FreeGold, the only safe haven, is taboo
Posted by Ivo Cerckel on April 27th, 2009
Chindia versus Japamerica
The ideal interest rate for the US of A economy in current conditions would be minus 5 per cent, according to internal analysis prepared for the Federal Reserve’s last policy meeting. (1)
Exchanging dollar reserves for gold reserves is therefore an integral part of the new gold wealth-reserve concept.
The Chinese believe in and are prepared to collaborate with FreeGold.
They believe in and are prepared to collaborate with the antithesis of the dollar unit.
Hence, the Chinese want more gold metal and proportionally less dollar units on the asset side of their balance sheet.
Hence, India, the planet’s largest gold owner (more than 10,000 metric tonnes), will also collaborate with this gold wealth-reserve concept.
By arguing that the International Monetary Fund (IMF) should sell its entire gold reserves to raise money for the least developed countries (2) in order to make its sister organisation, the World Bank, more credible (3), India is trying to have its gold wealth-reserve freely re-evaluated.
Contrast this to Japan where the bureaucrats are panicking because there remain high uncertainties over the outlook for the stabilisation of the global financial system as well as the economy. (4)
For the (mercantile) producers and owners of genuine wealth, the new world reserve currency cannot possibly be constituted by or of a basket without FreeGold.
The (mercantile) producers and owners of genuine wealth are no longer prepared to let the dollar regime determine (what is) the value of their wealth.
Hence, they want gold metal on their balance sheet
They want this with a view to future freely floating valuations of gold.
Gold as a universal collateral is indeed the only possible answer to a world where debt is the order of the day.
Ivo Cerckel
ivocerckel@siquijor.ws
NOTES
(1)
Fed study puts ideal US interest rate at -5%
By Krishna Guha in Washington
Published: April 27 2009 03:06 | Last updated: April 27 2009 03:06
http://www.ft.com/cms/s/0/37877644-32c9-11de-8116-00144feabdc0.html
SNIP
The ideal interest rate for the US economy in current conditions would be minus 5 per cent, according to internal analysis prepared for the Federal Reserve’s last policy meeting.
(2)
India and China want IMF to sell its $100b gold
Apr 15 2009 2305 hrs IST , New Delhi
http://www.mydigitalfc.com/news/india-and-china-want-imf-sell-its-100b-gold-897
SNIP{
India and China may press for the sale of the entire gold reserves of the International Monetary Fund (IMF) to raise money for the least developed countries.
(3)
Make World Bank more responsive, credible and relevant: India
27 Apr 2009, 0435 hrs IST, PTI
http://timesofindia.indiatimes.com/World/US/Make-World-Bank-more-responsive-credible-and-relevant-India/articleshow/4452896.cms
SNIP
WASHINGTON: India on Sunday called for making the World Bank a more “responsive, credible and relevant” organisation noting that the world body
should reflect the “changing dynamism of global economy and the evolving weights of developing economies”
(4)
Japan revises growth forecasts sharply lower
Reuters TOKYO, April 27
http://www.ft.com/cms/s/0/c4342f9c-32e2-11de-8116-00144feabdc0.html
SNIPS
The government cut its forecast for Japan’s economy to shrink 3.3 per cent in the year to next March instead of its previous estimate of zero growth on Monday as the world’s second largest economy remains in the grip of the worst recession since World War Two.
The government also sharply lowered forecasts for industrial output and exports, which have been the main drag to the economy.
+
The Cabinet Office said downside risks remain. ”High uncertainties remain over the outlook for the stabilisation of the global financial system as well as the economy,” the Cabinet Office said in a report.
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