Monday, May 26, 2014
Just like Auric Goldfinger, the famous James Bond villain, Vladimir Putin has taken it upon himself to try to destabilize and wreck the current world order of the dollar being the world's reserve currency. To that end he is trying to unite the Eurasian countries starting with China and the former Soviet Union satellite states into one trading zone that does not rely upon the dollar. Instead, Russia, China, India and others have been on a gold buying spree as President Obama singlehandedly wrecks the entire post WWII and post Reagan world order. In addition, they all vow not to use the dollar in any trade deals.
Goldfinger tried to knock off Fort Knox and destroy the USA's gold reserves. Putin has bigger plans. In ways that are reminiscent of Henry Kissenger's policy of Detente with China and the Soviet Union, Putin hopes to realign the world geopolitical order and destroy the USA while Obama sleeps at the wheel. To that end he has formed economic alliances with China, Iran, Egypt and to some extent India. He has also been the instigator of aggression against many of the former Soviet Satellite Nations and has Europe over a gas dependent barrel. The Ukraine has been the lynchpin.
James Rickard's new bestseller, "The Death Of Money" takes off where "Currency Wars" left off. The aforementioned Eurasian detente occurred after the "Death Of Money" was published. Maybe Putin had advanced copies of the book, which posits a coming collapse of the world monetary system triggered by the irresponsible money printing policies of the world's Federal Reserves. Whatever Putin had, his policies seem to be speeding up the process.
As a consequence, along with my fears about what is happening to our country, for the first time in years I have become intrigued with gold as an investment. I am not yet long GLD, but am watching the chart for signs of a turnaround. We all know the deflation argument against gold. However, we have not thought about the power that the collapse of the international monetary system would have on gold. Here is one interview that James Rickards has given:
I am going to carefully monitor the situation and use the GLD chart as my main guide. If GLD starts to run and take out the resistance points on the below chart, I intend to go long GLD and add to my position as each resistance level is popped. To be clear, I view this chart as a set up. If it works fine. If not, there are plenty of more fish in the sea.
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