Central banks

Inflation is coming and it will have a major effect on the world economy and financial markets. This is one of the factors that will drive gold to levels which few can imagine today. Later in this piece, I am discussing 10 Factors which will make gold surge.

The traditional post jobs report rally for gold is in full swing. Gold arrived at a key Fibonacci line at about $1268 as the US jobs report was released.

China, increasingly backed by Russia—the two great Eurasian nations—are taking decisive steps to create a very viable alternative to the tyranny of the US dollar over the world trade and finance. Wall Street and Washington are not amused, but they are powerless to stop it…

If the US cannot stop China from implementing its “oil – for yuan – for gold” program, then the fate of the US is at hand.

“Europe’s bank sector has grown too big and may need to shrink, possibly through mergers or failures (...) many banks in the euro area do not earn their cost of capital.” In other words, they are zombie banks, bankrupt and only kept alive by the liquidity flowing from the ECB.

Few Americans are aware that their real purchasing power has declined by 97% since that illustrious day on August 15, 1971 when Nixon sold the US down the drain. It is now only a matter of time until the dollar goes to ZERO. Es ist jetzt nur noch eine Frage der Zeit, bis der Dollar auf NULL geht.

The Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Putin’s 17 years in power, according to World Gold Council data.

Fabrice Drouin Ristori's exclusive interview with Charles Gave, economist and president of the liberal think tank Institut des Libertes, on gold, European banks and the risks that may have an impact on savers and investors.

The price of oil, the value of gold, the value of the Yuan and the value of the Dollar will all be affected as the economic relationship between vast amounts of oil and scarce amounts of gold is determined.

Exporters of oil to China will accept the Chinese currency, the Yuan, in payment for the oil; for this deal, the Chinese have added an incentive: the Yuan received by the oil exporters will be exchangeable for gold.