houseofancients
Solar Wizard
actually , china and russia have been stockpiling gold....You might want to fact check that. They have hedges in currency, sure, but Russia has some natural resources to fall back on, and China has huge, marketable stockpiles of finished goods and food supplies. Plus look up the estimates of gold they keep.
Value items such as oil, phosphorus, stable foods - and to a greater degree: gold - can be thought of as ‘fixed value’ items. The USD is deflatable as are other debt-based issued ‘currency.’
We saw this currency insecurity 2008-2011. The rising oil prices of 2007-2009 were popularized by the media as caused by ‘market speculators’ but these media “experts” neglected to recognize the basic economic reality that the price of oil was reflecting inflationary factors: the oil had a somewhat ‘fixed value’ and the dollar price was mostly a result of what buyers were expecting to have to pay in future devalued dollars to ensure their supply of raw crude.
The USD isn’t very strong when GNP is made up of nearly 50% government spending, not internal consumption and exports.
Neither Russia nor China depend on US dollar liquidity. It’s mostly a hedge.
Watch out, America: China and Russia are stockpiling gold
This could be the start of those countries’ attack on the dollar.
www.marketwatch.com
exactly what europe and us have not been doing