Central Banks Are Stealthily Dumping Their Dollars…Perhaps You Should Too!

Central Banks know that when the fiat currencies collapse, the last one left holding the “hot potato” is going to get burnt.  They want to make sure that YOU are left holding the bag!

The Central banks are moving their dollars into gold, but they are keeping quiet about it in order to keep from stimulating the gold price. They want to get theirs while the price of gold is still low, before you wise up to it!

Russia has revealed that it wants to see 10% of its reserves in gold. China is buying at least 91 tonnes a year. South Africa has admitted that it is a gold buyer, and other central banks are buying as they are able to.

With Russia and China buying gold, the pressure on other banks to buy the yellow metal is growing as the dollar and other currencies weaken. —Julian Phillips

 Gold has been moving up quietly this decade and your average person or investor is still essentially unaware of its strength, but that will likely soon change. —The Aden Sisters

In each episode of hyperinflation, governments went off a gold or silver standard. The United States went off the gold standard in 1971, and in less than ten years, inflation soared causing interest rates to peak at 21.5 percent. Gold prices went from $35 per ounce to $1000 per ounce as the dollar collapsed….In January 22, 2001 George Bush was inaugurated as President of the United States and the price of gold was $265 an ounce. The US then had a budgetary surplus. Today the price of gold broke $1000 an ounce which means the dollar has been devalued in terms of gold by almost 250 percent in less than eight years….While the unprecedented bailouts have piled on more debt, the need for more money to be printed is reminiscent of other hyperinflations. Hyperinflation tomorrow? No, hyperinflation now.John Ing

[Paulson (former US Secretary of the Treasury)] believes that money printing by the government will ultimately lead to a good deal of inflation…I see quite a body of sharp investment minds coming to the conclusion that in a social democracy with a fiat currency, essentially all roads lead to inflation…In any case, Paulson is convinced that gold will be a very good way to protect himself from the eventuality of currency debasement (i.e., inflation). He observed that if one thinks about gold in a three- or five-year time horizon (instead of hour to hour, day to day or week to week), the probability increases of gold being higher over time — and, most likely, much higher. —Bill Fleckenstein

Read more at: The Bullion Buzz – September 29, 2009

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Website: The New Survivalist

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5 Responses to “Central Banks Are Stealthily Dumping Their Dollars…Perhaps You Should Too!”


  1. 1 Hal (GT) October 1, 2009 at 12:47 pm

    Great culmination of quotes and thoughts on the coming inflation and what the big players are doing. I’ve been following China and Russia and the moves they’ve been making and feel the same way you do.

    China is one of those countries that eats the elephant one piece at a time. In other words they take their time and deliberately map our their strategy over long periods of time and accomplish it. It’s part of the cultural mindset I think. The moves they are making look to me very dollar negative long term. And of course Russia really has no interest to be tied with us. Another key to watch right now is Brazil, I think.

  2. 2 survivalist November 3, 2009 at 4:44 pm

    Los Angeles Times (Business Section):

    “Gold hits new high after India’s central bank loads up”

    “Gold streaked to record highs today, nearing the $1,100-an-ounce mark, after India’s central bank bought a load of the metal from the International Monetary Fund.”

    Read full article at:
    http://latimesblogs.latimes.com/money_co/2009/11/gold-record-high-india-central-bank-purchases-imf.html


  1. 1 The Chinese are Preparing for a Dollar Collapse « The New Survivalist Trackback on October 22, 2009 at 6:21 am
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  3. 3 Unsustainable Trends Eventually End: The Problem with Our Economy « The New Survivalist Trackback on March 2, 2010 at 2:19 pm

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