For many years, the willingness of the world to accept dollars has been the key to the prosperity in the United States. Think about just how crazy it is that dollars created by the world’s biggest debtor nation, with nothing backing their value but the Government’s ability to tax and print, is accepted as the world’s reserve currency.
The illusion of prosperity in the US, for years has been fostered by the grace of our foreign creditors. But it is becoming obvious, that these overseas investors are beginning to worry about the situation in the US.
Foreign governments are dumping US Treasuries. The signs are coming from all sides. The data from the US Treasury Department points at it. The People’s Bank of China points at it in its data releases on its foreign exchange reserves. Japan too has started selling Treasuries, as have other governments and central banks.
These governments realize that at some point inflation, will be the by-product of the ultimate dollar devaluation and a massive destruction of wealth.
Gold and silver will be a financial life raft and will go much higher, in response to a lower dollar and the inflation which the Fed has little choice but to create.
The big money has for some time now been quietly moving out of dollars and treasuries and into gold and commodities. The big money realizes that they must quietly exit dollars and slowly acquire gold and commodities.
Case in point, Ted Butler surmises that over the last 4 years JP Morgan has quietly acquired over 600 million ounces of physical silver in their house account. That would be the largest physical silver position the world has ever seen.
At some point, the tiptoeing out of fiat currencies and movement into precious metals will turn into an all-out sprint. At some point, the world will realize what a scam accepting dollars as the world reserve currency is.
This is why we own gold and silver, because when the tiptoeing turns to an all-out sprint, it will be far too late to re position.
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