NYC-view02-China-WEBThe office building of JPMorgan with its largest private gold vaults at Chase Manhattan Plaza, opposite to the New York Federal Reserve building, has been recently sold to the Chinese.
This indicates the US and China seem to be working together in advance towards a global currency reset whereby the US, Europe and China will back the SDR’s with their gold reserves so the dollar can be replaced.
We have now arrived at the point where it is not the banks, but the countries themselves that are getting in serious financial trouble.
The idea that we can ‘grow our way back’ out of debt is naive. The current solution to ‘park’ debts on to the balance sheets of central banks is just an interim solution.
A global debt restructuring will be needed. This will include a new global reserve system to replace the current failing dollar system, probably before 2020.

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By Koos Jansen, In Gold We Trust:

The Big Reset, Part 1

The sole reason why I became interested in gold is because of the book “Overleef De Kredietcrisis” (How To Survive The Credit Crisis), written by Willem Middelkoop – the Dutch equivalent of Jim Rickards – in 2009. This book opened my eyes and interest for economics and I didn’t stop reading and writing about it ever since.

 

 

Willem Middelkoop 2011

 

 

Middelkoop had written four books in Dutch when he decided to switch to English, his latest book has just been relesed: The Big Reset. This book is about the War on Gold and the plans behind the scenes to create a new gold-backed world reserve currency. I had the privilege to do a Q&A with Middelkoop about his latest book. The Q&A will be published on this website in two parts.

 

 

The Big Reset

 

 

How did you started to invest in gold?

 

Because of the books by Indian economist Ravi Batra in the 1990’s I became aware of the anti-cyclical nature of gold. Through my internet research in 1999, when the internet bubble was getting pretty scary, I had learned about GATA and learned a great deal about fiat and hard money. After I took profits on my real estate investments in Amsterdam between 2001 and 2004 I started to invest in physical gold and silver and bought my first shares in precious metal companies in 2002. In the following yearns I experienced that investing in junior mining and exploration companies who worked on new discoveries delivered the best results. This first led to the publication of the Gold Discovery Letter and in 2008 to the start of the Gold Discovery Fund, which was renamed Commodity Discovery Fund in 2010 because some investors like the commodities more than gold. We have some 600 high net-worth Dutch investors and invest in (junior) mining companies. 50% is gold related, 25% silver related. We also have some Rare Earth and base metal investments. Because of the ongoing ‘World Championship Currency Debasement’ we expect much high prices for precious metals in the next few years.

 

New SDB new look

Your new book is named The Big Reset, isn’t our current monetary system sustainable?

 

No, we now have arrived at the point where it is not the banks, but the countries themselves that are getting in serious financial trouble. The idea that we can ‘grow our way back’ out of debt is naive. The current solution to ‘park’ debts on to the balance sheets of central banks is just an interim solution. A global debt restructuring will be needed, as economists Rogoff en Reinhart recently explained in their working paper for the IMF. This will include a new global reserve system to replace the current failing dollar system, probably before 2020.

 

 

So you are not on your own with this call?

 

Right after the near death experience of the global financial system at the end of 2008 the IMF and others started to study the possibilities for a next phase of the financial system. In 2010 the IMF published a study titled ‘Reserve Accumulation and International Monetary Stability’ for a financial system without a dollar anchor. The United Nations called for ‘a new Global Reserve System’ based on the IMF’s Special Drawing Rights (SDR’s) a year later. The SDR was created in 1969, at the time the London Gold Pool couldn’t hold gold at $35 and the U.S. lost over 10,000 tons of gold because countries like France and the Netherlands returned excess dollar reserves to the U.S. treasury and demanded physical gold. This development led to the end of the gold backed dollar in August 1971, when President Nixon closed the gold window and the first dollar crisis started. It led to the run up of gold towards $880 in 1980. The UN idea is endorsed by China who has publicly stated several times that it is dissatisfied with the present dollar-orientated system. In 2009 China’s Central Bank Governor Zhou Xiaochuan advocated a new worldwide reserve currency system. Late 2013 the Chinese state press openly called to ‘de-Americanize’ the world’. In an official op-ed the idea for ‘the introduction of a new international reserve currency  to replace the dominant U.S. dollars’ was mentioned again. According to the London based think thank Official Monetary and Financial Institutions Forum (OMFIF) it will take many years before the renminbi will mount a credible challenge to the dollar. The euro is not suitable either.

