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China Chooses Her Weapons
By Alasdair Macleod of Gold Money
China's recent mini-devaluations had less to do with her mounting economic challenges, and more to do with a statement from the IMF on 4 August, that it was proposing to defer the decision to include the yuan in the SDR until next October
The IMF's excuse was to avoid changes at the calendar year-end and to allow users of the SDR time to "adjust to a potential changed basket composition". It was a poor explanation that was hardly credible, given that SDR users have already had five years to prepare; but the decision confirming the delay was finally released by the IMF in a statement on Wednesday 19th.
One cannot blame China for taking the view that these are delaying tactics designed to keep the yuan out, and if so suspicion falls squarely on the US as instigators. America has most to lose, because if the yuan is accepted in the SDR the dollar's future hegemony will be compromised, and everyone knows it. The final decision as to whether the yuan will be included is not due to be taken until later this year, so China still has time to persuade, by any means at her disposal, all the IMF members to agree to include the yuan in the SDR as originally proposed, even if its inclusion is temporarily deferred.
China was first rejected in this quest in 2010 and since then has worked hard to address the deficiencies raised at that time by the IMF's executive board. That is the background to China's new currency policy and what also looks like becoming frequent updates on her gold reserves. It bears repeating that these moves had little to do with her domestic economic conditions, for the following reasons:
- To have an economic effect a substantial devaluation would be required. That is not what is happening. Furthermore devaluation as an economic solution is essentially a Keynesian proposal and it is far from clear China's leadership embraces Keynesian economics.
- Together with Russia through the Shanghai Cooperation Organisation, China is planning an infrastructure revolution encompassing the whole of Asia, which will replicate China's economic development post-1980, but on a grander scale. This is why "those in the know" jumped at the chance of participating in the financing opportunities through the Asian Infrastructure Investment Bank, which will be the principal financing channel.
- China's strategy in the decades to come is to be the provider of high-end products and services to the whole of the Eurasian continent, evolving from her current status as a low-cost manufacturer for the rest of the world.
China's leaders have a vision, and it is a mistake to think of China solely in the context of a country whose economy is on the wrong end of a credit cycle. This is of course true and is creating enormous problems, but the government plans to reallocate capital resources from legacy industries to future projects. Rightly or wrongly and unlike any western government at this point in a credit cycle, China accepts that a deflating credit bubble is a necessary consequence of a deliberate policy that supports her future plans. She is prepared to live with and manage the fall-out from declining asset valuations and business failures, facilitated by state ownership of the banks.
Instead, to understand why she is changing the yuan-dollar rate we must look at currencies from China's perspective. China is the world's largest manufacturing power by far, and can be said to control global trade pricing as a result. It then becomes obvious that China is not so much devaluing the yuan, but causing a dollar revaluation upwards relative to international trade prices. She is aware that the US economy is in difficulties and that the Fed is worried about the prospect of price deflation, so lower import prices are the last thing the Fed needs. Now China's currency move begins to make sense.
The mini-devaluations were a signal to Washington and the rest of the world that if she so wishes China can dictate the global economic outlook through the foreign exchange markets. China believes, with good reason, that she is more politically and economically robust, and has a better grasp over the actions of her own citizens, than the welfare economies of the west in the event of an economic downturn. Therefore, she is pursuing her foreign exchange policy from a position of strength. And the increments that will now be added to gold reserves month by month are a signal that China believes she can destabilise the dollar through her control of the physical gold market, because it gently reminds us of an unanswered question always ducked by the US Treasury: what evidence is there of the state of the US's gold reserves?
China would probably live with a deferral of her SDR membership for another year, if there is a definite decision in October to include her currency in the SDR basket. That being the case, China must be tempted to increase pressure on all IMF members ahead of the October meeting. The strategy therefore changes from less passivity to more aggression over both foreign exchange rates and gold ownership over the next eight weeks. We can expect China to tighten the screw if necessary.
The stakes are high, and China's devaluation of only a few per cent has caused enough chaos in capital markets for now. But if the eventual answer is that the yuan will not be allowed to join the SDR basket, it will be in China's interest to increase the pace of development of the new BRICS bank instead with its own version of an SDR, selling dollar reserves and underlying Treasuries to fund it. The threat that China will turn her back on the post-war financial system and the IMF would also undermine the credibility of that institution more rapidly perhaps than the dollar's hegemony if the yuan was accepted. And if a US-controlled IMF loses its credibility, even America's allies will desert her, just as they did to join the Asian Infrastructure Investment Bank a few months ago.
It was always going to be the US that faced a predicament from China's growing economic power. She has chosen to bluff it out instead of gracefully accepting the winds of change, as Britain did over her empire sixty years ago. Change in the economic pecking-order is happening again whether we like it or not and China will have her way.
* * *
And, as a reminder from 2013, here again is the "US vs China Currency War For Dummies"
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I'm glad China doesn't mind having HER ass blown up every week.
Frankly, I would find that rather distracting.
"...what evidence is there of the state of the US's gold reserves?"
The fact that they won't allow an audit is simple proof that the gold is not all there. It's probably been gone for decades - having accelerated under Clinton.
Come on. You can trust them. Just take their word for it. When have banks and governments ever shown that they aren't trustworthy. No need for transparency.
"If you can't trust your Banker, who can you trust?"
We gave them all our jobs, what moar do they want?
