Steve Starr says:
April 12, 2013 at 2:45 pm
Nobody wants to hold gold anymore except Russia, China, and India, and probably most of the central banks. They will be taking possession at these artificially low prices., which are created by massive naked short selling (illegal but *zero* enforcement of regulations). The objective is to shake out the market for small investors who cannot afford to hold physical.
Why do this? To maintain the three largest bubbles in history: US Treasuries, the US dollar and the US stock market. How can it be done? Unlimited creation of electronic dollars, endless Quantitative Easing, $85 billion (or more) per month to purchase unwanted Treasuries and toxic securities. Not counting supplying trillion after trillion to European dollar-swap facilities to prevent central bank collapse in Europe. Plenty of dollars made available to manipulate all markets, to provide the Plunge Protection Team the means to drive stock prices higher and higher (80%+ of all trades made by big banks, these are not small investors moving the markets), even in the face of a non-recovery and increasing unemployment (you have to look at non-governmental figures if you want the real rates for unemployment, inflation, etc). Happy Days are Here Again!! Party like its 1999.
There is, however, a limit to this process, because the BRICS nations have made extensive arrangements to bypass US dollar in trade, to eliminate the dollar as the global reserve currency. This new Eurasian trade network will include something like 3/4 of the world's population and will not include the US or the US dollar. As the dollar is progressively excluded from global trade, and US Treasuries are returned to US/Anglo bankers in the process, the end game will become clear.
Whenever the Saudis make it official that they will accept a basket of currencies, the end of the petrodollar will draw the final curtain upon the US $$$ as the global reserve currency. When the US dollar has to compete with other currencies, it will be sharply devalued, resulting in disruption of supply to the US and corresponding shortages of virtually every consumer good. Then the true value of precious metals will become evident, although it may not do US citizens much good, if they are faced with Federal dictates preventing private ownership.