China Corners The Gold Market. US Pokes The Bear.

Let’s compare what China’s leadership has actually done to what America’s elite dreams it can get away with. Alasdair Macleod of Gold Money said China has cornered the gold market. Macleod said the total Money Supply of the 50 largest nations is $67 trillion. Outside the public banking system is the Shadow Banking System which academics recently estimated to be $100 trillion. The Shadow Banking System includes Hedge Funds, Special Investment Vehicles, Money Market funds and others.  That is $167 trillion in paper promises used to construct a House of Cards.

Nations all over the world currently use the American dollar as their reserves to defend their national currency. If speculators pull money out of Brazil or Turkey or South Africa, these nations can only defend their people from currency devaluation and runaway inflation by either selling US dollars to buy their currency or by raising interest rates to attract bank deposits from overseas. In the first 2 months of 2014 emerging market stock exchanges lost $3 trillion dollars in value. Turkey and other countries have been forced to  drastically raise interest rates to attract foreign capital. This sharp increase in interest rates has shut down economies in the past and will do so again.

China has been accumulating gold to be used as the basis of an alternative currency. A former Wall Street Journal reporter examined US gold exports for the past two decades and discovered that America exported 5,500 metric tons more than was available. America leased its gold supply to the banks. The bankers were allowed to sell that gold five times by selling paper promises to deliver gold. The Chinese decided to buy actual gold bars and transport them back home. Compare that to the people in Europe and America who have paper promises that there is some gold somewhere that will somehow be delivered if they ask nicely for it. There is an estimated 40,000 tons of paper gold deposited in vaults for which there is no bullion. In China selling paper gold which you cannot deliver is a capital offense.

Macleod says the Chinese sold 2,200 tons of gold a year to their citizens at the Shanghai Gold Exchange. If you count Hong Kong gold sales, China sold 2,800 tons of gold to the public. They also produce 430 tons a year from their own mines. He says the Chinese are consuming all of the world’s gold supply leaving us with scrap metal. The Chinese and the Russians have bought gold and silver mines in the US, Australia and elsewhere. The US and Europe are in a serious and permanent gold deficit to Asia.

A lot of gold has been taken out of paper gold Exchange Traded Funds and some from what is left in Central Bank vaults. There is little gold left in America and Europe to meet the demand from Asia. Observers have noted that when the US and London can no longer deliver gold to China that this whole paper scheme will collapse. That means the dollar, the euro and the pound will soon crash.

India obeyed banker requests to restrict gold imports. But elections are coming soon and even the Congress party has been talking of removing restrictions. If restrictions are lifted, the price of gold could jump.

So the Chinese have cornered the gold market and the Americans are sitting on a $167 trillion House of Cards. Speaking of which, the Netflix series House of Cards which depicts the politicians of Washington DC as self-serving, egotistical, degenerate criminals will be shown unedited on Chinese television. This is to let their people know how foolish the American leaders and their voters are.

The problem with the Dollar as a reserve currency is that there is no fixed price telling people in the US, Latin America, Europe, Africa or anywhere else just how valuable their paychecks, savings and pensions are. If they perceive their currency as declining in value, they will dump all their dollars held in reserve and accept a gold backed Chinese yuan. A gold backed yuan would probably have fixed exchange rates for the Russian ruble and maybe 20 other currencies. This would transform 20 competing regional powers into an international power with one currency capable of establishing trade when the alternative is a 1930s style liquidity squeeze.

The world will soon be able to compare the hard work and planning of the Chinese to the American House of Cards. Some say the Chinese government will announce their actual gold holdings in April of this year. They have not revised their current figures of a little over a thousand tons for some time. As I have said before, the minimum estimate of the Chinese gold supply I have seen is 5,000 tons. Others like Jim Rickards say it might be 7,000 tons and Jim Willie says it could be 10,000 tons. This announcement will prove to the world that there is nothing left in Fort Knox.

We also need to compare what the Chinese have down to what America did when they  poked the Russian bear in the nose over the issue of the Ukraine. Do these deluded men in Washington and New York really believe that Vladimir Putin will not respond? Do they believe they can successfully respond to every possible counter measures Putin and his allies can take? Do they really believe Putin will allow them to put US nuclear missiles in the Ukraine?

The Russian banks have already cut off the Ukrainian banks from credit which has caused bank runs. The Russians can start more bank runs. What will Obama and Mario Draghi at the European Central Bank do to protect their banks if Putin organizes a few massive bank withdrawals?

What can Obama and the EU do if he raises the price of oil and natural gas to the Ukraine?

What can Obama and Janet Yellen do to defend the dollar if China sells 60 and then 70 and then 80 billion dollars a month in US Treasury bonds to buy gold driving the price up to $1,900 an ounce and flattening the dollar?

The Chinese can set the price of gold and hence devalue the dollar because we are sitting on a $167 trillion dollar House of Cards. That could not have happened in 1913. Prior to the Federal Reserve Act, the US Treasury would have simply have converted those dollars from China into $20 gold coins.

