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China Radio: "The U.S. And Europe Have Always Suppressed The Rising Price Of Gold"
Sometimes, such as after pervasive liquidations in precious metals (or is that AAPL? Has it become clear yet that with widespread "quality" collateral shortages, gold and AAPL stock have become unexpected and almost interchangeable collateral replacements) it is easy to lose sight of the forest for the trees. A forest, in which the New York Fed is procuring (through the open market) the rehypothecated gold that the Bundesbank demanded for repatriation in January; in which JPMorgan's gold holdings have plunged by 75% since said stunning Bundesbank announcement and hit new record lows on a weekly basis paradoxically just as the price of spot gold keeps sliding ever lower; and in which China is importing unprecedented amounts of gold and adding more and more each month. So let's do a quick refresh on the forest, shall we.
Here is what we discovered in September 2011, as part of Bradley Manning's trove of declassified US cables. From Wikileaks:
3. CHINA'S GOLD RESERVES
"China increases its gold reserves in order to kill two birds with one stone"
"The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): "According to China's National Foreign Exchanges Administration China's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB."
And now for some empirical trees.
While we don't know how much of the several hundred tons that Jens Weidmann has demanded for delivery from Liberty 33 has already been purchased and/or delivered, we know one thing: since publishing the Wikileaks disclosure China has imported nearly 2,000 tons, and just under 1,500 tons since January 2012...
... and that Chinese gold imports in 2013 continue to surpass those from 2012 "despite" the violent slide in the gold price - almost as if unlike E*trade momentum chasing babies, China buys more the lower the price drops.
In other words, China - pragmatic as always - decided to call the "rising gold price suppression" bluff of the US and Europe and do the only logical thing that takes advantage of an artificially suppressed gold price: buy hand over fist.
As for everyone else selling their (mostly paper) gold over fears that this time, unlike the previous two, Bernanke will actually stop monetizing debt and in the process eliminate all concerns of monetary collapse, China is happy to wave it in (and why not: it is only a matter of time before the taper makes way for the untaper).
Finally, we concluded our previous post looking at recent gold technicals with the following rhetorical question:
Someone more inquisitive than us may wonder: just where is all this gold being "withdrawn" to...
Rhetorical, because we have a very good idea where this gold is going.
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Gold will tend to rise slowly .... then suddenly !
Fuck me. I agree with you.
We're all very agreeable tonight... Must be the hot pepper I put on my salmon fillet earlier...
OR, the Jose Cuetvo that seems to be a a guest at many ZH'ers Saturday night parties.
Still, I agree with Mondeas about the price movement. Suddenly.....
DoChen!
Congrats on the 9 months, brother.
Blessings
K
Thanks, mate! I can hardly wait until 3 more mos. or so when I can then start bitching about how "This year is the hardest one yet...!"
lol
Gold manipulation is going to be like a defining memory of this millenium. Right?
playing the long 'generation' game like the Chinese?
Why they play if they 'have always' known this?
...unless training by the ivy leagues addicted them...
Here is something else they've suppressed.
Looks like Obama has imported the death squads. How you like me now Mr. middle class business man.
.America Is Officially An Occupied Nation
Yes, TPTB are getting ready to move.
On us.
They are within 12 mos of having military assets in place to take down the US; they will not be concerned about body counts.
So do you wanna call this Conspiracy Theory busted and become Fact now, or wait till Foreign Troops are searching your car and home?
Idea progression:
Conspiracy Theory
Conspiracy Fact
Simply Fact
The purpose of MSM propaganda is to disguise the facts.
How is it possible that the FX conversion from Ag to USD is going down with so much demand for Au....oh wait!
'Just an asset' my ass...
http://www.youtube.com/watch?v=2Dj9v9s9buk
What I don't get is the WikiLeaks angle. China publically issued this statement in their "World News Journal" a few years ago and this information is considered a "secret US intelligence cable?" Uh... China put it out as public record. The only wikileaks info drop that would interest me is tptb talking about all their market manipulations and metal suppresion.
Well...there you have it!
The question is how long will the PROC wait before announcing their challenge to the dollar? Will they do it like Jim Rickards suggests and start with a massive Tbill dump and announcement of a gold backed yuan? Or will they do as some above say and play the generational waiting game? I think they'd need an equivalent of a Saudi Arabia in their back pocket before they try. Is this what their new buddy Russia is for?
I think it'll be sooner rather than later. They're slowing down to 3% growth because everybody else who imports their crap is one step above full blown depression. They may just double down and say to themselves. " Look we've pretty much blown our wad on modernizing, infrastructure, middle class wealth building, how much better is it going to get from here on if nobody buys our crap?"
Do they want to play the game or run the game? What do you think? I think they've had enough waiting and will try to challenge the dollar. Even if they think the US will actually fully recover, and they can sell to a new generation of iCrap lovers, then they'd better move sooner. If they think the US is heading for prolonged deflationary spiral, they can wait till the end of the decade at most.
If their economy slows and commodity markets keep getting pummeled, maybe they'll make these announcements. What better way to stir their national pride and kick the knee out of the Western world than to declare the Emperor has no clothes. It would be volatile, but perhaps they could pull it off.
Some good questions by OR. I believe that their hoard of Treasury securities will one day be found to be much less than expected - kinda the inverse of how they handle announcing many years in arrears the growth of their gold holdings. It all comes down to the following timing question: when does it help the power position of the party more to have reserve currency privilege vs having the benefit of large export trade surpluses?
J.A., a very interesting conjecture. + 1
I will be better studying your future comments!
Thanks for the kind comment DoChen. Most of what I bring to the party are (sometimes obscure) attempts at humor. But will chip in something more serious on topics I know or work directly on now and then...
If you are in charge of issuing the world's reserve currency, you don't need any growth.
I think they will have to move with or before TPTB do. If as I suspect, the final stage of intentional economic collapse is underway, the Chinese must move in arrangement with TPTB if they're part of the collapse, or must move in accord with the collapse so China benefits. Either way, I see the collapse fast approaching... 12 months at most. Chinese reserve currency, maybe 6-9 months? Alternately, maybe long after the collapse, as the currency of restructuring? Doesn't matter, I hold gold / silver and little cash.
Why dump their dollar holdings when they can buy stuff with them?
Here's a chart of CNY/USD for you.
I think they are slowly doing it now. It will be on us before we realize what is happening.
Have you watched the US National Debt Clock lately ?
US $17,000,000,000,000 (17 trillion) US DEBT here we go....
and "WE" means :
ALL THOSE FOOLS THAT HOLD TRILLIONS OF US DEBT !
watch out for the US FED:
it's "BUGGER THY NEIGHBOUR" time !
and that includes China, US T-Bonds, Gold and everything else...
wr;)
My sneaking suspicion is that the world has always been on a 'shadow gold' standard where the US has now coughed it all up, with much of it going to those who really run the globe and the rest to China, with no say by the people.
At least Nixon told the people he was going to screw them.
"According to China's National Foreign Exchanges Administration China's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries."
The highlighted sentence is gramatically incorrect.
"Currently" implies present tense whereas "have been" implies past tense.
So perhaps they meant to say "until recently" instead of "currently", which would explain the gold vaults in the US running low.
My thoughts exactly.
What is China going to do when the custodians of their foreign held gold say "Sorry we cannot find your gold"????
So what way forward?
I idk
China does not have to lift a finger. It just has to announce how much gold it now holds.
Well, there's my answer from the JPM story. Assuming the fed is buying gold to give to the Germans and the Chinese are buying gold hand over fist, why are they driving the price down. And the answer is because the FED wants to buy this gold as cheaply as possible. Which leads to the most important question, where does that leave the USA? looks like a mountain of debt and a fiat currency that is very vulnerable. The FED is obviously very worried. So here comes the tapering to strengthen the dollar. The article above says that it won't work. If that is true, the dollar will collapse. That's what the article seems to be saying, which means we all should buy more gold. It's unbelievably difficult to do what the rational mind says you should do when the value of an owned asset has been going down. Human psychology truly controls all human activity, not rational thought.I hope i can convince myself to buy more. What a way to spend a Saturday night, in a battle with oneself.
It becomes far easier to act in times like these when you think in terms of paper vs physical. Sell paper. Buy physical. Sleep well.
i don't own paper except for some miners. i own physical. i just have to convince myself to dollar cost average or whatever it is and buy more. i am currently due for another 10k or so but can't seem to push the button though i know i must for my own preservation. it reminds me of the stories i have read about the Jews refusing to leave the ghettos because, even though they knew was happening to them as a group, they couldn't believe that it would happen to them individually. Of course, they were all swept up in the end, probably still disbelieving right up until they were put on the train. That's the book i need to read, the one that analysizes that psychologically and how it was flawed. If we know the causes of the psychological condition, that is the first step in overcoming it. there must be a book on that since it is such an incredible psychological story.
Good luck figureing it all out.