More analysis indicating that China's central plan is right on track. I have serious doubts on that point, it looks more and more like yet another centrally planned mess.
regarding u.s. gold, imo the reserves started leaving when the audits stopped, i.e. late fifties. considerable acceleration from 1965 or so to 1973. but 2011 to now is probably the fastest rate of decline. will we ever know the fine detail?
Sheeeit, it was gone the day after Nixon announced we were jumping on the fiat rollercoaster.
gold confiscation from we the people started when the tribe took over the honest money system in 1915.
A Joo? ;-)
Which brings up (being the counterintuitive jerk I am) an interesting point, when was the last independent audit of the Communist Party's gold holdings?
I mean, they say its there, everyone assumes its there...but is it?
The first rule of gold is to not talk about the gold.
(I think I read that somewhere...)
the east has more gold than they admit; the west less than they claim.
You will forgive me for being cynical (or cautious) enough to evaluate things on the merits, not on lack of admissions or forthright claims.
I'm kinda weird that way ;-)
Look at it from the other side. What have we seen of US gold purchases? It appears as if China is announcing the fact that it is buying gold and this can be substantiated. However, I have not seen any evidence that the United States is purchasing gold.
Its two sides of the same coin to me.
It "appears" that by China "announcing" it is buying (or bought) whatever amounts of gold bullion that the claim can be substantiated...but has it? All it (or she if one prefers...lol) has to do is open the vaults to an independent audit.
Right? ;-)
Just out of curiousity, is there any chemical that you can mix with gold at very high temperatures that would produce white foam?
Aqua Regia, but the foam would come from reactions of the acids with impurities (non-noble metals or dirty Chinese water could work).
Maybe so but when I mix (50/50) Nitric acid with Hydrochloric acid to make Aqua Regia the shit turns brown and gets darker for awhile while it reacts. Mine gives off a brown gas and foam when etching ceramic or refractory metals clean of contamination. But I am not etching any gold so I really could not say what happens there....
When making up a fresh batch of Aqua Regia never make the mistake of mixing Hydrofluoric (HF) acid instead of Hydrochloric (HCL) acid with the Nitric. Molybdenum parts immersed in it will disappear immediately in a puff of brown gas. Very aggressive etch. DOH!
Grimaldus
That's like asking Obama to be filmed on the golf course when in fact he is in his room sucking dicks.
And the follow up question should be - who in China actually has the gold?
Does any sane observer actually think that "China's gold" isn't being diverted into the personal holdings of high ranking communist party officials?
08/22/2015 - 12:56
The Bank of Russia are increasing the share of gold in the international reserves of the country.
In July, the Central Bank has bought about 12 tons of the precious metal, and since the beginning of the year - almost 81 ton. This is 18% more than in January-July last year. From the beginning, the share of gold in the composition of foreign exchange reserves increased by 6.7% and in the last 12 months - even more significantly.
http://rusnext.ru/news/1440231667
Well, like I say, it's one thing to "announce" the exchange of a nations paper (any nations paper) for gold. It's quite another to not announce it's transfer elsewhere and not bothering to adjust the public ledger either.
Zeee humble accountants & guards have seen this all before and accept it unquestioningly as normal operations due to their patriotism, loyalty and love of the motherland, besides, the documents were all in order and clearly stamped Top Secret so they followed normal protocol, as issued from on high by their superiors.
I mean, if you can't trust the President or the PM or their Cabinet or the Duma/Politburo/Congress officialdom party members, who can you really trust?
Its a very high honor ya know ;-)
You are right to question something that refers to itself as a Govern-ment.
You are also correct to challenge a system that is "centrally planned." Like ours.
Good to advocate for the devil's position.
Govern: synonyms- rule, preside over, reign over, control, be in charge of, command, lead, dominate; run, head, administer, manage, regulate, oversee, supervise; informal: in the driver's seat of, "he governs the province."
You noticed the betrayal of trust in my little synopsis did you?...lol.
Everyone did their job correctly, everyone followed procedure, all checks & balances were completed with no breaks in the chain of command or custody, yes the very pinnacle of efficiency, no one can be accused of disloyalty or not being a "Team Player".
Accept the one(s) who issued the order to move the gold of course ;-)
Comrade, COMRADE PLIS, you must understand! If party boss say in Stalingrad warehouse sits Everest-sized nugget, then Everest-sized nugget exist in Stalingrad warehouse. Is not difficult comrade, are you inflamed with vodka?
Da, veee do dis for de Peoples, not for ouwa personal profit!
Greed is universal, from the lowliest pig farmer to the highest Party Boss in China or as the case may be, from the dickhead banker/solar-health insurance-oil-automotive CEO/ funding the Party Boss.
Tammany Hall or the Kremlin or the National Peoples Congress of China! (lol...give me a fucking break)...or..."our" very own Congress makes absolutely no difference.
They're fucking thieves disguised as "public servants".
Most people are scared, not greedy. Most want to, at least, get along with their neighbors. The cartel wants us at each others' throats. Which is why, and we will (yawn) take a beating for this, they want world communism. Or, if you prefer, neo-fuedalism. The last thing they want is a bunch of Constitutional Republics engaged in a friendly competition to perfect life on earth.
"Appear weak when you are strong; appear strong when you are weak." I think Abraham Lincoln said that. --Bob Dylan
Be extremely subtle, even to the point of formlessness. Be extremely mysterious, even to the point of soundlessness. Thereby you can be the director of the opponent's fate.
Sun Tzu
Communist gold exist in blood and sweat of worker, comrade. Now purge dangerous thoughts from head....
