Achtung! Germany wants its Gold back, Schnell!!

This week the German Central Bank (Bundesbank)  applied to repatriate its gold reserves from both the U.S. Federal Reserve Bank in New York and the French Central Bank in Paris.  (Think they know something we don't?)
Wonder if they trust their Central Bank counterparts.....hmmmm...

On another international note, Japan is doing whatever it takes to downgrade the Yen at this writing. (Yea another currency joins the race to the bottom)

 While you are contemplating that, here is an interesting Chart from Bloomberg detailing the price of gold in the year after U.S. Federal Elections.

  If you dont own gold, may be you should buy some now!
 ED

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• Frenzy in the Gold Market: The Repatriation of Germany's Post World War II Gold Reserves
• Interview: German gold repatriation not an issue for Federal Reserve
• Germany's Gold Repatriation Unlikely To Assuage Public Concerns
• Germany to bring back gold stored in US, France
• German gold move may spark 'chain reaction'

Will King Dollar be dethroned? Not right now, however...

Image via Wikipedia

From Kudlow to Cramer, there is a hue and cry throughout the United States investment community (or most of it) for the propping up of King dollar. The King has reigned supreme for over 50 years as the most accepted currency worldwide, and a safe haven for value. Now, however, perception and reality maybe beginning to diverge.

Russia today went public expressing the benefits of a strong U.S. dollar, while quietly trying to divest what is left of their international reserves into other stores of value.

China, while using it's substantial foreign reserves (1.4 Trillion) to prop up it's own domestic economy, is also quietly seeking international input into developing an international currency or bank of currencies, possibly set by the world bank. Is there a Prince in waiting? The answer is no! At least not now!

The BP and the Euro have been trashed by their own economic mismanagement and the spillover from America. The Gold standard has been essentially abandoned over 40 years ago, and there is no other currency with the same acceptance level as the usd. China has it's currency directly tied to the usd (which causes all kinds of related problems), the Russian Ruble is, well, the Russian Ruble! The Japanese yen has had a severe case of the money flu for 10 years. India, Brazil, not even close! The renmimbi? Not hardly!

However, with the u.s. economy going 10.7 Trillion into debt by the end of this year, it's economy suffering from so many other ailments in housing, jobs, infrastructure and the big banks Derivatives debacle, we may be seeing the first serious cracks in the throne. Many money managers see serious inflation 2-3 years out. That can only mean more devaluation of King dollar.

Americans should be aware of a wake-up call that occurred this year. The members of the BRIC Countries (Brazil, Russia, India and China)held their first joint meeting as a group of rising economic powers. Can the King get hit by a BRIC?

How can this affect "your retirefund"?

That is between you and your financial adviser. Get good advice, make a plan, follow the plan. Putting U.S. dollars in your mattress is far and away, the worst plan you could have at this point, unless, of course, your mattress is the size of Philadelphia!

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