Graftman I posted this on the pog19 Mar 2014 11:46
Bb,but would love to pose this "dilemma" to you also:- Are being played, but how best to "get the right side of history". The way I see it (and have put my small mind under much strain in drawing these conclusions) at least one of the following must happen: 1- collapse of the faith in the dollar through the form of a rival currency(probably backed by gold), or through inflation,although I see both unlikely as this form of deficit spending enablement suits all world governments, and to combat inflation all governments need only write-down a portion of each other's debt(and hey there mostly all in bed with each other, and those that aren't get kicked out of the big bed...permanently).2-the dollar collates its self by subtracting dollars in existence before going back to a gold standard. Or refuses to acknowledge foreign held dollars before aligning it back to gold( the rest of the world will be pi**ed, but get over it as it will still need to sell its sh*t to America,and hey they can look forward to future payments in gold).Again both seem unlikely as the fed prefer expanding the currentcy, not deflating it.3- maintain the status quo forcing the hand of all world government to keep/speed up there printing presses. Options 1&2 would see POG multi bag, option 3 will see POG continue to be suppressed(although still rising, just not in inflationary terms). P.s I'm assuming the USA has the largest holding of gold in the world in all examples, as the elite hedge themselves in all assets to combat all circumstances, so for the likes of china to change to a international gold standard currency, would I believe also be in the yanks interest as they would have a scapegoat to blame for future lack of world prosperity, after 50 years of the great dollar.(the Chinese know this so while accumulating gold, are happy to play"call my bluff").As you state it's all about the dollar, and would love to hear any other possibilities?. Now although these points all at first seem negative to the POG, I am a gold-bug and believe that gold will rise in all outcomes, but will only reach its true value in the outcome of points 1&2. Point 3 will still see it rise just not in interest adjusted terms.