“When you own gold you’re fighting every central bank in the world”. Jim Rickards
To a great extend, that holds true for silver as well. This week, holders of Political Metals lost a battle, but certainly not the war. Measured against the USD, gold and silver are worth less compared to a week ago by 9.6% and 26.3% respectively.
It all started with Ben Bernanke’s statement, following the 2-day FOMC meeting, stating the obvious - that “there are significant downside risks to the economic outlook, including strains in global financial markets”. His antidote was a plan to purchase $400 billion of long-term Treasury bonds and to sell an equivalent amount of short-term debt. More commonly referred to as “Operation Twist 2″, this plan seeks to further reduce long term interest rates, after having pledged to hold short term rates practically at zero until 2013.
That announcement, made in the backdrop of the Eurozone debt crisis and news of slower growth in China, sent global stocks and commodity markets into a waterfall decline. This set up was ideal for the bullion banks who have massive gold and silver short positions. All they needed to do was to pull the trigger, and that’s exactly what they did on Thursday. Silver was pushed down sharply through its key 50 and 200 day moving averages, triggering an avalanche of tech funds selling the following day.
Going for the final kill of the week, news of yet another margin hike by CME (gold by 21%, silver by 16%) leaked into the market towards the end of Friday’s trading day. That further fuelled the selling, pushing silver briefly below $30 before closing at $31.08 - down 26.3% for the week.
In other markets this week, the Dow suffered its biggest loss since 2008. In four days U.S. stocks lost $1.1 trillion in value. The MSCI all-country world share index (tracking thousands of stocks from developed and emerging countries) recorded its second worst quarter in 23 years and the 30-year bond rates dropped 55bps - the biggest move since the 1987 Black Monday.
So there you have it, Dr. Ben Bernanke, bullion banks & CME working together in perfect harmony. I don’t believe for a moment that the resulting market turmoil was any surprise to Bernanke. Despite saying that gold is not money, he’s smarter than most people made him out to be. After all, he achieved an SAT score of 1590 out of 1600, graduated from Harvard and has a PhD in economics from MIT. Contrary to its statutory mandate of foster maximum employment and price stability, this market turmoil I believe is a piece of precision engineering to achieve some larger agenda. This round is yours, congratulations Ben!
This engineered global markets take down could be part of the deflationary phase that Mike Maloney talked about, which is a prelude to the hyper-inflation phase. They have to assist the bullion banks cover their shorts and bring the Political Metals price down to a lower base before starting the next round of QE or equivalent. Marc Faber told ThomsonReuters that “if the S&P drops to around 900-950, we’ll get QE3 for sure”.
Four ways to view the developments over the past week
If you’re reading this blog, you’re not a professional or a day trader, possibly someone already invested in gold or silver, someone holding some Political Metals (I distinguish between investing & holding here) or someone in the process of researching the matter. As non professional traders, we have to look through and not at the turmoil unfolding before us. All of the bloody carnage above are on “paper” or bits on silicon - illusionary financial derivatives of something tangible (like gold and silver) or derivatives of something totally virtual and non-physical (like interest rates, bonds, debts, CDS, etc). Real or imaginary, they are all derivatives backed by nothing more than a promise or lies of a third party.
Unfortunately, in so far as gold & silver is concerned, the outcome of the imaginary paper price wars above gets applied to the physical world. Price discovery currently comes from the paper derivatives market. Banks and multi billion dollar hedge funds throwing thousands of futures contracts or bets at each other (most of which are done through computerised High Frequency Trading algorithms) determine the price of the coin or bar you pick up at your local bullion dealers. Until such time when this absurd situation of the tail wagging the dog changes, I suggest 4 possible ways for you to view the developments over the past week, using silver as an example.
