Sunday, July 30, 2017

Estimated Chinese Gold Reserves Surpass 20,000t

“Appear weak when you are strong, and strong when you are weak.” “The supreme art of war is to subdue the enemy without fighting.” - Sun Tzu, The Art of War

The People's Bank of China (PBOC) declares it has official gold reserves of 1840 tons.  Most pundits close to the PBOC acknowledge they have north of 4000 tons.  Koos Jansen says mainland China has over 20,000 tons.  In their estimation, at some point, the PBOC will have enough gold commensurate with their economy and declare their actual inventory, not their understated tonnage.

In doing so, they will also declare the renminbi (yuan) will be backed by gold, and that oil imports will be traded in contracts based on the remnibi, not in dollars any longer.

The US will declare a trade war on China as oil and consumer prices skyrocket, while the dollar collapses.

Friday, July 28, 2017

The Globalist One World Currency Will Look A Lot Like Bitcoin

If I appeared to be ambivalent about crypto-currencies like Bitcoin, it's because I was.  I penned a blog on why Bitcoin was a legitimate currency back in 2013 <click here>, and its mainstream acceptance since then has proven that point beyond doubt.

But I also later wrote other blog entries around my concerns about crypto-currencies <click here>, namely how a backdoor in the encryption allowed access which isn't necessarily desirable <click here>.  Could the trapdoor loophole be a creation of the NSA, Secret Service or US Treasury?  Perhaps.  Edward Snowden believed so.  And if Bitcoin has an upper limit of 21 million units, what's to prevent other crypto-currencies from emerging?

For true Bitcoin nerds, here are two insightful articles about crypto-currency encryption algorithms:  <click here> and <click here>.

The first concern is playing out as law enforcement authorities are capturing criminals conducting business and stealing crypto-curriences.  Pseudo-anonymity is not anonymous, frankly.  And the second  concern is materializing as thousands of other crypto-currencies have been created via ICO's (Initial Coin Offerings)--most of which have been funded by Bitcoin or Ethereum, thereby driving up demand for both.  It's analogous to calculus gone bad, as first-order and second-order derivatives are spiraling out of control in an endless positive feedback loop.

At the end of the day, these and other reasons I've mentioned previously are why I remain skeptical about the long-term prospects of crypto-currencies as safe haven assets.  Bitcoin may be a currency, but it is not sound money, in my opinion.

This article by Brandon Smith sums up the future role of the IMF's Special Drawing Rights and crypto-currencies well.

Thursday, July 27, 2017

PBoC Gold Purchases: Secretive Accumulation on the International Market

It's pretty well known amongst gold bugs that official Chinese gold reserves are spectacularly understated and under-reported.  By extension, it's logical to deduce that they are manipulating prices lower as they continue their accumulation of gold--for different reasons than western central banks.

The latter suppress gold prices to mask fiscal insolvency and financial mismanagement of their respective country's treasuries.  The Chinese hold down gold prices to buy low.

At some point, they will have enough and the springboard in gold prices will be released.

Greece Arrests Russian "Mastermind" Behind $4 Billion Bitcoin Laundering Scheme

Despite it's alleged pseudo-anonymity and scarcity, THIS is why crypto currencies aren't quite the safe haven its most ardent supporters claim it to be. Yes, crypto-currencies are indeed currencies, but its inherent "virtual" nature makes it unsound money. Only tangible assets are real. Got gold?

Despite The Euphoria, A Major Warning Flag Is Now Waving

Margin debt is at record highs, signalling extreme euphoria among (retail) investors. A market crash is pending, if not imminent.

Tuesday, July 25, 2017

How Big Of A Deleveraging Are We Talking About?

“If the economy is doing as well as Central Banks suggest, then why, after 9-years, are the ’emergency measures’ being applied to global economies still in place?” 
More importantly, what happens when they are forced to stop.
Of course, this is why Central Banks globally are terrified of such an outcome.

Wednesday, July 19, 2017

Here’s Why I Know Bitcoin and Ethereum Are In a Bubble, Built On Top of Outright Scams

Don't Be Fooled - The Federal Reserve Will Continue Rate Hikes Despite Crisis

The Federal Reserve Is A Saboteur - And The "Experts" Are Oblivious

The Golden Conspiracy

A Tale of Two Gold Markets

How Governments Can Kill Cash

ALERT: 44-Year Market Veteran Says Retail Panic Selling Now Taking Place In Gold & Silver Markets!

Paul Craig Roberts – David Stockman Did Not Listen And Propaganda Has Prevailed

Monday, July 17, 2017

Gold Performs Well Even When Interest Rates Rise

Many pundits believe rising interest rates are bearish for precious metals, since rising bond yields provide more effective competition against gold and silver, which pay no dividends.  By extension, the conventional wisdom is investors would then gravitate toward fixed-income investments (which pay a coupon) over physical gold or silver.  It's intuitively correct, but history shows it is mostly inaccurate.

Gold made its historic run up in the 1970's when inflation was rearing its ugly head.  More recently, the Fed raised interest rates a tick (reversing policy for the first time since 2008) in December 2015, which coincided with the bottom in gold.  The reason is because not only is gold a good hedge against inflation, but it performs even better when there is distress in financial markets and doubts about the soundness of currencies.

Sunday, July 16, 2017

Gold shops: coming to a high street near you?

THIS IS TERRIFYING: Will All Of Your Money Be Wiped Out In The Blink Of An Eye?
1.  Take $18 trillion of debt printed by insolvent central banks, up 300% since 2006.
2.  Add other public debt as well as private debt to reach $230 trillion, up 60% since 2006.
3.  Add unfunded global liabilities and other commitments of $270 trillion making a total of $500 trillion at a minimum. 
4.  Just one small bit to add, which is derivatives of $1.5 quadrillion taking us to a total of $2 quadrillion or more. 
5.  Run budget deficits for over 50 years like the US.
6.  Always buy more than you sell, creating trade deficits for over 40 years, again like the US or the UK.
7.  Print money to pay for all your government expenses like Japan.
8.  Buy your own debt like Japan, USA, the EU, UK, etc. 
9.  Mismanage your country and currency until the money reaches its intrinsic value of Zero. So far, all major currencies are down 97-99% since 1913.
10.  Allow the financial system unlimited leverage to benefit a miniscule minority and burden the masses with debt.
11.  Manipulate all markets to totally obscure price discovery. 
12.  Set interest rates at zero or negative so that governments can borrow unlimited amounts. 
13.  Suppress the value of gold in order to hide the mismanagement of money and the economy. 
14.  Set up a system of misinformation and Fake news to mislead the people.
15.  Once 1 to 14 has been achieved, start at 1 again and do more of the same.

Thursday, July 13, 2017

CME Chairman Terry Duffy

Fast forward to the 5 minute mark to see CME Chairman Terry Duffy's comments on the price of gold. It is interesting because gold bugs believe his organization is partly responsible for surreptitiously capping gold's price.

"with all that's going on in the world, it (gold) should probably be at $5,000 to $6,000 per ounce."