Mar 122013
 

How bad do you want to get out of debt, spoil your family and make money now on the internet working from home?

When someone is looking to start a work from home program to either supplement their income or make it a full-time career, it’s best to follow a program that has a formula, or blueprint laid out in front of you to follow. Most of them will give you a website so you don’t have to make one, which takes the burden off your shoulders. Our program already has video instructions in what to do if you want to make money now. That might mean, you have to spend money to make it.

Here, I wanted to draw your attention to something you don’t find with many other programs.

And that is “The Timeframe”.

RCC will be paying you your first $5000 within 2 months from the day you sign up. This is not a guaranteed timeframe, but it is a rough and conservative estimate.

Other programs may claim to pay you every day and that fact seems much faster than the 2 months quoted here (on the surface), but the amount you earn every day, still doesn’t add up to the $5000 you receive from RCC.

Two months is not a great deal of time to wait in order to withdraw $5k. But the reality is, it may be much sooner than that depending on the condition of your board.

I had a fellow on Skype the other day who was telling me how much he was earning in one of the other programs. He said that this program was paying 2% daily for 125 days which equaled a 250% ROI.

He thought that was good until I told him how much and how fast you can earn with RCC.

The RCC return blows that 250% ROI (Return on Investment) out of the water.

In one of the other programs I am involved in, you need to leave your money in the program for a year before you start seeing a decent return.

So 2 months here (to withdraw $5k) is not something to even think about. It should be a done deal when looking at the usual return times compared to other programs.

If you think that 2 months is a long time, fire up your skype program and let me know.

The definition of business is a person’s regular occupation, profession or trade. An activity that someone is engaged in. Remember, be engaged, and take massive action.

Markets are conversations.  Let’s Talk.

My skype ID is mike.prettyman.

Sign up here

http://bit.ly/YjmLOa


Dec 222011
 

Hello Everyone,

I hope you all have a happy wonderful Christmas and to help you into the new year here is something that is free.

Join for free, no work to do, tell your friends and get Paid

This looks like the “next Google” & only needs your email address for initial registration.

To get pre-release access then please use this link which will then allow you to create & share your own link; where your link id comes up on the web-page as soon as you enter your email address a copy of your own link id will be sent to your nominated email as well: http://signup.wazzub.info/?lrRef=lzEmH

The more people you or your referred people connect then the higher percentage profit share you get from their future advertising revenue. At the time of this email, the item had only recently activated and worldwide only around 5,000 people have registered.

More information is available from this link & registration is free & only requires your email address.

http://www.wazzub.info/facts.htm

EXTREMELY IMPORTANT – PLEASE READ:

WAZZUB is a Brilliant Concept; It has NEVER Been Done Before

It is not MLM (multi-level marketing) – WAZZUB is very special!

No other company has ever offered 50% of all its profits to those people who join for F*R*E*E and stay F*R*E*E. WE ARE IN A CLASS BY ITSELF.

WAZZUB is a multi-billion dollar project. It has been in the making since 2007 with over $2,000,000 already invested.

It’s the new Perfect Internet Phenomenon; it’s here to stay and you are one of the first in the world to know about it. So, it’s very important to understand what you have in your hands.

TIMING IS EVERYTHING

Enter your email address a copy of your own link id will be sent to your nominated email as well: http://signup.wazzub.info/?lrRef=lzEmH


Dec 162011
 
Chinese yuan a currency of the future
Thursday, 15 December 2011 16:15
THE year 2025 will see the Chinese economy overtake the US economy, though the average Chinese will still be four times poorer than the average American. The Chinese economy, however, will continue to power along as Latin America and Africa also continue to enlarge their share of Chinese imports and exports.
There is no doubt that, should China navigate its political landscape well, the yuan is the currency of the future. And more importantly Chinese banks might be willing to extend loans in this currency.
Perhaps this is what Reserve Bank governor Gideon Gono means by suggesting that the prevailing multi-currency system be restructured by replacing the United States dollar with the Chinese yuan.
He might feel that with sufficient praise singing, the Chinese might settle our crippling US$7 billion debt to the West in exchange for a yuan-denominated one and other concessions on the raw material front.
From a Zanu PF perspective, it may be a way out of our inability to raise funds elsewhere. It has some merit; if only we were credible borrowers even in the eyes of the Chinese.
Eric Bloch’s article “No tothe Chinese yuan” (Zimbabwe Independent, December 9) against the yuan is more driven by emotion than by trends, over the last few decades, on the ground.
At the end of the day gold reserves in our own central bank are the fail-safe way of guarding the national savings for a rainy day. The rest of the currencies, as both Gono and Bloch agree, are just a casino.

