I had posted this in Ainslee's update, but decided to post here instead so that we can use our collective wisdom to work out what is going to happen. SilverPete are you so sure that US government has a clue? I don't. I read Jim Rickards book "Currency Wars" and according to James not many people in government financial talking heads really understand the implications of the coming bust and treat the return to a gold standard with ridicule. I think the decision will be made for them. China now has real gold trading platform. When the market sets the price of gold and silver, the LBMA will need to meet either the market or the paper. My guess is that China's SGE market will grow organically. I think they may sell some US Treasury Bonds or at least only buy 3 to 6 month bonds, then quietly dump those bonds on the market, which will send interest rates higher (I think). The Chinese then will not be beholden to the US Government for anything because its reserves will be Gold and Silver. Right now, China has to buy US Bonds every time the USD is devalued, to ensure the Yuan is pegged at a certain rate. Gentle readers might want to help me out here, but I can only see chaos ahead. I have read that the ANZ is one of the banks which sets the gold price. That makes me happy, if this is true. Admin, perhaps we need a separate thread for this. I will delete and start another discussion.
