Gold and Oil have no more denominator.

I said in my July 8th, 2008 “The final battles of the dollar regime”-entry that it becomes clearer by the day that the days of abundant cheap oil flows are over.
Oil will now continue to be valued according to its true worth and to the extent that this true worth will be discovered, its price will rise.
I added that wars will again be waged for the commodity.

Observers are wondering why the price of oil and gold are going down and not up after the shutting down by Moscow of the pipelines crossing Georgia.

China and the European Central Bank (ECB) had to sell gold on Friday 1st August 2008 in order to save the US of A financial system from collapse.

Geheime Hilfen für Herrn P.
Die Welt, 2. August 2008, 04:00 Uhr
Kolumne Von Erwin Grandinger

http://www.welt.de:80/welt_print/arti2277035/Geheime_Hilfen_fuer_Herrn_P..html

SNIP
China und EZB stützen Dollar durch Intervention und Goldverkäufe. So soll der Zusammenbruch des US-Finanzsystems verhindert werden

At the question and answer session after the decision of the ECB to leave interest rates unchanged, last Thursday 7 August 2008,
Jean-Claude Trichet, the ECB’s President, has repeated at least three times
that we have to humble in the presence of facts and FEAR.

Of course, nobody was allowed to ask Trichet a question about the ECB’s 1st August 2008 gold sale with China.

Trichet dared however to criticise the International Monetary Fund (IMF), the dollar freak par excellence,
and he would only ask the IMF to do their “very important” (sic) job
and Trichet has no doubt that they will continue to do their job very well.

Since 15 August 1971, when US of A president Richard Nixon broke the Bretton Woods system, the IMF has no job whatsoever to perform and the US of A is able to wage wars thanks to its monopoly to create money out thin air.

Hence, the European Monetary Union (EMU) came into existence to replace the dollar.

The FEAR of the US of A, in the presence of which, said Trichet on Thursday, we have to be humble, is the fear that its dollar will be reduced to its intrinsic value.

During the night following Trichet’s warnings, the night from 7 to 8 August 2008, Georgia launched a military offensive against its separatist sub-republic South Ossetia.

By this stupid offensive, Tbilisi has given Moscow the alibi it needed to get control over the two major pipelines supplying the West run through Georgia, carrying oil and gas from the Azeri section of the Caspian Sea to Turkey.

By the same token, Moscow is able to replace the Georgian president, Mikheil Saakashvili, the US puppet par excellence.

The dollar regime is dead.

The dollar is not Honest Money.
How could the price of oil, which is denominated in that piece of paper, be supported by the shutting down of the pipelines crossing Georgia?

How could the gold price be supported in the face of the ECB gold sales?

ivocerckel AT siquijor DOT ws