There’s a big difference between Investing(1) & Holding(2). If you adopt approach (1), and are smart enough to handle scenario (3), congratulations! Trading this dip or swapping silver for gold just before the GSR shot over 56 would have reaped a handsome return. After years of following newsletter writers, both paid and free, I came to the conclusion that attempting to achieve (3) is at best illusionary, and at worst risky. This is particularly true in a manipulated market. Take a look at some of the forecasts by well respected industry players here. Either they missed this week’s price action or are not telling us something. Richard Russell puts it this way:
I look at gold and silver, not as a play for profits, but as an accumulation of hard assets, in a world that it drowning in fiat money, and a world that will probably print trillions more of irredeemable paper.
Finally, if you’ve been waiting patiently (4) or have spare dry powder, congratulations! While the paper price of gold & silver gets whacked, physical demand is very strong. KWN reported that Sprott Money temporarily runs out of physical silver. So, get ready to pick up your discount. Not necessarily immediately, but then again, picking the absolute bottom can also be illusionary. Best industry advise is cost averaging.
This is my response to the article A challenge to debate: How safe is gold? by Sam Chee Kong of Malaysia Chronicle. Since links in the comments section don’t work, here’s the fully linked comment.
“But despite having one less competitor in the safe haven basket, the price of gold did not rocket up as expected. Instead it went down about $50 when the CHF news hit the streets.”
That’s because the price of gold as we know it is manipulated, although its value remains untouched. The “gold price” that the market uses is influenced largely by gold futures and options trading at the CME, which are essentially gold derivatives or “paper gold”. High Frequency Trading (HFT) by bullion banks largely determine the price of paper gold which in turn is adopted as a basis for this debate.
Because of this, gold’s price action does not make sense most of the time, and the case in point is the one you cited above. If you assume that the gold price is a reflection of the value of physical gold in a free market, your observation and conclusion is spot on. If however, you factor in the issue of manipulation, you will come to a totally opposite conclusion. In the event cited above, gold was taken down five minutes before the announcement and the subsequent plunge of CHF. See this minute-by-minute chart of CHF and gold price actions.
For in-depth discussion on manipulation of gold (& silver), visit politicalmetals.com to understand the political nature of gold and silver. Only then can you understand why gold (& silver) prices behave the way they do and why you should view them as the ultimate safe haven and store of value compared to fiat currencies or any financial instruments and paper derivatives.
I could do a point by point rebuttal of the whole article, but it’ll be quite pointless if this fundamental premise upon which the whole debate is based is not sorted out first. In the interim, just ignore the minute-by-minute, hourly, daily or even weekly price of gold. They’re all noise due to massive manipulation. To make sense of the place of gold (& silver) in the larger scheme of things, look at their prices on a monthly and yearly chart. While the powers that be are able to do massive manipulations to paint the tape on short term charts, this effect is less pronounced in long term charts.
Conclusion:
The current price discovery mechanism of gold is akin to the tail wagging the dog (paper gold influencing physical gold). Coupled with central bank manipulations, it will be a futile exercise to engage in a debate over gold’s role in one’s portfolio based on short term price actions. However, things are looking brighter going forward. With the expected opening of the Pan Asia Gold Exchange (PAGE) in China by the end of this year, Comex will no longer have the monopoly to determine the price of paper gold, and by extension, that of physical gold. When we finally see the dog wagging its tail, the proper price discovery mechanism for gold would have been in place. By then, gold’s role will be so evident this debate becomes unnecessary.
- Much has been written about how a handful of large commercial banks are suppressing the price of gold and silver though their massive short positions in the futures market. Both here and elsewhere in blogsphere, you read of frustrations being vented over the failure or refusal of the Commodities and Futures Trading Commission (CFTC) to act on these market manipulators.
Despite thousands of public comments calling for imposition of position limits following the public hearings in March 2010, nothing has been implemented to-date. It’s all quiet now, after the initial noise generated over the Dodd-Frank act. As an agency tasked with providing oversight, the CFTC appears to be closing both eyes and acting like a toothless tiger.
All these discussions, complaints and rants on the banksters and the CFTC featured here are highly focused on the gold & silver market. Readers may have the impression that it is an issue unique to this market, and some may even smell a conspiracy theory here.
I came across a recent interview by Paul Jay of the Real News Network discussing the same issues mentioned above with Michael Greenberger, professor of law at the University of Maryland - but from a different perspective. They talked about how big banks have been artificially inflating the price of food & fuel through the same manipulative mechanism in the futures market. Some key points include:
The CFTC assisting selected big banks and people who just want to bet, who don’t touch the underlying commodities but want to bet on price direction.
Stealth exemptions on position limits given to Goldman Sachs et al so that they can profitably run their “betting parlours”.
Futures market for food & fuel comprises 20% real hedgers (for whom the futures market was originally designed) and 80% commercial speculators who have nothing to do with the physical commodities.
Sounds familiar? This video should help cast away any doubt that allegations of gold & silver price manipulation by the banksters, assisted by the CFTC, are for real. We’re not the only ones affected. The whole commodities market is similarly tainted - by the same culprits.
Submitted by Ben Traynor | BullionVault, 12 Aug ’11
-
Gold Bullion prices dropped nearly 1% in an hour Friday morning in London – hitting a low of $1746 per ounce – as stocks and commodities rallied after yesterday’s decision by four European regulators to ban short selling.
Dollar Gold Bullion Prices however remained 5% up for the week as we head towards the weekend.
Silver Bullion Prices meantime hit $38.70 per ounce around lunchtime – a 1% gain for the week.
“The gold physical market seems to believe that gold will move still higher soon,” reckons Walter de Wet, commodities strategist at Standard Bank.
“This, combined with seasonal demand which should start picking up soon too, is providing good physical demand for gold and silver.”
“The gold market remains underpinned by the movement to physical gold,” agrees a note from UBS.
“We have also observed among existing and indeed new clients this week a growing preference towards Allocated Gold instead of metal account/unallocated gold…the move to real assets such as gold in physical form signifies the heightened state of risk aversion at present.”
Regulators in France, Italy, Spain and Belgium moved to ban short selling of financial stocks on Thursday – after another day of volatile trading in the shares of French banks. The ban will be in effect for 15 days.
Short sellers “wanted to test French resistance,” said Jean-Pierre Jouyet, head of the Autorité des Marchés Financiers, the French regulator.
“This is our response, as always very determined, and it will be so for all those who want to put us to the test.”
“It is the worst thing to do right now,” says Abraham Lioui, economics professor at France’s Edhec business school.
“This would signal to the market there may be something fundamentally bad that is happening.”
“In the short-term it will help calm things down,” adds Ion-Marc Valahu, fund manager at ClairInvest in Geneva.
“But if you look at what happened at Lehman during the crisis, it didn’t do much.”
The Dutch financial regulator said Friday it did not see any need for a ban.
France’s economy failed to grow at all in second quarter of the year, according to figures published Thursday – which showed French GDP growth of 0% compared to the first three months of the year.
Friday meantime brought news that Eurozone-wide industrial production slowed in June. Year-on-year growth dropped to 2.9% - down from 4.4% the previous month.
Over in the US, SPDR Gold Trust (ticker: GLD), the world’s largest Gold ETF, saw its biggest one day outflow of Gold Bullion since January on Thursday, as investors withdrew the equivalent of 23.6 tonnes.
“Some ETF investors clearly view the recent…sharp price rally as exaggerated and have taken profits, as financial markets calm,” says a note from Commerzbank.
Over in Vietnam, the governor of the central bank has suggested the Vietnamese government may seek to control the domestic Gold Price.
His comments come after the Vietnamese Dong fell 1% against the Dollar this week to VND20,812 per $1 – the biggest fall since February.
“Companies need Dollars to import gold,” explains Luu Hai Yen, fixed-income analyst at Thang Long Securities in Hanoi.
“Demand for Dollars is expected to rise from now to the end of the year.”
