Embry - There Is a War Going on Because Fiat Money Is Dying

"With global stock markets plunging, along with gold and silver, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management.  Embry told KWN “There is a war going on right now” because “the pure fiat currency system is on its last legs.”  Embry also said “Europe is in desperate shape” and the implications are “horrific” if the US dollar loses its reserve status.  Bur first, here is what Embry had to say about gold:  “Gold is falling because the powers that be, with their paper shenanigans, are knocking the hell out of it.  We see tremendous physical demand.  Massive amounts of gold are going through Turkey, into the Middle-East.  Chinese imports are strong.  To me that’s the ultimate antidote...”


at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/8_Embry_-_There_Is_a_War_Going_on_Because_Fiat_Money_Is_Dying.html

Sleight-of-Hand Won’t Save Global Financial System

"With continued volatility in many of the key global markets, 40 year veteran, Robert Fitzwilson wrote this exclusive piece for King World News.  Fitzwilson is founder of The Portola Group, one of the premier boutique firms in the United States.  Here are Fitzwilson’s observations:  “The world’s fiat money system is based upon a sleight-of-hand, the most significant magic trick ever invented.  The sleight-of-hand begins with the creation of debt, frequently issued by a sovereign entity such as a king or a nation.  The debt often starts out being backed by some real asset, such as land in the French Revolution or gold in the case of the U.S. during the early stages of our Federal Reserve System.”


at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/24_Sleight-of-Hand_Wont_Save_Global_Financial_System.html

The Weekly Dose of Gold & Silver Market Manipulation

"This strange event happened this past Tuesday in the COMEX New York markets but I didn’t have time to post it until now. Not much to add here in the commentary that the pictures don’t say themselves, except that market prices of two different assets do not plunge in tandem by 1.2% within a matter of half-an-hour or so at precisely the same time and then gain everything back in the next two hours if their prices are set by free and fair markets. In regard to the buzz on the blogosphere this week regarding rebuttals to gold and silver market manipulator deniers, I believe that a lot of gold/silver analysts that deny gold/silver market manipulation actually believe, and firmly believe, that the gold/silver markets are manipulated. How can you not believe, given the numerous instances of tens, and sometimes, hundreds of millions of paper silver (and paper gold) ounces dumped in the futures markets immediately before intra-day crashes in price that occur on a nearly weekly basis now? In the face of all the evidence, including documented minutes of the US Federal Reserve that actually admit to gold/silver market rigging (just refer to any of a number of GATA publications), the gold/silver analysts that continue to deny market rigging would:..."

at  http://www.theundergroundinvestor.com/2012/04/the-weekly-dose-of-gold-silver-market-manipulation/

Embry - What’s Happening in China is Wildly Bullish for Gold

"The Chinese, over the weekend, stated their intention they wanted to make the yuan a much more internationally traded currency. Up to now it’s been so restricted that you couldn’t really deal in it. If this is their intent, and I believe it is, this is a huge step.

This is spectacularly bullish for gold because I think the Chinese will ultimately want to back their money with gold. The Chinese are huge players in the gold market. That’s their agenda, to be seen as a major play in the international currency market.

What the US dollar doesn’t need these days is serious competition in terms of being the reserve currency. If the US dollar starts to move off center stage as time goes on, this will be wildly bullish for gold. One of the things that would destabilize the whole financial system is if people figured out how vulnerable the US dollar is.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/16_Embry_-_Whats_Happening_in_China_is_Wildly_Bullish_for_Gold.html

Shift From U.S. Dollar As World Reserve Currency Underway – What Will This Mean for America

"Today, more than 60% of all foreign currency reserves in the world are in U.S. dollars – but there are big changes on the horizon…Some of the biggest economies on earth have been making agreements with each other to move away from using the U.S. dollar in international trade…[and this shift] is going to have massive implications for the U.S. economy..."

at http://www.munknee.com/2012/04/shift-from-u-s-dollar-as-world-reserve-currency-underway-what-will-this-mean-for-america/

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BRICs Bank To Rival World Bank And IMF And Challenge Dollar Dominance

"Leaders of the BRICS nations meeting in India appear to have made much progress in creating a new global bank as the emerging economies seek to convert their growing economic might into collective diplomatic influence.

The five countries now account for nearly 28% of the global economy, a figure that is expected to continue to grow.