Normalcy bias.
http://en.wikipedia.org/wiki/Normalcy_bias
Please read Man's Search for Meaning by Victor E. Frankl if you're looking for those answers. Mr. Frankl did hard labor time in 4 camps from '42-'45 and used the experience to bring us logotherapy. It's a short book and worth your time, because what he went through need not happen again.
It should be easier to think that way, Jam.
But I noticed the other day that we are taught from childhood that " the coins aren't worth as much as the paper notes".
Like a bell went off in my head. My kid prefers dollar bills to coins because of this perception. Kyle bass knows. He trades paper for nickels.
Quite a deception.
You're right - valuing paper more than its actual worth is very consciously part of our indoctrination at all levels of education (all the way through grad school) and in the culture outside of schools in the US. Upcoming events will cause a generational change in that perception however.
Here in America we may piss and moan about the Chinese for undertaking various activities counter to our national interests (consider the arrogance......), but as Tyler points out, the Chinese are incredibly pragmatic.
I lived in that part of the world for years and came to appreciate that aspect, as well as their "long view" mindset. They are patient, methodical and cut throat in carrying out their plans.
The Chinese plan on 10-20-50 year timelines. Here in the U.S., most people can't plan anything beyond a week at best.
While the Chinese are busy trying to build their military, business environment and opportunities abroad, here in the U.S. the party in power is seemingly busy destroying the military, the business environment and relationships abroad. While the Chinese are courting opportunity, the party in power here in the U.S. is crushing it.
The Chinese are rapidly increasing the quality of their educational system while we are destroying our's by intentionally dumbing down curriculum and standards.
Sure, the Chinese have their share of major problems and issues, but they also have a shit ton more people to consider and accommodate in their planning.
China will be a major force to reckon with in the coming years
As for the U.S., is grieves me to know that this country is rapidly being reduced to that of a....errr.... paper tiger.
We are not out of the proverbial fight yet, but from my perch we sure look to be staggering towards the ropes.
I think the US military and the NSA plan very carefully and long range. Look all the success in the mideast in formenting wars etc. I was with a guy right before Bush junior was elected the first time. I took him to an Atlanta Hawks bball game since i have really good seats. It was in November and he was in the reserves. He literally told me that if Bush gets elected, we will be going to war. Now how did he know that. The military told him. And why did the military tell him, because, as he said, they have to give us time to get our lives in order. That was like two years I guess before the Irag war. the people in this country can't think 5 minutes ahead, but i don't think it is the case with the military and the US corporations who use the military for their ends.
The Chinese government can go fuck itself. They are everything wrong with the world. Fuck the population, let's benefit a few thousand wealthy douchebags. Fuck the environnment, let's benefit a few wealthy douchebags. Fuck the Western workers, let's benefit the douchebags. At least we finally found Galt. Apparently, s/he loves take out.
I know, right? Every time I read Rand, all I can see is a glorification of government sponsered enterprise and government corruption, exactly like what we see in China.
That damned Commie!
Seriously, you made a major error in choosing your name. Picking a name as such, to express contempt for a person or concept, sets you on the course of hating that person or concept forever. You will never be able to change, or grow beyond that hate. You will ignore all argument, all evidence to the contrary, and continue using the same foolish and childish attacks.
With a name like that, you will never be able to actually change your mind: http://wiki.lesswrong.com/wiki/How_To_Actually_Change_Your_Mind
Well sometimes you have to look at the positives too. LTER has a great sense of humor. Very few others on the Left do (someone should write a book). A great sense of humor is an indicator (granted, just one) of a great mind.
Time for some frivolity from you too, tmosley! :)
China does indeed have many strengths but if their forward planning was so good they would not have ended up with so many empty cities and empty apartment blocks, mothballed smelters and factories and generally massive over capacity.
Add to that the fact that they are not great innovators although very cunning copiers of foreign equipment and technology and in fact they are stand over merchants that demand foreign companies to share and divulge intellectual property.
The only thing going for them is that if they have the guts to slash and burn their economy back into a sustainable model they might just pip the USA at the post, otherwise these two giants will either inevitably clash or they will privately agree as to how to carve the world between themselves at the expense of the rest of us.
America spends the deficit on the military instead. In China's case it'll create cheap accomodation for people, in America's case, the wealth is burned.
".....they will privately agree as to how to carve the world between themselves at the expense of the rest of us."
It has already been done. The plan has been in process for over a century. Actually it is no longer a future plan....Most of that plan is now history.
However, for those of us who have read the Book, we already know how it all ends......And the bad guys get their asses kicked.
