Wednesday, September 21, 2011

A Quiet War


For the past few years a quiet war has been raging between China, Europe and the United States. All three entities have been trying to devalue their own currency thus making their products comparatively cheaper to buy. and their debts relatively less.

China suffers from very high inflation, If they continue to print currency they further undermine their currency value. On the other hand if their prices continue to rise there will be a flight away from the Yuan.

The Euro has its own troubles. Massive debts in an attempt to pay for huge social programs is the incentive behind the EU's consolidation of political powers into one United States of Europe. Already countries like Greece, Spain and Italy are failing to meet their financial obligations to the people,

In the U,S. the disaster rolls onward. The U.S. had and still has the distinction of creating its own currency being the world's only reserve currency. Yet that made little difference when there is a debt of 15 Trillion Dollars.

As a result of the quiet economic war gold is expected to be in short supply as those sovereigns attempt to shore up their falling currencies with the precious metal.

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