What can Obama and David Cameron do if Putin sells S-400 anti-aircraft missiles and Mach 5.5 Iskander Short Range Ballistic missiles to Iran? And what if he sends fighter bombers armed with who knows what to Iran?

What if Putin sends nuclear missiles to Cuba to counter what Obama is doing in the Ukraine? Will he blockade Cuba? Please inform Mr Obama that blockades are an act of war. What will Obama do if Russian warships armed with nuclear weapons challenge his blockade? What will he do if Russian television shows viewers how many seconds it will take for a very fast Russian missile to reach American cities from either Cuba or from submarines off the US coast?

What will Obama do if Russia and China and their allies  in Venezuela, India, Brazil, South Africa, Iran and elsewhere refuse to either buy or sell oil or anything else in dollars? This will end the dollar as a reserve currency. When those dollars from overseas are redeemed stateside, prices will double overnight. Food prices were going to rise sharply this summer anyway due to the drought and the thinning of the US beef supply. What is Obama’s plan to stop the Nationwide Food Riots? Send all the poor people to FEMA camps? He cut Food Stamps twice since November. How will he get the poor to listen to him when their Food Stamps only buy enough for half the month?

To keep foreign nations using dollars as a reserve currency will Obama attack nations that sell oil for the yuan? Will he sink ships that carry oil bought with euros or gold?

What will Janet Yellen do if the Chinese start buying gold and silver bullion and don’t stop until gold resets at $7,000 an ounce?

Of course nobody can restore the coming losses due to banker greed and incompetence. But afterwards what will Obama do if the Chinese offer to buy the stock of America’s banks promising to reorganize them with guarantees from a gold backed yuan against future losses? Will he allow the Chinese to save the banks if it means that they will wind up owning the Federal Reserve? The FED is privately owned by the member banks so China could own the FED and end up holding the mortgages of nearly half the homes in the US. What would Obama offer as an alternative to saving the banks? Will he follow the recommendations of the elite at Davos who said we need to create another hundred trillion dollars in paper money? Do you believe that a $267 trillion House of Cards will be better able to wage war against a gold backed yuan?

We might have less than two months before events force Obama, Yellen, Cameron and Draghi to begin answering these questions.

Other Articles Of Interest:

There is a solution to these problems. Invade the offshore tax havens in the Caribbean and seize the tens of trillions Wall Street stole from us and the $4 trillion dollars the Chinese leaders have stashed there. The Chinese people will appreciate the return of what their leaders stole.

How And Why An American Military Coup Could Save The World

https://vidrebel.wordpress.com/2013/04/25/how-and-why-an-american-military-coup-could-save-the-world/

Video: The Sinaloa Mexican Drug Cartel Is A CIA Subsidiary

https://vidrebel.wordpress.com/2012/11/01/video-the-sinaloa-mexican-drug-cartel-is-a-cia-subsidary/

The Bankers Really, Really Want Us All Dead

https://vidrebel.wordpress.com/2013/03/20/the-bankers-really-really-want-us-all-dead-2/

Video: GMO Ticking Time Bomb, The Bankers Want You Sterilized And Then Dead

https://vidrebel.wordpress.com/2012/10/07/video-gmo-ticking-time-bomb-the-bankers-want-you-sterilized-and-then-dead/

About horse237

I have decided to share two of the visions I had as a child. When I was eight, I had a vision of a future war that killed 99.5% of the world's population. When I was 16 and living in the projects, I had a vision of my future. I was to live in complete obscurity until it came time to stop WW III. When I was about ten, I had read a bio of Nikita Khrushchev which said he survived Stalin by playing the bumbling fool an old Russian peasant trick. I decided to do the same as I had already learned that we did not live in a democracy. The other vision I had when I was in third grade was of the Mind of God and how it interacted in the creation of the world we see. I believe you and I were born at this time precisely so we would have an opportunity to stop this war. As for my personal info, I grew up on military bases and in housing projects. My legs atrophied from starvation as a child. My second step-father died in prison. I used to have to rub my skin to simulate human contact. They did not feed me when I was a child. I do not fight in their wars as an adult.
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8 Responses to China Corners The Gold Market. US Pokes The Bear.

  1. RIMILITIA says:

    3-2-1………………………………….Ka Ba Bam!!!!!!!!!!!!!! Get ready to Rock and Roll God Bless Everyone!

  2. Mark R. Elsis | Lovearth.net says:

    Here it comes…

  3. chris sharkey says:

    I am awake.

  4. Cj aka Elderofzyklons Blog says:

    Reblogged this on ElderofZyklon's Blog!.

  5. Heard about the latest G20 meeting?

    The bluff was called.

  6. horse237 says:

    There is no bluff. You either have gold or you do not. China has gold. They will continue to accumulate gold until they pull the plug on us. I realize they have a corrupt leadership that ha stolen from their people. But they are in a stronger position with all that gold. They will make their move when they need to.

  7. Marycatherine Barton says:

    So, the Chinese are now able to watch “The House of Cards” thanks to Netflix. Yes, our American leaders and the people who vote for them are very, very foolish.

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