And in this case . . . .
Exactly Who are The Bad Guys?
Thank you for injecting some sense into this orgy of Chinaphile idiocy.
You sound like a goddamn statist fool.
If they think so, they should ask for gold instead of US-Dollar and base their money on it. And well it would be a good idea to abolish their central bank first. Oh they won't do that? Wel lI guess they have their reasons.
If this is not bullish for gold i don know what is.
Yeah
http://bit.ly/R0cpw0
Great video!
Came out right after decision to invade Iraq and ignoring the millions that thought it was not the way to proceed:
https://www.youtube.com/watch?v=tAjqGnQpVks
I actually was working in another country and went home for the protest.
To the War mongering politicians:
"NOT IN MY NAME!"
That was the first time in my life I was ever called a, "traitor"... by repubicans no less. And they wonder why I have a seething hatred for them.
sorry dups
From the link posted today:
"Just as Treasuries are being dumped, the primary buyer of gold, China, continues to take down high levels of physical. Of late it is equal to world mining supply. I wouldn’t be at all surprised if the PBoC didn’t announced later this summer that they have gold reserves on par with the official gold of the U.S (8133 tonnes) or at least Germany (3400 tonnes) The difference is that China’s gold hasn’t been leased out, nor is it being stored with the Fed in New York on a seven year delivery schedule."
more- http://winteractionables.com/?p=4151
Imagine that they proved their reserves by inviting a physical audit and declaring them free from encumbrances.
And Egypt continues to fold up like a cheap Bedouin tent.
BREAKING....
Blast Hits Gas Pipeline in Sinai
http://www.aljazeera.com/news/africa/2013/07/20137744524659452.html
Once the dollar collapse is complete you'll be able to order gold at your Chinese take away. Simply ask for number 5000, you'll have to find about 30000 Yuan per oz to complete the transaction or wash the dishes for a year.
The day of reckoning draws nearer.
Hold on to your physical boys and girls it's going to get interesting pretty soon.
You made that sound smutty...
Not so inscrutable
No reason to toot China's horn since they are also buying US bonds
(though, that could be to sabatoge the US economy at some point...)
China is buying a long rope for the US to hang herself.
Besides what the todays goldtag is, I have a transport company in Holland and I can only say that we never experienced a drop out as we see today, this after 22 years of profitable business (have to pull plug in a few months), if you ask me most people are still neglecting reality, as most of our politicians, brooke banks have been salvaged, broke governments have been salvaged, now unlimited free money is available for these institutions, and they all think the broke street will to pay for all this..., I am really in shock with all these 'flying' indexes, wtf is wrong with the world, in bankers bonus world it's is business as usual again, here in Holland we have 56% working for/of the state (education-healthcare-welfare-subsidised yelling people), who is going to pay for them when the music stops playing, if you ask me they are all still in Wonderland including this 'DDR like' undemocratic European union, they think they can survive send each other a bunch of IOU's, it is a big mess and i think we will hit a wall soon, with this virtual recovery.
IMO if 90% of the wealth is in 1% of the people, don't expect the remaining 10% to take care of a recovery, think!
Thats why the 1% always recover with more than what they started with after every bubble pop.
Then the 1% get to dictate how they will save us all (all means them) if we just do what they say.
The 1% is always looking out for the 90%. They want to make sure they are never in the 90% thats how they look out for us.
AND THE .01%
"Banking was conceived in iniquity and was born in sin.
The Bankers own the earth. Take it away from them,
but leave them the power to create deposits,
and with the flick of the pen they will
create enough deposits to buy it back again.
However, take it away from them, and
all the great fortunes like mine
will disappear and they ought to disappear, for
this would be a happier and better world to live in.
But, if you wish to remain the slaves of Bankers
and pay the cost of your own slavery,
let them continue to create deposits."
--- Sir Josiah Stamp (1880-1941)
President of the Bank of England & 2nd richest man in Britain
Source: Speaking at the Commencement Address of the University of Texas in 1927
When I say it, I'm a commie bastard, a moron, a pariah to all decent greedy self-serving mother fuckers out there... but when one of the a-holes, sorry, I mean one of the conspirators, a lackey of the oligarchs, says this, it is common sense and the truth, of course.
In any case, I thank Mr. Stamp for his candor: "...all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in."
There could be no clearer message, but the greed has made most deaf to all reason... so fuck it, bring on the collapse so we can cull the herd, so we can once again concentrate the vast riches of the world in the grubby claws of the greedy few.