 

The Spectator,
Harare.


Dec 152011
 

Carriers Admit to Installing Hidden App

Friday 2 December 2011
by: Josh Levy, Save the Internet [3] | Report

The cellphone spying saga is heating up.

On Friday, Rep. Ed Markey joined Sen. Al Franken in demanding answers [4] from Carrier IQ, the company that has worked with mobile carriers to install a hidden application that has the ability to secretly track nearly everything users do — including the keys they press, the numbers they dial and the websites they visit — on more than 140 million cellphones. Researcher Trevor Eckhart uncovered the secret app.

Rep. Ed Markey has asked the Federal Trade Commission to investigate Carrier IQ.

News about the issue has spread like wildfire, and every tech blog worth its salt is on the case [5]. Here are a few updates that have come in since we first dug into this issue Thursday:

AT&T and Sprint have admitted to installing Carrier IQ’s software on their phones [6].

The Wall Street Journal’s tech blog AllThingsD spoke to Larry Lenhart and Andrew Coward, Carrier IQ’s CEO and VP of marketing, whose carefully scripted responses [7]left a lot to be desired. “The software receives a huge amount of information from the operating system,” Lenhart said. “But just because it receives it doesn’t mean that it’s being used to gather intelligence about the user or passed along to the carrier.” In other words, Carrier IQ has the ability to track nearly everything you’re doing, but it doesn’t necessarily do anything with all that info. Why should we trust this company to do the right thing?
Also of interest is how Lenhart and Coward passed the buck on to the carriers. They’re essentially saying, “We just provide the tools to spy on you. The carriers decide how they want to use them.”

HTC (the maker of the phone that Eckhart used to expose Carrier IQ) claims it doesn’t receive data [8]from Carrier IQ. Nevertheless, HTC and Samsung got hit with a lawsuit [9]claiming that, as others have suggested, the software violates laws against wiretapping [10]).

Free Press is continuing to press Congress and the Justice Department to investigate Carrier IQ [11].

People are tired of these unwarranted, unannounced intrusions into their online lives. As Sophos analyst Chester Wisniewski put it[12], “the community is becoming fed up with being spied upon, our personal lives and habits being invaded through secret programs and increasingly complicated and confusing privacy statements.”

JOSH LEVY

Josh Levy is the Internet Campaign Director for Free Press and the Free Press Action Fund. He was formerly the managing editor of Change.org, a social action site, and was a frequent commentator on the use of technology in the 2008 election as associate editor of techPresident and the Personal Democracy Forum.

Link to original article:

http://www.truth-out.org/carriers-admit-installing-hidden-app/1323187523


Nov 282011
 

Military Detention Versus We the People

Sunday 27 November 2011
by: Shahid Buttar, Truthout | News Analysis

Congress has a deserved reputation for cluelessness. Our leaders have a habit of ignoring real crises like housing, education, mass incarceration, and climate change, while contriving distractions like the budget debate that essentially froze Washington, DC for the past year.

In 2010, the Tea Party rejected the legitimacy of the DC debate, paving the way for the Occupy movement to do the same in 2011. And while those contrasting movements may compete on many issues, they share in common a rejection of Washington’s political establishment.

On Monday, the Senate will grapple with Congress’ latest bipartisan foolishness, the National Defense Authorization Act. Ironically opposed by both the White House and the Pentagon, it would expand preventive and arbitrary detention beyond Guantánamo Bay and the CIA’s shuttered black sites, importing it into the domestic United States.