 

 

How will this change unfold?

 

Our financial system can be changed in almost every way as long as the main world trading partners can agree on these changes. Two major problems in the world’s financial system have to be addressed, the demise of the U.S. dollar as the world reserve currency and the almost uncontrollable growth of the worldwide mountain of debts and central banks’ balance sheets. A reset planned well in advance can and probably will consist of different stages. So currently the U.S. together with the IMF seems to be planning a multiple reserve currency system as a successor of the current dollar system. But this system which still include and center around the dollar, but other important currencies will be added at its core. OMFIF has published an interesting study last year. They remarked:

 

‘This marks the onset of a multi-currency reserve system and a new era in world money. For most of the past 150 years, the world has had just two reserve currencies, with sterling in the lead until the First World War, and the dollar taking over as the prime asset during the past 100 years. The pound sterling  has been in relative decline since the Second World War. The birth of the euro in 1999 has turned the European single currency into the world’s no. 2 reserve unit, but it has been now officially accepted that the dollar and the euro share their role with smaller currencies. The renminbi has attracted widespread attention as a possible future reverse currency. But it’s still be some years away from attaining that status, primarily because it is not fully convertible.’

 

 

Some American insiders have even been calling for a return to the gold, isn’t it?

 

In an open letter to the Financial Times in 2010 titled ‘Bring back the gold standard’, the very well connected and former President of the World Bank Robert Zoellick pointed out he wants to use gold as a reference point in order to reform the current failing financial system. Mr. Zoellick explained an updated gold standard could help retool the world economy at a time of serious tensions over currencies and U.S. monetary policy. He said the world needed a new regime to succeed the ‘Bretton Woods II’ system of floating currencies, which has been in place since the fixed-rate currency system linked to gold broke down in 1971. He said the new system

 

‘is likely to need to involve the dollar, the euro, the yen, the pound and a renminbi. The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today.’

 

According to the famous publisher Steve Forbes, who was also an advisor for some of the presidential candidates in 2012,  ‘the debate should be focused on what the best gold system is, not on whether we need to go back on one.’ So it was at no surprise for me to see an interview with professor Robert Mundell in Forbes magazine, in which he argued for a return to the gold standard. Mundell can be seen as one of the architects of the euro, and has acted as an advisor to the Chinese government as well. Mundell said:

 

There could be a kind of Bretton Woods type of gold standard where the price of gold was fixed for central banks and they could use gold as an asset to trade central banks. The great advantage of that was that gold is nobody’s liability and it can’t be printed. So it has a strength and confidence that people trust. So If you had not just the U.S. dollar but the U.S. dollar and the euro tied together to each other and to gold, gold might be the intermediary and then with the other important currencies like the yen and Chinese Yuan and British pound all tied together as a kind of new SDR that could be one way the world could move forward on a better monetary system.’

 

 

And China supports these ideas for a currency reset?

 

As you know Chinese Central Bank Governor Zhou Xiaochuan advocated a new worldwide reserve currency system as early as 2009. He explained that the interests of the U.S. and those of other countries should be ‘aligned’, which isn’t the fact in the current dollar system. Zhou advised to develop the SDR’s into a ‘super-sovereign reserve currency disconnected from individual nations and able to remain stable in the long run’. According to some experts the IMF needs at least five years more years to prepare the international monetary system for a worldwide introduction of SDR’s to be used worldwide. Some doubt if we will have the luxury to wait that long. The fact China is stopped buying U.S. Treasuries in 2010 and have been loading up on gold ever since tells a great deal. Chinese high level officials have indicated China wants to grow their gold reserves ‘in the shortest time’ to at least 6,000 tons, in anticipation for the next phase of world financial system. A recent report by Bloomberg suggest The People’s Bank of China and private investors has been accumulating over 4,000 tons since 2008. The Chinese are afraid the U.S. could surprise the world with a gold revaluation. Wikileaks leaked a cable sent from the U.S. embassy in Beijing early 2010. The message, which was sent to Washington, quoted a Chinese news report about the consequences of such a dollar devaluation as it appeared in Shanghai’s Business News:

 

‘If we use all of our foreign exchange reserves to buy U.S. Treasury bonds, then when someday the U.S. Federal Reserve suddenly announces that the original ten old U.S. dollars are now worth only one new U.S. dollar, and the new U.S. dollar is pegged to the gold – we will be dumbfounded.’

 

 

Can you explain the love for gold by the Chinese?

 

They know, even from their own history, gold has been used again and again to rebuild trust when a fiat money system has reached its endgame. As you might know, from your own studies, the main academic journal of the Chinese Communist Party’s Central Committee published an article in 2012 that sheds a light on the Chinese monetary or should we say gold strategy. The article [exclusively translated by In Gold We Trust] was written by Sun Zhaoxue, president of both the China National Gold Corporation (CNG) and the China Gold Association (CGA). Sun stated:

 

‘Increasing gold reserves should become a central pillar in our country’s development strategy. The state will need to elevate gold to an equal strategic resource as oil and energy, We should ‘achieve the highest gold reserves in the shortest time. Individual investment demand is an important component of  China’s gold reserve system; we should encourage individual investment demand for gold.’

 

According to my research the Chinese are now in the final stage to grow their gold reserves to 6,000 tons. They want to grow these reserves towards 10,000 tons before 2020. That amount will bring the Chinese on par with the U.S. and Europe on a gold/GPD ratio. This opens the door to a possible joint US-EU-China gold supported financial system like the IMF’s SDR-plan. Such a reset could also be backed by Russia since they have accumulated over 1,000 tons, most of it since the start of the credit crisis in 2008.

 

 

Do China (and Japan) have the same debt problems like the western countries?

 

According to John Mauldin, author of ‘The End Game’ and ‘Code Red’ China is ‘even more addicted to money printing than the US or Japan’. Despite national financial reserves of almost $4,000 billion, China has been confronted with its own debt crisis, after Chinese banking system’s assets grew by $14 trillion between 2008 and 2013. The old Chinese communist leadership still remembers how they succeeded to grab power because of the monetary problems between 1937–1949. Their main goal is to avoid social unrest like China experienced during a period of hyperinflation after World War II.

 

 

What do the Chinese know about the War on Gold?

 

Sun Zhaoxue explained in 2012:

 

After the disintegration of the Bretton Woods system in the 1970s, the gold standard which was in use for a century collapsed. Under the influence of the U.S. Dollar hegemony the stabilizing effect of gold was widely questioned, the ‘gold is useless’ discussion began to spread around the globe. Many people thought that gold is no longer the monetary base, that storing gold will only increase the cost of reserves. Therefore, some central banks began to sell gold reserves and gold prices continued to slump. Currently, there are more and more people recognizing that the ‘gold is useless’ story contains too many lies. Gold now suffers from a ‘smokescreen’ designed by the US, which stores 74% of global official gold reserves, to put down other currencies and maintain the US Dollar hegemony.

 

He then also explained how the US is debasing the value of its currency in a move to get rid of too much debt:

 

‘The rise of the US dollar and British pound, and later the euro currency, from a single country currency to a global or regional currency was supported by their huge gold reserves.  Especially noteworthy is that in the course of this international financial crisis, the US shows a huge financial deficit but it did not sell any of its gold reserves to reduce debt. Instead it turned on the printer, massively increasing the US Dollar supply, making the wealth of those countries and regions with foreign reserves mainly denominated in US Dollar quickly diminish, in effect automatically reducing their own debt. In stark contrast with the sharp depreciation of the US Dollar, the international gold price continued to rise breaking $1900 US Dollars per ounce in 2011, gold’s asset-preservation contrasts vividly with the devaluation of credit-based assets. Naturally the more devalued the US Dollar, the more the gold price rises, the more evident the function of US gold reserves as a hedge.’

