The Global move out of dollars continues as Mexico buys 100 tonnes of gold, China/Korea/Japan will study using local currencies for trade settlement and India will settle it's oil purchases from Iran in rupees.
The Financial Times reported the Mexico purchase: "The purchase is one of the largest by a central bank in recent history. The gold, worth $4.6bn at current prices, is equivalent to about 3.5 per cent of annual mined output." ... Do not anticipate that U.S. media/CNBC will be reporting that one. Here is the link for the China/Korea/Japan article: http://online.wsj.com/article/SB10001424052748703922804576302172890761508.html And here is the article for the India/Iran news: http://www.zawya.com/printstory.cfm?storyid=ZAWYA20110504050756&l=05070011050 Iran is India's second largest oil supplier.
All three events are more evidence that the world is moving away from the U.S. dollar standard. Mexico is one of several large Central Banks buying significant amounts of gold with their dollar reserves and, I believe, is the first western CB to do so. This is very bad news for anyone out there who does not understand the risks of holding their wealth in U.S. dollars. One day many millionaires in this country will wake up to find that their millions sitting in banks and brokerages will be of no value to anyone except as fuel for heat...
http://truthingold.blogspot.com/2011/05/move-out-of-dollars-continues.html
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