Excellent point about independent verification of China's gold holdings. Not only do they have GS minions like everywhere else, but for the last few years the local govt officials haven't exactly been paragons of virtue running off to the West with their suitcases of NPL money. You'd think the Chinese would send their secret service to get them back but they've been surprisingly lax about it all. There's no reason why that could not have happened with their gold as well.
Kudos on sharing your contrarian view nmewn, while everyone else on the planet speculates about China's 16k-30k tonnes of gold holdings.
They already brought up the lack of transparency of US gold. You are being redundant.
Well there's no tanks at ft Knox but the ones at the Patton museum. All packed up and moved ft Benning or 29 palms. Tank schools gone to .As for the depository last time I drove by it needed preasure washed and a weed eater
There's still a tank school at Fort Irwin. Thier manuvoeurs are pretty impressive as you drive on the 15 near Barstow. And getting around I-15 traffic on Yermo Road has complications. Those convoys have steel shit falling off them as they go down the road. Kind of interesting to pass a couple tanks, fall into formation, pass a couple tanks, fall into formation...etc. You know you're at the head of the parade when you pass that one hummer with a flag. That's when I start slowing down.
By the time we get to Peggy Sue's we're doing 30.
http://www.tripadvisor.com/Restaurant_Review-g33295-d1116154-Reviews-Peggy_Sue_s_50_s_Diner-Yermo_California.html
https://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm
I'm just going to keep posting this until you lunatics get it... this shit is being tracked down to the thousandth of a troy ounce but every goldbug mouthbreather here is always "audit the gold reserves hurr durr"... you guys are confusing "audit the Fed" which of course never happens with "audit the gold reserves", which fucking happens ALL THE TIME...
we've got over 8k metric tons of the stuff here and there which is worth about around $320 billion USD as of Sept. 2014... period, end of story...
then we look at the CHINESE, the models of robust accounting practices and transparency (ha!)... we somehow are supposed to believe they have oodles and gobs of gold yet there's *** no way to tell at all, not even from their own government ***... and if you're looking for proof that those sunsabitchez will never tell you just exactly how much, observe how well their efforts to become a basket currency in the IMF XDR structure are coming along... the ChiComs run from a real audit like cockroaches run from light, that much is certain...
US gov isn't perfect by any means but if you're asking me from an audit perspective who do I trust more, the US or China, that answer is pretty damn easy and it ain't China...
Soooo, there is gold in Ft. Knox. BFD. Whose gold is it? Was it hypothecated (used as collateral) and now belongs to somebody else until the loan is paid back?
The refusal to allow an audit of all gold - both domestic and stored for foreigners - is analogous to the phantom planes that hit the Pentagon and Shanksville.
If there was gold the audit would be a public spectacle.
If claim of two planes was real the FBI would not have confiscated all CCTV recordings within hours of the so-called Pentagon attack. No planes to show, so no recordings allowed. In fact, CNN did a live report from the Pentagon just after the "crash" and stated live on air that there was NO plane wreckage- I watched it LIVE. That was never aired, again.
Gold...planes...so many phantoms.
The gold is in Fort Knox alright..., I saw it in a James Bond movie.
Oh..., wait.
You can have the ingot, I got dibs on the gold plated chick
Never understood why that is so sexy,
and don't think I want to know;)
Chicks generally are...
Very interesting but I don't think China is coming into this in a position of strength...these are two fatally wounded animals squaring off over the remaining scraps but neither aware they are two sides of the same coin, both already terminal. Neither will come out of this a winner...both lack balance and are easily toppled due to this...they are locked into opposite sides of a no-win scenario and I'll be amazed if this doesn't end in war
World
http://econimica.blogspot.com/2015/02/fundamentally-flawed-chapter-1-advanced.html
http://econimica.blogspot.com/2015/08/population-growth-will-never-be-fix-to.html
http://econimica.blogspot.com/2015/08/depression-does-not-come-close-to.html
China and BRICS
http://econimica.blogspot.com/2015/08/chinas-collapse-is-last-straw-of-global.html
America and OECD
http://econimica.blogspot.com/2015/06/0ne-simple-chart-explains-great.html
http://econimica.blogspot.com/2015/08/the-imminent-demographic-collapse.html
A Japanese proxy war to topple China is being scheduled.
http://www.nytimes.com/2015/07/17/world/asia/japans-lower-house-passes-b...
"But the legislation is supported by the United States, Japan’s wartime foe turned ally and protector, which has welcomed a larger role for Tokyo in regional security as a counterweight to a more assertive China."
My friend asked me once how my bear ETFs are working out for me, and I said I was being anally raped every day, and I thought I was starting to get used to it.
He almost spit his drink out, for I said that nonchalantly, in a calm voice, and didn't even crack a smile.
I went on to say, I can take a lot more pain, and so long as I remain solvent, and once this cracks, the bleeding, pain, tears, everything will be worth it.
Perhaps.
Perhaps that is the same game they are playing.
It only works if the markets are open and you have someone to convert your ETFs into something other than the likely worthless computer digits on a screen that may or may not be working.
The Chinese are not into instant 'tit for tat.'
If you stick around, you'll see it.
thousand year revenge...
kaiserhoff,
Instead, you would rather be distracted by US performing all the ass blowing up ?
HHmmm... short term problem(China) or perpetual problems(USA).
Unless of course, you accept US ass blowing as a normality.
Zion went too far and too long in their plunder of the west, especially of the American country. The east ended up with title to much of the west, leaving Zion trying to manage their exit from the picked-clean American country, while quickly taking up new digs in Europe.
Zion is a scheme, not an ethnicity.
The Tribe has been unable to sink their claws into the BRICS monetary union, and they are extremely frustrated by this fact. This is clearly why the IMF has not allowed China any Special Drawing Rights in their diabolical scheme for a NWO.
WWIII is definitely "on the table".
Don't watch the news much ?
WWIII started two days after the final olympic ceremony at Sochi.
Nobody declares war anymore, so you need to pay close attention.
I have to agree. China will continue to grow stronger for many reasons. While Merikans watch the latest Kim and Caitlyn fashions, stare in awe at Whoopie on TV in the morning, eat more FF in a day then all the people in China eat in a year, and update their FB every five minutes, the Chinese will continue to buiild expand and surplant SWIFT, the IMF, the Dolla, and so on.
We see it happening before our eyes.
yer, 'yankee nuke our city?... thats ok, we got spare ones already built'
What'll happen is we get reports of multiple cities being nuked. Everyone of them ghost cities. We atone for 'billions' while the actual death will be between zero and tens. China nukes our major cities in reprisal. US Globalists annouce success because populatiojn was reduced by the billions. The entire world is cured of americanism, and we can now remake 'the world' in the US by pushing everyone remaining into the surviviing cities.
Meanwhile, the war goes on.
It will only take a few very high altitude nuclear bursts to get rid of 90 percent of the people in a year or so and not ruin the land. WWIII will be completely different than any other.
As if the plunder of the Untited States and the enslavement of her people wasn't the plan all along.
Make no mistake, London is Zion is London, and you are paying for your forefathers decision to ditch London's financial control. Everything that happened in the US after independence has been framed by the attempt of London banking to reclaim her colonies.
I see those MSM outlets praising the royals, ohhhh look at the cute babies, kate's baby basket, the wonderful queen....
Oh really?
IRA are terrorists? Oh you Americans, you will learn.
They will learn, but it will be the hard way. They will learn to beg for London to save them. The former colonies will be brought so low by "their own" systems that they will beg London to take them back - never knowing that it was London who brought them low all along.
Best cartoon ever. No need to read the article.
Let's compare the only weapon that really really matters.
# of humans willing to work their ass off 6 days a week..
China: 1,000,000,000
US: < 100,000,000 (6 days, actually, probably < 10,000,000 )
Robots work for the cost of electricity and maintenance AND they don't form unions or complain about work hours or work conditions.
Americans work just hard enough to afford simple "luxuries" like cars, TV, and cat food, thinking this makes them middle-class. I'm pro-robot mostly because I hate cats.
EDIT: Junkers, my apologies for alluding to consumerism on an economics forum. My bad.
#catsaresmugretards
I am a cat lover. However, I don't know why you are being junked. Of course a dog would say this if he or she got online. Duh!
(LOL) Perhaps I left out indifferent children.
"China: 1,000,000,000"
China labors are being replaced by Robots. A lot of Chinese factories have been switching to automated systems, Lots of factory workers are getting canned this year. The issue is that after leaving the rural farm to go work in factories, they can't go back, after finding their farm has been paved over with empty cities.
"Beautiful Dreamer, wake unto reality..."
Agreed, but Peak Cartoon Efficiency is a lagging indicator of a market top.
{show me where the science of economics says otherwise}
Pretty abstract -- so probably correct. Did you study at the same University as Paul Krugman?
He signed my yearbook.
"because it gently reminds us of an unanswered question always ducked by the US Treasury: what evidence is there of the state of the US's gold reserves?"
We have gold reserves??? hahahahahaha!
"the welfare economies of the west"
This is a great point. China is watching the growing millions of migrants starting to move towards the EU. Breaking down borders and breaking in. The EU is a total Welfare State! Migrants are running to where teh Welfare is found. This is just a fact! Why is the UK and Sweden the two most sought after destination countries for illegal migrants from all over the world?
YOU KNOW WHY! We all do. Those two have the most complete and total lifetime welfare for everyone coming in. The UK offers a free life in a nice apartment, with free health care for life, with handouts of money every week. Never can be kicked out, or made to work.
China will do nothing but laugh at the hapless EU and the tens of millions of migrants racing to get in and get to the top of the welfare roles.
All this is the plain truth, and the EU knows it. They face a crisis like no other. Half of the poverty stricken world is planning to move to London. And this is not a lie either!
Welfare in the U.S., Britain, Scandinavia, etc. far exceeds the value of a top notch income in the companies the refugees are coming from.
Clearly we need to export more jobs and help those "companies" out.
It's kinda funny the way they label China as 'comunist' when the USA, Sweden and UK are far more extremes of communism with far-reaching welfare and free chit. In fact, that's Hitlery's main platform, "Moar Free Chit for Everyone!"
When I see those crowds on the Greek-Macedonian border or in Kos or Malta, I feel kinda lucky we only have Mesican to worry about.
I think it is good - countries will have to rethink the wellfare systems. Btw. For Europe in the long run that means cheap labor...
China and the U.S will meet Head On. Time to squish these bugs.
https://youtu.be/pTMpyjrUR0M
If nothing else, one can never say the Chinese are not a patient people. What's the old adage - Patience is a virtue. Completely unlike the United States where patience is abhored and hubris and arrogance reign.
