Pic: "BOTTOM LINE: As long as the FED is committed to QE mandates, G&S will be forced up. The Bernank says he wants to support a strong dollar, then proceeds to undermine it with hyper monetization. He is doing as told and insulting the intelligence of all."

Fed is not commited to QE but are forced due to being unable or unwilling to change course because it means addmitting that they steered the country wrond, or simply deceived.

I read that things are worse now then they were in 2010 so there will be no end with QE2 but followed by 3 and perhaps QE4.

That means printing more promissory notes, I mean green backs, resulting in continued depreciation of the dollar and a corresponding rise in price of precious metals, mainly due to pricing in the less worthy dollars.

As for China and it's dollar hold, they have 3 trillion and two of them they will use up shortly to buy up commodities because they do not want to be too exposed to dollar depreciation.

One trillion could likely be reserved for gold (rose2010's Bloomberg post previously) or precious metals as a whole because they are historically more silver oriented. Silver being in short supply, they mentioning silver could spook the market too early and make it unreachable. pic