Central Bank Manipulations?
The reason Gold has not exploded yet, is because Gold as a physical asset, is undervalued in the West (in general), and highly valued in the East for historical reasons. (Partly as a result of Western Central Banks, having too much power, and thus ensuring regulation gets passed to limit Gold’s usefulness as a store of wealth and partly, because the Chinese had their education in paper currency back in the 11th Century, and others in the Far-East had their education more recently, with the currency crises of the late 1990s.)
As Gold heads east, it is in the interests of those who wish to accumulate it, to play devil’s advocate and allow the manipulations to continue. As I stated in my last post, both Russia and China, are unimpressed that when they sell goods on International Markets, they receive a depreciating currency, that can be conjured up out of thin-air [or to be more accurate – digits on a computer] by its manipulators…
When the Tide goes out (to borrow a phrase used by Warren Buffet) i.e. When Gold becomes part of the process for settling International Trade again, then we will see who is wearing no shorts – (i.e. a fast-reversal back to Bretton-Woods) i.e. which countries, are spending more than they earn – Internationally speaking – and who is managing their economy well, by exchanging physical goods, for physical goods (in the form of physical Gold, or a gold backed currency which can be exchanged for Gold)
China’s approach is therefore like an aeroplane coming into land, and on the approach path to forcing the world’s trading nations to stop using currency inflation to buy up scarce natural resources, and Gold will at that time achieve its real value.
That time will happen when the first country breaks ranks, and demands Gold for its goods, and has enough Gold to withstand a draw of its currency for International Trade, and the only country that comes even close to that is China (and perhaps Russia) and therefore when China finally – officially – releases its Gold holdings – which Pravda in a recent article suggested was 30,000 tonnes, (because they have re-smelted their Gold, and re-cast it into 1Kg bars) then the value of Gold will achieve the exponential rise we have all been expecting.
By end 2015, China, has to float its currency, (WTO regulations) so perhaps is hedging its bets, by holding huge Gold reserves to act as a floor under the value of their currency. Reference – http://english.pravda.ru/news/business/21-05-2015/130683-china-0/
That to me makes perfect sense. It will also mean those countries of Africa, South America and other developing nations, who sell raw materials, will experience rapid rises in living standards, and many will end up paying their political masters huge sums, unless the corruption that has been endemic in some of those countries, suddenly vanishes. (Just as happened during the 1970s which may in itself cause other problems as it did, during the decade and the one following.)
Of course, the poor westerner, will experience rapid price inflation for all their most important needs. And those countries who use the American Dollar as their currency system, would be well advised to consider a replacement.
Food, and raw materials, such as oil, gas, copper, tin, lead, zinc, and precious metals, too will all be more highly valued.
Those with good stores of these commodities, will flourish, those who depend on government largesse for their income, will not fare so well.
And paying for things internationally, will require some form of internationally accepted money – one I have been reading quite a bit about in recent weeks is BitGold.
This manages to marry the best of both crypto-currencies, and precious metals.
To widen your reading and viewing material, you might like to visit these channels on You-tube, and search terms and web-sites.
Recommended YouTube Channels:
Ron Gibson – WhatReallyHappened 2015 (Mike Rivero),
Mike Maloney – GoldSilver.com – WealthCycles,
YouTube Search Key Words:
Dr. Paul Craig Roberts,
Jim Murphy (GATA),
G. Edward Griffin,
John Williams, (or Shadowstats.com)
Catherine Austin Fitts,
I was watching the Max Keiser Report on RT this morning, and he referred to a couple of International Statutes that have either been enacted, or are under negotiation. These pieces of legislation are International Treaties, and the first appears to be already on the statute book – TPP – the Trans-Pacific Partnership between the U.S. and 11 other Pacific Rim countries.
The other – TAFT – Trans-Atlantic Free-trade treaty, appears to be being secretly negotiated behind bureaucratic closed doors, which seeks to elevate the Corporate Organisation to the level of the State.
“How so?”, I hear you ask… The agreement seeks to give the International Giant Corporations of the U.S., the right to take Governments to the courts for… Get this… Any act which impinges on potential future profits, meaning they can be brought before these courts. I have no details on where, when, or who will sit on the judging panels, but you can bet they’ll be stuffed with like-minded stooges. A similar panel set up to regulate the Banks in the U.S. has lost only 1 of almost 100 cases, and the person who agreed to the win got fired as a result.
Max Keiser gave the example of a certain “Oil Corporation” in a South/Central American state causing an ecological disaster, and having the right to sue the government (who get their money from tax-payers – let’s not forget) if they impose environmental charges on the ecological damage they commit.
And who elects the officials of these huge Corporations? Yep, that’s right, the same folks who own the shares, of these huge corporations, and who also control the money supply – the old money families who set up the Federal Reserve… I should perhaps also remind readers, that the old dear – “The Fed” is about to reach a milestone that many will not be aware of, and maybe it’s time a new institution replaced these old fiat-money bankers? But I’ll get to that in a future post.
The milestone? Oh yes… The Fed reaches her 100th Birthday in just 6 weeks – on December 23rd 2013.
I believe after 100 years, the old dear ought to be put out to grass, and retired gracefully, because her printing presses, have funded the Second World War, countless clandestine operations by the CIA, the Vietnam war, Taliban (Mujahadeen?) and anti-soviet Chechen rebels, and in recent years enabled the U.S. to embark on its War on Terror which has given the U.S. military the funds to encircle the globe with its tentacles, breathing ‘fire and brimstone’, toppling the Governments of several countries, and killing citizens of countries, without having to stand up in court and argue its case for a death sentence by its use of drones.
In so doing, they have over-reached themselves, and driven world-wide sentiment against them.
The Fed may not have set out with evil intent, but the inevitable consequences of having no restrictions placed on their reach, as the old saw goes is: “Power corrupts, and absolute power, corrupts absolutely” Because no other country has access to these printing presses, they have a unique position, which they are widely regarded to have abused.
As my post mentioned yesterday, the antidote to this is Gold and Silver. When the Chinese have over 10,000 tonnes of Gold, which I firmly believe they will have by the end of 2014, or 2015 at the latest, then the U.S. dollar will cease to be used as the world’s reserve currency, and the U.S.’s military strength will lessen, weakening its grip on the world.
And that might just be the start of a meaningful move away from the corporate feudalism, that has emerged in recent decades.
It might also mean that Gold and Silver achieve their true value. So without wishing to give investment advice, perhaps a small purchase in these money metals might prove prudent for the decade to come.
Until next time…