The Senate Armed Services Committee, led by Senators Carl Levin (D-Michigan) and John McCain (R-Arizona), approved the bill despite its provisions for military detention of any suspect (even those apprehended within the United States) accused (not proven) of involvement in any terror-related offense. Presumably, military detention would include those accused of offenses as innocuous as “lying to a federal agent,” unrelated to actual terrorism yet classified as terror-related.

The most glaring problem with the committee’s legislation is its violation of our nation’s most fundamental values shared across our political spectrum.

First, the committee’s proposal accepts prosecutors as the arbiters of guilt. We have courts in America to check executive power.  Impartial judges limit over whom the state may exercise its coercive power to deny freedom.  We don’t trust prosecutors to make those decisions, because we presume innocence. Being considered “innocent until proven guilty” is a bedrock constitutional norm, a cornerstone in the edifice our Founders constructed to defend freedom from the potential tyranny that Levin & McCain casually invite.

On the one hand, racial and ethnic profiling in the wars on drugs, immigrants, and terror have already shredded the presumption of innocence. Millions of Americans routinely treated as presumptively guilty due to their race or ethnicity have been subjected to illegitimate prison sentences or deportation. But at least those cases involve a judicial process of some kind.

A separate fundamental principle restrains the military from operating domestically. Levin and McCain invite domestic military deployment.

Beyond its blatant violation of fundamental American principles, Levin and McCain also play loose with the system. Their bill passed the Armed Services Committee essentially in secret, without even a single hearing on their radical and seemingly Soviet-inspired proposal.

Moreover, their committee overstepped its jurisdiction, invading the spheres of the Judiciary and Intelligence Committees. Senators Patrick Leahy (D-Vermont) and Dianne Feinstein (D-California), who chair those committees, raised their voices in protest–and Senator Mark Udall (D-Utah) introduced an amendment that would reverse Levin-McCain’s detention provisions. Even within a single, insular, tone deaf political party, the left and right hands actively work at cross purposes.

Republican complicity in Sino-Chinese inspired security policies, like the Patriot Act, is by now well established.  The support from some Democrats for this proposal, however, reflects what is wrong with Washington–beyond policy.

In every election cycle since 1998, the electorate has loudly demanded to “throw the bums out.” In 2008, We the People rejected the Bush administration’s War on Terror to choose a candidate who, inspired by our Founders, pledged instead to “reject the false choice between liberty and security.” Congressional Democrats doubling down on Bush era abuses betray their own supporters.

We live in a nation where, apparently, we enjoy no electoral alternative to human rights abuses. Will the real Americans please stand up?

Even worse than the betrayal of Democrats, however, is the betrayal of Congress–by itself. Our Founders dedicated the Constitution’s first Article to Congress, to reflect its primacy after our revolution against a unilateral monarchy.  The central theme of the Constitution is its system of checks & balances to limit executive power and prevent tyranny.

But rather than resist executive power, today’s congressional leaders actively expand it. Over the past decade, Congress has granted presidents from both political parties every power they have sought: the power to eavesdrop en masse on every American household without individualized suspicion, the power to ignore the Nuremberg principle and torture with impunity, the power to initiate unilateral war, and more.

Levin-McCain is substantively, procedurally, and structurally even worse: It actively outflanks the executive, granting powers that neither the White House nor the Pentagon want, and have even pledged to resist. Madison and Jefferson would each roll in their graves at Congress betrayal of their legacy.

The one positive aspect to Levin-McCain’s essentially Soviet proposal is the hope it offers to inspire unity among Americans. There may yet remain principles, even if merely as meager as the right to trial, on which we all can agree.

Torn between the Tea Party, Occupy Wall Street movement and alienated moderates, much of America shares a rejection of Washington’s habitual foolishness. And with these competing movements having already organized and mobilized so many diverse Americans, there has been no better time to come together.

This work by Truthout is licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.


Jul 132011
 
Federal Reserve Chairman Ben Bernanke today said that the Federal Reserve is prepared to act with an additional round of quantitative easing if there is any weakening of the U.S. economy and threat of deflation. Bernanke also said that the Fed could act in other ways to stimulate the economy, such as cutting the interest rate that the Fed pays to banks on their $1.5 trillion in excess reserves that they currently keep parked at the Fed. NIA believes this $1.5 trillion alone would multiply into $15 trillion once it circulates through the U.S. economy and if Bernanke on top of that unleashes any additional quantitative easing, it will just about guarantee hyperinflation. Bernanke has made it very clear that he is prepared to print money until the U.S. dollar becomes worthless and the incomes and savings of all U.S. citizens are destroyed.

