India Pays Gold for Iranian Oil/Gas

The apparent move by India to pay gold for oil in order to circumvent US sanctions on Iran may pose a serious threat to the US dollar as reserve currency.

http://timesofindia.indiatimes.com/...declines-any-comment/articleshow/11634184.cms

Whether this is true or not has yet to be determined... but if it were true, what do you think the effects would be to the US dollar as a reserve currency and to the US and world economies?

 

It will halve US debts .
It will see credit ratings slashed by several points .
Confidence will evaporate .
No one will lend money to the US .
The US will be insolvent
The economy of the US will contract and at some point China and India will have larger GDPs .
Americans will start to move to decent places like Brazil and Canada .
The US will become the butt of jokes , particularly for Canadians and the British .
Things look just great

 

America just announced the closure, by 2013 of a factory in Canada, with the loss of 700 jobs, for relocation in Kentucky.

With a Harper government in power, things like that won't happen twice in Canada.

 

What factory????????

 

No effect at all.. India needs the fuel and the are circumventing the system by paying in gold.

 

Mabe.

http://www.mabe.ca/portal/main.aspx?idioma=166

http://www.lfpress.com/money/2012/01/26/19299716.html

What has not been stated on the website is the approach by the US government for them to move there. (Stated by the journalist in the report)

 

how would it affect the US dollar as a reserve currency, iran is considered an outsider in the world market and it will only get worst with future wars to change their governments like the rest of the middle east.

that gold would be useless like Saddams gold after US invasion

 

Can't see your thinking there .
Conventional wisdom suggests that in such occurrences , the price of precious metals goes through the proverbial roof .
I am banking on it .

 

There's another consequence. The welfare state will end in America. That will rollback the Blue Model of governance and social policy. Works for me. No pain no gain.

 

KY factory.

 

speculators weren't able to have gold as a reserve currency against the dollar during the last wars why would it be any different in the future

all countries will print money because all the central banks work together, that means in the end the US will be the reserve currency as it is now because of its military

 

Public school graduate?

 

well think of it like this, the welfare state is the future even republicans are starting to agree.

the welfare state does not accept gold.

 

Welfare states like Greece and Italy?

The way to take you folks down is to go after the existence of the polity itself. You see I'm much more revolutionary than you are. Death to your country.

 

yes they would have their government print money than let the free market run itself through

there is no way any welfare state would accept the gold standard

 

Can Greece or Italy print money in order to pay off their sovereign debt?

 

Whether the world would want to return to the Gold Standard is a separate debate and the chances of it happening are remote , imo .
But the point is that Gold is regarded as though it is the haven of last resort when currency is devalued and where cash based assets are falling in value .
Have no doubt about it , the present price of Gold will rise significantly this year and will go through the roof when the US economy implodes financially next year .

 

You should be laying in a supply of ammo. Don't worry about gold.

 

Iran isn't going to have any problem selling it's oil. Plenty of countries will be happy to purchase it. If USA/Europe don't buy it we just have to buy more from other exporters so they sell less to other importers. Then China India etc just buy more from Iran or others. The key factor is global supply vs global demand not who buys from which exporter.

 

gold will never be a reserve currency without a gold standard and no country will adopt the gold standard

granted gold does rise when currencies weaken but that is just speculation it has no lasting effects to make gold a safe haven currency

 

and thats more or less when the currency crisis will hit!

 

there are several nations making deals to use currencies other than the US dollar to do trade...its only a matter of time before the USD is toast!

 

China has shown interest in paying in gold as well.

China has more gold mining production than any other nation and India has more than twice the gold reserves as the next largest holder.

I don't think the Fed can "print" their way out of this one.

 

It's only a matter of time until the dollar loses its status as the world's reserve currency. The sooner the better. It's really going to collapse American standards of living. That's the price that will have to be paid to defeat leftist ideology in America.

 

yup.......nothing like living under a bridge for a few months to make people come to their sences!