Russia’s foreign exchange reserves were evenly split between dollar and euros. This is the third largest reserves in the world and Russia has gone from heavy in the dollar to equal percentages in a very short time. That should be an attention grabber but if that is not enough…
Russia announced yesterday in the news, that Russia will be buying Canadian dollars and securities in a bid to diversify its foreign exchange reserves, to an even greater extent. Talk is in the air about purchasing Australian currency to help buffer against the dying dollar…
Now do not take my word or Russia’s word – Take the word of Financial Times! Read the article here that I found after the announcements in the last few days.
Russia has been busy for months and so has China. They are trying to get ahead of the upcoming dollar crash that I have talked about on several occasions in a few of my blogs. In fact many countries have already begun trading the dollar off especially in the Asian area. This is well hidden in the Western news but just look around and you will see how America is having to purchase her own debt:
This past year the Fed bought 80% of new government debt or $1.2 trillion worth as foreigners bought only $300 billion worth. To think this program will end is pure folly. There will be no one to buy the debt, which grows larger with each minute. Deficits will run more than $1.5 trillion a year as far as the eye can see. Revenues continue to fall and spending to rise. Foreigners are dumping dollars not accumulating them. Worse yet many other nations have similar problems. They have to raise money as well. Who will accommodate them? We are talking $10 trillion alone for the G20 countries, some of which are on the edge of bankruptcy. Then again where will the money come from to bail out the likes of California, New York, New Jersey, Florida, Nevada, Arizona, etc.? There just isn’t enough money to go around. The Fed has to increase printing money and issuing credit; there is no other choice short of economic collapse. The price to be paid for this Keynesian profligacy is hyperinflation and you can be sure it is already in the money pipeline. ()
So once again lets wait and see what happens as the future unfolds. But my thoughts are falling into the “Buy Gold and Silver!”
Windows to Russia!
comments always welcome.