US Dollar Existence - Threatened by Game Changing Events

The first event occurred in early 2011 when Venezuela's President Hugo Chavez announced that Venezuela was taking back all the country's gold bullion held at the Bank of England. While announcing this, construction was already underway to build vaults at home for storing Venezuela's 200 plus tons of bullion. Delivery of that bullion occurred before the end of the year. The event by Venezuela to repatriate all the country's gold is significant. This is the first global warning sign that both the Bank or England and the New York Federal Reserve Bank now, are seeing a loss of confidence among nations still storing their bullion in their vaults.

There is a high probability that some of the bullion stored in these banks vaults is in fact, no longer there. Instead, some of the bullion stored has likely been replaced with I.O.U's. Hugo Chavez was first in line, demanding the return of Venezuela's gold. This is the first sign, a game changer, towards the demise of the dollar and all other fiat currencies. 
If more depositor nations line up asking for their gold to be returned a global panic will develop. From this point there could be a race among the rest of the depositor nations, to reclaim their bullion before the actual gold still in storage is all wiped out.

The second significant event occurred towards the beginning of February this year. India has now made a deal with Iran to directly buy oil by paying for it with gold, thus scrapping the dollar. This is another huge game changing event, because this move by India and Iran directly threatens the existence of the "petrol dollar". All of the oil that is purchased around the world must be paid first by exchanging the buyer's national currency into US dollars, then make payment for the oil purchased with US dollars. Because US dollars have been the international medium of exchange for buying oil since the dollar became the world's reserve currency after the Bretton Woods Agreement was signed in 1944.

The problem now is that India has found a way to avoid using the dollar to pay for Iran's oil. If countries suddenly are no longer required to convert their currencies into dollars to buy oil, and allowed to use their own national currencies or gold to buy oil, the status of the dollar as the world's reserve currency will be threatened. At some point if this situation were allowed to continue the destruction of the dollar itself, would be imminent.

These two game changing events and others that more than likely will follow in time will create the conditions of game, set and match. Or game over, with the destruction of all fiat currencies seen before the end of this decade. Protecting yourself and your assets is a must in this climate. The greatest asset protection you can own is physical gold and silver. Because throughout history these precious metals have always maintained their true value regardless of any economic conditions they faced including hyperinflation and the destruction of paper money.

Article Source: Tom Genot

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