What a crock of shit. Apparently you have never been run over waiting in a que by the "arrogant chinese bastard". The rudest, uncouth mannerless assholes I have ever met. I encountered into far too many of them during my trips to HK, glad I never made it to the mainland. Yeah the chinese are so patient it reflects in the very high quality of their manufactured goods. /sarc
Grimaldus
My gold is right where I left it. *no worries*
Good article, but only hints at the main issue, that China has now made clear that they will not be supporting the USD any further.
The best take I have heard on the yuan devaluation so far is Peter Schiff's:
https://www.youtube.com/watch?v=kewkIwIbLAw
Points out that:
1) What stopped the USD fall after the 2008-09 Panic was the Chinese supporting it, via the yuan peg;
2) This de-peg is a move to begin valuing the yuan more fairly (relative to the currencies of the rest of the world, who this way will be encouraged to use it more in trade); and
3) The devaluations are not big in percentage terms, but very big in impact. (Other currencies have been devalued far, far more than these little steps by the Chinese.)
Schiff's case is that the reason the devals are causing so much outcry is b/c this is where China stops implicitly supporting the USD "world reserve". USD currency is now on its own. I agree with this take.
Yuan will rise up again later, supported by both trade and PMs. So I'm seeing these and further devaluations as a time period to do as the Chinese are, and buy some - especially with USD, which can get you a lot of it while it is cheap. Buy low, sell high.
meritorious theory
That forces the FED to hike.
Love Schiff. Peter Schiff will be right yet again.
arr matey...she this and she that. how romantical.
yeah China's real strong right now, lol
their model of parasitizing away industry from everyone else has left them without customers.. To be fair, they had help from the big banks in those countries so they couldn't have done it on their own.
China has the manpower and the work ethic that the West is sorely lacking. Their recent alliance with Russia makes them especially formidable, both in a military and economic sense.
We have always been at war with East Asia.
"China has the manpower and the work ethic that the West is sorely lacking."
Perhaps in the volume of labor, but not in the quality of produced products. China quality is absolutely dismal. Also China is now replaceing workers with robots.
And what do you think the quality of the robot's output will be?
Everyone's replacing workers with robots!
When have Corporations been interested in quality, it's always the money!
This is why we are seeing their One World Government being implemented. World dominance by the Corporations, under the guise of TPP-TTIP-CETA-TTFA and TiSA as the rules, which doesn't include any BRICS nations, as these will be forced in by war, price or conventional!
SDR?...
Who the fuck cares?... After two major explosions in it's strategic commerce within the past two weeks foreign dumping through short sales in it's markets I'd say that the least of China's worries is SDR, membership in the Anglo/Euro club next October...
At least we know with this announcement of the 1 year penalty to China's admittance into the "club" that those shipping port detonations came from the same crew in D.C./London/Tel Aviv and Brussels!!!
Won't need it when the IMF is replaced by the SCO/BRICS in that timeframe!
The BRICS are currently in a BRIC shithouse so I don't think that will happen anytime soon.
The BRICS are currently in a BRIC shithouse so I don't think that will happen anytime soon.
Which is why the Anglo-American bank has to resort to such level(s) of pretexts of subterfuge and outright war to get what they want. When you have to move to those lengths you lose the battles and the war with any partners who realize they're only getting screwed when you are the only one that calls the shots!
Just as in Saddam Hussein's attempt to sell his oil in 2001 in currency other than the Petrodollar which the Europeans were more than willing to sign onto shortly before being annihilated by the Anglo-American contingent that moment was a turning point in 2003 and it's only gotten worse since the U.S. is provoking war on Russia's border in Ukraine and these nice little stunts with China's industrial ports.
My point.
Interesting thought
Nobody has ever asked the FED to show any proof any US Gold physically exists. Politicians have asked can they see the Gold, and they are unpolitely told, NO, except 60 years ago. But even then it was the Magicians that picked out the Closet to view.
Even 60 years ago they doubted the Gold was there, which is why the Magicians put on a show. 60 years later there's an even bugger doubt the Gold is there.
http://www.huffingtonpost.com/charles-kolb/august-15-1971_b_4284327.html
Friday the 13th of August, 71.
https://en.wikipedia.org/wiki/Nixon_Shock#Event
France picked up 170 tons just before the Nixon shock.
Germany and the Dutch are getting some.
http://www.bloomberg.com/news/features/2015-02-05/germany-s-gold-repatri...
...some bars in New York had to be melted and recast. To Boehringer, the recasting was the ultimate red flag. It meant any trace of original serial numbers had been wiped out. “Their untouched existence since the 1960s is no longer provable,” Boehringer says.
Then in November, the Dutch central bank announced that it had secretly moved 122.5 tons of gold from New York to Amsterdam. In apparently just months, the Dutch had shipped almost 25 times the gold that Germany moved in all of 2013---(Airliner payback?)
On Jan. 19, the Bundesbank delivered its own surprise, publishing a tally of its 2014 gold repatriations. During the year, the German central bank had shipped 85 tons from New York to Frankfurt, blowing away the mere 5 tons from 2013 and setting a pace at which the Bundesbank would easily meet its target of 300 tons returned by 2020.
There were still 1,447 tons of German gold under Manhattan at year’s end, and he wants all of it back in Frankfurt.
Ooops. Excactly the gist of what I mention below. +1
"Even 60 years ago they doubted the Gold was there, which is why the Magicians put on a show. 60 years later there's an even bugger doubt the Gold is there."