 

Additional proof of the Chinese knowledge about the gold price suppression can be found in message leaked by Wikileaks from the American Embassy in Peking about a Chinese newspaper report:

 

‘The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.’

 

The office building of JPMorgan with its largest private gold vaults at Chase Manhattan Plaza, opposite to the New York Federal Reserve building, has been recently sold to the Chinese. This indicates the US and China seem to be working together in advance towards a global currency reset whereby the US, Europe and China will back the SDR’s with their gold reserves so the dollar can be replaced.

 

 

NYC-view02-China-WEB

 

 

More about the War on Gold next week in Part 2

 

 

In Gold We Trust

 

 

 

Synopsis of The Big Reset: Now five years after the near fatal collapse of world’s financial system we have to conclude central bankers and politicians have merely been buying time by trying to solve a credit crisis by creating even more debt. As a result worldwide central bank’s balance sheets expanded by $10 trillion. With this newly created money central banks have been buying up national bonds so long term interest rates and bond yields have collapsed. But ‘parking’ debt at national banks is no structural solution. The idea we can grow our way back out of this mountain of debt is a little naïve. In a recent working paper by the IMF titled ‘Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten’ the economist Reinhart and Rogoff point to this ‘denial problem’. According to them future economic growth will ‘not be sufficient to cope with the sheer magnitude of public and private debt overhangs. Rogoff and Reinhart conclude the size of the debt problems suggests that debt restructurings will be needed ‘far beyond anything discussed in public to this point.’ The endgame to the global financial crisis is likely to require restructuring of debt on a broad scale.

 

About the author: Willem Middelkoop (1962) is founder of the Commodity Discovery Fund and a bestselling Dutch author, who has been writing about the world’s financial system since the early 2000s. Between 2001 and 2008 he was a market commentator for RTL Television in the Netherlands and also appeared on CNBC. He predicted the credit crisis in his first bestseller in 2007.

 

Link Willem Middelkoop

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  1. Yeah, they bought it for chump change. The Chinese are cooperating with the transfer of gold to the east and the death of the dollar. We have no gold. If we did, we wouldn’t be stalling the Germans and giving them a few pounds of recast. Nope, the US will not lead this party, we will be outcast.

  2. right now those red fiats are worth a hell of a lot more than those green things. Also, those red fiats have around 15,000 tons un-officially backed by the yellow stuff.
    Happy to have them stacked as well as the gold/silver!!!!

  3. If they do an gold goes to $7000 an the governments back a certain amount of it with gold an silver guess what? It is the worst thing to happen. Because they call in all the gold an silver pay you then raise the price then outlaw pms. Which leaves you with nothing. And your dollar you hold is actually backed my many zeros since you cant buy gold or silver anymore. At least now your dollar is actually back by silver gold you can go buy it for now till the road ends an the freeze prices or out law the ownership of it?

    • They will take our Gold & Silver when they come to take our guns away.
      In other words – NEVER!
       
      ———————–
       
      Oh, and fuck china.
      Watching the Aussies & Canucks kissing up to the chinese and paying homage to them by putting their zodiac privy-signs on their own sovereign coins makes me want to puke.
       
      There is another use of the word, ‘privy,’ you know…
       

    • There’s a little fly in the ointment here…  the US has nowhere NEAR the gold they claim to have.  At some point, this will have to be ultimately revealed…
       
      And when that happens, any currency reset / revaluation is going to be one hell of a whack to the dollar and the US.   Precisely what the NWO Globalists have planned…  funny how things have a way of coming together….

    • @Sovereign Economist
       
      I could not agree more.  Once that is revealed, China will lose all interest in working with the US on a global currency reset.  The US will no longer be part of the solution but MOST of the problem.  Not that it isn’t already but… when everyone discovers for sure that the US has almost no gold at all, then the brown stuff will hit the fan, big-time!

  4. Jim Willie’s suspicion is that JPM sold their corporate headquarters including the gold vault for what was in effect half price to China because JPM was in default on a note held by the Chinese.  The half price sale was to settle the note. 

