It is highly anticipated that China will become the world’s largest net buyer of gold this year surpassing that of India, who has been the largest gold consumer until now. China’s gold purchases for 2012 have already risen ten percent according to ICBC a leading Chinese bank. Why are they so eager to buy?

China has held the world's largest amount of US debt, larger than any other nation. However things are drastically changing. China has changed its investment strategies, including moving out of a majority stake in dollar dominated assets and converting those assets into gold. It clearly doesn't take a financial genius to figure out the logic behind China's dollar exit strategy.

While the American dollar may still be king over an uncertain euro today, what will happen once the US is reminded that its debts levels in comparison exceed that of Greece? While still the largest owner of foreign dollar reserves China is clearly conscious about how over exposed their holding are, putting their nations reserves into a slump. Currently US Treasuries are inside the largest market bubble in history.

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The US dollar being the world’s reserve currency where other central banks have taken comfort for decades, now is fundamentally broke. The world’s reserve currency is now broke because of the accumulated American debt that can no longer be controlled.

These days the politicians elected into government and tasked with responsible policy making, don't have the political will do right thing. They refuse to turn things around, to stop the slow train wreck that's approaching. Some believe this slow train wreck will arrive sometime around 2015. This train has been built upon the tracks of circumstance, with decisions that were created re-actively, thus now it's running out of control…

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The economy within the United States today is nothing more than a hyperinflationary house of cards just waiting to completely fall apart. America has been down this path before, however today things are quite different than say during the late1970’s through the early 1980’s. Today just one small fragile mistake will allow this house of cards to collapse, taking America right into hyperinflation.
Hyperinflation is defined as a very high rate of inflation or inflation that has gone out of control. There are several definitions, on the low end it’s defined as a consecutive accumulation of inflation over a three year period averaging 26 percent annually reaching 100 percent by the end of the third year. While on the high side, inflation can exceed 50 percent per month. Even lower degrees of inflation will still wipe out savings and purchasing power within a short duration of time…

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World-wide monetary systems have been built upon the model of the United States dollar. While currently the dollar is still the world’s reserve currency its status as such, could be held into question over the Basel III talks with America. It is widely expected that the US will lead the way in further developments towards gold’s rise to Tier I status.

Within developed countries of the world, the unified consensus is that gold has yet to show any real signs of true-value towards the 41 year old paper currency fiat money system. The system now is starting to break down. Over the past 5 years serious strain and stress has occurred within the current dollar fiat system. Intensifying signs show problematic developments, now and into the future. These developments could be a sign where the current fiat based system is too flawed. This makes a good argument where gold held in reserves would be necessary to increase liquidity, thus granting easier access to loans of nations in need.

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95 percent of all the gold ever mined is still in existence today in one form or another. On the other hand 95 percent or more of the silver that has ever been mined to date, has either been used or destroyed in small quantities, for many industrial and technological applications. So the majority of it is gone forever.

While the élite and the central bank’s own tons of gold bullion, it's interesting to note that they hold no physical silver. Physical silver is cheaper than physical gold. Therefore the average person could without much thought, buy an ounce or two at any time without hurting their wallets or upsetting their budgets. On the other hand…

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How much longer is it going to take before the debt factor inside the euro crisis has reached its limit? Is this whole house of cards about to burn down? Will it be the Germans who ultimately have to pay for the fiscal mistakes that other euro nations made before the fires begin?

The Spanish bonds most surely will hit levels that could exceed seven percent very soon. Greece could possibly still keep the euro, knowing all well that austerity measures will not be able to last into the foreseeable future. Cyprus keeps getting dragged down under enormous amounts of debt now equal to that of Iceland, which is another foreseen hot spot…

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The whole world is falling apart; it’s not just in America or Europe, but all over the world. Thanks to central bankers and their monetary policies the whole world is being drugged. That drug is a powerful hallucinogen putting everyone into a dreamlike state. The crazy thing is that everyone is dreaming the same dream. All the people around the world dream about fiat money.

Fiat money makes people believe that there is more wealth available today than their actually is. This in effect makes for spending that is not prudent. The reality is that the true amount of wealth perceived by the masses is not truly available. This being said great mistakes are going to be made. There will also be a serious amount of pain coming from all this as a result. The whole world is sinking into a great abyss of worthless paper money…

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