September 9, 2012
Many months ago, a longtime Wall Street Insider warned both of an imminent Euro collapse, followed by the possible collapse of the United States, ongoing and increasingly aggressive maneuvering by both the Russians and Chinese, and the growing (and anti-American) influence of the International Monetary Fund and its lesser twin, the World Bank. A just published report by the Wall Street Journal’s Market Watch suggests those warnings are now truly taking shape.
(Barack Obama and Vladimir Putin. Who looks to be the stronger leader?)
As Barack Obama and the Federal Reserve prepare to unleash yet billions more in near-worthless printed dollars, Russian strongman Vladimir Putin – the same leader Obama promised in a now infamous whisper much more “flexible” cooperation from America, is making an aggressive move to buy up more of the world’s gold reserves. Perhaps the former KGB officer is now banking on an Obama second term that will collapse the world monetary markets?
According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month.
…As was first reported here in April of last year, according to International Monetary Fund calculations, the U.S. is on track to lose its status as the world’s biggest economy—when measured in real, purchasing-power terms—to China by 2017.
…What will happen as the U.S. loses its pre-eminence?
Maybe this will turn out better than similar episodes in the past. Maybe the Chinese will embrace an open society and the rule of law. If you believe that, there is probably no reason to hold any gold.
On the other hand, we may be about to enter a much more turbulent and dangerous era of power politics and international competition. LINK