S. economy collapsed, the extremists of Right and Left would gain millions of followers. The greatest potential for harm would then come from inside the country, through internal conflict. Political revolutions occur from time to time in all states; and they are to be dreaded.
The strategist and historian Viktor Suvorov was recently asked in an interview whether he saw signs of revolution in today’s Russia. His reply was characteristically wise. “Certain people prepare revolutions,” he said, “many accomplish them, but the fruits always go to the bastards! In all the past revolutions throughout the world, those who join with an open heart usually die.” Suvorov then quoted the famous remark that, “Revolutions devour their own children.” The same would hold true if a revolution took place in the United States.
The potential for a revolution in the United States has long been a topic of discussion by strategists in Moscow and Beijing. In fact, the breakdown of America’s economy leading to a revolution was discussed by Soviet bloc leaders as far back as 1967, and Soviet strategy envisioned this eventuality as the key to victory over the United States. Even more alarming: There is a growing body of evidence suggesting that the United States, with all its self-made problems, has been pushed deeper into crisis by the hidden hand of Moscow. Readers should be directed to Kevin Freeman’s June 2009 report titled, Economic Warfare: Risks and Responses. Freeman outlines a three-phased attack on the U.S. economy which he suspects is already underway. The First Phase involves a “speculative run-up in oil prices” that generate as much as $2 trillion of excess wealth for oil-producing nations. Second comes “a series of bear raids targeting U.S. financial services firms.” Third is a “direct attack on the U.S. Treasury and U.S. dollar.” Freeman explained that, “A focused effort to collapse the dollar by dumping Treasury bonds has grave implications including the possibility of a downgrading of U.S. debt forcing rapidly rising interest rates and a collapse of the American economy. In short, a bear raid against the U.S. financial system….”
This is not wild speculation
http://noisyroom.net/blog/2011/04/17/say-%E2%80%9Cgoodbye%E2%80%9D-to-the-dollar/
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