Friday, August 19, 2011

Venezuela transfers gold, for "international reserves" - End of dollar dominance near

The monetization of gold as international reserve currency under Chinese/Russian control is proceeding according to (their) plan.  The latest signpost: Venezuela's decision to bring their gold out of Western banks, bringing some of it home and putting some of it into banks in Russia and China (Pravda's coverage here  
Chavez said specifically that his gold will be used to create international reserves: "We're going to nationalize gold and we're going to convert it, among other things, into international reserves," he said.
Converting gold to international reserves???  That should raise eyebrows among anyone who is using their critical thinking skills.  Chavez is speaking of the future here, because prior to now, international reserves were in dollars, and there was no way to "convert" gold into dollars, except by selling the gold.  
Upcoming Gold-backed International Reserve Currency 
What Chavez is referring to is the ongoing effort of China and Russia to create a new international currency backed by gold.  The gold reserves will be monetized, meaning, they will be used as collateral for the issue of the new currency. 
By the way, this is not a conspiracy theory, as this is not a secret plan.  It is, in fact, spoken of openly by Russian and Chinese authorities.  See, for example, this summary of Putin 2009 speech at Davos and Russian President Medvedev unveiled the prototype gold international currency coin in 2009 (    Heck, Putin has been talking of gold as an alternative to dollars as early as 2005 (see: 
For some reason, the Russian-Chinese dollar replacement plan just hasn't made much publicity in Western news sources.   I attribute this partly to a cover up by the Western financial elite that controls the media, and partly to the simple fact that most people are completely ignorant and apathetic about monetary news or issues.  
This ignorance and apathy is unfortunate, because the end of "dollar dominance" will have profound negative consequences on the average American citizen.  As I have said repeatedly in the past, it will entail a massive inflation and economic collapse involving extreme unemployment.
Of course, Russian and Chinese leaders know perfectly well that the end of dollar dominance will have catastrophic consequences on the power of the United States, as the weakened economy is reflected in a weakened military and reduced foreign influence.  That is, after all, precisely why they are doing it! 
Interestingly, we can add Venezuelan President Hugo Chavez as one of the prophets of our current economic doom.  As the Fox story puts it:
"At a summit in 2008, he urged his Latin American allies to begin pulling their reserves out of U.S. banks, warning of a looming economic crisis in the United States."

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