Is it becoming evident that gold is the world's reserve currency?
*Dow Theory Letters, by Richard Russell, August 8, 2011:
''Europe's plan was to have growth fix the problem. America's plan
was to have growth fix the problem. And that's not going to work,''
said Kenneth Rogoff, an economics professor at Harvard. ''I think it's
really starting to sink in that we're not anywhere near an endgame.''
"The United States and Europe face parallel debt problems. Here, banks
and investors are pitted against homeowners. There, banks and investors
are pitted against nations. In both cases, governments have struggled
to rebalance their books.
"There is no surplus of economic strength to throw at the problem. The
United States and Europe ran up great debts in the years of plenty,
living well and promising to pay later, even as they made expansive
promises to aging populations.
''The restorative forces of the economy are very weak and the immediate
forces that will be in place are worsening the problem,'' said Joseph
E. Stiglitz, an economist at Columbia University. ''We already know
it's not going to be a V-shaped recovery. I had said in my book that it
would be more of an L-shaped, slow recovery. I think the answer now is
a Japan-style malaise.''
"The weakness of the American economy is most evident in the lack of
jobs. Only 55 percent of working-age adults held full-time jobs in
July, the lowest level in modern times. About 25 million American
adults want but cannot find full-time work, the government said Friday.
The unemployment rate fell slightly, but mostly because 193,000 people
stopped searching for jobs." (from NY Times).
.........................................................................................
In the face of all the above, one rating agency had the guts to
downgrade the credit of the US from AAA to AA+. That single agency was
the S&P, which was immediately attacked unmercifully by US
spokesmen. The bankrupt cat has finally been let out of the bag. For
the first time in US history, its sovereign debt has been called "less
than sterling." Since the US is owner of the world's reserve currency,
a "mighty oak" has been shaken. There is now only one "ultimate world
reserve currency, and it's called gold." Recently, an ignorant Fed
Chairman named Bernanke stated before a government committee that "gold
is not money." One wonders if he still feels that way. ''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
Call Now
Let us help you:
Personal Advisors
available now at
1-800-444-8317