If you believe that gold no longer plays a role, think again. In effect, if you know what to look for, the world is on a gold standard now.
In 1971 the US ‘closed the gold window’ starting an era of global fiat money reference pricing that has been unprecedented in history. Never has the world operated on the basis of no country having a currency tied to something with intrinsic value like Gold. The ‘petro-dollar’ – a US dollar exchange rate based on the deal struck between Saudi Arabia and America – for the US to buy their oil and for the Saudis to buy US dollars and bonds in return – started a period of oil companies (with the military machinery in their pocket) bullying the world into buying US dollars or getting cut off from oil and dollar supplies led to our current political situation with the US now involved in multiple wars in various oil dependent economies and their satellites – and this lulled many into believing that Gold no longer played a role, but recent events prove these assumptions wrong.
Leading up the news that the Federal Reserve would not ‘taper’ their bond buying (QE) program we saw a precipitous drop in the price of Gold. Since I knew (like others including Peter Schiff, Bill Fleckenstein, Michael Pento and even James Rickards who stated as much on “Keiser Report”) that the Fed cannot ‘taper’ at any point going forward without throwing their entire Ponzi scheme into the ditch (causing every major bank in the world to instantly collapse) it was interesting to see the price of Gold trade down – unless you know the Fed, working alongside bankers on Wall St. and the City of London – are actively managing the price of Gold (along with stocks, bonds and currencies). Knowing that the Fed (who is implicated in every recent major market rigging scandal covering Forex, energy markets and credit default swaps) knew that it would make an announcement that would cause a buying panic in Gold (that they were going to debase the currency some more) – it had to go into the market and drive the price of Gold down ahead of the announcement or risk seeing Gold pop to new all-time highs of $2,000 or more.
Read the full article on RT