• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

The US vs China Currency War For Dummies

Tyler Durden's picture


We have a sinking suspicion we know who the ultimate winner of this particular war will be.

Via Merk Investments

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Wed, 05/08/2013 - 14:12 | 3541921 sgorem
sgorem's picture

+1 LOL......................or just cry in my beer...............

Wed, 05/08/2013 - 14:13 | 3541941 Spider
Spider's picture

But Buffet says gold doesnt generate any interest...

Wed, 05/08/2013 - 14:21 | 3541977 nope-1004
nope-1004's picture

Buffet "hopes" gold won't generate any interest.  The timing of his existence is what contributed to his success.  Had he been born in the mid 1800's or in 20 years time, he'd be singing a different tune.  Buffet and Munger are simply Johnny on the spot during the largest credit expansion the world has known.  I wouldn't give what he says any credit, as it's clear this credit debacle will sink the western banks.


Wed, 05/08/2013 - 14:30 | 3542020 SafelyGraze
SafelyGraze's picture

this cartoon shows china as being to the left of the us, which is kind of old-fashioned

Wed, 05/08/2013 - 14:34 | 3542039 DaveyJones
DaveyJones's picture

I was thinking, the title should read:

Dummies for Currency Wars

(Brilliant Cartoon)

A picture is worth a thousand words, and with QE, a lot more

My other thought on current events is

And you thought those other Castro Brothers Were Evil..

Wed, 05/08/2013 - 14:37 | 3542052 SMG
SMG's picture

Except China can't feed itself. This is going to get really interesting. Maybe time to head to the bunker soon.

Wed, 05/08/2013 - 14:40 | 3542065 DaveyJones
DaveyJones's picture

yes...but instead of buying worthless US promises, China is out there buying African land and other raw resources.

Our current Agricultural system in this country is completely dependent on oil, depletes ground water, and destroys soil. We're "more stupid."


Wed, 05/08/2013 - 14:43 | 3542082 Spastica Rex
Spastica Rex's picture

More stupider.


Wed, 05/08/2013 - 14:45 | 3542096 DaveyJones
DaveyJones's picture


Wed, 05/08/2013 - 14:50 | 3542116 jbvtme
jbvtme's picture

buffet's holding plenty of gold or becky would be showing tail lights..

Wed, 05/08/2013 - 15:57 | 3542333 francis_sawyer
francis_sawyer's picture

He's got the Midas Touch... But he touched it too much... He's GOLDMEMBER...

~Foxxy Cleopatra

Wed, 05/08/2013 - 16:55 | 3542537 AmCockerSpaniel
AmCockerSpaniel's picture

You people are like those who quote the bible. The words were right on at the time they were spoken. As time moves on, the less the exact words relate. It's the principle of what is being said. It's good at this time, to have physical gold as a foundation of ones portfolio. We know not the day or hour, but this shit will explode.

Wed, 05/08/2013 - 17:14 | 3542579 Jack Napier
Jack Napier's picture

A fool and his money are soon parted.

Of course Buffet has no money, since that is what most of us refer to as gold.

Wed, 05/08/2013 - 16:01 | 3542352 Moe Hamhead
Moe Hamhead's picture

It's "moron" moran.

Wed, 05/08/2013 - 19:43 | 3543011 The Navigator
The Navigator's picture


The guys were just funning each other, thus some down-ticks for ya.

Wed, 05/08/2013 - 14:49 | 3542110 Rustysilver
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I hope that China buys all the farm land in Zimbabwe.  It should work out well.

Wed, 05/08/2013 - 22:12 | 3543389 Parrotile
Parrotile's picture

Actually it would be a major "win" for the Planet - remember Zimbabwe was one of the World's major food producers under "external rule" -when it was known as Rhodesia.

The fact that China's BUYING the land should provide far less ammunition for the "Foreigners OUT" African mindset. If the locals DO decide to "follow tradition" they will be in for a very nasty surprise.

Wed, 05/08/2013 - 14:56 | 3542144 SMG
SMG's picture

You're right.

So how do you handle your country destroying itself? I'm kind of upset by it.

Wed, 05/08/2013 - 15:59 | 3542347 francis_sawyer
francis_sawyer's picture

do 'Tasmanian DEVILS' figure in your world domination scheme?