Oh it was there alright. Some of it at least. Then that pesky France came along and realised the US was spending waaay more than it could afford invading countries left right and centre and actually started taking delivery. Eventually - rather quickly actually - you ran out so bye bye gold standard.
There is a reason Germany was asked (erm *told*) they'd have to wait 7 years to get theirs back. And that's their bloody gold. If the the US can't provide delivery of other countries gold think they still have yours?
Back in 2011 both France and Germany asked for their gold back;
The German government recently asked for the return of some of their gold bullion from the Bank of France and the New York Federal Reserve. France has said it will take 5 years to return Germany's gold. The United States has said they will need 8 years to return Germany's gold. This suggests strongly that the Bank of France and the NY Federal Reserve have used the deposited gold for other purposes, and they are scrambling to find new gold to cover the shortfall and prevent a gold run. So it is inevitable that suddenly France invades Mali, ostensibly to combat Al Qaeda, with the US joining in. Mali just happens to be one of the world's largest gold producers with gold accounting for 80% of Mali exports. War for the bankers does not get more obvious than that!
If China had half its population, they would kick our butts. But combine too many people with too much corruption and too much speculation, and you just have to think they will take themselves down.
China will have a civil war most likely if the government decides to arm hundreds of millions of soldiers and mobilize them. Big country, lots of hate for the Commie Party's repressive regime.
Nah, they just need to stir up anger toward the Japanese. Japs are the Chinese version of Al Quaeda, or more like what the North was to the South for a few generations.
Still, you are probably right, and they took the guns away for a reason. That's why I like to take Chinese students shooting when they come over here.
It must be nice to have smart, dedicated and long-sighted people making plans. We have thebomba, the clintons, the eeeee yuuuuu. ... As Russia and China grow ever closer -- a direct result of idiotic, half-assed and short-sighted western "policies" -- it's ever more certain that things are simply going to continue to get worse for all us schmucks crawling around on our bellies trying not to get stepped on. Soon the only safe place to be will be gone and I'm already there and I ain't lettin anybody in. Well, maybe if you are 18, female and willing to service me whenever I wish, then I might let you live on a chain on the back 40.
China is trying to maneuver to survive as we all may be shortly. We are watching the beginning of a frame job on China for collapsing western economies and eventually currencies. We are on the brink of economic collapse and world war and yet so many people still don't see it. Who brought us here?
If Zionists are tired of being "falsely accused" by "anti-semites" there is a very simple solution.
1) Surrender all central banking institutions back to their respective countries. 2) Immediately remove your foreign spies and lobbyists from respective countries and furnish a list of those who engaged in treason on your behalf. 3) Abolish global predatory organizations IMF, IBS etc. 4) Stop killing people and enciting global conflict on a satanic scale.
I am sure I'm forgetting some things but it's a good start.
Really?
Most be all those Chinese Zionists.
Why in the hell do you think that the US is posturing going to war with China and Russia? They are not exactly going along with the program. Who controls the monetary system of nearly the whole damn planet? All wars are bankers wars, why is this so hard to understand? This currency war is about to go hot and incase you haven't noticed there have been 4 explosions between China and Russia recently and the news is plastering stories about Chinese nukes and artificial islands.
Be careful with bear etf's for longer than 1 week holding.....
The decay will destroy any value that you make on a big day like last Friday....
I know this from experiance and alot of research......
They are swing and day trading instruments only...
I hope my mistakes help somebody out there.....
are you referring to 3x etf? they really suck and are dangerous
As if you can list ships, airplanes, weapon systems, cyber warfare efforts, or financial weapons to determine the outcome of war.
- Not True
War depends on a lot of things
- Training
- Doctrine
- Readiness
- Logistics
- Sustainability, fuel, water, food, hubs with stores of whatever is needed, ability to replace troops, ability to maintain weapons systems, ability to adapt to new capabilities of your enemy,... and some weird stuff about resupply in space, in air, at sea
Edit:
Yeah, USA might have used financial warfare against the USSR along with bribes to bring down the government... Anyway that was a design of US War against a poor country.
China has low value on Soldiers or citizens. Obviously they could send people to the USA(like after 1990) to confuse the enemy.
Ability to maintain stockpiles of hazardous chemicals...
without them going boom.
You speak in "conventional" terms.
Once the nukes start flying, we're all fucked.
Nuclear bombs will be used in the next war but it
will not be the "end of the world" - just more toys broken.
People still live in Hiroshima and Nagasaki.
More people were killed by firebomb in Tokyo and Dresden.
Exactly, they used thermo nuclear to bring down the Twin Towers. I saw one shot [still frames] of the metal corner of one of the towers, disintergrate has it was falling over? Just disappeared into powder!
http://911review.com/errors/wtc/spire.html
And this released by Snowden, via Putin, after US brought down MH17;
http://stateofthenation2012.com/?p=7858
Not thermo nuclear.
Since the US has been busily exercising its entire gamut of warfighting capabilities for more than a decade, it has an enormous unquantifiable advantage over the neophytes who think that their forces match up well on paper.
In the Super Bowl, you always bet on the veteran team that has been there, no matter how talented the rookie competitors might appear to be.
Yes, exercising its entire gamut of warfighting capabilities for more than a decade *against 3rd world adversaries*
You might be betting on experience, but the Super Bowl ain't like the junior highschool teams you played to get that experience.