On Thursday morning, President Hu Jintao of China, President Dmitry Medvedev of Russia , President Dilma Rousseff of Brazil, President Jacob Zuma of South Africa and Prime Minister Manmohan Singh of India shook hands at the start of the one day meeting in New Delhi.

Top of the agenda was the creation of the grouping's first institution, a so-called "BRICS Bank" that would fund development projects and infrastructure in developing nations.

The initiative would allow the countries to pool resources for infrastructure improvements, and could also be used in the longer term as a vehicle for lending during global financial crises such as the one in Europe, officials said.

Less noticed and commented upon is the aspirations of the BRIC nations to become less dependent on the global reserve currency, the dollar and to position their own currencies as internationally traded currencies.

The leaders of BRIC nations and other emerging market nations have adopted the idea of conducting trade between the five nations in their own currencies. Two agreements, signed among the development banks of Brazil, Russia, India, China and South Africa, say that local currency loans will be made available for trade between these countries.

The five fast growing nations participating in local currency trade will allow participants to diversify their foreign exchange reserves, hedging against the growing risk of a euro or dollar crisis.

The BRICS want to have easy convertibility of currency to make it easier to use the real, ruble, rupee, renminbi and rand amongst themselves without having to always use the US dollar. Higher intra-Brics trade, conducted in their own currencies would shield their economies from economic dislocations in the west.

In the long run, if global dependence and exposure to the dollar is to be reduced, then the BRICs currencies will have to trade amongst themselves, creating an intra Brics currency market. This could lead to a special reserve BRICs currency that could rival the IMF's Special Drawing Rights (SDRs) and in time a regional currency could emerge. However, the EU's experience of a single currency may make this less likely..."

at  http://www.zerohedge.com/news/brics-bank-rival-world-bank-and-imf-and-challenge-dollar-dominance

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10 Reasons Why The Reign Of The Dollar As The World Reserve Currency Is About To Come To An End

"The U.S. dollar has probably been the closest thing to a true global currency that the world has ever seen. For decades, the use of the U.S. dollar has been absolutely dominant in international trade. This has had tremendous benefits for the U.S. financial system and for U.S. consumers, and it has given the U.S. government tremendous power and influence around the globe. Today, more than 60 percent of all foreign currency reserves in the world are in U.S. dollars. But there are big changes on the horizon. The mainstream media in the United States has been strangely silent about this, but some of the biggest economies on earth have been making agreements with each other to move away from using the U.S. dollar in international trade. There are also some oil producing nations which have begun selling oil in currencies other than the U.S. dollar, which is a major threat to the petrodollar system which has been in place for nearly four decades. And big international institutions such as the UN and the IMF have even been issuing official reports about the need to move away form the U.S. dollar and toward a new global reserve currency. So the reign of the U.S. dollar as the world reserve currency is definitely being threatened, and the coming shift in international trade is going to have massive implications for the U.S. economy.
A lot of this is being fueled by China. China has the second largest economy on the face of the earth, and the size of the Chinese economy is projected to pass the size of the U.S. economy by 2016. In fact, one economist is even projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.

So China is sitting there and wondering why the U.S. dollar should continue to be so preeminent if the Chinese economy is about to become the number one economy on the planet.

Over the past few years, China and other emerging powers such as Russia have been been quietly making agreements to move away from the U.S. dollar in international trade. The supremacy of the U.S. dollar is not nearly as solid as most Americans believe that it is.

As the U.S. economy continues to fade, it is going to be really hard to argue that the U.S. dollar should continue to function as the primary reserve currency of the world. Things are rapidly changing, and most Americans have no idea where these trends are taking us.

The following are 10 reasons why the reign of the dollar as the world reserve currency is about to come to an end...."

at http://theeconomiccollapseblog.com/archives/10-reasons-why-the-reign-of-the-dollar-as-the-world-reserve-currency-is-about-to-come-to-an-end

Brics’ move to unseat US dollar as trade currency

"South Africa will this week take some initial steps to unseat the US dollar as the preferred worldwide currency for trade and investment in emerging economies.

Thus, the nation is expected to become party to endorsing the Chinese currency, the renminbi, as the currency of trade in emerging markets.

This means getting a renminbi-denominated bank account, in addition to a dollar account, could be an advantage for African businesses that seek to do business in the emerging markets.

The move is set to challenge the supremacy of the US dollar..."

at http://www.citypress.co.za/Business/News/Brics-move-to-unseat-US-dollar-as-trade-currency-20120324

Why money-printing is like 'global warming'

"Here's a must-read post by Aussie blogger Jo Nova – and it's not on her usual topic climate change. The title says it all: The Ground Zero of Global Corruption: it starts with The Currency.

