G20 Summit September 2013: THE Meeting Where the World Decides to Abandon the Dollar?
- My understanding is that the US has not been invited to the G20 meeting in Russia. So, all the talk about Obama not wanting to meet up with Putin in Russia is BS! Dr. Jim Willie, a highly credible source, is saying that a Gold Trade Settlement system has been worked out and will replace the USD in international trade settlement. The price of gold will be set in the region of US$7000/oz and silver about US$150/oz. We will know very soon whether this plan is executed in September! Watch the price of gold leading up to the G20 meeting on 5-6 September, St. Petersburg, Russia!
- We Will Know VERY Soon!
by Bill Holter, http://blog.milesfranklin.com/
The G-20 summit is coming up in less than a month. It will be held in St. Petersburg (no, not Florida) Russia. This I believe will be THE meeting where the world decides to abandon the dollar or at least set the wheels in motion. We, to put it bluntly have ticked the world off in so many different ways and for all intents and purposes were not really even invited to the meeting. No matter what, President Obama has refused to meet with Mr. Putin “because” of the Snowden affair. This is wrong on so many levels but most importantly will isolate the U.S. even further. The sad thing is that we have done this to ourselves.
I think the best way to describe what I believe will happen is that the U.S. will be looking in from the outside while the rest of the world votes “on our fate.” Will a new currency, one that has some sort of tie to gold be announced? I think the odds are better than 50-50 that a “new currency” is at least mentioned. Even if a new currency is not announced, I believe the odds are better than 80% that “non dollar” settlement of oil and other commodities will be discussed. Earlier, Prime Minister Medvedev is said to have issued an alert to Russians all over the world to “get their money out” of U.S. and Western banks. Why?
Is it a coincidence that the G-20 summit is being held in Russia and their #2 in command would make a statement like the above? Is it a coincidence that Western gold inventories are being depleted in a “bank run” fashion? Is it coincidence that GOFO (Gold forward rates) are now negative 25 days running and negative out to 9 month contracts? In the past, GOFO rates have only been negative 3 times that I can remember and only for 2 days for each instance, what’s up now? Interestingly, the dollar index has softened and broken trend lines and supports, again, why?
We have seen Russia and China take the other side to the U.S. pertaining to Syria (and their natural gas pipeline), Vladimir Putin declined a $15 billion arms deal with Saudi Arabia because they wanted to tie the gas pipeline to Europe as part of a deal… We see these same parties taking opposite sides in the “non” coup in Egypt. My point is that the U.S. can no longer “speak” and watch as the world bows down to our wishes, those days are over.
Many are saying that gold is “dead” money until at least Sept., I am not so sure. “Front running” of any deal that has already been made (and this is exactly how political deals are made) will show up in the markets BEFORE any announcements are made. Watch the dollar and Treasury bonds for clues to what is coming. There is potential for an announcement for settlement of oil trades in other currencies which will “send” Treasury bonds back home to our shores. The Fed is already buying up the majority of Treasury issuance, new supply from foreigners wanting out will add to their strain.
This “front running” could also show up in the price of gold and silver and of course the potential exists that we find out about an inventory failure. Inventory levels are very low, it will not take much to clean them up and out. All that has lined up is no coincidence and the day is coming where massive “gaps” will open …never again to be filled. Stocks, bonds, commodities and currencies will be jolted open and not looked back to their initial movements. If you sold metal or haven’t bought yet the mentality of “Oh, I’ll buy it on a pullback” won’t be available once this thing breaks. Getting on board or getting back in will be the toughest thing to do mentally …if it’s even an option if we see an exchange default.
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