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...why is it that the Swiss are moving towards a financial deal with the Chinese? Well, forgetting the fact that our regulators have pissed them off by bullying their bankers, they are simply "following the gold". Gold has been flowing into China at a rate of 100 tons per month (plus retaining their own production). I have seen "official" reports out of the World Gold Council and GFMS that say the Chinese have amassed nearly 3,000 tons and "may have" surpassed the French and Italians. May have? Let me say this, the "official" line of 3,000 tons is laughably BOGUS not to mention that Italy probably lost close to half of their gold back in 1998 with LTCM's blow up.
China has imported and produced AT LEAST 3,000 tons...just in the last 2 years alone! I would guesstimate that 5,000 tons would be the absolute minimum of their hoard and may be 8,000 or even approaching 10,000 tons. Business (and financial power) ALWAYS follows the gold. The flip side of this is that when gold "leaves" a country...so does financial power. Put simply, we blew it! We had the manufacturing base of the world. We were cutting edge everywhere you looked and the financial center of the world. We have lost our "edge" and if the "Monkey Business" that we are playing with Germany's gold is any guide, we have also lost our gold.
I do want to mention that this scheme where the Fed buys Treasury bonds (QE) has prolonged the game, it is also an accelerant to our becoming irrelevant. Monetization is fraudulent and we are doing this openly, publicly and telling the rest of the world something that they know not to be true. They understand today as it has always been understood that gold is "financial truth" which is why business always follows the gold. Watching and living through this is painful from a patriotic standpoint. Foreigners on the other hand don't really care, they are slowly, steadily and methodically (like Chinese water torture) preparing themselves for the future. Trade deals, currency deals, political alliances, military alliances etc. are being negotiated and reported on every single day, yet here in the U.S. it's "business as usual"...until it isn't any longer.
Thursday, January 16, 2014
A summary of a shift that is already in the process of happening...
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