The following information and reporting is available at http://www.ft.com/
“India’s decision to exchange $6.7bn for gold equivalent to 8 per cent of world annual mine production sent the strongest signal yet that Asian countries were moving away from the US currency.
The purchase by New Delhi’s Reserve Bank from the International Monetary Fund pushed gold prices to a record $1,090.90 per troy ounce, up 2.6 per cent on the day, as traders bet that other central banks would also become buyers.
Pranab Mukherjee, India’s finance minister, said the acquisition reflected the power of an economy that laid claim to the fifth-largest global foreign reserves: “We have money to buy gold. We have enough foreign exchange reserves.”
He contrasted India’s strength with weakness elsewhere: “Europe collapsed and North America collapsed.”
“This is a landmark trade,” said Jonathan Spall a director at Barclays Capital and a gold ¬specialist. “Central banks are conservative institutions and India’s move is a sign for other central banks and sovereign wealth funds that were contemplating buying gold.”
New Delhi’s acquisition came months after China revealed it had almost doubled its gold reserves in the past six years.”
That is the end of the quote. We now move to comments from TheFundamentals.
It is highly unlikely that you will receive much data and analysis about the above occurrence from Messrs. Obama, Bernanke, Geithner or the American media. The things that are going on that are the consequences of the following formula adhered to closely by these men and their handmaidens in the media: Deficits = Debt = Destruction, are not being addressed, analyzed and distributed to the American population. Call it censorship, call it manipulation, call it tyranny. Call it what you want. India's key finance person calls it as he sees it. You can count on the fact that others who are disciplined and competitive see it similarly.
Let’s just repeat India’s finance minister's observations and then let’s see when the great American leadership and the great declining American media think that these issues are worth the same level of attention as being directed to climate conditions, health care for all and whether an insolvent American town should host the Olympics.
“Europe collapsed and North America collapsed.”
We’re going to say it over and over again. The only solution for America’s financial promiscuity is sacrifice and frugality. Some say this is doomsday. It just isn’t. People are doing it individually. All that needs is for government and special interests to do the same. The foundation can be rebuilt on TheFundamentals. Let’s get going.