| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Who will be next?
ERDOĞAN SUGGESTS SHIFT FROM DOLLAR TO GOLD
Prime Minister Recep Tayyip Erdoğan states that instead of ruling the world under the pressure of the dollar the IMF should switch to using gold.
How interesting is this? The prime minister of Turkey, (described during the election campaign by the Obama administration as “sort of our ally”) has called for the IMF to fund loans using Gold rather than Dollars. First off, it should be understood that the world now see’s the IMF as a lending institution which does not really have the borrower’s “best interests” in mind. But more importantly, this is a call to abandon the Dollar. As you already know, many trade deals have been contracted over the last year where the local currencies of trading partners are used instead of Dollars.
This statement by Mr. Erdogan goes a step further, this is more or less sticking his finger in the face of the U.S.. The IMF was created at the Bretton Woods agreement by the West and the U.S. has a 17% vote which equates to veto power. Without doing a long history on the IMF (which has done “some” good things), suffice it to say that countries have come to understand that when they hear “We are from the IMF, we’re here to help you,” it is not necessarily a good thing. Many loans have been structured where the borrower pledged real and valuable raw materials for a loan in Dollars which had harsh terms, when these loans defaulted the “collateral” was lost. In many instances this was just a slight “twist” on the never pay model of the Dollar. Create Dollars, lend them out against real collateral, foreclose and scoop up the collateral.
In any case, the Prime Minister of Turkey is the first to call out the IMF (the U.S.) and suggests funding loans with Gold rather than freely created Dollars. He did this I presume because he knows that the IMF doesn’t have that much Gold in its coffers. Yes, they have (supposedly) over 2,000 tons but this amounts to something just over $100 billion. In today’s world, $100 billion unfortunately is chump change. The IMF, if it had to fund loans from their Gold (at today’s “sky high” prices), couldn’t even get Europe’s heart to flutter a beat were they to fall and hit the ground. To remain any sort of factor today, the IMF must have the ability to fund loans out of thin air or they become irrelevant.
Now, the next thought should be, “Who will be next?” Today it is Turkey, who will “second the motion?” Will it be another periphery country? A big player? Someone who is “sort of” our ally? Or will it be a country that really counts? Can you imagine if a Saudi Arabia spoke up? Or Brazil? Or God forbid China? My point is this; this is just another jab at the Dollar hegemony over the rest of the world in what will at some point grow louder and louder. The calls will continue until “the rest of the world” feels strong enough and builds a consensus to abandon the Dollar. It’s going to happen sooner or later, the only question now is when, no longer if.
It is so important for you to understand that if you are an American, the abandonment of the Dollar will mean higher prices. MUCH higher prices for ANYTHING and EVERYTHING that we import. Inflation will come out of the box faster than a New York minute. You must understand that the world will be watching us. They will watch as the sham “debt ceiling” is debated and either increased or abolished. They will watch as taxes are raised and healthcare costs go ballistic which will destroy any further ability to fudge the GDP numbers to show “growth.” They will watch as The Fed buys more and more Treasury debt as the buyer of last resort. They will watch it all like spectators at the gladiator games some 2,000 years ago thirsty for blood.
Similar Posts:
- Who is Selling Physical Gold?
- Occam’s Razor Tells Us Who Is Manipulating Gold Now
- What Will Their “Values” Be? …A LOT!
2012-11-13 17:01:24
Source:
