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<p>[QUOTE=&quot;fatima, post: 1319403, member: 22143&quot;]<blockquote><p><i>&quot;<u>Why do people and countries keep buying US bonds even though they pay almost no interest at all?</u> It is like they are saying, &quot; here hold my money and keep it stable. you needn&#039;t pay me anything&quot;, but buying Italian bonds? The buyers want returns of 6-7%, even now when there is suppose to be agreements coming up. No one asks &quot; How many USD are circulating compared to Euros?&quot;</i></p></blockquote><p><br /></p><p><br /></p><p>The answer is this:&nbsp; The United States Military</p><p><br /></p><p>As long as a country possesses USD, then the US Military guarantees that it can use these dollars to purchase oil on the global market.&nbsp;&nbsp; Furthermore this military is under control of just one person.&nbsp; While one person or for that matter country may agree or disagree with the USA, this stability gives the party a sense of stability in regards to the currency.&nbsp;&nbsp; Contrast this to the Euro, where at the moment, there is no one in charge and no one taking charge with possibly the exception of Merkozy which beyond two countries are regarded with a great deal of skepticism, distrust, and outright disgust.&nbsp;&nbsp; All in all not a place that inspires confidence in regards to monetary matters.&nbsp;&nbsp; The Euro experiment has failed and it won&#039;t be repaired by increasingly complex schemes to paper it over.&nbsp;&nbsp; </p><p><br /></p><p>(BTW, this isn&#039;t to say there are not problems in the USA, but they are not the same as those in Europe)</p><p><br /></p><p>----------------------</p><p><br /></p><p>IMO, gold will continue to do what it has done over the past 11 years which is to go up.&nbsp;&nbsp; There will be swings for sure, but even with the one we had this year, gold has outperformed almost everything else.&nbsp;&nbsp; Silver, I have no idea where it&#039;s headed.[/QUOTE]</p><p><br /></p>

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