What’s with Russia Buying All This Gold?
From Profit Confidential
January 30, 2013 - 10:43am
As currency devaluation is becoming a new goal for countries, central banks in the global economy are losing trust in each other.
The notion followed by central banks is that if they devalue their currencies, the prices of their goods become competitive in the global economy. Unfortunately, this may work in some situations, but right now this strategy is questionable. Why? Because to achieve their objectives of devaluating their currencies, central banks are printing money like never before.
Now with all this, think about what happens when central banks increase the circulation of their own currency while the value of their reserves starts to go down as well.
Let me explain…
Most central banks have the U.S. dollar as their main reserve currency. But, as the greenback is also depreciating in value, central banks need to replenish their reserves. And central banks are starting to look el...Continue reading this article »