Tuesday, January 7, 2014

The Biggest Scandal in Economic History

There is no doubt in my mind, that China wants its yuan (probably backed with gold) to be the world's next reserve currency. The US with its obscene level of debt is in no condition to keep the dollar as the world's reserve currency. Incidentally, I note that an increasing number of international commerce are now transacted in Chinese yuan. The dollar is the Achilles heel of the US.

As I've been saying, the year 2014 will be a year of tectonic changes. Bitcoin currency is becoming acceptable by an increasing number of organizations. Bitcoin is a menace to the phony dollars that are pumped out by the Fed. I know that the Fed wants to have a monopoly on the production of US money. Therefore, Bitcoin is a menace and rival to the Fed “dollars.” Therefore I expect the Fed to attempt to outlaw trading in Bitcoin.

Pity the Fed, besieged by Bitcoin and Chinese yuan. Bernanke will be happy to get back to South Carolina and out of DC ... Will the Treasury have the nerve to re-set the price of gold to $10,000 an ounce? And do we have enough gold to make a re-set worthwhile?

If it turns out that the US doesn't have the gold it claims to have. We could be looking at the biggest scandal in economic history. If we have all the gold we say we have, where's the damn audit?

- Richard Russel via King World News:

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