Pan Asia Gold Exchange (PAGE) building in Kunming City, Yunnan, China
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The much awaited China-based Pan Asia Gold Exchange (PAGE) was scheduled to start trading this June after a ‘soft’ launch at the end of 2011. This exchange that could potentially bring down the Ponzi bullion banking system has been killed before it could see the light of day, according to recent disclosures by Ned Naylor-Leyland and London whistleblower Andrew Maguire.
So “dangerous” was this exchange to the status quo that it faced interference from “a New York based entity with very strong Chinese relationships” soon after the much publicized soft launch. Another factor that helped derail PAGE was the People’s Bank of China’s (PBoC) announcement about control over domestic Gold trading outside of Shanghai.
Before we go into the details of this news, let’s revisit why PAGE managed to send chills down the spine of the powers that be. Consider the following:-
Currently the prices of gold & silver bullion you pay at your favorite bullion dealers are pegged to or based on the prices of gold & silver contracts transacted at the COMEX in NY and the LBMA in London.
These contracts are merely paper or electronic representations of gold & silver with little or no physical metals actually changing hands. They are highly leveraged, with approximately 100 oz of paper gold contracts backed by 1 oz of physical gold. For silver, the ratio is about 350:1
A very very small number of bullion banks (2 to 4) control up to 95% of these paper contracts, and hence are able to influence the price of physical bullion. As ridiculous as it sounds, this is the current price discovery mechanism - virtual paper metals setting the price for physical metals or the classic “tail wagging the dog” mechanism.
These contracts are denominated in USD.
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Enter PAGE…
PAGE was designed to trade in 100% allocated gold & silver contracts with metals backing paper contracts on a 1:1 ratio.
The contracts would be denominated in RMB
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What could have happened had PAGE gone “live”
Investors would switch from COMEX/LBMA to PAGE because of the 1:1 ratio. When they enter into a long (buy) contract, they can be sure there’s physical metals available when they want to take delivery. This is especially so after the MF Global failure. That’s loss of business from the former to the later.
The price discovery mechanism will no longer be a monopoly. Your bullion dealers would most likely peg their prices closer to the 1:1 contract price than the 350:1 contract price. After all, they are dealing with the real stuff - physical bullion. Without a monopoly in price discovery, the bullion banks will be less effective in their interventions of the gold & silver markets. The decades long price suppression of these political metals may finally come to an end.
Investors need to sell USD to buy RMB when entering into these RMB denominated contracts. Another “commodity” bites the dust as far as dependence on the USD is concerned (after Japan, China, Russia, India and Iran joins the Asian Dollar Exclusion Zone to trade using their national currencies).
Physical gold & silver would be moving from west to east at an even more rapid rate, speeding up the transfer of economic, financial and political power in that direction. Whichever way you look at it, gold and silver are political metals. Recall what Nixon did after physical gold started flowing out of the US following Charles de Gaulle’s demand to exchange dollar for gold.
Intervention
When such a potential game changer was being conceived, something had to be done, and sure they did. In his recently published research notes “P.A.G.E. Squashed: And now for something completely different…“, Ned Naylor-Leyland of Cheviot Asset Management explains how PAGE was killed.
Just after the publicized ‘soft launch’ (with Central government mandarins in attendance) and the noise made on the internet about its implications, the one shareholder in PAGE that had a foreign listing (in the US) suddenly and stealthily increased its share-holding from 10% to 25%, acquiring additional board directors along the way. The rationale for this sudden change in the weighting of shareholders is shrouded in mystery, however what we do know is that this entity then insisted that they be allowed to build the trading platforms for PAGE from the ground up, rather than buying a working platform off the shelf to get PAGE operational in a timely manner.
This blocking tactic at board level effectively stopped the progress of the fully-allocated spot contract in its tracks, and it was immediately clear to the international-facing people that something fundamental had changed internally. Interestingly, the key Independent Director of this small listed entity that blocked the timely roll-out of PAGE is a well-known Western banker within China, whose CV includes work for the Federal Trade Commission, the Sloan Foundation (related to MIT) and his wife is a member of the Council on Foreign Relations.