Vietnam is pursuing “muddled objectives” says Dr. Vuong Quan Hoan, founder of Hanoi-based consultancy DHVP Research.
“This added target… would likely further complicate the already clumsy monetary policy in the country amid increasing pressure caused by macro imbalances.”
Earlier in the week the State Bank of Vietnam – which controls the import and export of gold – allowed dealers to import 5 tonnes of Gold Bullion to ease domestic Gold Prices, which had opened up a premium against those quoted on the international spot market.
Get the safest Allocated Gold at the lowest prices with BullionVault…
Ben Traynor is editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault. Ben Traynor was formerly editor of the Fleet Street Letter, the UK’s longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.
How foreigners have paid for US entitlement spending…
I was the one who let you know I was your sorry ever after ’74-’75
MAYBE it’s coincidence, or maybe The Connells were onto something, but the years 1974 and 1975 stand out as key dates in the economic history of the United States, writes Ben Traynor at BullionVault.
December 31 1974 was the date Americans finally regained the right to own gold. The US removed the last of its significant capital controls in 1974, while 1975 was the time it ever ran a trade surplus.
That’s not all. According to data from the US Treasury and the Bureau of Economic Analysis, 1974 was the year US national debt stopped falling as a percentage of economic output. For the rest of the 1970s, national debt held constant at around a third of gross domestic product, before beginning the long climb that would lead to the debt ceiling theatrics we’ve seen in Washington over recent weeks.
To understand why this was, we need to go back to August 15 1971 – the day Richard Nixon cut the Dollar’s convertibility to gold. Take a look at what has happened since to the US federal deficit:
The chart shows the federal deficit, measured quarterly, as a percentage of GDP going back to 1947. For much of the postwar era, the US government was actually in surplus – shown on the chart as a negative deficit.
Not only that, for the period 1950 to 1974 the average deficit was just 0.7%, according to research by Kevin Kliesen and Daniel Thornton, economists at the Federal Reserve Bank of St Louis.
The period since 1974, however, looks very different. There was only one, short-lived surplus period towards the end of the last century, mostly the result of falling defense spending following the end of the Cold War. The rest of the period saw government borrowing – with the average deficit coming in at 3.1% of GDP.
Something had clearly changed. Kliesen and Thornton put the blame squarely on increased spending. Tax revenues, they argue, have remained at around 18% of GDP for at least 60 years. Government spending, however, has crept up.
In a follow-up essay, the two St Louis Fed economists argue that Social Security, Medicare and “other payments to individuals” account for much of this increase. Because these rising payments were not matched by rising revenues, or by spending cuts elsewhere, they inevitably led to the persistent budgets deficits that have seen US national debt grow to $14.3 trillion – a figure we are now very familiar with thanks to the debt ceiling “debate”.
But what’s the connection with gold? How did Nixon’s action forty years ago pave the way for a growth in entitlement spending beyond what GDP growth would have justified?
The answer is that – thanks to Nixon’s maneuver – foreign money could fill the gap.
The ‘Impossible Trinity’ of exchange rate economics states that a country can only achieve two of the following three goals at any one time: a fixed exchange rate, an independent monetary policy and a free flow of capital across its borders. Any attempt to achieve all three simultaneously is doomed to failure.
As an example, suppose a country wants to lower its interest rates in an attempt to boost domestic growth. This is liable to cause outflows of funds abroad seeking a better return elsewhere, putting downwards pressure on the exchange rate, and threatening the currency’s peg in a fixed exchange rate system.
To maintain the peg, the country may try to support its currency on the open market. But it can’t do this forever – it will run out of foreign exchange reserves. Its only options are to raise interest rates or abandon free capital flows by imposing controls. In a fixed exchange rate system it cannot maintain monetary sovereignty without capital controls.
By cutting the Dollar’s peg with gold, Nixon also cut its peg to every other major currency, giving birth to the free floating era we have today. As a result, the US could abandon its capital controls without giving up control over interest rates.
