Russell - Expect $5,000 as US Has to Back Currency With Gold

Russell - Expect $5,000 as US Has to Back Currency With Gold

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/24_Russell_-_Expect_$5,000_as_US_Has_to_Back_Currency_With_Gold.html

I think the gold action goes along with the above scenario. Why take profits or sell your gold, when the real move in gold is slated for 2012 and beyond?

Why is China so intent on accumulating gold? My thinking is that China is preparing its renminbi to replace the US dollar as the world's reserve currency. To become the new world power, China needs two items: (1) A military second to none. (2) The world's most trusted and wanted currency.

(1) China is now on an all-out campaign to build up its military. (2) China wants the renminbi to backed with a huge percentage of gold, thereby making the renminbi the world's best and most trusted currency.

To compete, I believe that somewhere head the US will have to back its current irredeemable fiat currency with gold. In order to do that, the US will have to boost the price of its huge gold hoard to a level where the dollar may be backed anywhere from 50% to 100% with gold. That could mean unilaterally raising the price of gold to maybe $5000 and ounce or more...I thought that gold, closing higher, in the face of the stronger dollar, was significant. Gold appears to be advancing against almost all fiat currencies (is this a preview of the future?).

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