China has announced 8 trillion yuan ($1.265 Trillion) in stimulus as it desperately attempts to keep it’s economy from rolling over.
QE will continue To INFINITY….AND BEYOND!!!
This now gives Bernanke the political green light to proceed with a $1 Trillion + QE3. Gold and silver smell currency debasement, and are responding accordingly. The metal’s corrections are history.
China announces £800bn stimulus to boost confidence
China has announced a total of 8 trillion yuan (£800bn) of “stimulus projects” to try to boost confidence in an economy that appears to be cooling faster than expected.
Analysts said the government could now steer the value of the yuan lower, after a gain of 4.7pc last year against the dollar. Further export tax rebates could also be used to bail out manufacturers.
China’s export sector is suffering from anaemic demand from Europe and the United States. In the first seven months, exports rose 7.8pc, while imports rose 6.4pc, leaving China in danger of missing its 10pc target for trade growth this year. July’s exports grew at the lowest pace since 2009 and there are reports of factory workers leaving and returning to their home provinces for the first time since the financial crisis.
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All of us better learn how to speak Mandarin. The Chinese are destined to rule the world!
Little is being said how they are going into third world countries and helping finance and rebuild
the countries infra structures, buying up Silver and Gold mines and banks, being very, very smart with
their Renembi/Yuan investments. I only know one word of Chinese…Hung Chow! Being constipated,
but when they take enough Dulcolax, they will spread their S..t worldwide!
Ranger from Texas
I really don’t know how to respond to this situation. They announced that they will possibly or will initiate 8 Trillion yuan = 1 Trillion U.S. Dollars and give Bernanke the green light to commence more fraud on the world. Stack The Fricken Smack!!!!
So what was happening last week is the insiders already knew of the upcoming China stimulus plan and was buying up precious metals while everyone else wondered what was going on.
Begun the Currency War has!
Living through a Currency War in real time is both thrilling and terrifying
Crikey Mikey, silver’s spikey
At least the Chinese government warned its people to buy gold and silver because of inflation. But here in the West, our government didn’t even warned us to buy gold and silver because of inflation. Well now that China’s stimulus is announced, prices will spike and it could increase social unrest and discontent among the poor and middle class which is a major source of anxiety for Chinese leaders.
And this without:
a. Straight of Hormuz closure
b. Without a new silver exchange
c. Without a CFTC ruling
d. Without Grexit/Finnixit/Germaxit
Remember 2 -3 weeks ago, Jim Sinclair out of the blue became seemingly excited, almost like a kid in a candy shop, announcing that the rig was over, and that it was a definite $3500 and beyond…. and he’s been harping people to quit being so negative and to just wait a bit, and to pull money out of the system? (Sort of like Lindsey William’s “if it’s written on a piece of paper, it’s worth the paper it’s written on”)?
Well, I think we’re beginning to see why I detected such excited emotions from him, and even why I said that the whole “dump on Bart Chilton” thing seemed like an inverse good cop bad cop routine between the silver community’s in-the-knows and Chilton…
I might still be proven wrong, but the threads seemed to connect for me a few weeks ago.
Inflation could get really ugly soon folks. ECB, Fed and China printing Fiat at the same time. Thats a scary thought. Perhaps Goldrunner’s Gold prediction of $3500 by summer was only off by 6 months.
If Gold passes $2000 I think we will see hyperinflation within 12-18 months. Regular folks won’t start to jump into Metals until Gold and Silver reach all time highs of >$1,910 and $50. Then they will push it up just like they did the Nasdaq and Housing Bubble.
This site is turning into the next Zerohedge…can’t even find a sniff of this on ZH tonight.
IRRC, Chris Martenson speculated that we could see some sort of “co-ordinated global QE” by years end. And by co-ordinated he meant the US, UK, ECB and BOJ. If this indeed comes to pass, anyone care to speculate how high the metals could realistically go to by December?
