(Thanks, j. :)

Reader jj sees it this way:

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Re: Fulford's full report: 'Major world power ....

Typical internet nonsense! There is not one thing that this guy has said that is true and not one thing he has predicted come true. it is simply too late in the game for the DNC to have another candidate as the election is just 7 weeks away. Also this would require the DNC to hold another convention and recast their votes. Another problem is that those states that require delegates to vote based on how the people voted simply could not vote unless those states held another election.

In most of his posts he still promotes the concept of globalization hence the North American Union. If you notice the Mexicans would come in and provide cheap labor thereby destroying what is already left of the middle class. This would be the final destruction of both the US and Canadian economies and push them to third world status.

Also it is simply not true China is offering gold or dollars to the US. It is also not true there will be two dollars, one internally and one externally. Again there is no gold backed yuan and as this would cause the currency to strengthen and collapse their export markets. In fact they have been doing the opposite and weakening their currency. If it was gold backed the currency price would be tied to the gold price and they in fact could not weaken it but this is actually what the Chinese have been doing. Do you see the total nonsense in his statements? Also with a gold backed currency the country must have a gold window where that currency can be exchanged for physical gold. Do you really believe that China would allow their gold to be exchanged for its paper currency? Not a chance in hell! An economy needs a constant flow of new liquidity so it can grow and with a gold backed currency a country must constantly purchase gold to keep backing the new liquidity and to restock what went out the gold window. This is why the US was forced off the gold standard because it could no longer afford to buy gold to keep backing the new liquidity needed and this was when the price was not only at $35oz but was fixed. It is simply impossible to manage an economy today when the price "floats" as it does today.

There is simply no way the world is going to a gold backed currency. Let's do some math. The total amount of M3 money supply is over $51 trillion which includes the $1.4 in printed dollars and coins. A country going to such a monetary system must back all of M3 and not just the printed amount because if they didn't this would cause people to withdraw cash from the banks as their deposits would not be backed by anything. Now adding the world's equivalent of M3, it is simply staggering. The total amount of monetary and non monetary gold ever mined is less than $9 trillion at today's prices. There is simply not enough gold on the planet to have a gold backed currency. Now those who promote this nonsense claim that the price would be artificially reset to some ridiculous price of $50,000 or even $100,000oz. Now think about this for a moment. If countries like the US couldn't afford to keep purchasing at $35oz how are they going to afford at these nonsense prices? The higher price for gold would actually collapse any gold backed currency.

Now Baron Blackheath said that the whole gold backed bond thing was a fraud and this was confirmed by the Indonesian government. The Fed actually loaned to 20 banks $15 trillion at zero % interest rate and it was sent to HSBC which distributed to the banks which in turn loaned it out to the European overnight loan mechanism and were making 1% to 1.5% interest per night!

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