The Final Collapse of Western Fiat-paper Capitalism. From China's Point of View, It is Just a Waiting Game
Alcuin Bramerton
A photograph
One Year Gold - London Fix - July 2010 to July 2011 (chart)
Gold vs Euro vs US Dollar - October 2010 to July 2011 (chart)
Most Western cabal-controlled governments are in a race to the bottom to get their currencies as low as possible. The US Dollar and the Euro are being forced down fast in this decadent contest. Hence the rally in gold during the EuroZone Italy/Greece crisis.
From here, gold goes up for two reasons. First, gold is a dollar-denominated asset and as the dollar weakens, gold will increase in value. Second, sovereign or default risk is deflationary. Europe and the US will continue to take turns in driving gold higher.
The Chinese will chase the gold price all the way up until the new gold-backed international currencies come on stream following the final collapse of Western fiat-paper capitalism. At this point the inevitable, and long-prepared, Global Debt Jubilee (universal debt forgiveness) will be rolled out.
From China's point of view, it is just a waiting game. The inexorable mathematics of the West's debt-structured economies will collapse the fiat house of cards from the inside. The next big puff of internal wind from Brussels or Washington could do it.
More current gold price background here (14.07.11), here (14.07.11), here (14.07.11), here (13.07.11), here (13.07.11), here (13.07.11), here (12.07.11) and here (12.07.11).
July 13, 2011
http://alcuinbramerton.blogspot.com/2011/04/altnews7-1ab-alcuin-alcuin-bramerton.html