The implication is clear – foreigners bankrolled the expansion of Medicare. Foreigners paid for the growth in Social Security. The question is…why?
The answer, of course, is they didn’t have much choice. The US Dollar, as we know, is the world’s number one reserve currency. So the rest of the world has to keep a healthy stash of Dollars as a prerequisite to doing business.
Not only that, with the US running a constant trade deficit other countries have been raking in US currency. They have to put it somewhere – and the US debt markets are the deepest and most liquid on the planet.
Severing the link between the Dollar and gold, then, not only led to an external trade deficit. It also allowed Uncle Sam to run a persistent – and larger – internal deficit, funded from beyond America’s borders.
The question haunting the US Treasury is: how much longer will the world’s surplus nations keep bailing it out?
Get the safest gold at the lowest prices with BullionVault…
Ben Traynor is editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault. Ben Traynor was formerly editor of the Fleet Street Letter, the UK’s longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.
When I first looked into the HKMEx I was mainly looking to see if silver manipulators JP Morgan, Goldman or HSBC were involved. The good news, I did not see that they had any controlling or operational influence in the HKMEx. The worst thing I guess I found out of the list of board members was President Albert Helmig was a former VP of the NYMEX. The amount of information on the rest of the board is limited most likely because they are Chinese and English Google is limited. I then looked a little further to see who was paying the board.
I have been watching the emergence of the Hong Kong Mercantile Exchange with great interest. I recognize the importance of China establishing this new market that now not only trades Gold and Silver, but eventually Food and Oil. The ability to trade these commodities in both Dollars and Renminbi is a huge step in creating a regional, if not global, reserve currency. The historical significance of this new exchange in the sea change in wealth and power from the Anglo American empire to Asia, is completely missing in today’s media.
Two years ago in the Sons of Liberty Academy, I speculated about the rise of the anti-Hegemon challenging the power of the Anglo American Empire that has dominated the world for the past few centuries. The anti-Hegemon is a union of nations that has fallen victim to, or not benefited from, the Anglo American paradigm. The core of this group includes China, Russia, Iran and Venezuela, but many other nations are learning that there is much to gain from the power vacuum left in the collapse of the dollar. Nations like Brazil, India, Pakistan and South Africa have become closer to the core anti-Hegemon. Even nations that are supposed allies of the Anglo American empire, like France, occupied Germany and occupied Japan have much to gain from getting out of the shadow of the Anglo American empire.
“The supreme art of war is to subdue the enemy without fighting.” -Sun Tzu
The anti-Hegemon has been most wise not to go head-to-head with the mortally wounded beast of the American Empire. They see the mathematical inevitability of the dollar collapsing. Without a functioning currency, America cannot control its global empire. With each trade agreement and exchange that is opened outside the Anglo American empire, the beast is wounded further. China has amassed trillions of dollars and is now spending this money on real tangible assets. The most important part of this investment is that China is investing and creating allies, while we drop bombs.
I have studied the Anglo American Elite very closely and I know they would not go down this road without having a plan. The first part, was the creation of the Petro Dollar standard. Both oil shocks in the 70′s were completely planned by the Anglo American Elite. The Bilderbergers instructed Henry Kissinger to create an oil crisis to increase the price of oil 400% following the closing of the gold window in 1971. The new dollars would be recycled back into America’s markets providing a very powerful petro dollar trade. Admit it, you have always thought it was very odd that the Arabs would be so willing to reinvest their dollars into the great Satan. Now you know it was all a game of power.
What is not as well known, that at the same time the Anglo American Empire started the Petro Dollar standard, they stopped all development of oil in America. After all, why use our precious and limited resources when we can print little green pieces of paper and get someone else’s oil? I guarantee you, that as soon as the dollar dies and we are no longer able to import oil for dollars, America will announce the most amazing oil “finds.” We still have half of the Gulf, both the East and West Coasts, Colorado, the Bakken Field, and most importantly Alaska. These projects will be up and running in record time to help re-establish the Anglo American dominance.
