Gold prices are steady on Tuesday morning trading as the U.S. dollar falls against the euro when “optimism” on a Greek deal rises. Seemingly, markets are ignoring the fact that Greece cannot repay its debt unless it borrows more money to do so. Greece is an economic bottomless pit and everyone knows it. Gold last reported a.m. is $1192.50 and silver is $16.82.
Athens creditors say they are close to finalizing an agreement that should be submitted to Greece over the next few days. Wink wink!
Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York said, “it’s certainly my expectation that within the next two days you’re going to see a further reprieve granted for Greece and the standoff will have ended.” Hold the EU together at all costs.
Mr. Borthwick believes the euro will hit $1.15 in the aftermath of a Greek deal as traders who had bet against the currency repurchase it to cover their short bets.
The U.S. dollar is currently down 0.52 percent against the Yen and down 1.15 against the franc. Against a basket of the six major currencies the dollar was down 1.37 percent.
U.S. Defense Secretary Ashton Carter is visiting dignitaries in Hanoi as neither Washington or China is willing to back down over the disputed islands in the Spratlys. The U.S. and its allies are alarmed that China is seeking to expand its military presence as it continues building airstrips and positioning aircraft on the islands.
Mr Carter told listeners that “the pace and scope of land reclamation in the South China Sea” sharply raised “the risk of miscalculation or conflict” between China and others who also claim the same islands, reefs and atolls. China, he said, had to bring its project to “an immediate and lasting halt”.
China’s second highest ranking military officer stated that China’s efforts to reclaim land from the shallow waters around Chinese held islands in the Spratlys was justified, legitimate and reasonable and well within the scope of China’s sovereignty.
As China leads U.S. allies to its door steps with the new Asian Infrastructure Investment Bank while dethroning the dollar, Washington has no other option but to play a game of chicken. Allowing the dollar to lose reserve currency status is not an option that is acceptable to Washington or its puppet master the Federal Reserve.
Since the 1944 Bretton Woods agreement, the Fed had used Washington and central banks to bully any nation that chooses not to play according to Fed rules. The Fed will instruct Washington to go to war with any nation that attempts to destroy the U.S. dollar.
No nation or currency stays on top forever as history is witness. The U.S. is declining in all sectors especially from its long held position of prominence as being the worlds only “superpower.”
The dollar will lose reserve currency status the only question is when. Placing our trust in a faltering currency isn’t a wise option. Just because we are the U.S. doesn’t mean we are immune to natural laws.
Individuals relying on the dollar and other paper assets like stocks will more than likely see tremendous financial loss. Not knowing the day or hour doesn’t make this truth any less significant.
Why do governments and central banks hoard gold and silver while advising the working class to stay in paper assets? Can we agree that if the medicine is good enough for us, it should be good enough for them as well?
Gold and silver are not only real money they are vital insurance against market losses. To have the opportunity to purchase both metals below production costs sounds unbelievable but it is absolutely true for the time being.
Call today and begin protecting your assets with physical precious metals. 1-800-577-3195
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