Comments on Market Skeptics: 'Smart Money Bullish on Gold Following G20 Meeting...

I agree with you on the your points. I do think go...

2008-11-18T09:09:00.000-08:00

I agree with you on the your points. I do think gold is set to go through the roof. Silver too. The 700 billion is nothing compared to the trillions that have actually been spent and promised. Ad to that the automaker debacle and the dollar is in some serious trouble.

Chinese leaders have deliberately held down living...

2008-11-18T00:53:00.000-08:00

Chinese leaders have deliberately held down living standards for their own people and propped them up in the United States. This is the real meaning of the vast trade surplus—$2 trillion and counting, going up by about $1 billion per day—that the Chinese government has mostly parked in U.S. Treasury notes. In effect, every person in the United States has over the past 10 years or so borrowed about $5,000 (5oz of gold) from someone in the (poor) People’s Republic of China.

Now Larry Edelson is proposing the US take that dept to China and make it into .5oz of gold per capita instead of 5oz. Why would China ever go along with that?

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As to why I don't believe we will be seeing a world currency anytime soon, the answer lies in the problems plaguing the euro. Here is one example:

Governments can go bankrupt if they don't control their own currency or interest rates. Because of this, there are strict budget rules governing the euro. This makes difficult for nations to deal with recessions because they don't control interest rates and their spending is limited by budget rules.

There are a buch of other problems with a euro-like world currency. In fact, All the problems with the euro would be even worse in a world currency.

For more on how the euro is faring, check this link::

The Euro Has Very Real Problems - And Nobody Really Stands Behind It

Eric, on another article you said it is unlikely "...

2008-11-17T22:33:00.000-08:00

Eric, on another article you said it is unlikely "G-20's Secret Credit Crash Debt Solution" is going to happen, since China will be very furious of that.

But, for China, when US$ hyperinflation occures, government debt disappears too. I see the same result for creditors.

So why do you refuse G20 agreement on new currency (as supposed in linked article) can be settled?

Second, i am interested in your opinion: if the hyperinflation scenario will be pushed, what is to be expected within the scope of other currencies? Will that leak into massive world scale inflation or local currencies are going to left sideward?

Wish you best and thank you for interesting topics.