Wed, 05/08/2013 - 16:28 | 3542469 NotApplicable
NotApplicable's picture

Personally, I don't own a country.

Hope you didn't buy yours on leveraged debt.

Wed, 05/08/2013 - 15:10 | 3542184 Tulpa
Tulpa's picture

So instead of buying worthless US promises, they're buying worthless African promises.  What is the PRC's response if their newly bought land gets nationalized?

Wed, 05/08/2013 - 15:35 | 3542269 Urban Redneck
Urban Redneck's picture

I think that's less likely to happen one might think.  There are cultural and ambition clashes, and there will be small scale flare ups and perhaps tactical nationalization in an extreme diplomatic flare-up, but there are very diverse economic integrations and ongoing broad dependencies that African States have on China.  And when all else fails- there is the supreme irony of the US MIC creations - the World Bank and IMF being hijacked to serve Chinese strategic goals.

Wed, 05/08/2013 - 15:54 | 3542331 oddball
oddball's picture

Soylent green.

Wed, 05/08/2013 - 15:57 | 3542335 PontifexMaximus
PontifexMaximus's picture

They will send over a couple of PRC citizens to the spot and they will handle the solution (not the problem) the PRC way.

Wed, 05/08/2013 - 16:16 | 3542422 Helix6
Helix6's picture

I'm guessing they'll send over a few hundred million Chinese to "discuss" the issue.

Tue, 05/14/2013 - 09:36 | 3560077 Ctrl_P
Ctrl_P's picture

I wonder who would get tired out first...

Wed, 05/08/2013 - 16:16 | 3542420 resurger
resurger's picture


they are not even buying most of the time, they help other countries to extract their resources . all you need to do is ask






Wed, 05/08/2013 - 16:44 | 3542507 BraveSirRobin
BraveSirRobin's picture

We are actually quite good a soil conservation, and we have lots of hydrocarbons in the US. Sure there ain't no more "and while shoot'n for some food, up through the ground cam a bubble'n crude" oil, but we have lots of hydrocarbons. There are price floors associated with energy extraction that are now higher, certainly.

Having said that, the real idiots here are the Arabs, who are taking worthless paper (or worse, electrons) from us, and in exchange, they give us oil. Tell me that's not a great deal for the ol' US of A.

Our real stupidity is that we are draining our western aquifers to make corn to turn into alcohol to burn inefficiently in our cars. So we are basically burning the western aquifers. We will end up with ghost towns all across the Western US for this ethanol stupidity.


Wed, 05/08/2013 - 19:29 | 3542966 Clever Name
Clever Name's picture

Great deal unless its your blood being spilled to protect it.

Wed, 05/08/2013 - 22:53 | 3543469 BraveSirRobin
BraveSirRobin's picture

I never understood why we are trying to protect, certainly after the collapse of the Soviet Union. I mean, no matter, it's all those people have, and they are going to sell it no matter what. I guess the real danger is they will spend their time butchering each other and stop pumpimg the oil. They sure like to fight more than just about anything else.

Wed, 05/08/2013 - 22:53 | 3543470 BraveSirRobin
BraveSirRobin's picture

I never understood why we are trying to protect, certainly after the collapse of the Soviet Union. I mean, no matter, it's all those people have, and they are going to sell it no matter what. I guess the real danger is they will spend their time butchering each other and stop pumpimg the oil. They sure like to fight more than just about anything else.

Wed, 05/08/2013 - 19:33 | 3542975 DaveyJones
DaveyJones's picture

good points, I don't like to call it ethanol stupidity so much as ethanol corruption. Still our hydrocarbons are getting more and more expensive and we still consume mouch more than we produce and our food system, like just about any other system, presumes cheap energy going forward. In a sense, everyone's screwed. There, I feel better. 

Wed, 05/08/2013 - 20:28 | 3543130 post turtle saver
post turtle saver's picture

only 14% of harvested corn in the US is irrigated, so no we are not draining our aquifers to grow corn - that doesn't mean ethanol from corn isn't exceedingly stupid (it is) but the aquifer impact isn't as dire as many say

if you really want to see ethnol production take off in the US, it needs to come from switchgrass

Wed, 05/08/2013 - 14:43 | 3542078 TrumpXVI
TrumpXVI's picture

Exactly, don't those stupid chinks know YOU CAN'T EAT IT!