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London whistleblower Andrew Maguire told King World News:
I’d like to briefly remind King World News listeners just what PAGE (the Pan Asian Gold Exchange) was going to be. This was going to be a Chinese Exchange that was to completely change the way gold and silver trade globally.
If you recall from our previous interview, it posed an immediate threat to the current fractional reserve bullion banking system. It was the competition of a brand new fully allocated gold and silver contract being pitched up against unbacked paper contracts. It’s not a stretch to imagine what a threat these contracts posed to the bullion banks.
The whole thing was killed and we recently found out how PAGE was interfered with. Within hours of our King World News interview last July, I mean you sure get some hits on your show, Eric, the interference stemmed out of a New York based entity with very strong Chinese relationships. It delayed it enough to kill it and it was killed.
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Silver Lining
All is not lost. The people originally behind PAGE have begun work on developing another independent exchange which is more streamlined and better funded, focusing on 1:1 silver contracts to bypass the new PBoC ruling on gold. According to Ned, it is expected to go ‘live’ this summer (northern). Let’s give the bullion banks a few more months!
The aforementioned change in domestic Chinese rules mean that along with every other regional Precious Metals exchange, the new unnamed 1:1 allocated exchange is launching with Silver initially, which of course is the Achilles Heel of the Bullion banking system. This in my opinion is far more bullish and exciting short and medium-term than the Gold contract would have been, as the physical Silver market is so tight.
Furthermore, all the regional exchanges mothballed by the PBoC rule change can switch, and are switching to Silver trading which is not covered by the change in rules. The contract itself will be, as before, an international rolling 90 day spot one, denominated in RMB, and the new entity is supported by the same serious players within the Chinese political and military establishment as before. The physical will be acquired ahead of closing each monthly tranche and will be vaulted entirely outside of the Bullion Banks (i.e. private vaulting facilities). From there the allocated receipts will be recorded on an electronic register and the issue will be tradeable in the secondary market with the register adjusted real-time.
This is extremely good news for holders of real Silver and extremely bad news for holders of fake paper Silver who rely on the 350:1 leverage being maintained as the world’s sole price discovery mechanism for large purchases of the white metal. This effectively will be like dealing in an RMB-denominated and fully allocated version of some of the popular Silver Bullion Trusts, but rather than trading at a premium, the premium will price the issue ahead of purchase, affecting global price discovery, as previously mooted.
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Read the rest of Ned’s report at TFMetalsReport.com. There also an podcast of Ned’s interview with Turd Ferguson on the same page. Listen to Andrew Maguire’s interview with Eric of KingWorldNews here.
Here are two great interviews discussing the reasons & implications of the recent price action of gold & silver. -
Sean (SGT Report) discusses the recent silver price take-down with David Schectman.
Place of technical analysis in a manipulated market
Silver is so oversold “It’s a License to Steal”
Difference between physical silver and paper silver prices
Why hedge funds sold their winning positions in gold & silver
While hedge funds, Soros & Paulson sold paper silver in the Comex, the Indians, Russians, Chinese, Arabs and retail buyers bought up all the physical silver they could get their hands on. (Make sure you watch part 2)
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Al Korelin (Korelin Economics Report) discusses the recent silver price take-down with David Morgan. Some key points:
Have the fundamentals for silver changed?
CME margin hikes favour the shorts
Political events and how they affect the price of silver
If you don’t want to lose any money, stay out of the futures market. They are for professionals
Stay out of this sector if you don’t have a high degree of accumen in the industry or can’t take wild swings
Markets were abuzz last week with Chavez’s recall of Venezuela’s gold reserves not currently held in Caracas. Bulls are excited by the thought that withdrawing some 150-200 tonnes from the Bank of England and the bullion banks will force a bear squeeze on the LBMA, where gearing between the physical and paper markets are assumed to be 100 to 1. This stretches the relationship between paper gold and physical gold even further. They are also excited by the possibility that others might follow Venezuela’s example.
These concerns are real and should not be dismissed lightly, and the announcement could not have come at a worse time for LBMA members, who also face being caught up in a European banking crisis. Fear dominates, but the real trigger for this market emotion, and therefore its outcome, is global politics. Chavez is not just recalling his country’s gold to protect its integrity, he is waging an idealist’s war against the capitalist system and the US in particular. This is why he has threatened to move gold and foreign reserves to the countries he says he trusts, principally Russia and China, and why he is proposing to nationalise Venezuela’s gold mines.