Ron Paul today asked Bernanke whether or not he watches the price of gold and if he thinks gold is money. Although Bernanke admitted that he does watch the price of gold, Bernanke said that gold is not money, but it is only an asset. Bernanke explained that central banks only hold gold as a “tradition”. The truth is, gold has been accepted as money throughout all civilizations over periods of thousands of years. Bernanke doesn’t want U.S. citizens to wake up and realize that they can opt-out of the criminal Federal Reserve system if they get rid of their U.S. dollars and store all of their wealth in gold and silver. To see a video of Ron Paul’s exchange today with Bernanke, simply visit our blog at: http://inflation.us/blog/2011/07/video-of-ron-paul-asking-bernanke-if-gold-is-money/
The U.S. Constitution defined gold as legal tender and the current fiat currency system we have today where Bernanke can steal from the purchasing power of the poor and middle-class and redistribute this wealth to his banker friends on Wall Street is unconstitutional, immoral, and illegal. The U.S. dollar originally only had purchasing power because it was backed by gold. Today, the U.S. dollar is a fiat currency that is backed by nothing. Any remaining purchasing power the U.S. dollar still has is just an illusion and will soon evaporate due to Bernanke’s actions.

In order for an item to function as money, it should be liquid and easily tradable, easily transportable, and durable. It should be divisible into smaller units without destroying its value and should also be fungible, meaning one unit of equal weight must be equivalent to another (which is why diamonds can’t be used as money). The item must also be a specific weight, measure, or size, so that it is easy to count. It must be long lasting, durable, and not perishable or subject to decay (which is why food items can’t be used as money).

Money must be easily recognizable and most importantly, it must be difficult to counterfeit. The U.S. dollar simply isn’t real money because Bernanke has been counterfeiting trillions of dollars out of thin air. Money shouldn’t require a mark or image to be valuable, but it should just be valuable based on weight and measure. Gold is valuable based on its weight and measure, and fits all of these other qualities and characteristics as well. Never do people explore shipwrecks hoping to discover U.S. dollars, because dollars that Bernanke can print at will even if they could survive the corrosion of the ocean, simply won’t have any purchasing power left by the time explorers can locate them. People explore shipwrecks for gold, because it will last underwater for thousands of years and always retain its value.

When Zimbabwe’s President Robert Mugabe ordered their central bank to implement exactly the same monetary policies that Bernanke has been ordered to implement here in the U.S., the Zimbabwe dollar became worthless and Zimbabweans were forced to pan their rivers for gold. Citizens of Zimbabwe who were able to find 0.1 gram of gold after a long hard day’s work of shifting through thousands of buckets full of mud, were able to take that 0.1 gram of gold and exchange it for a loaf of bread. Those who were too old or weak to pan for gold simply couldn’t afford food and starved to death.

NIA recommends to all U.S. citizens that they read this eHow article about homemade gold panning:http://www.ehow.com/how_7763218_homemade-gold-panning.html This is a skill all Americans will need to have in order to survive hyperinflation. Unfortunately, unlike in Zimbabwe, most gold in U.S. rivers has already been explored for, so Americans might not be as lucky as Zimbabweans.

In order for an asset to be considered money, its supply must be kept scarce. Bernanke has spent a total of $4.7 trillion since the financial crisis of late-2008, which has flooded the world with excess liquidity of U.S. dollars and led to massive inflation in the prices of food and energy, the two items that Americans need most to live and survive. The inflation problems in China are a direct result of their currency peg to the U.S. dollar and willingness to accept the dollars we print in return for the real goods they produce. As soon as the Chinese central bank decides to end their currency peg, China’s currency will increase in purchasing power and all of the monetary inflation the U.S. has exported to them will flow back to the U.S. like a giant tsunami.