It’s like this. The governments and their central banks make as much free money from thin-air through fractional reserve banking and other methods as they can get away with — it benefits those who “spend that new money first”. They spend it at current prices, and pay it back later, after inflation has decreased its value. The people who pay the difference are those who saved and held money while its purchasing power fell. Speculators grow rich, while retirees and savers get poorer.
In a free market this would quickly lead to inflation, and people would rush to the only currencies the government can’t inflate (or “print” for free) — they’d buy and hold gold or silver and keep their purchasing power. Remember, gold and silver are the currencies that evolved in the marketplace over the last 5,000 years and are not directly under the control of government. (And “so?” you say?). The point is, if the prices of gold and silver rise fast, people would abandon bonds and get into metals instead, thus correcting the situation by making the printing and speculating game vastly less attractive while saving and production became more attractive. Essentially, people dump the government money and go for the competitor, which means the government (and or Fed) has to increase the interest rate and pay more for its money, and nobody wants that: God forbid that Governments or Banks should pay people a fair rate for borrowing “their” money.
Bonds and “treasuries” (US Treasury Bonds) are fancy words for loans to the government. But if no one wants to buy them, then the government has trouble raising funds for its massive pork barreling vote-buying schemes, and the investment bankers pay higher interest payments which takes all the fun out of Grossly Huge and Obscene Mergers, the SubPrime Parties and the High Frequency Festivals.

I had a similar awakening a few months back when I went to see Detlev Schlichter talk to a small group of (somewhat terrified) MPs about his book Paper Money Collapse in a meeting organised by the Cobden Centre. Here is Schlichter explaining why Ben Bernanke's, George Osborne's and the European Central Bank's money printing experiment will only prolong the depression..."

at http://blogs.telegraph.co.uk/news/jamesdelingpole/100146037/why-money-printing-is-like-global-warming/

BRICS bank next step to dollar independence

"The ‘club’ of emerging economies known as the BRICS are strengthening their union. The countries are mulling over setting up a single development bank to promote joint investment initiatives, as well as their domestic currencies.
Brazil, Russia, India, China and South Africa are set to discuss the idea at the coming BRICS meeting in New Delhi on March 29, Financial Times says.
This is mainly to get a louder say in international arena for the“great reserves,” Ivan Tchakarov, chief economist for Russia and CIS countries at Renaissance Capital, told Business RT. “All of these economies, in particular China, Russia and Brazil and less so India are the countries that are not only growing at a significantly faster pace than the developed economies, but they also have a lot of reserves,” he said.
China currently possesses the biggest foreign exchange reserves in the world, standing at $3.2 trillion. This compares with Russia’s $505.4bln and $355.1bln in Brazil, which ranks them the 4th and the 6th on the list.
The setting up of such an international financial institution will pave the way for a bigger voting for the BRICS countries in international bodies such as the IMF and the World Bank, Tchakarov added.
In terms of priority, infrastructure projects would most benefit all the BRIC members, as it remains well below the world standards in all of the states, Tchakarov said.
The move comes after media reports were saying Brazil, Russia, India, China and South Africa were seeking distance themselves from the US dollar. Mutual credits in so-called “intro BRICS currencies” through such a bank for development could really help them“elevate their international status.”

at http://rt.com/business/news/brics-set-bank-development-004/

China yuan could be reserve currency with reform: IMF

"China's yuan could become a reserve currency in future if the country undertakes further economic reform, International Monetary Fund managing director, Christine Lagarde, said in a speech on Sunday..."

at http://finance.yahoo.com/news/china-yuan-could-currency-reform-055837428.html;_ylt=Aga_KFtcKYtaweINvlOrfhzzuYdG;_ylu=X3oDMTQwcjV2Z2xhBG1pdANUb3AgU3RvcnkgQ29sbGVjdGlvbnMEcGtnAzQxNDVkODI5LTU4YjgtMzczNC1hYzBkLTlhZjUxNmJhNGNiYQRwb3MDMTcEc2VjA3RvcF9zdG9yeQR2ZXIDOWY3ZDllZTAtNzBiZi0xMWUxLTk3YTktYmY1YTdjOWRjNGYw;_ylg=X3oDMTFrM25vcXFyBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdAMEcHQDc2VjdGlvbnMEdGVzdAM-;_ylv=3