PDA

View Full Version : The G-20ís Secret Debt Solution



mick silver
13th November 2008, 17:52
If you think this weekendís G-20 meetings in Washington are only about designing short-term fixes to the financial system and regulatory reforms for banks, hedge funds, brokers, mortgage companies and investment banks Ö think again.

Behind the scenes, a far more fundamental fix is being discussed ó the possible revaluation of gold and the birth of an entirely new monetary system.

Iíve been studying this issue in great depth, all my life. And given the speed at which the financial crisis is unfolding, I would be very surprised if what Iím about to tell you now is not on the G-20 table this weekend.

Furthermore, I believe the end result will make my $2,270 price target for gold look conservative, to say the least. Youíll see why in a minute.

First, the G-20ís motive for a new monetary system: Itís driven by and based upon this very simple proposition Ö

ďIf we canít print money fast enough to fend off another deflationary Great Depression, then letís change the value of the money.Ē http://www.moneyandmarkets.com/the-g-20s-secret-debt-solution-27996

research24
13th November 2008, 18:01
I think the meeting will be nothing more than a lot testing the waters and jockying for position and trying to form alliances. The current strength of the dollar has all the anti US vultures held at bay, for the moment. They will focus on some new securities rules and that's about it. One analyst suggested it would be a circus of clowns, but most likely some will try to form an alliance to gang up on the US to dump the dollar. But Russia and China now have too many problems of their own, as do the Euros. The US is not as weak as it may appear, and they will certainly wait and see what Osama Bama has in mind. They will surely make a go at him, thinking him weak.

nuslvrkwen
13th November 2008, 18:10
I agree with Main1event. NONE of the countries in the G20 have any real backing for their currency. The US' lack of backing is showing. But no other country or countries could gang up on the US and replace the dollar's historical use as international currency. They may yak about it, and make some rules. But in the long run because all these countries are so intertwined and deeply in debt they all should just hope they can get things really going in a positive direction before a natural disaster hits. No body will be wanting to dump the dollar then.

research24
13th November 2008, 18:22
China is backing it by continuing to hold over a trillion in US debt, including the god-forsaken GSE's. If China was ever going to dump US debt, they'd be doing it now while the dollar is high. But they aren't, demonstrating China's historical cautiousness on international matters. They, like Japan continue to use the dollar to their great advantage and will continue to do so. They're smart enough to know how to hedge their bets.

nuslvrkwen
13th November 2008, 18:42
Sorry Research24. I meant I agreed with your post. I posted Main1event's name in my last post.

No matter how many billions and trillions of dollars are floating around. They haven't flooded the market. The banks are still hording them. And years from now, the stupid dollar will still be around.

cugir321
13th November 2008, 22:12
It does make the Saudi 3.5 billion gold buy look suspicious.