Ron Paul today pointed out exactly what we said in our last article. Since the last Presidential election about three years ago, the U.S. dollar has lost about half of its purchasing power priced in gold. Although the U.S. government’s Bureau of Labor Statistics (BLS) has reported only 2% annual price inflation over the past three years, when you account for how the U.S. government used to calculate price inflation before the implementation of hedonics and quantitative easing, annual price inflation has actually been closer to 9%. Soon when price inflation begins spiraling out of control, Bernanke will be forced to raise the Fed Funds Rate north of 10%, which will cause our interest payments on the national debt to soar to over $1 trillion per year. The U.S. government will then need to immediately end Social Security, Medicare, Medicaid, and all other entitlement programs, to have any chance of survival.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at:http://inflation.us

 


Jul 122011
 
Tuesday 12 July 2011
by: Mike Ludwig, Truthout | Report

Joel Mbithi (left), farm manager of the Kenya Agricultural Research Institute’s Kiboko Research Station, and Yoseph Beyene, CIMMYT maize breeder, discuss experimental plots. They are developing drought tolerant top-cross hybrids as part of the Water Efficient Maize for Africa (WEMA) project. This is run by the African Agricultural Technology Foundation (AATF) in partnership with Monsanto and CIMMYT, which supplies germplasm and expertise. (Photo: Anne Wangalachi/CIMMYT. [3])

“The World According to Monsanto,” a groundbreaking documentary on this insidious company’s massive influence, was a recent Truthout Progressive Pick of the Week. Get the DVD by making a donation of $30 or more to Truthout! [4]

Skimming the Agricultural Development section of the Bill and Melinda Gates Foundation web site [5] is a feel-good experience: African farmers smile in a bright slide show of images amid descriptions of the foundation’s fight against poverty and hunger. But biosafety activists in South Africa are calling a program funded by the Gates Foundation a “Trojan horse” to open the door for private agribusiness and genetically engineered (GE) seeds, including a drought-resistant corn that Monsanto hopes to have approved in the United States and abroad.

The Water Efficient Maize for Africa (WEMA) program [6]  was launched in 2008 with a $47 million grant from mega-rich philanthropists Warrant Buffet [7] and Bill Gates. The program is supposed to help farmers in several African countries increase their yields with drought- and heat-tolerant corn varieties, but a report released last month by the African Centre for Biosafety [8] claims WEMA is threatening Africa’s food sovereignty and opening new markets for agribusiness giants like Monsanto.

The Gates Foundation claims that biotechnology, GE crops and Western agricultural methods are needed to feed the world’s growing population and programs like WEMA will help end poverty and hunger in the developing world. Critics say the foundation is using its billions to shape the global food agenda and the motivations behind WEMA were recently called into question when activists discovered [9] the Gates foundation had spent $27.6 million on 500,000 shares of Monsanto stock between April and June 2010.

Water shortages in parts of Africa and beyond have created a market for “climate ready” crops worth an estimated $2.7 billion. Leading biotech companies like Monsanto, Syngenta, Bayer and Dow are currently racing to develop crops that will grow in drought conditions caused by climate change, and by participating in the WEMA program, Monsanto is gaining a leg up by establishing new markets and regulatory approvals for its patented transgenes in five Sub-Saharan African countries, according to the Centre’s report.

Monsanto teamed up with BASF, another industrial giant, to donate technology and transgenes to WEMA and its partner organizations. Seed companies and researchers will receive the GE seed for free and small-scale farmers can plant the corn without making the royalty payments that Monsanto usually demands from farmers each season.

Monsanto is donating the seeds for now, but the company has a reputation for aggressively defending its patents. In the past, Monsanto has sued [10]farmers for growing crops that cross-pollinated with Monsanto crops and became contaminated with the company’s patented genetic codes.

In 2009, Monsanto and BASF discovered a gene in a bacterium that is believed to help plants like corn survive on less water and soon the companies developed a corn seed know as MON 87460. It remains unclear if MON 87460 will out-compete conventional drought-tolerant hybrids, but the United States Department of Agriculture could approve [11] the corn for commercial use in the US as soon as July 11. Monsanto plans to make the seed available to American farmers by next year.