".... Im a commie bastard, a moron.........."
You listen too much. And to the wrong people.
Quit trying to help the blind. They are blind because they REFUSE to see.
...or maybe they are right.
NOW THE GOLD MEME MAKES SENSE!
When a major economic nation, great creditor machine, picks up the guantlet of fiat monetary devaluation as a MEANS TO A POLITICAL END : challenging Pax Americana hegemony and corrupted global model.
We are no longer looking at the gold function thru the eyes of Rome which has NO interest in diluting its paper money (now gone fully electronic bubbleonomics fiat in the derivatives jam and scam rout), but thru the eyes of a nation that wants to build an ALTERNATIVE POLITICAL MODEL TO PAX AMERICANA.
ZH and its readers have to ask themselves one question : Is the diversified world a better thing for humanity or not?
This is the ONLY issue worth debating. Does the Roman meme of : YOU ARE FOR US OR AGAINST US make sense even to the citizens of Rome who cherish freedom, not political hegemony at any cost, as prime value of civilization?
I say the more the merrier, tear down this sham scam of US administration three card monty that has been the ONLY game in town since Pax Americana went globally hegemonial in the spilled blood of its own President on November 22 1963.
From that fatal day onwards its been a strategy of "permanent world tension" of hubris and plunder using false flags of concocted 'casus belli' in machivellian global plays on recurrent basis, under the fiat banner of "our money your problem".
Not that I support an opaque one party fascist model where politics, military and behemoth economia go hand in hand as the model of the future. China today is no alternative for those who cherish Voltaire, Montesquieu and Jefferson.
But opposition of empires has the merit of cleaning the air from the inevitabliity of unilaterally programmed decadence. Renaissance chimes are back!
Jack Rueff must be smiling in his grave at hearing a major nation saying : bring back the gold standard meme to check this debasement of modern civilization that has become the "land of the free" under successive administrations of the greedy oligarchy class.
No such thing as a Packs Amreekkkana as I have repeatedly explained to fake falakaka penushead but for some reason he keeps pimping the meme. Anybody that believes in such a kindergarden view of geopollitics is either a bufoon or troll, take your pick.
So what would you call the global economic & political power & influence of the United States which has grown over the last ~6-7 decades? And which is under threat of late?
Smacker - let me break it down for you Pax is Latin for peace. Hence there has been no such thing as a Pax Americana.
Well, since you like breaking things down, let me break it down for you.....
You're falling into the same trap as the earlier commenter - Treason Season - by focusing on a "label".
Labels are just names for things. And they rarely describe accurately what they're attached to.
No one can deny that there has been an American ["Empire" if you don't like 'Pax Americana'] for the past ~6-7 decades (it probably has its roots much earlier). Which has exerted huge amounts of economic & political power, control & influence over large parts of the world. Including its currency being the global reserve currency. Much of this has been achieved peacefully even willingly, hence the term Pax Americana.
Read and think a bit before flying off the handle.
Empire - Of course. Who is saying otherwise? Not me.
Pax [aka Peace] - Of course not. I'm old and almost my whole life, we've been at war with somebody.
you don't understand what empires are about : they ostensibly say we are for PEACE (pax) but...if you are not with us then you are against us; aka no middle ground or true freedom of choice allowed.
Don't let words fool you; read the message behind : Pax Romana, Pax Napoleon, Pax Britannica, Pax Americana.... all uncompromising empires behind their PAX curtain.
in this Orwellian dystopia War is Peace. You need to catch up a bit.
Of course. Pax grows out of the barrel of a gun.
so your "explanation" is what of the last 50 years; easy to disseminate vitriol or do you buy into the logic of perennial oligarchy hubris : never complain, never explain...as opposed to its opposite which is Socrates's legacy to western civilization :
Always complain about what is hatched behind curtain, always explain about what constitutes general good! Then debate openly.
Its very essence of democracy.
Choose you mindset, choose you tribe : democracy of Paul Revere and Thomas Paine and all those others or Oligarchy of kings and Optimates yesterday, "happy few" crony capitalists today.
And, we are what we do and Pax Americana has done it... as Galileo said before the Inquisition : and yet it continues to turn!
Facts are acts written in blood.
Errrrrrh.....What?
If you look up the definition of "false choice" it reads:
"Choose you mindset, choose you tribe : democracy of Paul Revere and Thomas Paine and all those others or Oligarchy of kings and Optimates yesterday, "happy few" crony capitalists today. "
now define real choice instead of mis-defining "false" choice.
