DislikedMaybe you could clear this part up for me. It may be a stupid question but why are commodities like gold & oil bought mostly with the US Dollar? I realize the USD is the most widely recognized & transacted form of currency, but I would think large European institutional $$ would be able to buy whatever they liked with Euros?? no?
Also. Given the sharp sell off this week following Bernanke's message. What would you say was the PRIMARY contributing factor to the sharp demand for US dollar?Ignored
GOld has and always been the USD reserve currency's dominion when it comes to purchasing it, you need to buy USD first...
i never researched into it but maybe the gold mint/gold auction is in US
However... dont be surprised because lately a lot of criticism on this is Why only the USD gets to link it with gold... why not others... Well guess what General Ghadafi was one of the people who proposed a new currency linked with gold just so they could avoid US monopoly on Gold, and look what happened to him... the US took him out because US knows if US aint the monopoly on Gold then their economy will be threatened big time....
I know i know ur gona say "but general ghadafi died because of his massacres in libya"
i can tell you you are right... but thats not the only reason why US went against him... i mean... Ghadafi has been killing god knows how many people before the revolution already and US didnt care... arent you curious as to why he became the focus all of a sudden... well a lot of people dont know but its because of that plan i just talked to you about...
You wont see a lot of that in US media though... US media is covering up this story of him creating new currency linked to gold...
We live in a finite world with infinite possibilities.