The end of the Petro Dollar will end our world and the Anglo American Elite will not go down without a fight. I theorized in the 3 Coming False Flags that Elite will pick a fight with China way before we accept a 3rd world status. Throughout the most of the last century the Anglo American Elite built up and created enemies. They do this to have wars, that create more debt and control natural resources in order to maintain their dominance. There is ample evidence that Wall St funded the Bolshevik Revolution and even financed and supported the Soviet Empire up until its final days. Without their support, Stalin would have lost the war, never been given half of Europe, and starved millions of times over with the utter failure of Communism. The British funded and created Hitler. While America was going through the Great Depression, Germany was booming with the creation of Hitler’s dream. Even Benito Mussolini was on the British payroll. Even more recentlySaddam Hussien received billions of dollars of support and was practically begged not to give up the dollar for oil trade. When he crossed that line, he had to go. (Just like Gaddafi and his gold Dinar dream.)
The Anglo American elite, more specifically the Rothschilds, have supported both sides of almost every war in the past two centuries. The Rothschilds power is derived off of their ability to lend out more debt. Nothing creates debt faster than war. Without war, debts would eventually be paid off and control of assets would slip from their fingers. In order to create massive debts, massive threats have to be created. I believe that China will become the next major enemy of the Anglo American Elite. A little over a decade ago, China was nothing. They were a backwards country that had been closed to the outside world for decades. With the most favored nation trade status, their exports rose astronomically and trillions went into building up an economic, political and military threat. Without the Elite building up China, they would have been nothing.
When I first looked into the HKMEx I was mainly looking to see if silver manipulators JP Morgan, Goldman or HSBC were involved. The good news, I did not see that they had any controlling or operational influence in the HKMEx. The worst thing I guess I found out of the list of board members was President Albert Helmig was a former VP of the NYMEX. The amount of information on the rest of the board is limited most likely because they are Chinese and English Google is limited. I then looked a little further to see who was paying the board.
I have discovered that Nathan Rothschild along with the People’s Bank of China created the privately owned Hong Kong Mercantile Exchange. According to MarketsWiki the HKMEx was founded by En+ Group. On the face of it, it looks like a Russian company is partnering with China as they strengthen ties inside of the anti-Hegemon. When you look at the board of En+ Group you see Nathan Rothschild is at the genesis of this new market that looks poised to take down the dollar.
Saif Gaddafi with Rothschild Minion Oleg Deripaska
Nathan Rothschild has had other deals with “enemies”of the Anglo American Empire. Recently, it has become apparent that Nathan Rothschild had deep financial ties with Muammar Gaddafi in Libya. The relationship was interesting since most of the world’s central banks are Rothschild controlled and Libya was one of the few nations not under the Rothschild control. Nat developed a relationship with Gaddafi’s son Saif, then when the time was right, Gaddafi would have to go.
Mikhail Khordorkovsky
This is small potatoes compared to the Rothschild Rape of Russia. You may vaguely remember the rise of the Oligarchs in Russia after the collapse of the Soviet Union. It was said that these few young men became the richest men in the world when then bought and controlled huge portions of the natural resources and industries in the former Soviet Union for pennies on the dollar. We were told that they were lucky, smart or cunning. The reality was that they were merely front men for a much larger power. Young men like Mikhail Khordorkovsky went from obscurity to owning the Russian equivalent of Exxon Mobil in a few years. For years these Oligarchs controlled Russia with their wealth and mob like tactics. Finally, when Vladimir Putin wrestled control of Russia from the Oligarchs it became apparent that the power was never with the Oligarchs, but the Rothschilds. When Vladimir Putin imprisoned Mikhail Khordorkovsky it was reveled that Jacob Rothschild was the real owner of Yukos.
