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New Currency Wars Cometh - Gold To Be “Last Man Standing”
New Currency Wars Cometh - Gold To Be “Last Man Standing”
Currency wars are set to warm up again, after Japan's radical decision to further debase its currency through an intensification of already significant monetary easing. There was a palpable coldness from China's Premier Xi Jinping as he greeted Japan's President Abe at the APEC summit in Beijing.
h/t Brian via Zero Hedge
Tensions are normally high between the two countries but are even more so in recent months.
War grievances run deep and are never far below the surface. Along with South Korea, these are the big industrial powers of Asia who are competing for a share of the shrinking export market.
China's economy is slowing. Official figures suggest that growth has slowed to around 7%. Some analysts say it is as low as 5%. While Western countries would rejoice at such figures it must be remembered that in 2012 China's growth in GDP was over 10%.
The decline has affected employment in China which is causing social tensions. The U.S. has put diplomatic pressure on China to not devalue its currency in recent years. So the Chinese resent Japan's unsignaled and unilateral debasement of their currency, especially if it comes with the blessing of the U.S.
It would appear as though Japan's actions were not taken at the behest of Japan's financial elites, even though they stand to gain the most from QE in the short term - especially if the U.S. experience is anything to go by.
How China will respond remains to be seen. Recent renminbi currency swap deals with Canada and Qatar show the increasing risk posed to the dollar’s status as sole global reserve currency.
If and when the dollar falls out of favour as the preeminent reserve currency it's ability to run large deficits for months on end will be greatly compromised.
The symbolism of the official photograph of the APEC summit could not be more clear. Symbolism is important to the Chinese.
In the photograph (see above) are Xi Jinping along with the leaders of Brunei, the Philippines, and Russian President Putin on the left hand side. Far to the right is Barack Obama. President Putin is at President Xi Jinping right hand.
China is emphasising it's influence in East Asia and it's good relations with Russia. The U.S. is presented as insignificant and ineffectual, at least in the affairs of East Asia.
Currency wars are set to intensify again. Indeed, Saxobank has warned of a new “full scale” currency war. We are in a full-blown currency war and the ECB will feel under pressure to take part in that,” said Nick Beecroft, non-executive chairman and senior markets consultant at Saxo Capital last week.
Chief Economist and CIO of Saxobank, Steen Jakobsen warned yesterday that there's an increasing risk we will soon see a "significant paradigm shift" from China in its attitude to the strength of its currency. He says we're about to see a full-scale currency war, notably between China and Japan, two of the world's greatest exporting countries.
Whatever action China chooses with regard to positioning the yuan as reserve currency and using its gold reserves, it seems sure that the U.S. will not be consulted. It is likely that China has enough gold bullion to dethrone the dollar in the event of a dollar crisis or a wider international monetary crisis.
Volatility in the currency markets is likely to increase greatly. If the competitive devaluation of currencies accelerate, fiat currencies risk losing value versus gold. Indeed, in worst case scenarios some may revert to their intrinsic value - zero.
When the dust settles gold will be the last man standing as it cannot be created or destroyed by governments. It remains the best form of financial insurance.
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MARKET UPDATE
Today’s AM fix was USD 1,151.25, EUR 927.90 and GBP 726.43 per ounce.
Yesterday’s AM fix was USD 1,172.00, EUR 938.20 and GBP 737.25 per ounce.
Gold fell $25.90 or 1.14% to $1,149.40 per ounce yesterday and silver slipped $0.18 or 2.2% at $15.56 per ounce.
Silver in U.S. Dollars - 10 Years (Thomson Reuters)
Gold remained firm near $1,150 an ounce as physical demand for gold bullion coins and bars especially from Chinese store of value buyers increased after yesterday's weakness.
Spot gold was flat at $1,150.45 an ounce at 1021 GMT, while Comex U.S. gold futures for December delivery fell $9.90 an ounce to $1,149.90.
Silver slipped 0.3% at $15.51 an ounce. Spot platinum was down 0.2% at $1,190.24 an ounce, while spot palladium was down 0.2 percent at $757.35 an ounce. Spot palladium was down 0.2% at $757.35 an ounce.
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"If voting changed anything, they'd make it illegal." ~ Emma Goldman
If you believe that Emma Goldman is correct, as many people do, then it is reasonable to believe that if owning precious metals could protect you, then ownership of those metals would be made illegal.
TPTB have already war gamed out all the possible ways the serfs could try to protect what little wealth they have saved, to think otherwise is to greatly underestimated TPTB.
The Chinese gov greatly encourages their people to buy gold and silver, and it isn't because they want to see their people's lives enriched or protected. It is safe to assume that the Chinese gov has
already planned the confiscation of the peoples precious metals, why should any other country be different? There are many ways to confiscate without kicking the doors in.
Not really OT but found these two things intersting in the overall discussion of economic collapse.