He has picked the capitalist system’s weakest point. He has been told by his central bank that the Fed, the BoE and the Bank for International Settlements hold gold for the whole central banking community in the main trading centres, and that much of this gold exists only as a ledger entry and is not backed by physical metal. Whether or not Venezuela’s gold is held in these fractionally-backed sight accounts, or in earmarked accounts where the gold is held separately, we do not actually know; but there is little doubt that this move is designed to encourage other central banks to demand that their gold is also repatriated.
Chavez has a point. It is a fair bet that the International Monetary Fund’s 2009 sales of 212 tonnes of gold to other central banks are held in sight accounts as a condition of sale. India, Mauritius and Sri Lanka, who bought this gold, must be very nervous. Interestingly, India and Sri Lanka are also associated with the Shanghai Cooperation Organisation, which was set up by China and Russia with the eventual goal of establishing an Asian supranational state.
This little-known connection is extremely important. The SCO even has a website. The central banks of its member states, observer states and dialogue partners are nearly all buying gold, overtly or covertly. This is more likely to be a co-ordinated economic attack on the West than just a purely random event.
Until Chavez’s intervention, China and Russia – who run the SCO – were gently turning the screws on the gold market: Russia by announcing regular purchases and China by encouraging its citizens to buy. They appear to have put the word about through the SCO that gold will have an important role in the SCO’s future, and those involved should have some. This is a world Chavez wants to be part of, and by removing his country’s gold from capitalist markets he is declaring his credentials.
Underlying this extreme socialist action is the Marxist belief that capitalism will destroy itself. Chavez believes it is his duty to give it a helping hand.
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.
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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
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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
“Central banks are printing more money than they ever have, so what’s the value of money in terms of purchases of goods and services,” Bass said today in a telephone interview. “I look at gold as just another currency that they can’t print any more of”.
Brazil, Russia, India, China and South Africa – the BRICS group of fastest growing economies – Thursday signed an agreement to use their own currencies instead of the predominant US dollar in issuing credit or grants to each other.
Yesterday, it was reported that Mexico saw smoke coming from her northern neighbour and headed for the exit, big time! Considering how many other nations (China, Russia, Thailand, Belarus, Bangladesh, Venezuela, Tajikistan, Ukraine, Jordan, Philippines, South Africa, Sri Lanka, Germany, Kazakhstan, Mexico, Greece, Pakistan, Belgium, Czech Republic, Mauritius and Malta) have been running towards the exit since 2009, Mexico’s Central Bank wasted no time to catch up, as illustrated by this very pretty chart.
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MEXICO CITY, May 4 (Reuters) - Mexico massively ramped up its gold reserves in the first quarter of this year, buying over $4 billion of bullion as emerging economies move away from the ailing U.S. dollar, which has dipped to 2-1/2-year lows.
The third biggest one-off purchase of gold by any country over the past decade took Mexico’s reserves to 100.15 tonnes - or 3.22 million ounces - by the end of March from just 6.84 tonnes at the end of January, according to the International Monetary Fund and Mexico’s central bank.
…… Credit Suisse precious metals analyst Tom Kendall said it was worthy of note that Mexico, whose economy is very closely tied to the United States, had taken this step.
“The size (of the purchase) is certainly pretty chunky to have been accomplished in that space of time. So it certainly gives another sizable layer of support to gold’s position in the international reserves system,” he added.
George Milling-Stanley, managing director of government affairs at the World Gold Council industry group, said Mexico was following a recent trend among central banks to restore a “prior balance between gold and currency reserves.”
“This is further supported by the fact that the May IMF numbers show continued buying by Russia and Thailand of 18.8 tonnes and 9.3 tonnes respectively,” he added.
Mexico’s reserves rank it 33rd among the top official holders of gold. The United States is the largest official holder of gold, with 8,133 tonnes, which account for 73.8 percent of its total international reserves.
China is the sixth largest holder of gold, with 1,054.1 tonnes, or just 1.6 percent of total reserves, while eighth-ranked Russia now has some 811 tonnes of gold, up from 788.78 in January, according to the IMF data.