Oleg Deripaska
Now Jacob’s son Nathan, is partnering with another Rothschild Russian Oligarch Oleg Deripaska in En+ Group with China, what could possibly go wrong? Oleg Deripaska was a manager of a smelter at 25. Four years later he owned the Sibirsky Aluminium Investment Industrial Group. That grew into Basic Element conglomerate that controlled…
United Company RUSAL Largest Aluminum Producer
Ingosstrakh oldest insurance company
GAZ automotive
Avaikor Aviation
EuroSibEnergo Power Company
Glavmosstroy Construction
In 2008, Oleg was the eight richest man in the world with an estimated worth of $28 Billion dollars.(All of these “richest”lists never show you the real wealth of trillionaire families like the Rothschilds who ownCentral Banks.) All of Oleg’s wealth came of course through the power of the Rothschilds. Oleg thrived in the chaotic era of crime that was rampant in Russia after the collapse. The Aluminum Wars were probably one of the more violent episodes in the battle for control. Lawlessness in Siberia was rampant as, “politicians, managers or reporters –were run over, shot, had their throats cut or were killed in air crashes.” In the midst of all of this violence, Oleg emerged the king of Aluminum.
-
It is also important to note that the Rothschilds exited the LBMA in 2004.The Rothschilds have been involved and owned gold for centuries. They know more than any other family in the world, the power of gold. At the LBMA they and a few other families owned so much gold that they literally met twice a day to literally fix the global price of gold. So why did they leave the LBMA after 200 years in London and why are they going back in to the game in China? My speculation is that the LBMA does not have all of the gold they are trading as Andrew Maguire’s testimony proved. These Anglo American banks are trading and suppressing the real price of gold and silver with multiple paper schemes. My guess is that the Rothschilds simply left the scene of the crime before it comes crashing down.
So why China? Given the history of the Rothschilds and the fact that their wealth has been tied to buying assets when there is “blood on the streets,” I think China will be the next to bleed. The heart of the Anglo American empire is the Rothschilds and Rockefellers. They have been actively courting China to join forces with them. These Elitists actually admire the Chinese in their ability to control their citizens and its free reign they give to industrialists.
“Whatever the price of the Chinese Revolution, it has obviously succeeded not only in producing more efficient and dedicated administration, but also in fostering high morale and community of purpose. The social experiment in China under Chairman Mao’s leadership is one of the most important and successful in human history.” -David Rockefeller, statement about Mao Tse-tung in The New York Times, August 10, 1973 (65 million died under Mao.)
“Some even believe we (the Rockefeller family) are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’and of conspiring with others around the world to build a more integrated global political and economic structure—one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.” -David Rockefeller, Memoirs, page 405
-
The Rothschild minion George Soros has been trying the hardest to get the Chinese to play ball with the Anglo American Elite. Their creation of a New World Order must have China or it will collapse.The Chinese have been wise to take from the Anglo American empire and not give them any control. They play along while they continue to strengthen their position. Ultimately if the Chinese do not take the offer, they will be handled with the gun. (Read the 3 Coming False Flags.)
“If my sons did not want war, there would be no war.” -Baron Rothschild
Having the Rothschilds involved at the HKMEx really raises my alarm as they create deeper ties inside the Chinese elite. If you know anything about the Rothschilds they are very generous and gracious friends when they want something from you, and when they have what they want, they turn the tide and leave you hanging. They mastered the cycle of lending generously money that they don’t have through fractional reserve banking and then contracting credit markets so that they take ownership of the assets that they loaned against. The big play they mastered is loaning to both sides of wars and then making sure that the victors are responsible for the defeated debts to be paid. Don’t dance with the devil.
“I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain’s money supply controls the British Empire, and I control the British money supply.”The current Nathan Rothschild namesake Lord Nathan Rothschild.
China would be wise not to associate with the Rothschilds and the Anglo American Empire, just look at the Opium Wars. When the British Empire continued to run trade deficits with China, they tried diplomacy with Lord McCartney and economic inducements, all of which failed. The more tea, silk and porcelain the British imported, the lower the money stock of silver the British Empire had. This was because China was on the silver standard and they would not buy any English goods to off set the trade imbalance. (Sound familiar?)