First i found an old Turd post that, when some sort of tech analysis was possible, it was amazing to see the manipulation. Plus the accuracy of Turd's predictions are quite note worthy.
http://www.tfmetalsreport.com/blog/3520/literally-sick-my-stomach
Second is a reminder of how we really got here and how all of this has been a smoke screen to cover up the real issue facing the world and this country. Listen to Kanjorski as he describes the real nature of the events that took place. Not to metion the conspiratorial aspect of his dates he sites.
http://www.youtube.com/watch?v=pD8viQ_DhS4&feature=related
He says it was around Sept 15 08, which was a Monday and the day Lehman "oficially" declared bankruptcy. He then say on Thursday, which if that week would've been Sept 18, 2008, that there was a drawn down of money market claims to the toon of $500 billion and would've resulted in a loss of $5.5 TRILLION.
This was the suspension of the desposits that actually took place on Sept 11 2008 the following week when the Fed knew Lehman was bankrupt.
On June 30, 2008, money market mutual funds had total assets of $3.3 trillion of assets. Among these assets, money market mutual funds held $701 billion of commercial paper, or about 40 percent of all commercial paper outstanding. “Breaking the buck” at the Reserve Primary Fund caused investors to question unnecessarily the soundness of other money market mutual funds.
Irrational runs on money market mutual funds began. For the week ending on Wednesday September 17, 2008, investors redeemed $145 billion from their money market mutual funds. On Thursday September 18, 2008, institutional money managers sought to redeem another $500 billion, but Secretary Paulson intervened directly with these managers to dissuade them from demanding redemptions.
http://www.jec.senate.gov/republicans/public/?a=Files.Serve&File_id=7372...
Edit - Forgot to mention that Kanjorski ends that clip by saying, "somebody threw us ( the united states) in the middle of the atlantic ocean. and we're trying to determine the closest shore and if we can swim that far. We just don't know. "
Yeh, Gold's terrible - Booo!
Give me a piece of paper with a pyramid and and eye on it anyday - Yaay.
oh enough of this currency wars bullshit. there is no war. only the dollar.
Things are until they are no longer. Then there is only gold (and silver) left.
Gold is just very expensive shiny yellow lead for people who use too much halucinogenic substances.
All of the gold hoarders who exchange currency for gold on the delusion that this will protect & preserve their earnings, buying power, etc are living in a fantasy - the same politicians who have been ruthlessly plunderiing you out of your earnings every paycheck, every taxed purchase, all diluted savings, crushed interest rates, massively manipulated markets, importing tens of millions of compessino entitlement program tit suckers, etc, etc are absolutley NOT going to allow you to escape rape through mere possession of some heavy metal.
In the past the Feds made gold & silver illegal as currency, devalued gold & silver, and confiscated gold & silver, and they will do it all and more again anytime that it serves their lust to retain power. The ONLY way that you can protect youself from politicians and preserve what you have earned & own is with hot kinetic lead, not gold & silver.
Cancer, you'll be in for a very rude awakening when the day of reckoning comes. Good luck to you.
There isn't any "intended" symbolism in the picture. It just worked out well enough to fuel a lot of commentary about another problematic foreign policy field trip. You'd never get them to stand still for a picture if the rules weren't firmly in place. There is an APEC protocol manual. It says, " For the AELM, the photograph protocol order follows the Troika format – economies in alphabetical left to right arrangement with the troika in the centre (the host flanked by the previous host on the right and the incoming host on the left positioned in the middle of the first row). Hosts for other meetings can adopt this troika format as well.
The picture just meets everybody's expectations. If it was overt they would make Obama wear a bucket over his head with cutouts for his ears.
The falling value of both the yen and euro will reek havoc through contagion. For months the major world currencies had traded in a narrow range as if held in limbo by some great force. This has allowed people to think we were on sound footing as central banks across the world continued to print and pump out money chasing the "ever elusive growth" that always appears to be just around the corner. Recently several major currencies made multi-year highs or lows depending on the match-up .
The Fed recently whacked the dollar down but for how long? Because of weak demand for goods and most of this freshly printed money flowing into intangible investments inflation has not been a major problem, but the seeds for its future growth have been planted everywhere. John Maynard Keynes said By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Weakness in the value of the Yen, Pound, and Euro must not go unnoticed. More on why this may be a signal that currency trading is about to get very wild in the article below. Please note, this may also be sending a signal that the whole system is unstable and the stock market could drop like a stone due to contagion.
http://brucewilds.blogspot.com/2014/09/caution-alert-currencies-may-get-wild.html
What are you continually complaining about or positioning your readers for? Bankruptcy or a subscription to your deadhead blog service?
Who cares.Gold is a dead trade, kids use e-pay software and that is the fact. Your constant conspiracy shit has bankrupted good people who believed you.
You and you fucking goldbug conspirators are the manipulators.
The market sold against you and your readers lost a fortune. Quit complaining and jump for fuck sakes. Or maybe you're trying to sell more blog subscriptions. No couldn't be....
you dirtbag - get a set and jump please
If you have any cash left people after listening to this crook from 1900 down and who has sold you bankruptcy then buy more with yoru credit card.