Lets see how they fare when the jets flying overhead in the halftime show ain't their own.
He who has the gold, makes the rules.
Didn't the chinese revalue the yuan right after the IMF (US) decision to delay the SDR until 2016? Perhaps the US didn't want anyone rocking the boat until they had another puppet POTUS in place.
My explanation of nucular (BUSH) weapons.
I'm your next door neighbor, and you're having a pool party.
The cops come by a couple of times and you start to get pissed off.\
Any sane conservative, would have shut off the lights and rented a room in a motel down the street.
Then you just ask for the " check-in list". All the scum ain't going home! Bitchez
Children are stupid! I'm talking under 25-65 sounds better.
Stupidity has no limits.
I accidentally sprayed some orange scented furniture polish to wipe my sink, and the ants that were invading were gone the next morning. No SHIT
You rike flied rice?!
If China and Russia make it through this they may very well have a future but making it through this remains to be seen and they both know it. China has made smart moves but they are not an omnipotently wealthy country that can withstand the uprisings of 1.3 billion jobless hungry people and possibly fight off a world war simultaneously as if it's a for sure deal. The Chinese are afraid, so is Russia and so should we be.
Excellent points!
"but they are not an omnipotently wealthy country"
Neither are America, who are bombing the shit out of nations because they wont use their 'dollar'?
All China need to do is drip feed their US debt, they have already off loaded $120bn, only another $1tn to go! Russia are doing the same, hence the wars in Iraq, Libya, Syria who all said no and the soon to be Iran, who also said no in 2009, which was why they were sanctioned. US couldn't bomb them, because they knew, like Russia and China, Iran do have nukes!
http://forum.prisonplanet.com/index.php?topic=212332.0
"China believes, with good reason, that she is more politically and economically robust, and has a better grasp over the actions of her own citizens, than the welfare economies of the west in the event of an economic downturn. Therefore, she is pursuing her foreign exchange policy from a position of strength."
I'm not hawking for any of the world powers (They all will impoverish and/or murder their respective populations for maintenance of the status quo), but the above is beyond laughable, it's per se pathetic. No one could quantitatively and/or qualitatively support such an assertion. In fact there isn't a government on this effing planet that even comes close to resembling Daffy Duck's cousin's supposition.
Here is why gold prices are so low:
http://michaelekelley.com/2015/07/20/dear-fed-plz-raise-gold-price/
http://www.zerohedge.com/news/2015-07-09/are-big-banks-using-derivatives-suppress-bullion-prices/
Here are some more signs of a coming recession.
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record...
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
http://michaelekelley.com/2015/02/24/would-you-pay-39-more-than-asked/
http://www.zerohedge.com/news/2015-07-27/when-will-we-ever-learn/
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
Auto-fluffer.
Not even a good fluff.
"and has a better grasp over the actions of her own citizens"
Mmm-mm. Gotta love that old-fashion unrepentant fascism.
Awfully refreshing.
That cartoon screams buy silver.
I don't see how China is in a position of strength. Gold reserves or not they own somewhere around $1 trillion UST. Good for US.Dollars. that may turn out OK may not. But the main source of economic wealth is manufacturing for foriegn markets. Last time I looked all the markets have been drying up and barely functioning without massive reserve Bank help. So it is like having a guy owd you money who does not mind beating you to a lump any day of the week and twice on Sunday. Having a debt and collecting arentwo different things
I actually believe there is a lot of merrit to this article. The US has always been the big bad bully cornering everyone everywhere to bow for the US dollar and its Petrodollar status. In silence over long period of time, as always, the quiet guy keeps "compounding" and compounding on the hard labour and commitment regardless of the bullying. While the bully is still raging, shouting, screaming, threatening rest of the "victims" have now grown up, strenghten their weaknesses and as always moved on. Leaving the bully all by himself. This is literally what comes to mind when I think of the US.
why would china want to destabilize the USD ? On the contrarty
China wants to continue to export to USA for that china needs strong dollar
The 'dollar' is strong, so strong the Fed Res were going to raise interest rates next month [so they said] now they don't have to, as the Yuan has always been 'overvalued' to the dollar!
What they don't like, is the fact China 'explaining' how it can control US finances.
fuck china
https://www.youtube.com/watch?v=U1Qt6a-vaNM
500 x 1oz Silver Vienna Philharmonic Master Box €7,159.69
https://www.eurgold.eu/silver/500-x-1oz-silver-vienna-philharmonic-2015-...
I'll wait for the next 2008 style deflationary crash and then pick it up for $4 per ounce.
LOL. Good luck with that. The paper price may say one number, but the physical price will be offered only at much higher prices -- just like in 2008.
These types of articles crack me up. Since the Yuan is pegged to the USD, then how can that possibly be a "position of strength"? When China finally ends its manipulation and lets their currency float, THEN we can talk about positions of strength or weakness.
Heey, if they don't get into the SDR, they might de-peg or reveal more of their gold then press the western banks to show their cards goldwise.
We can teach China a lesson just stop selling them treasuries. That'll teach them!
The US Treasuries and Bonds are coming home to roost anyway. The should STOP issuing all T-Bills and US Bonds, or they will have to amend the laws to claim them as taxable income and then there will be a real crash of the lazy rich upper class and this great country will have gone more socialst that the USSR. WE ar F#cked.
