America blinks! (Well done Germany!!)

[thriftyandboringinohio]

Re: America blinks! (Well done Germany!!)

I bet you will NOT sell your Gold at that time.
If that happens, all the wealth stored in Dollar bonds the world over will madly be running from dollar to physical assets/Gold with dollar becoming like any other currency.
I bet you will freeze and think it over again and again.

LOL! You could very well be correct, sishya.
If such extraordinary circumstances actually occur, I may not want any more worthless FRNs than I need to light campfires.

Still, I don't see how ECB/BIS could drive gold so high in dollars, or why that would damage the dollar more than any other currency.

I admit I haven't read a single word of the source material. Do you have some good links?
Have you read it? Does it seem plausible to you?

[sishya]

Re: America blinks! (Well done Germany!!)

LOL! You could very well be correct, sishya.
If such extraordinary circumstances actually occur, I may not want any more worthless FRNs than I need to light campfires.

Still, I don't see how ECB/BIS could drive gold so high in dollars, or why that would damage the dollar more than any other currency.

I admit I haven't read a single word of the source material. Do you have some good links?
Have you read it? Does it seem plausible to you?

Iam not saying a total hyperinflation(i.e loss of confidence) will happen because US FED is good at sterilizing dollar printing. even the recent dollar swaps are not outright printing. But who knows - printing is not required to lose confidence, it mostly will be only a political decision by others(oil producers, other producers).

But I certainly think that the functionality of dollar as "international store of wealth" (aka reserve currency) will be renounced by other nations and small third world citizens. Dollar will function only as a "transactional medium of exchange" functionality in internal usage. When this happens Gold will become the automatic reference for world trade and store of wealth. This means high inflation for dollar(or possibly even hyperinflation).