Out of Pod Experience

We need to stockpile up all the fortune cookies... then they won't know what to do any more

i am seriously passing this potentially devastating news on, yes, while hoping it is not true instead of blindly believing it

headline might be a little sensationalistic, but i like sensations

Talk is cheap.

Back in 1620s or so there was a ruler in Saxony. He made several rules. Rule 1 was that his paper currency was equal to his silver coins. Rule 2 was that it was illegal to exchange paper currency for the silver coins. Naturally he paid for goods and services with paper. So technically the paper was backed by silver, but reality was that there was no silver. The result was that paper currency sunk.

There's no doubt China has been stockpiling gold. People have theorized they were planning on backing the yuan with it, but this would be the first confirmation.

Russia and China already dropped the USD as the reserve currency a couple years back, so they have at least one other country already ready to adopt it, and have been planning something like this for at least that long.

Recently Germany demanded 300 tons of gold back from the US, too. So they may know something is about to go down. We'd be the last to find out, especially if you're waiting for the TV to tell you what is happening.

“This is what I have heard firsthand regarding the silver shortage. I spoke to a dealer where I purchase gold and silver in the United States. He just told me that immediately after the Presidential Inauguration his firm immediately began selling the hell out of monster boxes of US silver eagles.” - with information sources like that, how can he possibly be wrong.

The funny thing here is that while you consider the USD$ in risk of collapse, in Latinamerica, due to the way our economies work it will always be the strongest form of currency regardless.

Even if the USD$ devaluates to to a point where people in the USA have no real power to buy simple food, it will still be the currency to equate to in Latinamerica.

Most Latinamerican currencies are so deflated that this Dollar Apocalypse you are foretelling will only make our current monopoly money become even more worthless, whereas the $ will always be the golden cornucopia.

Panama by its very nature is funded on USD$ backed by the biggest bank of all, that far surpasses the IMF ... DRUG LORD MONEY RESERVES and in the worst case scenario you point out, they could easily begin converting at atrocious rates(with lots of blood, guts and beheadings on the street) the $ to Yens, Fortune Cookies, Golden Dragon Nuggets or Kung Pow Coins for all they care, see, the money always flow in one way or another, and unlike white collar thieves, they dont hide their money in Switzerland, they either move some to Caribbean Bank accounts and the rest reinvest it in the local economy and a good chunk is hidden in the jungle or fancy apartments here, where rooms are decked from floor to ceiling in 100$ bills waiting to be laundered.

Net result, we would be, more or less, living in the same environment, with the added influx of Europeans and USA expats now crowding OUR streets taking away OUR JOBS, specially people from Spain, they are the new "balseros" and "wetbacks" here, which , in the bottom of my latinamerican soul is an endless source of joy and amusement at seeing the tables slowly reversing , like that moment in the movie "The Day After Tomorrow" where people from the USA were crossing the Mexico border.

Fact is, the Prince of Spain recently came to Panama asking the govt to allow Spain Corps work here, which was hilarious to us Venezuelans.

Word on the street is The Panama President said "Good good, whats in it for me?" hahaha.

Funny world we live in. One Empíre for another, THE SAME CRAP, but funny nonetheless.

It's no news that our Earth global economy is on the verge of collapse, though what the major part of Earth population do not realize yet is that the transition from the current, debt based economy over to a new previous metal based economic paradigm doesn't have to be catastrophic.

Under the cover of mainstream media "Doom and Gloom" news, the new World currency system has been instated.
When the time is right, the transition will be made and it is going to be positive news to the 99% of the Earth population. The part of the population what is currently on the losing side.

So fear not my fellow earthlings, the future is just about to get better.

There's somewhere between 175k and 300k metric tons of refined gold in the world right now (a lot of it is "finely distributed" and/or hidden away and so on), with a bit under 2k more put into circulation on a yearly basis.
Gold price is somewhere around 1.7k USD per troy ounce right now, so that makes one metric ton worth a bit under 55 million dollars right now, but let's highball it at 60 million tops.
So that means that the total amount of gold that exists would be worth between 9.6 and 18 trillion USD.
The entirety of the gold that exists in the entire world might not even cover the current deficit the USA has.

The 300 metric tons withdrawal request by the Germans would therefore might represent a mere 0.1% of what gold exists, and a paltry total value of 16.4 billion dollars. Not trillions, but "merely" billions.

In a similar line of ideas, there's about 5 trillion yuans in circulation as paper money (M0), worth about 0.8 trillion USD at the current exchange rates. On the USD side, there's roughly about 0.9 trillion USD in paper money (M0), which is comparable to the amount of yuans in circulation. In the EU, there's less than 0.7 trillion EUR in M0, worth about 0.9 trillion USD at the current exchange rates. As you can see, all of those currencies have a pure paper total that's quite similar at our current exchange rates.
The USA has about 8k metric tons of gold in acknowledged official reserves, China has about 1k metric tons of gold, whereas the EU has over 10k metric tons.
It seems fairly trivial to conclude that the EU and to a slightly smaller degree the USA would have it much easier to back their currencies with gold rather than China.
The EU and USA are "leveraging" their gold reserves at about a 1.5:1 to 2:1 ratio, while China does it at a 13:1 ratio. China would need to bulk up their gold reserves like mad to get close to the same ratios.
I have a hard time swallowing the idea that China would gold-back their currency, but the USA nor the EU would in response, considering it would be easier for those two.

Of course, the issue is that the M0 of just about any currency is fairly inconsequential thanks to fractional reserve banking, with the grand total M3/M4 virtual money supply easily being at least 10 times higher than M0, often noticeably higher than that. There's not enough gold in the entire world to back many of those currencies' accumulated numbers at 1:1 ratios at the current valuations, let alone gold in those countries' official reserves.

soo.... this means that all the economic doom and gloom hypothesized here is just that?

Boobs or it didn't happen.