Back Again!
I have had trouble accessing my blog for a week, but am back again.
Gold took a big hit this week while I was off. Not to worry though, because there is nothing supporting the dollar except the governments, banks, brokers, and people who have a vested interest in keeping it going. As a reserve currency the dollar has enjoyed privilege which it does not deserve. Most transactions worldwide have been in dollars. Thus, purchases made across borders have required the buyers to convert their national currency to dollars for the transactions. However, that is changing.
The Tehran Times reported that Iran has started requiring Euros rather than dollars for oil. This has been in the planning stage for months now and has likely become fact. That will mean that this major supplier of oil is moving away from dollars. Its customers must now use Euros to purchase oil from Iran. Thus, many countries will have less use for dollars and more use for Euros. Result, there will be sales of dollars. This will strike another blow at the purchasing power of the dollar and will give more reason for us to own gold and mining stocks.
The big question on the horizon is when will central banks continue or begin their mass exchange of dollar reserves for other currencies? Like the EURO which has gained 15% or more this year against the dollar, most other currencies have had similar gains.
I am struggling to catch up with much of the financial news and will be reporting more next week.
Get to your corporate worship service tomorrow and continue to praise the Sovereign God of All for His continued blessings. Remember to ask for a revival in the United States that we will turn to Him by following His Law-Word.
Best to each, Doug
Gold took a big hit this week while I was off. Not to worry though, because there is nothing supporting the dollar except the governments, banks, brokers, and people who have a vested interest in keeping it going. As a reserve currency the dollar has enjoyed privilege which it does not deserve. Most transactions worldwide have been in dollars. Thus, purchases made across borders have required the buyers to convert their national currency to dollars for the transactions. However, that is changing.
The Tehran Times reported that Iran has started requiring Euros rather than dollars for oil. This has been in the planning stage for months now and has likely become fact. That will mean that this major supplier of oil is moving away from dollars. Its customers must now use Euros to purchase oil from Iran. Thus, many countries will have less use for dollars and more use for Euros. Result, there will be sales of dollars. This will strike another blow at the purchasing power of the dollar and will give more reason for us to own gold and mining stocks.
The big question on the horizon is when will central banks continue or begin their mass exchange of dollar reserves for other currencies? Like the EURO which has gained 15% or more this year against the dollar, most other currencies have had similar gains.
I am struggling to catch up with much of the financial news and will be reporting more next week.
Get to your corporate worship service tomorrow and continue to praise the Sovereign God of All for His continued blessings. Remember to ask for a revival in the United States that we will turn to Him by following His Law-Word.
Best to each, Doug
posted by Doug @ 10:29 PM
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