You begin with the conclusion as "fait accompli", to define the premice. Its called being dogmatic, not pragmatic or logical.
Head up ass is what you are.
[To Treason Season]
Excuse me, did you just call someone a "penushead"? On ZH? I believe the correct spelling is penis, so you should have typed penis-head [hyphenated].
Its not often that we are treated with 8 yr old level name-calling here. Thanks, its great to know that the youngest generation is reading ZH.
[face_smiley]
Spelling aside, I think the "name-calling" has more to do with Falak's username.
And how do you address someone that refuses to see the banksters behind the curtain and strangely religously avidly insists "America" is in control of anything whatever "America" means to fake falak fever? No more patience with the poster so that's why I resorted to name calling and at least it drew some attention to his/her spurious proselytizing.
PAX Americana? All we do is wreck countries and economies. We are the force of chaos.
Because we have been conquered by foreign banks. It is just not realized yet.
When God wants to punish Americans he sends them hurricaines and tornados
When God wants to punish anyone else he sends them Americans.
and so 1+1=chinese asking for it?
Why broadcasted now, if they "have always" known ?
To whom it may concern?
Oh, by the WAY, God has nothing to do with any of these...our mess.
All very strange...
I can understand Bernanke & US Fed taking criminal action[*] to manipulate the gold market down to support the USD as reserve currency. This has long been suspected on ZH and elsewhere.
But when this very action encouraged China and Asia to buy ever more gold to meet its own aim of the RNB becoming a reserve currency backed by gold, it looks like the Fed's actions have badly backfired and will hasten the day when the USD is brushed aside.
[*] last time I looked, it was a criminal offence to manipulate, or conspire to manipulate, any market.
Ponzi maintenance only requires looking ahead 24 hrs. It is about the next day, not the next year.
To the criminal banksters, the US is just a horse to be ridden. When it's played out thru exhaustion, they'll move on to another.
No! No! No! No! Fake falak fevred says it's Packs Ameerikanna in charge and there's no such thing as a bankster cabal. /sar
It did backfire in April but that didn't stop them. They did it again with some help from Bernanke's suggestion of tapering which brough gold price down even further. It amazes me that this psychopathic behavior seems to actually work. I think the Chinese are not buying right now.
Its only manipulation if the US says so, kind of like its only a coup if the US says so. Resultantly, Egypt has not experienced a coup and the only country manipulating any market is China. In this manner, bat-shit crazy unstable Pakistan gets a pass for having nuclear weapons but Iran is completely subject to bombings and/or more crippling sanctions if they are developing, or suspected of developing, nuclear weapons.
Hey goodmorning RSloane
Where this article loses me, and I guess in general....If China was truly upset that the U.S was suppressing the price of gold for it's own benefit...why not update their gold holdings? That would send the price shooting up, no?
I would think they would be happy to be buying anything they can get at these prices.
Good morning Fonz!
I think this was a shot across the bow mostly for home consumption. Remember those wrap-around-the-building lines of Chinese we saw buying gold? This is in part an explanation to them of why their gold is being devalued continuously.
In the meantime they will buy buy buy gold at these prices.
I agree with all that.
But if the prosecution authorities were doing the job they're paid to do out of taxpayers' money, they would investigate and then end up with a lot of data on specific transactions carried out over certain timeframes which caused the gold market to fall. That would allow them to decide if the market was deliberately manipulated. If they decide it was, those responsible would be charged and prosecuted.
Of course, I realise this is only a brief description of how that laughing stock known as "The Rule of Law" is supposed to operate.
But, hey, I can dream can't I? ;-)
game on
if it is ping pong, the bernank better be Gump
This makes gold bugs in the US and EU enemies of the state. I didn't think this would happen. Better start thinking about your next move.
Not to put too fine a point on it, but... EXACTLY.
Are the Chinese finished BTFD?
"The West seeling Au for $1200 to the East is going to look just as foolish as Brown selling out for $250..."
Yeah well said!
"Make no mistake about it, the Anglo-American Empire will NOT allow China to "get all the gold."
They will start a war"
If Marx is proven right http://en.wikipedia.org/wiki/The_Eighteenth_Brumaire_of_Louis_Napoleon THIS time it'll be a disaster for the dirty couple... The Chinese will win this time!
Just what do the Chinese win?
Let's play Apocalyptic Nightmare
We are in the Final Round.
Let's see..Behind Door Number 1 is....A Nuclear Winter.
Behind Door Number 2 is...a Holocaust.
