http://www.groenewegenreport.com/ <---CLICK HERE<-------
I FOUND THE LATER PORTION OF THE REPORT RATHER INTERESTING AND ALSO WHY YEAR 2020 (7 YEARS {A LONG TIME}) MAY BE EITHER THE PEAK (OF THE MANIA) OR THE TIME WE FINALLY MAKE IT THROUGH THIS (GREAT) TRANSITION.
QUOTE:
The Bundesbank capitulates though why by 2020 and not y 2014? 7 years is a long time.
Following all the commotion the German central bank now intends to
make a big withdrawal from the NY Fed— 300 tons in all. The new policy
will include the complete withdrawal of 374 tons of German gold stored
at the Banque de France in Paris, about 11% of the total. Bundesbank
officials were quick to note that the decision was not a reflection of
French trustworthiness. Rather, because France and Germany now share the
euro, there is no need for reserves as insurance against currency
crises. The goal is to house more than 50% of German gold in Bundesbank
vaults in Frankfurt by 2020, up from a little less than a third today,
the bank said. It remains the one currency that is accepted everywhere.
In the event of a currency crisis, the gold could be quickly deployed in
financial markets to help restore confidence. But as mentioned why are
the reserves moved by 2020, that is seven years from today, a lot can
happen in 7 years?
How much trust is there between central banks?
One has to wonder!!!! As Bill Gross of Pimco also stated, how much
trust is there between Central Banks! In the end every country has it
its own interest. As General De Gaulle said, “a country doesn’t have
friends it has interests”.
http://www.groenewegenreport.com/ <---CLICK HERE
Gold and silver are the opposite of the US dollar.
The commotion surrounding the gold reserves has to be viewed in the
light of the dynamic between the US dollar and gold. Real money with
intrinsic value, with a true value of its own, it is commodity backed,
such as physical gold and silver, is rapidly gaining popularity. The
transformation between the two systems from intangible money to tangible
money is clearly underway hence the stratospheric rise of the gold
price since 2001! Precious metals can’t be manipulated contrary to paper
money.
It is the constant manipulation of paper money, because it can
easily, at will, be reproduced or printed, that undermines the
credibility and value of the fiat currency whilst at the same time
boosting the attractiveness and value of gold and silver. The US dollar
is inversely correlated to the gold and silver price. In general under
normal economic circumstances if the dollar is weak gold is strong and
visa versa. Other currencies, not being the US dollar, of course first
need to be exchanged into US dollars before they can be exchanged for
gold. Gold and silver, as all other commodities, are expressed, valued
in US dollars, the reserve currency. Gold and silver are thus the
opposite of paper money and specifically the opposite of the US dollar.
So if central banks prefer buying gold instead of the US dollar they are
in fact buying the opposite of their own creation of paper money and
the opposite of the world currency. Paper money has its nominal value
printed on it to give it its value whilst gold doesn’t have a nominal
value printed on it because it doesn’t need it, it has inherent value,
in other words it has value of its own! That says it all. We would like
to emphasize again it is like the butcher that doesn’t eat his own
sausages because he knows what is in it. It therefore is so interesting
that several Central Banks (Russia, Brazil and several Asian countries)
are adding to their gold reserves. What does that tell you about their
belief in the fiat money system and the anchor of that system: the US
dollar?
http://www.groenewegenreport.com/ <---CLICK HERE
The US authorities can’t buy gold because it would void the US dollar, the anchor of the financial system.
It is important to understand that having the reserve currency also
“doesn’t allow” the Treasury to buy gold. Gold is expressed in US
dollars, the reserve currency or world currency, the crux of the
financial system, and if the US would buy gold adding it to its reserves
it would basically mean that it has lost its confidence and trust in
its own creation: the US dollar and thus the whole financial system. The
US dollar is the anchor of the financial system. Gold is the opposite
of the US dollar, hence its inverse correlation. Moreover if you have
the ability to print the reserve currency and buy all the gold, the only
real currency with intrinsic value, sellers of gold would soon not
accept the US dollar in return for gold. Why sell something that has
real, intrinsic value for something that is worthless, paper, even if
$2,000, $10,000, $100,000 or more is printed on the paper. In my point
of view it is very important to understand this dynamic of paper
currencies versus gold. Especially when the financial system is
undermining itself with stimulus measures that don’t sort the desired
effect. Remember the moment people won’t sell their gold anymore for
currencies/paper the currencies will have lost their value.
http://www.groenewegenreport.com/ <---CLICK HERE