GE crops like MON 87460 can only be tested and sold in countries that, like the US, are friendly toward biotech agriculture. WEMA’s target areas could add five countries to that list: South Africa, Uganda, Tanzania, Kenya and Mozambique. The Biosafety Centre reports that WEMA’s massive funding opportunities pressure politicians to pass weak biosafety laws and welcome GE crops and the agrichemical drenched growing systems that come with them. Field trials of MON 87460 and other drought-tolerant varieties are already underway in South Africa, where Monsanto already has considerablepolitical influence [12]. Kenya, Tanzania and Uganda are expected to begin field trials of WEMA corn varieties in 2011.

Make a tax-deductible donation to Truthout this week, and your contribution will be doubled by an anonymous foundation! Keep independent journalism strong – support Truthout by clicking here. [13]

The agency that is implementing WEMA is the African Agricultural Technology Foundation (AATF), a pro-biotechnology group funded completely by the US government’s USAID program, the United Kingdom and the Buffet and Gates foundations. The AATF is a nonprofit charity that lobbies African governments and promotes partnerships between public groups and private companies to make agricultural technology available in Africa. The Biosafety Centre accuses the AATF of essentially being a front group for the US government, allowing USAID to “meddle” in African politics by promoting [14] weak biosafety regulation that makes it easier for American corporations to export biotechnology to African countries.

WEMA and AATF swim in a myriad alphabet soup [15] of NGOs and nonprofits propped up by Western nations and wealthy philanthropists that promote everything from fertilizer to food crops with enhanced nutritional content as solutions to world hunger. Together, these groups are promoting a Second Green Revolution [16] and sparking a worldwide debate over the future of food production. The Gates Foundation alone has committed $1.7 billion to the effort to date.

There was nothing “green” about the first Green Revolution of the 1950s and 1960s. As population skyrocketed during the last century, multinationals pushed Western agriculture’s fertilizers, irrigation, oil-thirsty machinery and pesticides on farmers in the developing world. Historians often point out [17]that promoting industrial agriculture to keep developing countries well fed was crucial to the US effort to stop the spread of Soviet Communism.

The Second Green Revolution, which is focused on Africa, seeks to solve hunger problems with education, biotechnology, high-tech breeding, and other industrial agricultural methods popular in countries like the US, Brazil and Mexico.

Africa has landed in the center of a global food debate over a central question: with the world’s growing population expected to reach nine billion by 2045, how will farmers feed everyone, especially those in developing countries? The lines of the debate are drawn. The Second Green Revolutionaries are now facing off with activists and researchers who doubt the West’s petroleum and technology-based agricultural systems can sustainably feed the world.

The African Centre for Biosafety and its allies often point to a report recently released by IAASTD, a research group supported by the United Nations (UN), the World Health Organization, and others. IAASTD found that industrial agriculture has been successful in its goal of increasing crop yields worldwide, but has caused environmental degradation and deforestation that disproportionately affects small farmers and poorer nations. Widespread use of pesticides and fertilizer, for instance, cause dead zones in coastal areas. Massive irrigation projects now account for 70 percent of water withdrawal globally and approximately 1.6 billion people live in water-scarce basins.

Increasing crop yields is the bottom line for groups like the Gates Foundation, but the IAASTD recommends that sustainability should be the goal. The report does not rule out biotechnology, but suggests high-tech agriculture is just one tool in the toolbox. The report promotes “agroecology [18],” which seeks to replace the chemical and biochemical inputs of industrial agriculture with resources found in the natural environment.

In March, a UN expert released a report showing that small-scale farmers could double their food production in a decade with the simple agroecological methods. The report flies in the face of the Second Green Revolutionaries.

“Today’s scientific evidence demonstrates that agroecological methods outperform the use of chemical fertilizers in boosting food production where the hungry live – especially in unfavorable environments,” said Olivier De Schutter, the UN Special Rapporteur on the right to food and author of the report. “Malawi, a country that launched a massive chemical fertilizer subsidy program a few years ago, is now implementing agroecology, benefiting more than 1.3 million of the poorest people, with maize yields increasing from 1 ton per hectare to 2 to 3 tons per hectare.”

