Max Keiser: India, China and GERMANY to Announce Large Gold Purchases
Max Keiser talks on Russia Today TV about Dubai, some forthcoming central bank gold purchase announcements and commentary about the general trend of Washington and London's intervention in the banking crisis.
Here is the video and a partial transcript of the commentary.
MK:
"The dollar reaction rally at the moment does not appear to have much oomph behind it.
The U.S. dollar is not really the defensive currency it has been over the years. As it fails to break through to any kind of meaningful new interim high at the moment, more and more central governments are going to say "maybe the dollar really is going to be replaced as a global reserve currency" and they as we know are continuing to buy gold bullion.
India is going to announce another huge bullion purchase, China will announce another big bullion purchase, my contacts in Germany at the Bundes Bank tell me that Germany is going to announce big bullion purchase.
So these central governments are buying gold after decades of selling gold."
The news here being the unconfirmed rumor that the Germans are getting in on the gold action. As more central banks make a move to buy gold, it effectively puts a floor on the price of gold.
MK:
"The Obama administration has been abominable in allowing Geithner and Summers and the carry overs from the Bush administration to rape and pillage on Wall Street with impunity and just decimate the US.
Economy unemployment still going higher and no one wants to rein these people in."
Like a rudderless ship, the U.S. government moves in the direction of the currents, blending the public and private purse and
MK:
"It's interesting that in the Middle East, Abu Dhabi is not running to the rescue of Dubai."
Unlike the U.S. and the U.K., who bailed out the biggest bankers in their countries and paid top dollar at AIG, these Arabs are smart traders -- of course, they have been at this for thousands of years.
MK:
"I said at the beginning of the year that Dubai would and that Abu Dhabi would pick up Dubai's assets on the cheap."
Max also believes the world economy is entering a stage of Currency Wars.
In the race to the bottom, there will be many battles in the currency trading pits of the exchanges around the world.
In the 1930's we had Smoot-Hawley, which imposed tariffs on goods and was necessary because currencies were backed with gold. Today, currencies are backed with...nothing. The same thing can be accomplished with currency adjustments.
Listen to it all.
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