The G20 London Summit and a New Gold Standard!
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| Topic: Other, Gold — March 30th, 2009
Thousands of demonstrators take part in ‘Put People First’ march through central London, 28 Mar 2009
This will be an important week for gold as the G20 convene in London, George Soros warns that this is make or break for the world economy and thousands of people take to the streets to vent their frustrations.
It is difficult to imagine that this G20 group meeting is nothing more than a talk fest with little in terms of positive actions coming out of it. However our national leaders are beating the drum of co-operation, unity and co-ordinated action as depicted by the following clips:
MOSCOW, March 29 (Xinhua) — Russian President Dmitry Medvedev said on Sunday that it was necessary for G20 leaders to reach an agreement at the coming London summit.
BEIJING, March 29 (Xinhua) — Chinese Vice Premier Wang Qishan has called on the international community to “act together” at the upcoming London summit to get through the global financial crisis, in an article published by the British newspaper The Times on Friday.
Australian Prime Minister Kevin Rudd has said the preparations for the London Summit have demonstrated global cooperation on an unprecedented scale in modern times. Speaking on BBC-TV, Mr Rudd said he was confident that this week’s G20 meeting in London would agree on a coordinated approach to the global financial crisis.
German Chancellor Angela Merkel has also spoken of her optimism about ‘good results in all areas’ at Thursday’s summit. However the German government is not that supportive of the ‘print more money and throw it at the problem’ solution.
Gordon Brown’s management of the UK’s gold sales, against the advice of the Bank of England, was pure amateur. To dispose of 400 tonnes of UK gold via an auction as though it was scrap metal leaves us speechless and now he wants to administer medicine to the worlds economy, please!
As we see it there is only one thing more frightening than a political leader taking action and that is a gaggle of them joining forces to inflict more of their ill thought out strategies upon us. Most of our leaders are career politicians and their main objective is to ensure their own survival, they have little in the way of business experience and therefore are not qualified to legislate in these matters.
Our expectation is that this most important meeting of meetings will result in the publication of an ambiguous all embracing statement encompassing a strategy for the way forward. Shortly afterwards each government will revert to self defence in their actions and do their own thing. The Americans and the British will print their socks off and purchase more toxic paper resulting in a massive present and future taxation burden for their workers who are already up against the wall with rising unemployment and house repossessions. Both of these once mighty currencies are poised to crash as the rising price of gold over the last seven years has been telling us. We draw your attention to the speed and the magnitude of the financial stimuli that is being administered today and ask you once again to consider the virtues of owning precious metals in these uncertain times.
And finally a novel idea from Arkady Dvorkevich, the Kremlin’s chief economic adviser, who said that Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund.
Chinese and Russian leaders both plan to open debate on an SDR-based reserve currency as an alternative to the US dollar at the G20 summit in London this week, although the world may not yet be ready for such a radical proposal, according to the Telegraph.
This week is now shaping up to be very interesting indeed so stay tuned as the ghost of the gold standard casts its shadow across the Thames.
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I guess the U.S. need to accept the suggestions of the E.U., and the E.U.and the other nations need to adopt an advanced smart grid technology, which is worth the deficit for job creation and economic activity, is something to do ultimately.
I think like USA, the world economy also urgently needs job creation, and like internet, the global economy requires common ground, that is why The World-Wide Green New Deal is necessary.
We can not rebuild grand economy on the volatile, declining energy base, instead, the world has enough technology and its potential, I suppose.
Thank you !
Comment by HSR0601 — March 30, 2009 @ 11:08 am
How about the IMF being cajoled to sell off some of their gold to help the poor countries weather the economic storm.
What else will they contrive to try to hold down the gold price?
J
Comment by John Ell — March 30, 2009 @ 2:09 pm
Gold is no longer an investment. Gold is no longer a portfolio item. Gold is certainly not a trading vehicle. Gold is your lifeline and I mean that literally.
comment on a missive from Jim Sinclair
Comment by Gold Prices — March 30, 2009 @ 6:06 pm
J,
The IMF may well sell some of their gold but we doubt that the proceeds would go to a good cause.
If they were that way inclined they would have done it by now as there are enough troubled areas in the world that could use the help. Its fingers crossed that they don’t use it to support some tin pot currency or bailout scheme!
Comment by Gold Prices — March 30, 2009 @ 6:11 pm
Jerrold,
This is a tad tongue in cheek, but Obama has said that the auto companies may have to seek the bankruptcy route, in which case no one would buy a car without a warranty, he suggested that the government may back the warranties - so the gold could be sold for that purpose!
Comment by Gold Prices — March 30, 2009 @ 7:06 pm
Unfortunately the western power elite are determined to return to the business as usual credit/debt
merry-go-round they have the masses trapped on.
Your idea of investing in precious metals is a good one except that I think the ruling elite in the west
will urge that the IMF dump gold to dissuade the masses from investing in gold.
The IMF has been threatening to do this for a long time, ostensibly to pay for their operating costs.
Comment by P — March 30, 2009 @ 8:11 pm
Seems like the whole world including Russia and China have very serious and legitimate concerns with Obama’s fiscal amateurism… they have systematically proposed a Chinese-based world currency, a Russian -based world currency and even a return to the Gold Standard based currencies. Bottom line: everyone thinks Obama is gonna print more money to increase his spending abilities before the world systematically devalues the dollar even further. I gots plenty o money… I still have 100 checks left !
Comment by An American Patriot — March 30, 2009 @ 8:55 pm
Nice one!
Comment by Gold Prices — March 30, 2009 @ 11:10 pm
Mr Rudd, the Australian Prime Minister praises Gordon Brown – its becoming a mutual admiration society for the Muppets! see the video:
http://news.google.com/news?q=
The%20G20%20London%20Summit%20and%20a%20New%20Gold%20
Standard!&hl=en&um=1&ie=UTF-8&sa=N&tab=wn
Comment by Gold Prices — March 30, 2009 @ 11:14 pm
1. The change is not abrupt. It has been cooking for years.
2. Yesterday the change was set in cement as completed.
3. GM is only the first.
4. From now on rather than public corporate management looking to stockholders, their vision will be towards Washington from whom they will take their clues to act.
5. Finance, having taken over government, now has taken over public industry.
6. It does not matter how you define this in terms of ism.
7. The American Dream is dead.
8. The US dollar is dead.
9. Gold is your only lifeline because investments are over (see Monty’s comments on volatility). I means lifeline in its most literal interpretation.
Received in a missive from Jim Sinclair
Comment by Gold Prices — March 31, 2009 @ 6:37 pm
Well, you know that there has to some manipulation. If the elitist sell gold. You can bet that they will be buying it back. LOL!!!!!!!!
Comment by jerrold minyard — April 1, 2009 @ 8:21 am
is it useless to invest gold right now?thank you…..
Comment by tutut — April 18, 2009 @ 1:06 pm
No, its not useless. Gold and silver are the real money. The elitist don’t want you to have any knowledge about precious metals. Go to your bank and try to buy a gold eagle 1 oz coin.
Comment by jerrold minyard — April 19, 2009 @ 4:08 am