May 11, 2011 – The importance of taking gold bullion investment seriously grows every day. Now matter how the government spins the news it cannot be more obvious that for every step forward we are taking two steps back.

Even the vaunted growth in exports, fueled by Bernanke’s funny money, is questionable. “The U.S. trade deficit widened by more than expected in March,” as imports outdistanced record exports by 4.9% to 4.6% according to a Wall Street Journal News Alert.

Last Friday former Federal Reserve Chairman Paul Volcker expressed grave concern that the government is running out of time. “In the light of prospects for continuing deficits, doubts about future inflation and the international stability of the dollar,” the $5 trillion of its obligations held by China, Japan and other foreign countries pose a serious threat to our economy, Volcker said.

BRICS - a major bloc of nations comprised of Brazil, Russia, India, China and South Africa – regularly meets without representation and influence by the western economies. Last month, as usual, the major topic was the continued decline of the US economy and the risk it poses to their substantial dollar reserves and their trade conducted in dollars. Consequently, BRICS is “now calling for a new global currency system to be established with a broader range of currencies involved in order to provide the necessary stability,” Daniel Zurbrügg said in Personal Liberty Digest.

It pays to take the BRICS nations seriously. Together they account for 42% of global population, nearly 20% and growing of global GDP, and 40% of the world’s currency reserves. Considering persistent rumors of a move by OPEC to a new trade basis and a growing number of agreements between nations to conduct trade in local currencies, the trend away from the dollar is inescapable.

“After being the world’s main reserve currency for many decades, the game is finally changing, and it has far-reaching consequences for the world and your investment strategy,” Zurbrügg says. PIMCO’s Bill Gross concurs. According to the company’s website the world’s largest bond fund is extending its short position on US debt and its emerging market holdings while retreating from investment grade credit, junk bonds, and mortgages.

The good news is that whatever happens to the dollar, whatever becomes the new global reserve currency, and however quickly the transition occurs, investments in gold bullion will carry wealth forward and be instantly convertible to the new global standard.

Daily Updates Archive

Jonathan Monroe

Senior Staff Writer - Gold-Bullion.org