Silver, which hit a record price earlier this year, may also have been on Mexico’s buying list, said Martin at HSBC.
Premier Wen Jiabao shakes hands with his Russian counterpart Vladimir Putin
Going back to November last year, recall how China Daily reported that
“China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.”
Well, just as Mexico was reported playing catching up yesterday, Japan and South Korea did not want to be left behind in the multi-lateral Dump USD game either. WSJ reported:
May 3, HANOI—Finance ministers from China, Japan and South Korea said in a joint statement Wednesday they have agreed to start studying the use of their own currencies in trade settlement, the latest sign of Asian efforts to reduce dependence on the U.S. dollar.
The ministers from the three big Asian economies also said they are “mindful of” challenges such as growing inflationary pressures in Asia, rising global commodity prices and increasingly volatile capital flows into the region.
Blocks of Nations, individual nations, institutions, and individuals are all heading to the EXIT sign or have already exited the world reserve [paper] currency. They are doing so because the writing is already on the wall. The “Waterfall Decline” event that James Turk, founder of GoldMoney predicts seems to be approaching fast. They exit because they’ve lost confidence in the once almighty USD.
But, if the exit is into monetary metals gold and silver, why are we witnessing the sudden “Waterfall Decline” in the monetary metals instead of the USD? The only sane way to look at this insane price action is to understand that they are Political Metals whose prices are being manipulated by political powers through their Gold and Banking Cartels. The best way to exit your paper currency is to hold gold and silver, not invest in them. View them as owning another currency rather than buying them as an investment.
Congressman Ron Paul was appointed to head the Domestic Monetary Policy Subcommittee of the House Financial Services Committee in December last year. This subcommittee overseas the Federal Reserve. Paul is well known as the author of comprehensive legislation to audit the Federal Reserve Bank, with the goal of providing both taxpayers and world financial markets with full transparency of U.S. central bank actions.
This is where one of the key battles over the role & fate of the Political Metals will be fought - the battle to end the Fed’s relentless effort to suppress the price of PMs in cohort with other central banks and Wall Street bankers.
I wonder: will this welcomed renewed interest in the Constitution lead to a healthy reassessment of all of our policies? Will there be no more wars without an actual congressional declaration? Will the Federal Reserve Act be repealed? Will only gold and silver be deemed legal tender?
I’ll will keep an eye on the progress of the 112th Congress currently in session and share with you any pertinent developments with the “Audit the Fed” initiative.
Now, on to an interesting (but little known) role played by one of the key members of the banking cartel involved in the manipulation of the PM markets. In the interview below, JP Morgan executive Christopher Paton amits that this is “a very important business to JP Morgan” and that it is doing very well. So what’s that “important business”?
As unemployment rises as a result of the crash of 2008 caused primarily by the banking cartel, JP Morgan’s role is to process the rising food stamp benefits. JP Morgan has contracted to provide food stamp debit cards in 26 U.S. states and the District of Columbia. JP Morgan is paid for each case that it handles, so that means that the more Americans that go on food stamps, the more profits JP Morgan make. Considering the fact that the number of Americans on food stamps has exploded from 26 million in 2007 to 43 million today, one can only imagine how much JP Morgan’s profits in this area have soared. More unemployment, more business, more profits!
While JP Morgan et al are pushing down the price of paper gold & silver, the Russian Central Bank, and many others, are piling up on the real stuff - physical gold in their reserves. Today, the WSJ reports that the Central Bank of Russia plans to buy from domestic banks 100 metric tons of gold a year in order to replenish the country’s gold reserves. In 2010 Russia’s gold reserve increased 23.9% to 790 tons, or 25.4 million Troy ounces.
One more reason to convert your fiat money into Political Metals.
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[Updated: 21 Apr 2011 - Central Bank of the Russian Federation reported they bought 600,000 ounces in March, which brings their 'official' holdings up to 26.1 million ounces] Click image to enlarge.
So Mario Draghi thinks that the worst times for the Eurozone are behind it? Does he really? Just yesterday Fed Chairman Ben Bernanke was admonishing Europe to put its financial house in order. Is Draghi thumbing his nose at Bernanke? I can think of little that is worse than having Draghi and Bernanke at odds personally or in disagreement over policy risks. B […]