If it so fucking cheap buy it and shut the fuck up
bigusdickus- i gave you an up and a down. 1 for the name. 1 for the commentary. You decide but i bet you are wong. Right Harry Reid?
I am maintaining a 15% position in PM and PM miners. So the drop from 1900 did not wipe me out. I know the current mess will end badly but stil feel Gold will do better than most asset classes.
Also, I have a fwned in womme.
Sorry....Fwend.
I bought gold at 700, I bought gold at the 1600 and I buy gold now on 1150. But this does not mean that I have no right to talk about the manipulation of the gold market, is not it?
<<The symbolism of the official photograph of the APEC summit could not be more clear. Symbolism is important to the Chinese.
In the photograph (see above) are Xi Jinping along with the leaders of Brunei, the Philippines, and Russian President Putin on the left hand side. Far to the right is Barack Obama. President Putin is at President Xi Jinping right hand.
China is emphasising it's influence in East Asia and it's good relations with Russia. The U.S. is presented as insignificant and ineffectual, at least in the affairs of East Asia.>>
Small point, Goldcore, but I agree with you about the APEC photo symbolism. That picture speaks 1,000 words.
The world will go on ahead with or without 'us'. A country full of of broke & unproductive peasants can't bring much to the policy table. It's alarming to be this marginalised, when I can remember when things were so very different. That photo says to me, "Welcome to the Third World".
Did someone say gold? Here are my latest results gold prospecting the local streambed. There is TONS of this stuff out there!
https://www.youtube.com/watch?v=Od9D6TECSa0
Vultures squabbling .
Some new owners are coming in .
See
https://www.academia.edu/9247204/Be_Your_Own_Owner
or
http://andreswhy.blogspot.com/2014/11/be-your-own-owner.html
Colorado cops show off cannabis harassment tactics for CNBC crew, give tickets for cigarettes
time to buy more gold.
http://www.covert.co.nr
Since gold and silver are below production cost, yes it is a good time to buy.
Buy whatever asset is the most hated. Gold and silver at the most hated, but oil companies are quickly catching up.
In general cow manure is the most hated. Good luck storing it in bulk for future sales.
No sir, it's the miners. The miners are at the nadir. If things don't turn fast, many will shut. So the miners are the ultimate gamble here. You'll either lose your buck or will cash in BIG. If you have some spare dollars you're willing to sacrifice for an all-or-nothing bet, buy some miners.
China (and Russia) are simply waiting for the McCain-iac foreign policy move to signal to them that 'the time is right'. 'Toppling' the reserve currency status may not be so much what China is after. If their currency has sufficient backing by a universally recognized store of value, an effort to 'topple' $USD hegemony becomes mute, because fellow trading nations will by simple nature of capital preservation, be drawn to the Chinese currency.
consuelo...
"becomes moot.."
And if the Chinese tank the USD and drive it straight to hell what happens to the value of their $4 Trillion of reserves? Hmmm? Russia might not care so much about that but China would think long and hard before they went along with Ivan's plans to "even the score". Those two don't trust each other any more than they trust the U.S.
Let's assume 60% of their reserves are in USD instruments, and those instruments decline to zero after China pulls the plug on the US.
China losses would be $2.4trn.
When you consider the trillions the US spent fighting a few towelheads in Iraq and Afghanistan, $2.4trn to bring the entire US to its knees is a total bargain.
It's much cheaper than fighting a traditional superpower war of succession.
I would ask the question - why wouldn't they do this?
China doesn't have any good options here. The choice is between bad and worse. In order for their current savings to retain their value, they have to invest more of their savings in US$. Tanking the US$ is a bad option for China, but is better than propping up the US$ today and losing more savings in the process. If they are in control of/can influence what replaces the US$ in the world markets they can salvage some of their savings and also ensure their future savings retain their value.
Though not insignificant, the Chinese reserves are only about 60% US denominated. The real figure is a state secret. Still a lot wealth to destroy. But what is the real cost? When does this dollar self destruct by actions that the Chinese cannot control. These Washington leaders are insane.
I have to doubt if the world's central bankers will ever use a single currency as the reserve.
It gave the USA way too much power and i doubt many would be willing to just hand that same power to China.
Gold would fill that role better.
It's the Golden Rule: He who has the gold, makes the rules.
Putin will kill you all. Enjoy your gold then.
So... The people making a profit from selling gold say that people should buy gold. Hmmmm...
.
And you can go and listen to MSM and buy stocks. Hmm. So who's right, BTFATH in stocks or PMs while blood is in the streets?
I didn't realize that the MSM was making comissoins selling stocks. Inside informaiton on your part no doubt...
Like you, I always trust the people selling products to give me the best advice when they tell me to buy their products instead of someone else's.
MSM get paid by corporate advertisers. Check the number of financial advisors hawking on MSNBC.
So yeah, they get commissions by selling stocks.
Gold or stocks? think I'll stick to cryptos kthxbai