Russia Doubles Gold Holdings: Hayden’s Note on the SDR, Precious Metals, and Money

Posted on Sep 12, 2012 in Economic News, Federal Reserve & Bankers

Kevin Hayden –

While the Federal Reserve Chairman continues telling us that gold is an antiquated investment, or that it simply is not money, top shelf power players continue dumping truckloads of worthless paper currency into the precious metal.  If you’re not very well versed in the commodities or metals markets, there is really only one reason to do this: to hedge against future problems or price changes.

Even though the illustrious Ben Bernanke says that gold isn’t money, it can be bartered, traded, and exchanged for anything you desire, anywhere in the world, and if we were to experience a catastrophic event, such as a grid-down situation, or even widespread social unrest, there is no way for the metals market or mining companies to keep up with demand. If the event were truly bad enough, the thinly veiled circus act known as the Federal Reserve would come crashing down, as well, and society would require some medium of exchange.

Furthermore, back in the 1930’s, once the US Government barred private holdings of gold bullion, it was far easier to circulate the Federal Reserve notes we currently use.  Those in control handed the peasants paper notes to trade, knowing that economies and markets would continue to thrive, but ultimately, there was zero wealth being circulated.  Ever since then, the money changers have fought to keep the peasants, you and I, away from true wealth creation or savings, and instead, heavily invested in either promissory notes, such as the Dollar, or the Stock Market, which is heavily controlled, as well.

The growing number of massive gold investments by Russia, Warren Buffett, George Soros, and many more, tell me that something is on the horizon, be it large-scale political change, expanded theaters of war, or perhaps, an effort to usher in a new currency, such as the SDR.  This stands for Special Drawing Rights, and is a basket of currencies from around the world.  What you must realize is that our currency and entire Federal Reserve system is based upon a debt ponzi scheme and the money changers need to use a more stable platform when conducting bank transfers or international trade.  Eventually, the house of cards must come crashing down; it is simply how the game is played.  Those in power try to keep it afloat for as long as possible, but being the monetary architects themselves, they know when it’s time to fold’em and start a new game.

So, why are some of the biggest names on the world stage continuing to invest in gold?  I’d love to hear YOUR thoughts or opinions on the topic!

According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month.

It emerged last month that financial gurus George Soros and John Paulson had also increased their bullion exposure, but it’s Putin that’s really caught my eye. – Market Watch


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