Only ‘The Telegraph’ has this news? No other newspapers mention a word about it…
Lets see, Chinese printing, hurricane in Florida, bernanke speaking Friday the 31st and Im sure there is more. Things seem to be lining up for a bank holiday this coming Labor Day 3 day holiday.
It occurs to me that if China has to shove $1 trillion in stimulus into the economy that’s the equivalent of the US with a $3 trillion monetary enema. It’s rumored that Chine may see only 3% GDP growth. With inflation at high single digits and 13 of the 14 key economic indicators in the red—finished goods in the green due to channel stuffing–we may have to worry more about a hard landing in China than in the US or Europe. How will 8 trillion Yuan factor into China’s attempt to create a reserve currency? What else can happen to world currencies backed by nothing?
If China reduces interest rates and banking reserves, then things will get really interesting. A ZIRP in China will get people into precious metals at light speed and they will have all the money in the world to buy them. Need I say it. Get ye to the LCS and buy with both hands. Silver under $35 may be the bargain of the year.
A tip of the hat to Doc for being up late night and catching this.
Some of the commenters on the UK Telegraph were some Chinese residents and they stated this story is not true. They said there has been no announcement made by the governmen of a stimulus package yet. Could explain why no one else is coverfire iT??
> seem to be lining up for a bank holiday this coming Labor Day 3 day holiday.
It is already a bank holiday and stock markets are closed on Monday, September 3rd.
http://www.rightline.net/calendar/market-holidays.html
Come on silver…. come on little pony. You can do it!
Yeah, that’s the way! Break on through to the other side!
Just curious what prices you guys would consider offloading some or all of your silver at or is no price tempting enough until after the collapse of the US Dollar and a new system emerges?
SLOW DOWN!
This story isn’t saying what you all think it is saying. THIS is the key paragraph from the original article:
“One Chinese province after another has stepped forward over the last fortnight to announce their plans, in what appears to be a propaganda effort to reassure the public that the economy is still on track”
“fortnight” = last two weeks
In other words, over the last two weeks, as part of the process of reporting to central planners and as part of the process of talking propaganda to the masses, provinces have discussed what they’ve done and what they hope to do, and the UK Daily Telegraph reports a figure of 8 trillion won. THIS IS NOT the same thing as the Chinese national government announcing it is launching a NEW STIMULUS PLAN. It’s a tabulation of what provinces plan to spend overall on infrastructure going forward, spending which will in part be funded BY PREVIOUSLY FACTORED-IN stimulus funds from the central government.
Don’t believe me? Look, go to the following news sites and you will see nothing about a NEW stimulus plan, because the Chinese central government hasn’t launched a new stimulus plan just yet (although I do believe one is coming):
Reuters.com
Bloomberg.com
FT.com
chinadaily.com.cn
xinhuanet.com/english
english.cntv.cn
shanghaidaily.com
english.peopledaily.com.cn
Doc, you know I love this site and what you do. But you’ve got to slow down and vet stuff. It’s not entirely your fault because that was a slanted and poorly written article by The Telegraph of London. Nevertheless…
@Flying Wombat: LOL. If Silver Doctors starts to vet its articles, it won’t be Silver Doctors anymore. I’m just glad Bix Weir has disappeared.
I bought some at around 31 now, we´ll see if it holds. Im waiting for some direction if we go over 31,50 I will go in big same goes for below 30.
If this story is true, it would be exactly the wrong thing for the chinese to do. It would cause massive food and energy inflation in china and would act to genicidally attack the lowest class. They should do the reverse, and revalue their currency 1-1 with ours. This would instantly kill us, and it would mean extremely low import prices for the chinese. That day, the one I described may be coming, then all of our china-slave labor will be gone and what manufacturing will we have to fall back on?
