China dragon

It’s not just a mere coincidence that the SNB de-pegs the swissy, and then a yuan currency trading deal is announced 6 days later.  The timing is not an accident.
I believe China agreed to set up a European yuan trading center in Zurich on the condition that the SNB sever the swissy’s connection to the euro.   I also think it’s another way for China to indirectly lob a bomb at the U.S. dollar in the ongoing currency war.

In this Keiser Report from Mexico City, Max Keiser and Stacy Herbert discuss China’s $250 billion for Latin America forcing America’s ‘positive’ hand in the region.
Meanwhile, back in China, ‘amateur hour’ reigns as the small cap index soars as dilettante investors believe lower stock prices mean less risk.
In the second half, Max interviews financial journalist, publisher and presenter, Sergio Sarmiento, about the Mexican economy, corruption and the failed state.

Nixon and Deng Xiaoping

Carter, Nixon and Deng Xiaoping

In 2002 China reformed its gold market and ever since has been effectively stimulating its citizens to save in physical gold, making the People’s Republic the largest gold producer and consumer on earth.
Additionally, China is openly calling for replacing the US dollar as the world reserve currency.
Did this all adventitiously happen or was it carefully planned many years ago?

year of the goat gold bullion coin 2015 2January is the time of the year for the Chinese to buy golden gifts for their love ones.
And that is exactly what they are currently doing en masse, according to the latest data from the Shanghai Gold Exchange (SGE).

willie

As 2015 began, the global breakdown is getting more clear. The retail and oil sectors are failing.  There will be a worldwide call to an end of the dollar. 
In 2015, the BRICS alliance countries will come to center stage and openly call for the end of the dollar and institute the gold standard as a solution.
The oil industry has $2 Trillion in sub-prime bonds, which is bigger than the sub-prime mortgage problem that blew up
and caused the 2008 crash.  In the next few months you will see a crashing  of those sub-prime bonds.
By the end of January there is going to be an international move away from the dollar.
The dollar will severely crack around the Chinese New Year in mid-February.
The dollar is dying.

China dragon

America is in no condition to endure an economic downturn, yet a downturn is coming, almost as surely as night follows day.
When the next crisis unfolds, I expect the Fed to quietly ask the Chinese central bank to revalue gold, by announcing a major gold buy program.
This would allow China’s currency to become a competitor with the dollar.

Equally importantly, it would allow the Fed to hide the key role that a higher gold price would play, in managing US government debt that is clearly out of control.

smash

The pattern of central bank covering the debt is clear.  The lesson is that central banks can apply paper patches to the failed banks, and buy more time, then repeat the process on the next failed bank event. No limit to their bank patches seems to be in force.   The banker cabal can continue endlessly since their patches are based on paper solutions, fiat paper money spew, and they control the paper output. They are the masters of the House of Paper.
The paper mache solutions can continue in a seemingly endless manner, but not in the Gold market.
The intervention and suppression in the Gold market is finite.   It requires Gold bullion, the physical ingot bars, in order to execute the perpetuated interference and alteration to this financial niche market.
The manipulation is finite, and it is coming to an end.
When the Shanghai shock comes, ALL THE PAPER GOLD STRUCTURES WILL FALL, all the FOREX derivatives will collapse, & all the control rooms will go into panic mode.

china gold

Year to date Chinese wholesale gold demand is somewhere in between 1,911,230 Kg and 1,955,090 Kg (at least 1,911 tonnes).
Total gold volume traded on the SGE combined with the total gold volume traded on the Shanghai Futures Exchange (SHFE) accounted for 1,309 tonnes over the past week.
This amount was more than half the gold volume traded on the COMEX in the same period (2,507 tonnes).
I don’t see a trend of declining volumes on the COMEX, but I do see a trend of surging volumes in China, that are now starting to near COMEX volumes.

volcano

The record high investment demand of silver and gold, coupled with monstrous central bank purchases, is putting the hurt on the “just in time” precious metal-delivery system the bullion banks have been operating for many years.
These banks are being caught in a pincer movement, which are once again threatening their hallowed, price-setting mechanisms.
There’s growing evidence that the system’s widening imbalance between supply and demand is again becoming critical. The amount of silver and gold that Western central and bullion banks are able to bring to the market is growing more and more inadequate.
As long as the cartel can make timely deliveries to all the parties who want to buy silver, then this silver price suppression scheme will continue.  We will only see a freed silver price (as we nearly did in 2011) when they take silver’s contractual price (paper price) to levels which cannot be adequately delivered to both investors and industrial users alike.
With each and every Comex-Open, silver price-pummeling, that day grows ever closer.

China gold

My article “10,000 tons of gold…The math says China could have easily done it!” explains how it’s possible or even likely China has amassed 10,000+ tons of gold.
What it doesn’t explain is the context as to why this is so important.   I know some know this story well, but for most, this needs repeating.  

Volcano explosion

In just half a decade, the Chinese nationals, through the bourse of Shanghai, have taken delivery of nearly 7,500 tonnes of gold!  This has never happened before in the history of the world.
China’s citizens (and central bank) own at least twice as much gold, in reality, as Fort Knox and the NY Fed claim to own, in fantasy!
Make no mistake about it, the Chinese appetite for gold is volcanic!
If the world at large understood the real magnitude of what’s happening in the gold market, they’d all want to go out and buy some.  
They’d all see gold for what it is: the ascendant, once and future money.
Furthermore, once they realized that, they’d logically understand that silver’s available physical market (which is hundreds of times smaller than gold’s, due to the daily price rigging scam), would evaporate in a literal blink.