Wed, 05/08/2013 - 16:21 | 3542448 Skin666
Skin666's picture

+ 1 for "chinks"

Wed, 05/08/2013 - 17:47 | 3542698 Jones79
Jones79's picture

Trump you stole my pic!

Wed, 05/08/2013 - 14:48 | 3542108 kito
kito's picture

there arent 50 million chinese on food stamps. the poor ones already know what its like to go without food. cant say the same for the masses in the u.s. who are living comfortably numb....................

Wed, 05/08/2013 - 14:55 | 3542140 Debt-Penitent
Debt-Penitent's picture

I wonder when China is going to announce that they have 20,000 tons of Gold?

During or just after the SHTF?

Wed, 05/08/2013 - 14:56 | 3542147 fonzannoon
fonzannoon's picture

Or their announcement will cause it.

Wed, 05/08/2013 - 15:20 | 3542215 kito
kito's picture

you see fonz, my yuan can be looked at as a gold play......i figure im safe either way....if the dollar collapses...the yuan depegs and likely pegs to gold.......if the dollar stays strong, china would likely continue to peg to the dollar, but slowly strengthen it against the dollar, as it has been doing......

diversity fonz!!! buy yuan.......

Wed, 05/08/2013 - 15:25 | 3542233 fonzannoon
fonzannoon's picture

of course i see, i'm the one that told u that. I hope u don't keep your yuan in the bank. you don't want to get your remnimbi cut off before you get a chance to use it.

Wed, 05/08/2013 - 15:27 | 3542243 Doña K
Doña K's picture

Sure but yuan pays no interest. s/

Wed, 05/08/2013 - 16:03 | 3542357 francis_sawyer
francis_sawyer's picture

Did your 'hubby' tell you that while you were cooking him his gourmet dinner, sipping on wine, & detailing the structural re-fitting of fighter aircraft?... I'm just trying to get some perspective here so I know where we all stand...

Wed, 05/08/2013 - 16:20 | 3542443 resurger
resurger's picture

in China everyone hates the dollar. good call, the RMB might be as good as gold if the dollar collapses.


Wed, 05/08/2013 - 15:29 | 3542250 lasvegaspersona
lasvegaspersona's picture


by my calcs the Saudis (various individuals or possibly as a nation) may have 20k tons but the Chinese probably have a max of 10k to 12 k tons....unless they have been doing a LOT more mining than we know.

The end comes when the gold suppliers to the world stop supplying....say by this Friday? GLD will have zero gold left in less than  a year at the current rate of inventory depletion. This is a lot like predicting earthquakes but the pre-shocks are definitely increasing and I will not be surprised if this puppy blows quite soon.

Wed, 05/08/2013 - 14:40 | 3542066 Hohum
Hohum's picture

The USA is the kind of "left" where the 1% gets 99% of the income gains.  A very strange left.

Wed, 05/08/2013 - 16:24 | 3542456 Shevva
Shevva's picture

you might want to check your SS bill.

Wed, 05/08/2013 - 16:29 | 3542475 roadhazard
roadhazard's picture

The repubicans spell that kind of Left, RINO"s, lol, wingers crack me up.

Wed, 05/08/2013 - 14:57 | 3542151 QuantumCat
QuantumCat's picture

Buffett is part of the Silent Generation... it only makes sense that such ridiculous buy-side wealth accumulation would occur in this group as they were protected children during WWII, too old to die in Vietnam, fully invested during the mania years, and  lacked the courage to address our nations structural problems in their power years, instead choosing to spend their excess wealth on AARP donations to find ways to get at more of the teet... "I didn't pay a penny out pocket for my scooter chair." 

Just as they were protected as children, they seek to be protected as elderly... and we fully oblige them, all at the expense of the current jobless generation.  As reckless baby boomers lose all of their wealth in the crisis years, throw tantrums, and seek an external enemy to blame, all Millenials will have left in the wreckage are old Xers to blame as they head off to war with China in defense of the dollar.   

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