  5. I’ve tried to explain to people about the SDR’s. They just shrug their shoulders and laugh @ you. When you tell them about owning the PM’s you get the same reaction. When the time comes I’ll give them the same.

    • Yeah, the fiat money lie started in 1913.  We’re 3 generations into the charade.  The lie has become the truth to the masses.  A sad indictment of the American educational system.

    • @Aculeus 5:  IMHO those are the people who you need to KEEP YOUR DISTANCE from.  Why?  Because if they know you are a stacker, and/or prepper, you and yours will be in danger when the SHTF.   Definitely keep those that need-to-know your business informed on your stack, and other particulars, however, take great pains to be CERTAIN the people you let into your circle can be trusted.  When it hits the fan, this world as you know it is going to change very quickly to very ugly.
      Let me give you an example.  The recent hazardous spill that had 300,000 without drinking water in WV.  Within 90 minutes there was NO bottled water within TWENTY MILES of the affected area.  That shows how prepared people are about a simple thing as having a supply of water.  Sorry to draw such a bleak picture, but its worse than bleak, I’m afraid!

    • Ditto that silverrrr…Imagine the lawlessness when the bank’s shutdown and the ATM’s and credit cards don’t work either.  How many people(including stackers) have enough cash on hand to weather that part of the storm?

    • @UglyDog
       
      “A sad indictment of the American educational system.”
       
      Yes, but not the American indoctrination / propaganda system.  It is working perfectly… as planned.
       
      But… I am reminded of the old saying that “Those who live by the sword shall perish by the sword”.  Just imagine all those Keynesian morons who have scoffed at gold and silver all these years while doing all they can to push paper and denigrate PMs.  When the Great Reset, or whatever it is called, occurs they will be munching on a crap sandwich of their own making while we who understand and appreciate classical Austrian economics will hold all of the cards in the game.  Yes, it WILL suck to be them but as minions of darkness their fate is well-earned and well-deserved.  I will hire some of them to pull my plow because they will be much cheaper than horses or oxen.  More fun to watch sweat too.  😉
       

  6. In my humble opinion the Chinese already have double to triple 6000 tons of gold and also in my humble opinion, I cannot see this train wreck being put off until 2020…..or even 2016 for that matter. Hell, I would even bet that 2014 will not draw to a close without a reserve reset. That may not be a “petrodollar” replacement at all, it could just be anybody’s currency or commodity/asset that the seller is willing to accept. Before there is a replacement for the petrodollar, there will be a rejection of the petrodollar, in fact, there already has been.
     
     

    • @SilverSlicker
       
      I concur.  2020 is a lifetime from now.  and, frankly, 2016 is not much less of one either.  Something WILL happen before then.  And, most of us will look at the announcement after the fact,  and go… “Yeah, well THAT makes sense!”
       
      So… what makes sense to us TODAY?   Ideas, anyone?
       

    • @S.E. 
      All that makes sense TODAY are the fundamentals. Same as yesterday, and last year. 
      I have no answers, I was hoping YOU DID! lol
       
      This is a great article, and it PROVES that the notion of MANIP-MANOP is worldwide. 
      There was no logical, physical, economic reason for Silver OR Gold to drop in 2011. 
      But it did, and the COT and other indicators mirror that FACT

    • “Like buying up half of Detroit”
       
      As far as I am concerned, Detroit is a complete sewer that the Chinese are welcome to own, lock, stock, and barrel.  Perhaps they will arrest, try, and shoot those responsible for the huge cluster-f*** that is Detroit today.  The thought of those responsible for this mess having to take the medicine they deserve for it makes me smile.  😉

  7. Thanks Silverrrrrrrrrr,
    I hear what your saying. I’m new to this forum and stacking. When you become aware of something that can harm someone. You just try to assist them in their introspection. W.V. was a mess and should be a wake up call. As through out history. They take no note  until  :-* it good bye.                                                                                                                                                                                               

