Gold Hits Record High As Dollar Tumbles On Fed’s Announcement
September 22, 2010: Kurt Nimmo / Infowars.com – September 21, 2010
It is yet another example of the indispensability of gold as a hedge against the bankster engineered economic implosion. Earlier today, the precious metal reached a new record as the dollar tumbled further on the Fed announcement it will continue its habitual manipulation of monetary policy by keeping interest rates artificially low.
Gold reached $1,290.40 an ounce at 2:43 p.m., according to Bloomberg. At the same time, the beleaguered dollar fell 1.3 percent against a basket of six major currencies. Gold has surged 17 percent this year, heading for a 10th straight annual gain.
Many gold advocates are stunned by the momentum and note that the market will soon reach the psychologically important $1,300 an ounce mark. Analysts believe the price will reach $1,500 by the end of December or during the early months of 2011.
Not only are private investors flocking to gold, but so are central banks, as former stock broker Max Keiser noted on the Alex Jones Show yesterday. “Central banks for the first time in decades are buying gold,” Keiser explained. “Up until recently they were net sellers of gold, now they are actually buying gold. So, this is another huge piece of the equation for gold.”
The ABN Amro Yellow Book, a detailed data and analysis publication that records past and possible future activities in the gold market, notes that in the past gold was used by central bankers for “reserve guarantees” and then “mobilization and portfolio management” before finally hitting “gold sales” in the 1990s and early 2000s. The VM Group consultancy in London explains that today “there is a rational case for postponing gold sales.”
In addition to western central banks, a growing list of countries have been adding to their official gold reserves in order to reduce the risks associated with their U.S. dollar-denominated holdings. China, India, Russia, Mauritius, Sri Lanka, the Philippines, Kazakhstan, Venezuela, Saudi Arabia, and even Bangladesh are reporting gold purchases as a hedge against the falling value of the dollar.
When central banks engage in increased gold purchases, it means they are printing more fiat paper money. “The Federal Reserve Bank no longer shares M3 money supply with the public. Therefore, the public no longer knows exactly how much money is in circulation at any one time. However, the increase in gold is a pretty good barometer of how much money is being created,” writes Nicholas Santiago.
Historically, gold has been used as a hedge against severe economic conditions, so all this increased buying and hoarding of gold can be viewed as a warning signal of big trouble just up ahead.
“Gold going up means that the world financial markets are giving President Obama a vote of zero confidence because it means that the value of the dollar is collapsing in a way that crushes economies a la 1930s,” writes Gil Guignat. “Gold is the only asset class on this planet that when it goes up at this current pace, it means a very, very bad omen is in the offing in the very near term.”
In short, if you want to protect your family and retain your wealth, gold is the place to be.
The Tonka Report Editor’s Note: The problem with gold is that unless you physically take possession of it, it’s probably sitting in the same banks that orchestrated this economic tsunami… – SJH
Link to original article below…
Written by Steven John Hibbs
September 22, 2010 at 11:07 am
Posted in Big Brother, Civil Rights, COINTELPRO, Communism, Conspiracy, Corruption, Deception, Disinformation, Economy, Education, Fascism, Federal Reserve, Freedom, Geo-Politics, Global Banking, Government, History, IMF, Law and Justice, New World Order, Obama, Obama Regime, Orwellian, Propaganda, Psyops, Slavery, Socialism, Sovereignty, U.S. News, Video, World Bank, World Disasters, World Government, World News