US paper gold suppression allowing Russia & China to buy real gold at discount prices

What used to be referred to as conspiracy theory is now pretty well-known in the precious metals investment community:  western bullion banks suppress the prices of gold and silver by shorting COMEX futures contracts, inducing panic selling among buyers who are long the contracts.  Gold bugs insist the bullion banks are acting as agents for central banks--mainly the Fed, in an attempt to artificially prop up the dollar even as the greenback is being systematically debased by a profligate printing press, in order to fund huge U.S. government budget deficits.

But I've also posited that western bullion banks have accomplices--Asian central banks, specifically China and Russia.  While their motives for suppressing gold prices are different, their desired short-term outcomes are identical:  capping prices of the precious metals.

Recall I mentioned their respective motives are different.  The Fed attempts to mask dollar weakness by suppressing gold prices.  Asian financial authorities also want lower gold prices--but for a different reason:  they are accumulating gold, so they naturally desire lower prices.

The net effect is the transfer of gold (i.e. wealth) from western central bank vaults (leveraged shorting, i.e. selling of paper gold assets) to Asian central bank vaults and retail buyers in Asia, in the form of physical bullion.

The long-term impact?  The bankrupting of western central banks.

https://www.rt.com/business/429573-us-china-russia-physical-gold/

Why the World’s Billionaire Investors Buy Precious Metals

http://www.visualcapitalist.com/billionaire-investors-precious-metals/

WALLACE PREPARES TO BUY SOME SILVER

Catching a falling knife is sometimes a dangerous game.  But sometimes it's the only play.

"The time to buy is when there's blood in the streets." - Baron Rothschild

I'm seeing the white in people's eyes. 

http://themacrotourist.com//macro/wallace-prepares-to-buy-some-silver

“Economy Shattered, Currency Collapsing”: Venezuelans Wait in 6 ATM Lines For Enough to Buy Rice

Zombies won't be the scourge of a future apocalypse.  Hyperinflation will be, thanks to the government printing press.  It's already happening in several countries.  There is no future for them.

http://www.shtfplan.com/headline-news/economy-shattered-currency-collapsing-venezuelans-wait-in-6-atm-lines-for-enough-to-buy-rice_12022016#

The 'Big Long' - Goldman Sachs And HSBC Buy 7.1 Tons Of Physical Gold

http://seekingalpha.com/article/3421396-the-big-long-goldman-sachs-and-hsbc-buy-7_1-tons-of-physical-gold

Meanwhile, Here's What The "Super-Rich" Are Rushing To Buy

http://www.zerohedge.com/news/2014-09-20/meanwhile-heres-what-super-rich-are-rushing-buy

8 Months of Muppet Brutality: Why And Where Goldman Told Clients To Buy Banco Espirito Santo

This is another example of Goldman Sachs telling some of their clients to buy a banking stock which would later collapse.

http://www.zerohedge.com/news/2014-08-04/8-months-muppet-brutality-why-and-where-goldman-told-clients-buy-banco-espirito-sant

Dollar no longer primary oil currency as China begins to sell oil using Yuan

http://www.examiner.com/article/dollar-no-longer-primary-oil-currency-as-china-begins-to-sell-oil-using-yuan

"The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine."

"On Thursday, Sept. 6... just a few days ago, China made the official announcement. China said on that day, our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar.

"This has never happened in the history of crude oil. Since crude oil became the motivating force behind our (U.S.) entire economy, and everything in our lives revolves around crude oil. And since crude oil became the motivating factor behind our economy... never, ever has crude oil been sold, bought, traded, in any country in the world, without using the American dollar."

"Crude oil is the standard currency of the world. Not the Yen, not the Pound, not the Dollar. More money is transferred around the world in crude oil than in any other product."

"On Friday, Sept. 7, Russia announced, that as of today, we will supply China with all of the crude oil that they need, no matter how much they want... there is no limit. And Russia will not sell or trade this crude oil to China using the American dollar."

- Lindsey Williams

Who Is Going To Buy Our Debt If This War Causes China, Russia And The Rest Of The World To Turn On Us?

As usual, the war-mongers don't have a f***ing clug on the unintended consequences of the US unilaterally attacking Syria.  By doing so, the US would bury its own economy and collapse the global banking system.  It would be 2008 times ten.

The US itself would be a post-industrial, fourth world country if that were to happen.  In other words, we would become the poor bastards who we conveniently label third-world middle Eastern and African countries--a banana republic which perpetually issues sovereign debt which will never be repaid.

http://theeconomiccollapseblog.com/archives/who-is-going-to-buy-our-debt-if-this-war-causes-china-russia-and-the-rest-of-the-world-to-turn-on-us

Goldman Buying Gold, Selling Treasurys To Muppets Whom It Advises To Do Opposite

Gee, what a surprise...Goldman issues a sell recommendation...and looks to buy (at lower prices) from their own clients.  Priceless.  As I've said many times, Google "head fake."

http://www.zerohedge.com/news/2013-04-10/goldman-buying-gold-selling-treasurys-muppets-whom-it-advises-do-opposite

Fed may go bankrupt

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/5_Jim_Rickards_-_Fed_May_Go_Bankrupt.html

Right now the Fed’s balance sheet shows about $57 billion in total capital. Current assets are about $2.3 trillion. The current money-printing plan will take total assets above $3 trillion. At that level, it only takes a 2% decline in asset values to wipe out the Fed’s capital. Put differently, it only takes a 2% drop in the average value of assets on the Fed’s balance sheet for the Fed to go bankrupt. And this is in an environment where various markets frequently go up and down 3% in a single day.

The Fed is saying don’t worry about mark to market losses because we will hold the bonds. The Fed is saying don’t worry about inflation because we will sell the bonds. Both of those statements cannot be true at the same time. You can hold bonds and you can sell bonds but you can’t do both at once. You will want to sell when rates are going up but that’s when losses will be the greatest. So the time when you most want to sell is the time when you will most want to hold.

So, here’s the bottom line on money printing, or QE if you prefer. If nothing happens, the whole thing was a waste of time. If inflation takes off, the Fed will have to choose between holding bonds and letting inflation get worse or selling bonds and going bankrupt in the process. Since no entity goes down without a fight, the Fed will naturally hold the bonds and let inflation take off. Do not ask about the exit strategy from QE; there is no exit.

CNBC's Jim Cramer says ARNA is a Buy

But he also tells longs who bought ARNA at lower levels to take profits and sell half their positions. Thanks but no thanks, I'm not selling any of my shares at these levels to his short cronies who are upside down and need to cover. There is nothing wrong with taking some profits off the table, but with two big pivotal events pending (independent Advisory Committee vote and PDUFA review), I'm staying long and strong. Every investor has different objectives and time lines, so decide for yourself, and don't be swayed by media "pundits" who may not have your best interests at heart. Good luck to all longs.

http://www.cnbc.com/id/38487197

Arena Pharmaceuticals [ARNA 7.95 0.97 (+13.9%) ]: ARNA is a buy, Cramer said. Thought the stock has enjoyed a big run, so investors who already have held the stock should have been taking some profits.

See disclaimers in the side bar.

Disclosure: long ARNA shares.