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Funds, Money and Gold Directory - dB2B.info database

april 2008, february 2009, juli 2010

Gold: new world currency?

Our family economy: what is profitable and what is not, what is cheap and what is expensive.
Graphs of gold prices in dollars and euros.
Charts on the price of currencies to gold.
Gold Standard: the only economic orientation during the financial crisis?
Will the savings in gold save you during the financial crisis?
Who robbed us?

Rates of the currencies. Which currency is safer - the dollar or the euro?

Gold price 2010 - 2013
Gold price 2010 - 2013

There is a myth that the rates of the two competing currencies - U.S. dollar and the euro - are fluctuating relatively each other. This is actually a myth, phenomenon of secondary importance. In practice, the rates of these two currencies (as well as almost any other) fall like two coins discharged from the bag - with acceleration. Sometimes, however, one-dollar coin turns across and slows down the fall - then they tell us that "the rate of the dollar rises, while that of the euro - falling, another time is contrary. As it is known, the process of the fall ends with same thing - with the money, which until recently were yours, and which already has someone else, uses them for himself and become ... New World Order.

Graph of change in the price of gold
Fig. 1
A graph gold price over the past 40 years in dollars per gram

The graph is composed of data from Gold Price (1968-2008)
A historic long term candlestick chart in a logarithmic scale of the gold price measured in the United States dollar for the years 1968 - 2008. (24 Jan, 2009 - Wikipedia, GNU Free Documentation license)

Years ago, during the history lessons we were taught, that in ancient times mankind has made a financial genius discoveries:

  • Exchange of goods;
  • Money exchange means such as "shells and other valuables" - as equivalent to the value of the goods;
  • Coins such as gold and silver minted bars, measurement blocks;
  • Notes (bank notes - from "bank note"), confirming amount in gold.

But the chart shows that at various times a dollar has meant a different amount of gold! Nonsense! By definition, the money in notes (including the dollar) suppose to mean, that the dollar in 1970 should be equal to the dollar in 1995. In practice, it does not, go to any bank and try: will they exchange 1 dollar of 1970 for 6 dollars of 1995 dollars.

This absurdity is called FIAT MONEY.

Now let's look at gold and finances from the other, demode point of view: how many grams of gold costs 1 dollar:

Schedule for amending the value of the dollar gold
Fig. 2
Schedule for amending the value of gold dollars for 40 years, in grams of gold per 1 dollar

See details and data. above clarification to the chart in Fig. 1

Financial absurdity is explained very simply - it has appeared to be possible because of new financial inventions.

From the oldest financial invention "notes confirming gold stock" was initially discarded the term "gold stock" and it has been replaced by a vague term "gross national product, wealth of the country and its nationals" and other abstract nonsense. The sophisticated methods of calculating this "wealth" are exactly on time: no one is able to understand how the state measures the amount, which determines quantity of printed banknotes. The results of the "growth" of wealth in the U.S. can be seen from the above displayed graphics.
(In the not distant past, those inventors have been called counterfeiters, arrested and executed.)

But this is not the end! A bit later were invented "financial instruments" that enable banks and companies to include in theirs present condition and future profits under warranty ... future income (and, perhaps, not quite their income).

As is seen, these graphs show two "critical" points - 1970 and 2001. The decline of dollar gold price since 2001 on the second graph seems to be insignificant, but look at the more detailed graphics:

Schedule change in the dollar gold price for 8 years
Fig. 3
Schedule change in the dollar gold price for 8 years, in grams of gold for $ 1

See details and data. above clarification to the chart in Fig. 1

From this graph become clear two assumptions:
1. Today's financial crisis started in 2001, not in 2008, by the reason, that financiers has just tried not to notice it.
2. Gold price of dollars will be equal to zero to 2014, if the process of loss of sanity among financiers will not accelerate.

What happened to those who has not participated in the financing and construction of financial pyramids? I mean farmers, metallurgists, construction workers and bakers. They were robbed by counterfeiters.


Basic financial answer - 2009 (for 2010?):

"“The biggest hurdle to making the yuan an international currency is the fact that it is still not fully convertible,” said Tse Kwok Leung, head of the economic research division at Bank of China Ltd.’s Hong Kong branch. “How the financial authorities will carry out the reforms will determine when the yuan can become global.”"
Yuan Can Be ‘3rd Pillar’ of Finance System, Yam Says (Update1)
By Bloomberg News - December 18, 2009
www.bloomberg.com/apps/news?pid=newsarchive&sid=aa62SdfwgOZI

Does this statement of Bank of China Ltd. mean, that Yuan will automatically become a global currency, as soon as P.R.C. government decide, it is necessary for P.R.C. government?
The argument, that the statement is serious: P.R.C. government is the biggest USA creditor; China is the biggest holder of United States treasury securities - 798.9 billion dollars*; China has more that 2 trillions of foreign currency, most of which are dollars.
With such financial power, Yuan is able to become the global currency. Maybe the only international currency, just as China became the biggest producer and controls the global market.

* Source:
United States Treasury security, By Wikipedia

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parther link:
YUAN.NetNotebook.Net - On the financial secrets of a great economy, or where there are economic crises and hyperinflation. On the role of investment gold as a means of payment 

24caratGoldStandard.NetNotebook.Net - On the financial secrets of a great economy. Cheating worker, business, customer 

URL.biz - Business Services



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