  8. Soveriegn Economist  Maybe, just maybe, the canary in the mine field might be gold and silver, the two litmus tests of world patience with FIAT and currency domination
    Last Friday GLD acquired 7.5 tons of gold.  SLV acquired 135 tons of silver 4.33 MOZ.  SGE has been shipping 25-50 tons of gold a week to China.  Who is sourcing this and how long will the sourcing last?  The final tons might be the ‘tell’ that our system is coming to an end and maybe the nascent rise of China as a gold backed currency, ending the dollar dominance.  That will trigger some serious avalanches.  Types can only be guessed at.
    But PMs seem to have a large role in whatever is coming our way

    • Indeed they do, AG.  But even if they did not, removing ones’ fiat from the local kleptocracy (bank) and protecting it from long-term predation (inflation) and short-term grabs (bail-ins) MORE than justify owning both gold and silver!  At worst, they are still good to own.  At best, well, owning them might very well make all the difference in surviving a financial SHTF and not.

  9. China buying JPMorgan vault…….
    Can you say Goldman-Sachs East buys out Goldman-Sachs West?
    This was all mapped out 40 years ago.
    We were warned by Ross Perot in 1992 20 years ago….
    http://m.youtube.com/watch?v=Rkgx1C_S6ls&desktop_uri=%2Fwatch%3Fv%3DRkgx1C_S6ls
    Now we are being crushed by these bankers and elitist families.
    Looks like Prescott Bush finally gets his wish….
    http://whowhatwhy.com/2013/09/16/part-1-mr-george-bush-of-the-central-intelligence-agency/
    Bush dynasty and their effect on our country as Executors of our Nation.
    Bill Clinton and GHW Bush are buddies from the 70’s.
    Obama’s mother worked for Timothy Geitners father in CIA funded Ford Foundation – in Indonesia.
    And you know who stole 2000 election….. hanging chads?  Right!
    Any coincidence that John Hinckley Jr’s father (Reagan assasination) was a business partner to GHW Bush?  And was going to have dinner with Neal Bush the night of Reagan assasination?
    Bottom line….. 
    40 years later ….. here we all stand as the last empire is being suicided.
    Just took a little longer than the Russian and Chinese Empires.
    But I can guarantee you that Goldman-Sachs West and Goldman-Sachs East are all high fiving each other for a job well done.
    Hell, in November Jamie Dimon rented out Buckingham Palace for their party.
    http://www.theautomaticearth.com/whos-really-king-of-the-world-today/
     
    Sovereign Economist, AGIIX, Crissy, and MaryB have all alluded to this complete failure/takeover of the Executive Branch.  The POTUS is the one chosen to ensure the welfare of the Nation, its people, and resources are secure and safe to conduct commerce freely.  Obviously this hasnt happened since the takeover in Nov 1963.  What a wasted opportunity for mankind.
    I live in the Middle East and come in contact with people from all over the world on a daily basis.  Breaks my heart to hear how poverty stricken they are and how their countries are ravaged by these elitist scums.  And now our country is on the block.
    Goldman-Sachs came up with the term we know of as BRICS.  Christine Legarde of IMF spent three weeks in China after Ji Xi Ping was put in charge last year. Watched her standing behind him or sitting at every news conference.  Don’t think this is not part of the plan.
    GHW Bush was —–
    Head of CIA.
    US Envoy to China 1970’ish
    US Ambassador to UN.
    and directly related in the Office of POTUs for the last 35 years.
     
    Again, all mapped out and part of the plan.  
    As the famous statement goes…”move along folks. Nothing to see here.”
    Do your best to protect what you have and save your families.
    Then if there is any time or money left…. do something for those not as blessed.
     

  10. Well, it seems apropos to reiterate a recent article of mine in response here … http://www.scribd.com/doc/186898429/A-New-Reserve-Currency-What-Does-That-Mean … as it’s directly relevant.

    Why we so enthusiastically invite the ‘opinions’ of folks like Jim Rickards or Willem Middelkoop (really quite different from Rickards in his background), who curiously emerge from the bowels of the elitist planning or promotional ‘machine’ embellishing ‘ideas’ which, when critically approached reveal clear means of perpetuating financial entrapment already a part of the historic record, is a tendency I find quite stunning. All the moreso, expressed from a fellow like Mr. Jansen, in whom I rather otherwise discern admirable qualities.