So what did the British do? They smuggled Opium into port cities and started a drug trade to create problems for the Chinese Elite, weaken the Chinese populace and get the silver back from the Chinese. When the Chinese asserted their sovereignty and fought against these drug dealing criminals, it started the two Opium Wars that ravaged China for years. The British defeated the Chinese and they the signed the Treaty of Nanjing in 1842. The Chinese signed over all of their ports and international trade to the British. (If you ever wondered how Britain owned Hong Kong, now you know.) The Rothschilds controlled Britain at the time and I am sure that they were influential in getting the eight nation army to crush the Boxer Rebellion in 1898. The Anglo American Empire subjugated the Chinese until Mao kicked out all of the Westerners.
What does this all mean for silver? I believe that the HKMEx is still a very positive development for the price of physical silver, despite the Rothschild involvement. The Rothschilds are some of the most brilliant men on earth. There is no denying this, given the amount of power that they have accumulated over many generations. Nat Rothschild is clearly the future of the dynasty. (Especially since enviro Jesus David de Rothschild has blown his mission for the Global Warming Carbon Credit Scheme.) The Rothschilds throughout history have not so much created history, but flowed along with history. They used to study the effect of sunspots on the prices of grain. They have carefully watched political and economic cycles to be in the right place at the right time. All of which I am teaching in the Sons of Liberty Academy. The Rothschilds know that the debt cycle is coming to an end and that it is a mathematical certainty. Even they, cannot prevent this from happening. So they are preparing for the turn in history.
The fact that the Rothschilds are back in the metals market and they are behind smaller silver contracts being sold in China, is a good thing for the price of silver. Any more physical demand in a huge market like China can only accelerate the inevitable physical silver default. The price of silver over the long term cannot be stopped. At some point the 3 Demands of Silver will force the physical prices of silver to over ride the paper price of silver once and for all.
“You can ignore reality but not the consequences of reality.”-Ayn Rand
What I am very concerned is the coming crisis between the Anglo American Empire and the anti-Hegemon. It is fun to think about the price of silver when the physical reality sets in, but the economic, political and military reality of what will happen is very disconcerting. I hope I am wrong about my prediction of the 3 Coming False Flags, but the more time goes by, the more I see that this will not end well. The Anglo American Empire still has the largest military, the strongest propaganda machine and deepest capital markets. They will not just throw their hands up and let the Chinese dictate the future without a fight.
Finally, I would like to touch on another subject that I am sure will play into this, racism. I believe when this time comes to make China into the next Nazi regime, all of the power used to make Arabs into “animals,” will be turned against the Chinese to make middle America blame those “slant eyed, commie bastards.”Donald Trump has already called China our “enemy.” Video games and movies are trying to make China our new enemy. This will all be done to fuel the fire of ignorant Americans to blame China for all of our problems. The fact is that our Elite is responsible for all of our problems. They are the ones running up deficits fighting never ending, senseless wars. They are the ones that invested and built up China while gutting America. They are the ones that control both parties. And sadly they will be the ones to profit off of the next war of the Military Industrial Complex to create a new paradigm. The Elite will blame China while they go back into the shadows retaining power and making more profits.
I know I could have made this article very small and simply said the Rothschilds are owners of the HKMEx, but that would not have put into perspective what is really going on in this world. I spent 6 years studying and putting together the Greatest Story NEVER Told, the enslavement of humanity by the Elite. Far to often what is missing from the even the best bloggers, is the historical, economic, political, military, emotional and even spiritual perspective of what is behind all of these stories. I believe that everyone should understand how the world works and the Sons of Liberty Academy is by far the best way to wake up to this reality. Take time to join today, it is free and it will change your life.
“When you are aware, you can prepare.” - Chris Duane
More Charts: 1-Month, 1-Year, 5-Year, 10-Year
More Charts: 1-Month, 1-Year, 5-Year, 10-Year
