This from our friends down under http://www.dailyreckoning.com.au/central...

Central banks have always bought gold. They are the biggest buyers. In the old days, this was because the paper money was merely a marker one could trade in for the real money - as chips are used at a casino.

The move away from gold backing to fiat paper has only been going on in the USA for a generation or two.

I believe Russia, China, India, and the APAC region (minus Japan!) are currently working on a competing currency to the dollar and Euro that will likely be gold backed. That's their motivation, I believe. Many think China is under-reporting what they buy. Also, China does not allow any gold exports. What they mine, they keep.

Some also believe Russia/China/India are attempting to break the petro-dollar hegemony by paying for their oil in gold, which certain middle-eastern countries are all-too-eager to cooporate with, since this is an asset you cannot electronically freeze in a bank computer.

I would say yes. They have known it for a long time. Nobody with half a mind could hope to sustain all the problems we are facing--and in many cases are openly advocating. I'd like to think that many are just as stupid as Mr. Thompson and just don't understand how things add up. But I think many do, and they want it to fail anyway. I