The Chinese Have CHANGED THE GAME Suddenly.
The Jig Is Up.
In a stunning move that shocked many people In India, the government decided without warning to make all 500 and 1000 rupee valueless. The Indian gov’t failing to prepare for this move and print money for citizens to exchange at the banks has created a PANIC in this country.
Luke Rudkowski joins us real time with boots on the ground coverage of India’s Currency Reset:
Anyone who has been paying attention to the global economy the past years can agree with me our central bankers have conducted miserable monetary policy and have taken the insufficient measures to fight crises.
All major economies have embarked in printing unprecedented quantities of money, but the only thing they bought was time. Quantitative easing on such a scale is like kicking the can determined to reach the end of the road. The future looks anything but sanguine.
Where is this going? Are our leaders truly going to allow the international monetary system to implode?
Is there no plan B? And we are supposed to believe gold isn’t of any significance in economics?
China does not have enough gold to have a seat at the table right now. Think of it as a game of Texas Hold’em. What do want in a poker game? You want a big pile of chips. Gold is going to be your chips. It doesn’t mean that you automatically have a gold standard, but the gold that you have will kind of give you your voice at the table.
So here’s the problem: If you took the lid off and ended the gold price manipulation and let gold find its level, China would be left in the dust. It wouldn’t have enough gold relative to the other countries, and because their economy’s growing faster and because the price of gold would be skyrocketing, they could never acquire it fast enough. They could never catch up. All the other countries would be on the bus. The Chinese would be off the bus.”
So, when you have this reset, and when everyone sits down around the table, China’s the second largest economy in the world. They have to be on the bus.
So the global effort is to keep the lid on the price through manipulation, which is very obvious. I tell people, if I were running the manipulation, I’d be embarrassed because it’s so obvious at this point.
So the price is being suppressed until China gets the gold that they need. Once China gets the right amount of gold, then you can take the cap off.
In an interview with CNBC, Goldman Sachs CEO Lloyd Blankfein advises the CNBC host that at some point, some event will happen that will reset portfolios.
Blankfein states that interest rates will rise, which will be a shock to the market, and states that I have a lot of bad dreams at night, liquidity is one of them.
Lloyd Blankfein’s full interview with CNBC is below:
I am very excited about developments in the gold and silver markets today. I have been speculating since late 2012 that Western central banks could be running out of gold. I put the sell-off in gold and silver in 2013 to the fact that the Western banks needed a way to generate physical gold supplies. As the metals prices went down, there was a lot of liquidation of gold which increased the supply by an estimated 900 tonnes last year.
Let’s look at the figures. The annual supply of gold is around 4,300 tonnes. 3,000 tonnes come from mining and the other 1,300 tonnes or so from recycled material2. In 2013, an additional 900 tonnes came onto the market from ETFs that were being liquidated – a supply increase of around 21%.
Quite frankly, I believe this was all orchestrated in order to create this supply. During the time when the price was knocked down, a tsunami of buying started. India bought 336 tonnes from April to June of 20133. I’m sure that the central bankers went to the Reserve Bank of India and said: “You’ve got to stop people from buying gold.
Ultimately, we will find out the extent of manipulation in the gold market when someone finally fails – most probably the U.S. running out of gold to supply the market. And I don’t think we are far off here.” -Eric Sprott
The Global Paradigm Shift is in full swing. The Global Currency Reset is near, better described as the Return of the Gold Standard. The Iran Nuclear Talks will proceed to conclusion, better described as the Petro-Dollar Surrender Talks with nuclear proliferation rider agreements.
The last chance is Gold & Silver, since what comes will be like a mighty storm. In its wake, the only wealth standing will be gold, silver, resource deposits (energy, minerals, water), and farmland. Time is running low for the many citizens of the United States and the other nations of the world to wake up and benefit from their own epiphanies.
It is very late, far past the eleventh hour.
The Global Currency Reset looms.
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.
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.
The next year will feature many powerful new effects. The Indirect Exchange will become a prominent fixture, its channel filled. It will direct many $billions in USTreasury Bonds from large scale asset acquisitions by Eastern and BRICS players, sent back to New York and London. The payments for the asset purchases will be done in USTBonds, as the Eastern entities dump them as fast as they can before the great devaluation.
At the same time, the Russians & Chinese will be busy conducting indirect audits of the Wall Street and USFed themselves. By becoming the landlord at the JPMorgan gold vaults, the Manhattan metals warehouses, and the Platt energy offices, they can push aside the corrupt gold and oil market interventions. They can realize a capital gain in the 15,000 tons of gold sitting as reserves at the Peoples Bank of China, more than enough to offset USTBond writedowns. The year 2014 will see important changes in the bond market, gold market, oil market, and currency market.
But the biggest shock waves will come from the currency reset followed by the introduction of the Gold Trade Settlement. The return of the Gold Standard is near, but it will arrive on the trade vehicles, not the FOREX currency or SWIFT bank platforms. It will feature the Gold Trade Note, used as letter of credit.
It will feature the BRICS central bank, where emerging market reserves held in USTBonds and other toxic sovereign bonds will be redeemed for Gold bullion.
The year 2014 will see important changes to global trade, in a major Paradigm Shift.