    Now, I’m an incorrigible skeptic, for which I stand unapologetic, gladly displaying the propensity in full openness. I’m an old curmudgeon having been ‘blind-sided’ far too many times and in too many ways, not to be so. In ever-increasing degrees I elevate my Old Standard … “Guard with jealous attention the public liberty. Suspect everyone who approaches that precious jewel.”,  inherited from the Right Honorable Patrick Henry. It has become my compass and map in these sorts of affairs.

    So, after seven centuries of extensively documented Euro-British financial and economic siege against … first copper, then silver and finally gold money … I’m forced to ask readers here, ‘What in hell is so great about merely pushing the elitist Machiavellians back only so far as retrenchment behind the easily controlled bulwark of gold? Who will ‘value’ gold and on what ‘logical’ basis? All the defining terms into which it’s couched are STILL wholly circumscribed by THEIR PROPRIETARY BANKNOTES!

    Freedom is not had in ‘acceptably tolerable depths of enslavement’. It is an ALL OR NOTHING proposition. We are either INDEPENDENT of the ‘Political-Banking-Monopoly Industrialist Cabal’ … or NOT. There is no ‘grey area’.

    Paper Rots, Coin Does Not.

    • “Who will ‘value’ gold and on what ‘logical’ basis?”
       
      Perhaps it is of less import what logic is used and of more import, “He who has the gold, rules!”… or, “He who has the gold, makes the rules”.  In either case, gold value will be established by those who have the most of it and not on some historical basis out of London or NY.  Just TRY to set the price of gold when you don’t have any and see how that works for ya, NY and London.  HA!
       
       

    • Ed_B … “He who has the gold, makes the rules”
       
      Ed, you’re enhancing my case, however inadvertently your apparent intent might suggest. Gold’s true value, objectively arrived at, is in ratio to competing money, circulating pari passu. By pari passu I mean not just in perceptual juxtaposition (banknotes/gold-weight), but in form and substance as well.

      Presuming (safely) that the ‘Banknote’ scheme is thoroughly enough debunked, the ‘Poly-Metallic’ monetary scheme I tirelessly propound for re-institution, is too plainly superior to ANY ‘Mono-Metallic’ scheme, as competing exchange ratios between the three … innately … ‘shepherd’ EACH of the metals into proper relative valuations … in spite of ‘who holds the (stinking) gold’.

      That’s the brilliant beauty of the scheme above all others … NO ENTITY  can long succeed in forcing over (or under) valuation on one in particular, or the flood of arbitrage, confined inalterably within supply-demand circumstances, thwart such willfulness in short order.

      According to our prejudices (very well or ill founded) in this present niche of PMs, we tend to think of gold or silver as ‘the Achilles Heel’ of the ‘elites’, when in truth, it’s the Classic Specie monetary scheme as a fully entrenched world standard.

      Ed, the subliminal Pavlovian conditioning of these ‘elites’ plays out over many generations and centuries. With that in mind, I’d respectfully suggest you re-assess this ‘gold makes the rules’ phrase through the lens of another … cui bono?

  11. “This indicates the US and China seem to be working together in advance towards a global currency reset whereby the US, Europe and China will back the SDR’s with their gold reserves so the dollar can be replaced.”
     
    And the US Gov wants their source of financial power, the USD, replaced because…?
     
    “So If you had not just the U.S. dollar but the U.S. dollar and the euro tied together to each other and to gold, gold might be the intermediary and then with the other important currencies like the yen and Chinese Yuan and British pound all tied together as a kind of new SDR that could be one way the world could move forward on a better monetary system.”
     
    It might but there are so many conflicting interests in this that gaining meaningful agreement could well be impossible.  In many cases, combining a bunch of losers into a single entity does not produce a winner because they all tend to average down to the lowest common denominator.  We see this all the time when two weak companies try to merge only to produce an even worse company than either of its parents.  Somehow, it often has most of the faults of both parents but few of the strengths.
     
