Russia is buying gold as hedge

Read the full story on Bloomberg.com

 

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The wealth is moving from the West, (Europe, USA) to the East (China, Russia, India)

 

Why is it? Well prosperity tends to lead to gluttony is part of it I think. Also USA and European economies are moving towards socialism, while eastern countries are moving away from it.

Economic freedom leads to prosperity.

 

http://www.bloomberg.com/news/2013-...ld-into-bullion-as-russia-out-buys-world.html

Fixed link


Sounds interesting, perhaps the price of gold will spike due to the news story

 

I edited the first post so the link works as well. I got a database error while trying to post the original and could not pull it up at all. All is fixed now.

 

I doubt they'd be letting us continue down this path if there wasn't something in it for them.

Technically all of the above are one form of socialism or another. What the East is embracing that the West is not are free market principles. US GDP is 1/3 dependent upon financial institutions that would be out of business if fraud was illegal (I mean prosecuted). While we pad our numbers with smoke and mirrors they are buying up the assets, all too happy to buy on the cheap due to the suppression our dominance requires in order to position themselves for the inevitable shift.

 

My great grandparents came from Russia ~100 years ago. It will soon be time to go back. How is it that Russia is smarter than the U.S.?

 

They can move wherever they like, use up the USA then move onto elsewhere. They are making lots of money with the fiat dollar system, they will prop it up as long as they can.

You don't even need to prosecute fraud to fix the system, just don't reward it with bailouts and those financial institutions would be out of business and the surviving ones would use better business practice since they've seen the consequences of making stupid decisions.

In USA bad business and bad behaviors are rewarded. (bailouts of corporations that took undue risk and failed, welfare, 99-76 week unemployment, redistribution of wealth through various means)

Reward failure and it is no surprise that the U.S. economy is a mess.

 

Many possible answers to that question, maybe Russia learned that communism (more accurately socialism) is not effective after 70 years of so of failures. Maybe they learned that invading countries like Afghanistan is not a key to economic success

Maybe they learned that taking on enormous amounts of debt wasn't too intelligent, here's from an article circa 2012

http://english.pravda.ru/russia/economics/04-06-2012/121303-russia_debt-0/
The situation with Russia today is quite acceptable - in 2011 there was 1,247 dollars of public debt for every citizen of the country.

Meanwhile the debt per U.S. citizen is $52,000+ and growing rapidly.

Sad to say but U.S.A. is only doing as well as it is from living off its former glory, when that comes to pass look out below, things may get ugly.

 

Because they have had to live through the pain of their decisions, a reality the US has yet to face.

 

I agree wholly with one exception - without fraud the system would not be fixed, it would break. It is dependent upon that business model to survive now
Edited : Political ~ getting close to the rant stage.
I am sure our children will learn from our mistakes just as those in Russia already have. Every few generations people need to be reminded that there's no such thing as a free lunch, and as soon as we forget there will be someone waiting to rhyme with history.

 

US economy? I am flying to Canada from Santiago via Miami (3 hours stop) with a US company in the next two weeks. My wife is expecting 32 weeks and in Chile you have to print out a letter from the national carrier website and have it signed by a doctor to show the woman is fit to fly. So, my wife phones the US carrier since we do not know the procedure. After asking the the woman a reasonable question on the matter, my wife was accused of wanting to have the baby in the US and went so far by reporting her to the US immigration authorities and this went on.....What power complex and why do they think they have control over us! Now, this is after I had to pay a 1000 US to fly down to the US embassy in Santiago and pay 750 US for the visa and went through an interview where the person was asking me stupid questions about the mining company I work for. All of this for three hours in Miami on the airport. Previously my grandmother of 86 come from South africa to visit her daughter in Canada. When arriving in New York she was pulled out of line, which they said was random, and "interviewed" such that she got so confused that she could not catch her plain to Canada 10 hours after arrival. It was so bad that her daughter had to come and fetch her in New York from Vancouver. These small things destroy a country. It is so sad, because it is a fantastic place with great people.

 

Not worth arguing over. Cheers.

 

Russia may be corrupt, but they are not dumb!

 

But if you look at the value of the Ruble or Yuan compared to other currencies ( even if you remove the USD) they have just tread water over the past 2 years, and both have purchased central bank gold in the near past, and it did their currency little good. That is why both have not said much within the last year about replacing the USD as the world currency. Believe it or not , they are having severe economical problems of their own, equal in relative comparison to those of the US and EU, and in some areas such as pollution and environmental disasters, even worse. On the FOREX, you could trade USD for Rubles and perhaps make a fortune as the US goes under according to some here, but I think not. IMO.

 

Why would purchasing gold help any currency unless that currency is actually backed by the gold? The gold by no intents or purposes is supposed to bolster their current currency.

China is still growing at 8% a year or so, while Russia is closer to 4%. They are still behind the U.S. and Europe economically, but unlike the U.S. and Europe they are going the right direction while the competition goes backwards. (or minimal growth)

If the dollar were to collapse I probably would NOT make any bet on the ruble/yuan, the economy is too intertwined and all paper currencies would probably be in for a big hit.

 

An awfully high proportion of population in Russia is living at or below the poverty line vs. the percentage in the USA. It is rather difficult for me to really believe the economy is that good when all the money is held by the oligarchs and the apparatchikii of the government. Sure the USA has it's problems, but most Russians would rather have American problems than their own.

 

Well this is not exactly true.

As an example

8% of $100.00 (China's economy so to speak) is less than 2% of $1000.00 (US economy so to speak).

 

Did you even read my post? That is why I said they are still behind the U.S. and Europe economically. Please point out the part that isn't true.

 

Then what is it suppose to do? What is the importance you draw from this action? Does it improve the Russian economy, secure any debt, improve human rights, education, or just a relatively normal readjustment such as a governmental Russian oil deal? Not trying to be argumentative, Why was it important to you?