Behind Door Number 3 is the Grandest Prize of them all...Human Extinction
What door do you choose, Obama? Make it quick as the clock is ticking down to your Apocalyptic Nightmare...
Nobody wins anything but Death and Destruction. Get it?
Tall Tom
I Cor 13
A missing link in the puzzle could be the physical gold deliveries on the Shnghai Gold Exchange.
http://koosjansen.blogspot.nl/2013/07/week-25-chart-sge.html
This doesn't tell us eveything, it does tell us there is a lot of physical gold activity in China.
To ZH: If you publish monthly import numbers from HK into China, pleae also publish China's export to HK. That would paint a more objective picture..
They recently did on China-India and vv.
Does anybody here melt gold down; like jewelry? Is there any money in this, or is it a waste of time?
It can be quite profitable. Just don't recast any of the Au into coins, especially if they look like US coins.
Thank you. I will melt the gold and turn them into "buttons".
If you put those buttons on a suit you had better sew it on real tight so it doesn't fall off.
Keep some in Jewelry Form.
The USA did not confiscate any Gold Jewelry, whatsoever, in the 1933 Confiscation. They could not assay a value for Jewelry Replacement. You can always sell Jewelry for near Melt after a confiscation.
Tall Tom
I Cor 13
China exports worthless plastic crap to the US in exchange for worthless US dollars. Then they exchange worthless US dollars for gold. Sounds logical - from China's perspective.
What's JPM going to do with their empty gold vault? Maybe they can fill it up with beanie babies and those plastic trinkets that come with Happy Meals.
They can mark that garbage up to whatever price they want without causing inflation and sell it to the Fed if they feel like it. Seems reasonable to me.
In selling worthless crap to Americans, china builds infrastructure, an educated working class, a wealthy middle class and gets lots of the latest state of the art technology and knowledge largely for free.
At the same time, Americans dig themselves deeper and deeper in to debt, export their manufacturing capacity and put 1 in 6 on to food stamps all for said cheap crap from China.
The chinese have won this one, largely by turning the political and business leadership of the US into traitors.
An educated working class! Hhahahahahahahahhahaha!
COT positioning chart at the bottom of this link says a lot about momo chasing cannon fodder as well.
http://finviz.com/futures_charts.ashx?t=GC&p=w1
This makes me think back to the aftermath of Cathage. After the city state became a Roman Provence, the former ruling class would give their sons to become senators in Rome. Even if they became Romans in the end and no longer recognised themselves, the families wealth and position of prestige was preserved in the new state. Is the Anglo-American power base doing the same thing with China in allowing it to build its gold reserves and reach reserve currency status? I guess when we see white Chinese officials speaking fluent mandarin we'll know the future has arrived.
China is laughing all the way to the gold vault with their newly acquired precious objects, laughing hysterically at the foolishness of the USSA and Europe in surpressing the price.
Sun Tzu tactics will overcome again without a single Chinese life being lost in the process
If the Chinese go through with this think: If it isn't nailed down in your posession, physically and documentation wise, then it will evaprate into thin air. This applies to all assets.
Good, my 60 year old golfing baby boomer who think money printing hurts no one need to have his assets taken.. Part of the share the wealth plan by his idol.
“Shikata ga nai” ...... (bitches !)
The president sighed wearily. So much to do. Running for pResident had been such an ego boost, but the job itself...he longed for the days when he and Rahm could visit Man's Country incognito, like Simon Black, his favorite blogger.
"Mr President?" His reverie was interrupted.
"What, minion?" he said, with a touch of arrogance.
"The Chinese government is incredibly angry about a shipment of fake gold from the JPM vault."
In an hour, the National Security Team was in session.
The Treasury secretary spoke first.
"Mr President, we are under threat of attack."
"What?" said the Chairman of the Chief Joints. "Why was I not informed?"
"Beijing is threatening to dump all of our USTs unless we re compensate them for the fake gold."
"What do you propose?'
"We give them Alaska. They get all the oil they want."
The Interior Secretary spoke.
"Sir, the People will never go for that! Give Alaska away?"
"Never!" said the Chief Joint.
The pResident responded. "Look, it's cold up there. There are a lot of wild animals that could eat people. I watched it on Discovery Channel. It stays dark a lot, too. Have our plants in the MSM craft some stories about how worthless Alaska is. It worked with Gold. Last time I checked, the price was way down. Those Barbarous Relic stories we planted worked. The People are dumb, plus we have their water spiked and Honey Boo-Boo on our side. Call the NFL and see if we can stong-arm them into moar football games."
"It might work, Sir.," the Press Secretary responded. I'll get on it right away."