If they do have a “stimulus” then I want to reevaluate my poor guess on the spot price of Ag for Dec. 31st! It only matters what they do if we are doing the wrong things. Unfortunately we are doing everything wrong with respect to finance and trade! Almost everyone I know is in SURVIVAL MODE whether they know it or not. Maybe we should be in the SURVIVAL OF THE FITTEST MODE as Greg Mannarino stated!
This is obviously why silver popped overnight in the Asian market. Our economy is NOT strengthening, the jobs are not growing, food stamp usage at a record high….if anyone at this point in time actually thinks that the global economy is going to pull out of the death spiral any time soon they are dreaming or are sufficiently brainwashed by the mainstream media. The only route forward is a global collapse. It’s not what I want to happen, it’s what I see happening. It’s like a business, when it’s over and there is no more business coming in, the business cannot borrow it’s way to success if no customers are buying. The perfect storm is upon us. I do however believe that there is a light at the end of this long dark tunnel. We will get there but very slowly. That’s my story and I’m stickin’ widit!
It would be a fun spectacle to see China appreciate their currency relative to the world.
Exports would be killed, but if someone needed goods, they could always pay in gold/silver. Or just not purchase and make their own (look at Americans trying to make cars, laughable usually)
If China would miss exports, otherwise useless foriegn currency reserves could be used to easy the economy, or simply hand out food stamps to those losing jobs, which will only be temporarily. Communism, right?
The world on their knees, China holding all gold and all currency. Then devalue the Yuan a bit again (may occur automatically), and business as usual. Just, US will be a small industrial country dedicated to the Asian markets.
Mr. Murphy was pretty sure of himself when he said in some interviews that gold and silver were going to go up fast. It looks like his sources had access to enough information to connect some dots. We all know that there is a real shortage of genuine gold and silver bullion combined with the ridiculous numbers in the paper markets. No way is there enough bullion to support the demand that is starting to spark. That will make au and ag take off like a rocket. This is starting to just make itself known in the mass media so it will be a couple of months until the 99.5% of the masses start to see what is happening.
I actually think from the previous numbers that banks like JPM are flat broke from the numbers they published when ordered to prepare for a disaster with no federal help. So fear trading is pretty close and we all know as soon as that starts au and ag are headed for highs we were afraid to hope for. If you don’t have your stack now, chances are you are not going to get to build one although they will try forcing prices higher. Thank you Doc and Mr. Murphy for the info flow and I’d say — let the games begin early.
savesilver you bring up a good point We killed this country by offshoring our well paid manufacturing jobs base for a mess of cheap foreign goods manufactured by 20 cents an hour chinese labor That was the most idiotic action we could have ever made and has destroyed the blue collar middle class in this country. Whatever happens to China, it would be very good news if we could bring those jobs back to the US. The only way we are going to recover economically is by creating good paying stable manufacturing jobs and rebuilding the middle class. Othewise we will spend the next 20 years taking in each other’s laundry and accomplishing nothing to benefit the economy while further impoverishing the people of this country
“China has announced 8 trillion yuan ($1.265 Trillion) in stimulus as it desperately attempts to keep it’s economy from rolling over.”
Is anyone really surprised China needs a stimulus? They gave all of their money to the US to bail them out and the US is defaulting on the loans.
Just you wait and see what happens in political La-la land. Obama will have a “New Deal” platform announced soon. It will be loaded with “jobs.” There going to redo 1000 Solyndras, except they will get it right and make a profit this time LOL. Then Bernanke will announce the Fed will continuously monetize AT LEAST $2T of debt a year for the rest of your lives. Oooops. They’ve already been doing that since 2008 LOLOLOLOL
Laughing my ass off at people who thought buying silver for $26-30 was “risky.”
How is “missing its 10pc target for trade growth this year” anything near ‘rolling over’?
“In the first seven months, exports rose 7.8pc, while imports rose 6.4pc” (growing trade surplus) while having a “gain of 4.7pc last year against the dollar“. How is that negative news by any realistic measurement?