De Schutter said private companies like Monsanto will not invest in agroecology because it does not open new markets for agrichemicals or GE seeds, so it’s up to governments and the public to support the switch to more sustainable agriculture. But with more than a billion dollars already spent, the Second Green Revolutionaries are determined to have a say in how the world grows its food, and agroecology is not on their agenda. To them, sustainability means bringing private innovation to the developing world. The Gates Foundation can donate billions to the fight against hunger, but when private companies like Monsanto stand to benefit, it makes feeding the world look like a for-profit scheme.


Jul 112011
 

Kalen Smith, provided by

Thursday, June 30, 2011

Gold is one of the most widely discussed metals due to its prominent role in both the investment and consumer world. Even though gold is no longer used as a primary form of currency in developed nations, it continues to have a strong impact on the value of those currencies. Moreover, there is a strong correlation between its value and the strength of currencies trading on foreign exchanges.

To help illustrate this relationship between gold and foreign exchange trading, consider these five important aspects:

1. Gold was once used to back up fiat currencies.
As early as the Byzantine Empire, gold was used to support fiat currencies, or the various currencies considered legal tender in their nation of origin. Gold was also used as the world reserve currency up through most of the 20th century; the United States used the gold standard until 1971 when President Nixon discontinued it.

One of the reasons for its use is that it limited the amount of money nations were allowed to print. This is because, then as now, countries had limited gold supplies on hand. Until the gold standard was abandoned, countries couldn’t simply print their fiat currencies ad nauseum unless they possessed an equal amount of gold. Although the gold standard is no longer used in the developed world, some economists feel we should return to it due to the volatility of the U.S. dollar and other currencies.

2. Gold is used to hedge against inflation.
Investors typically buy large quantities of gold when their country is experiencing high levels of inflation. The demand for gold increases during inflationary times due to its inherent value and limited supply. As it cannot be diluted, gold is able to retain value much better than other forms of currency.

For example, in April 2011, investors feared declining values of fiat currency and the price of gold was driven to a staggering $1,500 an ounce. This indicates there was little confidence in the currencies on the world market and that expectations of future economic stability were grim.

3. The price of gold affects countries that import and export it.
The value of a nation’s currency is strongly tied to the value of its imports and exports. When a country imports more than it exports, the value of its currency will decline. On the other hand, the value of its currency will increase when a country is a net exporter. Thus, a country that exports gold or has access to gold reserves will see an increase in the strength of its currency when gold prices increase, since this increases the value of the country’s total exports.

In other words, an increase in the price of gold can create a trade surplus or help offset a trade deficit. Conversely, countries that are large importers of gold will inevitably end up having a weaker currency when the price of gold rises. For example, countries that specialize in producing products made with gold, but lack their own gold reserves, will be large importers of gold. Thus, they will be particularly susceptible to increases in the price of gold.

4. Gold purchases tend to reduce the value of the currency used to purchase it.
When central banks purchase gold, it affects the supply and demand of the domestic currency and may result in inflation. This is largely due to the fact that banks rely on printing more money to buy gold, and thereby create an excess supply of the fiat currency.

5. Gold prices are often used to measure the value of a local currency, but there are exceptions.
Many people mistakenly use gold as a definitive proxy for valuing a country’s currency. Although there is undoubtedly a relationship between gold prices and the value of a fiat currency, it is not always an inverse relationship as many people assume.

For example, if there is high demand from an industry that requires gold for production, this will cause gold prices to rise. But this will say nothing about the local currency, which may very well be highly valued at the same time. Thus, while the price of gold can often be used as a reflection of the value of the U.S. dollar, conditions need to be analyzed to determine if an inverse relationship is indeed appropriate.

The Bottom Line
Gold has a profound impact on the value of world currencies. Even though the gold standard has been abandoned, gold as a commoditycan act as a substitute for fiat currencies and be used as an effective hedge against inflation. There is no doubt that gold will continue to play an integral role in the foreign exchange markets. Therefore, it is an important metal to follow and analyze for its unique ability to represent the health of both local and international economies.

Original story - How Gold Affects Currencies

URL to Article; http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/06/30/investopedia6457.DTL

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