This is how it has been working. China takes US securities and lets them out on their stock and bond market. Rich prosperious and maybe thieving Chinese buy these instiments as they are the only meens to get money out of China. These Chinese 'investors' take their securities to places they like, similar in climate and where they can physaically blend in (closely look like the local population) as they also bring their loyal workers. Where is this? Ceneral and South America. So Who is selling investments to them? The super rich that have an interest in the US that may or may not have legally aquired wealth and holdings. So what do they buy in the US.. The 'good life'.. party, party, party... NYC and Miami. Alright.. now you are getting part of the picture. There are others also, like Dole, that really don't want to own, just be in the trade, but the point is that US Bonds are interest free and the T-Bills are sold at a relative discount. You'll say, so what. I say that what is happening is a genedration of upper class 'Welfare' recipients that do not contribute anything significant to the 'trickle down' system and are able to indfluence the political system. This is a recipe for disaster.
Ha. Don't forget San Francisco is 50% Asian; as well, the LA Times had an article (couple of weeks ago) on the Chinese developer building "a city-within-a-city" in Los Angles. Made, designed, and to be occupied ONLY by Chinese. We used to call this appropriation of territory and act of war.
Too, Washington State is now owned by the Asians on the west side of the Olympic mountains. You don't even see a white face in many places, and they don't want you there either. Bellevue, Washington, once considered upper class, is now more than 40% asian. Funny how we are told diversity is soo good for us, but apparently not for anyone else.
In the China USA match, whatever the outcome, we see a rivalry of two centralized mantras :
1° Inverted Totalitarianism; aka private Oligarchy controlled "official government", oligarchy and Mr Moneybags capitalism LEADING the crony combine. That is the USA of today.
2° Convention Totalitarianism; aka central uniparty control and private Oligarchy periphery whose power is dependent on central government handouts or regulatory dictats.
Both are pseudo command economies working in top down mode with little bottom up democratic input.
Which is more EFFICIENT in terms of cohesion and generating trust?
Cos without TRUST the central control is damned as the base will never follow and anarchy will checkmate cohesion and discipline.
We have an awesome face off in perspective; a bit like in the beginning of 20 th century when "Democratic at home cum colonial abroad" empires (Britain/France) faced up to autocratic Empire (German/Habsbourg/Ottoman) alliance.
It led to the destruction of both models in Europe (just saying)...
And the increments that will now be added to gold reserves month by month are a signal that China believes she can destabilise the dollar through her control of the physical gold market, because it gently reminds us of an unanswered question always ducked by the US Treasury: what evidence is there of the state of the US's gold reserves?
This smoke and mirrors of a financial system will never be fair to traders as long as the notion that a Medium of Exchange (MOE) can be made sound by "backing it" with a commodity.
The entity that "first" properly manages a MOE will be the entity that leads us out of this mess. Notice, I didn't say this entity will "prevail".
With a properly managed MOE:
... with such a properly managed MOE, no entity prevails because the process is totally transparent and objective, and cannot be gamed.
Money is not a tool for throttling an economy or obtaining human behavior. Money is a tool allowing simple barter trade over time and space.
Inflation has become a principal source of funding for "all" governments. Guarantee inflation to be zero and excessive government (government people aren't willing to support with taxes) goes away.
Money is a tool allowing simple barter trade over time and space.
No. Certificates are not money. And barter is defined as "The exchange (goods or services) for other goods or services WITHOUT using money."
You are confusing currency (e.g., USDs, Euros,"certificates," etc.) with money (e.g., gold, silver). Again.
And barter is defined as "The exchange (goods or services) for other goods or services WITHOUT using money."
So, if you're going to be so stupid as to accept a definition like that, what are you going to call an exchange that involves money. It is, in more ways than any other, an exchange of value for value. The person accepting the money can then use it to exchange for the object they want, but which the initial trade cannot deliver. And such exchange can take place at a different time and different place. Thus it extends simple barter over time and space.
So I ask, if I'm not describing actual barter (perceived value for perceived value), what do you call what I'm describing?
From the author's point of view..as with many of his articles...gold solves everything that ails you...
The answer is that US gold reserves are with 'the people' and controlled by the terms of Frank-Dodd. Yes, if needed they will come and take the gold. LoL
You goldbugs really take the cake. You spin out these theories and explanations that have ABSOLUTELY NO association with reality! China's yaun is not in the SDR because you don't put currencies from countries that have opaque finances and questionable economic metrics and that move their currencies around erratically with surprise overnight devaluations. Bugs keep expecting the USD to vaporize when every move in the forex markets is for the dollar to get stronger. You keep waiting for a gold-backed currency to put the world back on track when history shows it to be a colossal disaster. You insist that China has all the gold, then China announces holdings far below what anyone expected. You keep waiting for hyperinflation while deflation grows. You keep hoping gold will save you even as it breaks your heart. How do such uneducated people obtain such prominence? WAKE UP!!!
The gold bugz see the jewish usury USD scam for what it really is..
The biggest pyramid scheme ever to be devised in human history.
The bugz are also a very very patient lot.
YOU will have your "come to jesus" moment. Be patient as well.
OMG! It's Deez Nuts! Deez Nuts for President!!!
http://www.infowars.com/deez-nuts-more-popular-than-fiorina-huckabee-and...
ROFL!!!!
Gold Shmold
What everyone is waiting for the Chinese to announce is that after careful investigation and due consideration -- in the manner of of MH17 -- Goldman Sachs is responsible for the two chemical explosions at Tianjin and Shandong.
Preparations are being made to bring GS's top officers to the ICC in the Hague.