The spot price of gold reached an all-time high as more countries and individuals turn to gold as an anchor of stability. This as the two major world currencies and the twin pillars of the international monetary system are under threat of collapse.
It is apparent that the majority of those in power in the United States refuse to recognize the dire circumstances the United States finds itself in and are captive to the false assumption that the worst case scenario could never happen here. If America continues on its present path, the citizens of this country will, to their detriment, find out that it can and will.
It is not just individual citizens worldwide that are turning to gold, but many countries now see that metal as their only safe haven.
China, therefore, has doubled its gold reserves in the past two years and there is active discussion in Beijing that the country should immediately embark on a program to increase those holdings by a factor of eight rather than buy paper IOUs from potentially bankrupt Western nations. Russia, India, the Persian Gulf states, the Philippines, and a variety of other nations have also embarked on a gold-buying binge.
Slowly but inexorably, the world is edging toward a quasi-gold standard as it become evident that most of the West and Japan have reached a debt saturation point and can no longer continue to debase the major reserve currencies without devastating consequences.
http://dumpdc.wordpress.com/2011/07/18/teotwawki-realities/
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