gold heads into orbit, qe3 incoming, page-114

Dillinga,

For what its worth,

Central banks around the world are buying US dollars to prop up the US dollar and thus the entire US economy. (G7 currency intervention) Central banks want an orderly decline of the US dollar if they can't have a strong US dollar any more.

This policy is responsibly for inflation around the world. It simply can't last imo. China is going to have to stop creating inflation in China.

Inflation is an increase in the money supply. China prints RMB to buy US dollars instead of allowing the RMB to rise vs the US dollar. See latest Chinese inflation report. China will have to stop inflating the money supply and buying US dollars. This means the US dollar starts falling faster, or, other central banks need to buy more US dollars as a result of China buying less.

In the end, Central banks will lose the war against the free market and the US dollar will collapse imo. All currencies, all commodities and all real assets will rise against the US dollar imo.

Run away money printing has always ended badly. This is the real crises, a currency crises, according to many people like Peter Schiff and Ron Paul imo.

You can see the stuff these people have been saying for many years on Youtube.

http://www.youtube.com/watch?v=kOCnVaZsMvw