    “According to my research the Chinese are now in the final stage to grow their gold reserves to 6,000 tons. They want to grow these reserves towards 10,000 tons before 2020. That amount will bring the Chinese on par with the U.S. and Europe on a gold/GPD ratio.”
     
    I would be surprised if the Chinese had only 10,000 tons of gold now, let alone by 2020.  I would be even more surprised if the US has 1/3 or more of the gold that is claimed.  A figure in the area of 2,500-3,000 tons seems a lot more reasonable than the 8,000+ tons so often bandied about.  It very well may be that the Germans did not get their gold, not because the US didn’t have it, but because the US DOES have it, plans to keep it, and chose not to hand it over at this critical time in financial history.
     
     

    • @Ed_B
      “…And the US Gov wants their source of financial power, the USD, replaced because…?”
       
      Wrong subject.  the GLOBALISTS want the US dollar replaced because they want the US broken and on it’s knees to accept One World Government.  And destroying (replacing) the dollar is on the bucket list in the agenda.  They intend us to be a third world nation.
       
      Gold is the currency of the elite.  The paper systems, now ALL decoupled from gold will be imploded on the sword of the derivative Damocles when they pull the trigger.  Dollar included…  Replacement ‘currency’?  Probably an SDR variant.  The Chinese may be a thorn in their side, but I keep thinking there is something big that was included in the MFN agreement with China that we don’t yet know about…. it seems the wildcard right now.

    • @Sovereign Economist
       
      “They intend us to be a third world nation.”
       
      Well goodie for them.  Too bad that they are gonna be real disappointed in that quest.
       
      “Gold is the currency of the elite.”
       
      Yes, it is and it has been since before there were any elites.
       
      “The Chinese may be a thorn in their side, but I keep thinking there is something big that was included in the MFN agreement with China that we don’t yet know about…. it seems the wildcard right now.”
       
      It seems a safe assumption to assume that ALL Gov agreements are loaded with crap that rarely makes the news.  What some of these clowns are missing, however, is that NO treaty or agreement supersedes the US Constitution as the law of the land.  They do keep trying to push this issue, though.
       

    • Ed_B … “NO treaty or agreement supersedes the US Constitution”
       
      Right on … right on … Brother Ed! At best, any clause or characterization of any Treaty that DOES contravene the Constitution (and I’m referring to the ONE dated 1787, NOT the partial simile adopted by the ‘Government of DC’ in 1871), can ONLY apply in and under exclusive jurisdiction OF … DC.

      Oddly enough, meticulous examination of Lincoln’s original ‘Emancipation Proclamation’ starkly reveals that fact. He could ONLY ‘free’ colored folks from slavery … in federal territories, enclaves or conquered States … NOT the ‘several’ ‘Union’ States!

  12. You and I can convert a Yuan to anything we want. So, what does the phrase below from the article mean? Convertible by who? To what? What is partial convertibility?  
     
     The renminbi has attracted widespread attention as a possible future reverse currency. But it’s still be some years away from attaining that status, primarily because it is not fully convertible.’”

    • Doesn’t this same guy say China is nearing 6,000 tons of Gold? ANd seeking 10,000? 
      Where many PMs Gurus predict 15-20,000 Tons? 
       
      I’d say they are not only CONVERTIBLE, but ready to take total control if this 10K figure is sufficient! 
       (provided they really have 15-20,000)

  13. What I’m increasingly becoming wary of, is some kind of false crisis that gets everyone to prematurely shoot there wad and use their PM’S. And it all some how gets to the govt in a back door kind of way. With all the BS that goes on with our govt, I don’t think that this is at all far fetched. Hopefully if that were to happen it would be blatant enough that we all see through it and don’t fall for it.

    • hmmm…
      Like a False Flag, or something else, let Silver run up to say $100 (but $30-35 would do) and wathc the sell-offs, vacuum up all the phyzzz and then run it back where they want it. I suspect if it goes up quickl, it will drop off ~10-15% and stick for a week or 2, to shake out weak hands that want to recoup losses, or break even, etc. Good points, Mr. Spore.   

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