Play along with the scam and invest in gold bullion.
March 05, 2011 – Every time the stock market rebounds Wall Street is quick to proclaim that gold bullion prices have hit their ceiling and the Fed declares that it has succeeded in saving the economy. But despite all of that chest thumping, neither has had much to do with what is really going on.
The rest of the world is just acting in its own best interest and is taking advantage of America’s delusional state. Suppose, for instance, that you are in control of China’s central bank. It has been your plan all along to overtake the US and replace the dollar with the yuan, but first you had to grow your nascent economy at a stellar pace while maintaining stability to allow your currency to mature.
In the early years that meant hitching your wagon to the dollar through heavy investments in US sovereign debt securities. At the time the sheer size of the US economy gave the dollar the stability necessary to become the dominant safe haven and the clout required to become the standard in international transactions. But now you see the value of the dollar eroding exponentially, threatening a huge proportion of your sovereign wealth.
You can’t afford to dump your holdings because that would render them virtually worthless overnight. And no other currency is ready to step into the dollar’s shoes. So despite being the world’s largest gold producer, you begin importing vast quantities of gold bullion. And you begin gradually divesting yourself of toxic US sovereign debt.
While doing so it is in your best interest to manipulate the markets in whatever way you can to hold down the price of gold while bolstering the dollar and US equities. Rather than fall for the ruse, individual investors should simply play along with the scam and put their money into gold bullion.