"Good. Keep me informed. I have some travel brochures to review," the president responded. "Meeting's adjourned."
I liked your other version better with the Chinese ship going to sea with tungsten. That was hilarious.
Thanks. I am trying to improve them. I thought the Tungsten was better, too.
I shall endeavour to get moar better.
Thanks, I enjoyed that a lot. You almost made Obama sound human which makes your writing skills formidable!
Regarding India. I was married to an Indian woman for 18 years and I know for certain that government restrictions on gold purchases will not work. Indians ALWAYS find a way to circumvent government restirctions even when there is only a LITTLE money to be made.
Gold backed RMB wouldn't work without all fiat going the same route. It would not allow currency trading at xxx leverage. RMB = x grains of gold = USD and all others x ???leverage. Currency trading would stop. If RMB backed by physical gold then all currecies need to be valued against gold.
If RMB backed by physical gold then all currecies need to be valued against gold.
Oh they will be. Their issuers just might not like the valuation very much.
China has trade agreements with various countries that do not use the USD as a valuation basis nor as a currency exchanged for goods and services. They use a basket of currencies usually comprised of the currency of the country they are trading with [it can also be a variety of currencies as with some BRIC nations] and the RMB. They do this in the belief that the USD is too unstable for a sole currency to use for trade, and of course it also strengthens the international recognition of the RMB as a partial basis for trade.
While reducing transaction costs in the process.
And keeping BIS out of the transaction -- and all the hidden entities behind the curtain.
+55555555555555555555555555555
I'm thinking, hoping, the Chinese version of a NWO is different than the Rothchilds and US Bankers/Politicians. At this point the elites have so much power the best way bring them down would be infighting, just a matter of time before the military is used to get their gold back.
Above Chart is linked from the CATO Institute web site, which brings to mind The WHO lyrics.
"Meet the new boss
Same as the old boss"
Once and for all .... the Federal Reserve is not a private bank .... you cannot buy shares in it .... it is not publicly traded .... it is wholly owned and controlled by your government ! It is no more a private bank .... than a corporation is an actual person !
Has Obammy decided on Yellin .... or someone else .... to replace Bernanke ? The Fed is about as private .... as the BLS is independent and unbiased .... bugaboo of little liberal minds .... half formed like Baloot ! Nixon didn't end the Gold Standard .... the Federal Reserve "Gold Window" was already closed for American citizens .... Nixon closed it for foreigners .... liberal icon bugaboos !
Just to be accurate:
http://www.factcheck.org/2008/03/federal-reserve-bank-ownership/
There are actually 12 different Federal Reserve Banks around the country, and they are owned by big private banks. But the banks don’t necessarily run the show. Nationally, the Federal Reserve System is led by a Board of Governors whose seven members are appointed by the president and confirmed by the Senate.
So when gold falls below 1000 USD will the Chinese start puking it up?
They will divest even more of their US Paper Holdings and buy even more Physical Gold.
They have secured Iraqi Oil.
They are exclusively trading with Iran for Iranian Oil.
They do not need our stinking US Dollars with which to use to buy Oil.
The Petrodollar is DYING. The US World Currency Status comes to its final end.
They will not be divesting of any Gold. They will be INCREASING THEIR RESERVES.
Tall Tom
I Cor 13
Pax Russiana .... pax is Myr .... it's the peace that happens .... when your political opposition .... has been silenced !
A gold backed currency standard only lasts as long as the Gov remains honest.
China honest ?
Well there is Confucious.
He taught morality.
Our best hope is to enforce our constitution on the poltityrants.
Remember how Merkel was all up in arms about US spying?
http://www.reuters.com/article/2013/07/04/us-usa-security-obama-merkel-i...
She could not have been any more full of shit.
http://www.spiegel.de/international/world/edward-snowden-accuses-germany...
"The partnerships are organized in a way that authorities in other countries can "insulate their political leaders from the backlash" in the event it becomes public "how grievously they're violating global privacy.""
Now the Joint Chief of Staff says : Snowden hurt our relation with others.
What he DOES NOT say is : By exposing the NSA network he has exposed something much more malevolent and malicious than just "hurting" inter governmental relations; its the fundaments of democracy that have been undermined by the NSA.
Des this BRASS HAT understand the meaning of that or is he TOTALLY already into "democracy is for fools and weaklings" meme?
Full Faith, Credit and (if that don't satify you) Gold of the Peoples Republic of China.
Western pols think a long term is an election cycle. Asian leaders think in thousands of years.