China continues to diversify from US Dollars Showing an intelligent lack of confidence in the US dollar, China has purchased 146 tons of additional gold bullion since 2003. Most of it lately, as they know that the socialistic policies favored by the current administration will bring chaos to our former free enterprise capitalistic system, and result in a grossly devalued US Dollar. Next, will be the shedding of US Treasury Certificates, and since China is by far the largest holder of US paper, this will dramatically reduce the USD value and cause the US to edge closer to a international junk bond rating in the credit market. The US will have to raise interest rates in order to fund their huge government spending programs, which will cause the national debt to skyrocket upwards and the dollar to head to the bottom of the money heap. Many ill-informed economists used to say the US was a oil junkie, hooked on oil, but the new administration is hooked on spending by government, until the government controls every facet of American life. They can no more stop spending large volumes of future tax dollars than a heroin junkie could stop injecting heroin daily. For the Obama Socialist Administration is nothing more than a Giant Pyramid Scam, because if one can inject huge sums of money into the economy, their theory says it will grow. Since this is the most inefficient use of capital, they can not stop their spending, or their government created economy will collapse. Another problem with massive government spending is there is no incentive for those great Americans, the ones with initiative and vision, to do anything other that take what the government gives, because the government will take the fruits of their labors and give it to those that do nothing but complain they are not getting their fair share. In my book, your fair share is what one can achieve by their own efforts. In the words of a Great American "the government is not the solution to the problem, but the government is the problem" (Ronald Reagan). I can understand why the leftists can not understand why a great country needs huge amounts of energy, because if one does nothing they really can get by on little energy. However if one is very productive, and produces the products and machines that vastly improve life, it requires a large amount of energy, and cutting back is not the answer. As the old farmer once said, "I kept cutting back on the feed to my cattle until they all died from malnourishment." That is the fate of the last hope for real freedom loving people on the planet (USA), under the Obamination administration, sadly. Now what does this have to do with the price of gold? Simply put, just like Obama was the poster boy for gun sales, as people raced to purchase record amounts of firearms, knowing that Obama would limit their right to do so after he was elected, Obama is the Poster Boy of Gold sales, since this will drive the yellow metal to stratospheric heights. After all, gold is the doom and gloom metal, and when the doom and gloom reign supreme in the US, gold will shine brighter than any quasar. Charles Kubach Mine-Engineer.Com 26 April, 2009 "The Sign of an intelligent person is not the realization of all they know, but rather the realization of all they do not know." Charles Kubach 1979 Return To Mining Information Page