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Guest Post: China And Gold | Zero Hedge

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US Still Living on Borrowed Time


Posted by : Pivotfarm Post date: 10/21/2013 - 19:42 Dreams usually come to an end when we get to the good part. The juiciest part of the American dream has ended too

Even Quality Will Be Sold When Things Get Messy


Posted by: Phoenix Capital... Post date: 10/21/2013 - 19:43 The macro picture for the world is dangerous. And high quality companies will not be spared the carnage if a market onslaught begins (which is looking increasingly likely).

NeW OBaMaCaRe WeBSiTe!


Posted by: williambanzai7 Post date: 10/21/2013 - 13:12 Okuna My Data!

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Guest Post: China And Gold


Submitted by Tyler Durden on 10/21/2013 15:31 -0400 Welcome, oxbridge

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Submitted by Alasdair Macleod via GoldMoney.com,

China is now overtly pushing for the US dollar to be replaced as the worlds reserve currency.
Xinhua, Chinas official press agency on Sunday ran an op-ed article which kicked off as follows:
My Relationships ZC hat Instructions

As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world. China does have a broad strategy to prepare for this event. She is encouraging the creation of an international market in her own currency through the twin centres of Hong Kong and London, sidelining New York, and she is actively promoting through the Shanghai Cooperation Organisation (SCO) non-dollar trade settlement across the whole of Asia. She has also been covertly building her gold reserves while overtly encouraging her citizens to accumulate gold as well. There can be little doubt from these actions that China is preparing herself for the demise of the dollar, at least as the worlds reserve currency. Central to insuring herself and her citizens against this outcome is gold. China has invested heavily in domestic mine production and is now the largest producer at an estimated 440 tonnes annually, and she is also looking to buy up gold mines elsewhere. Little or none of the domestically mined gold is seen in the market, so it is a reasonable assumption the Government is quietly accumulating all her own production without it becoming publicly available. Recorded demand for gold from Chinas private sector has escalated to the point where their demand now accounts for significantly more than the rest of the worlds mine production. The Shanghai Gold Exchange is the mainland monopoly for physical delivery, and Hong Kong acts as a separate interacting hub. Between them in the first eight months of 2013 they have delivered 1,730 tonnes into private hands, or an annualised rate of 2,600 tonnes. The world ex-China mines an estimated 2,260 tonnes, leaving a supply deficit for not only the rest of gold-hungry South-east Asia and India, but the rest of the world as well. It is this fact that gives meat to the suspicion that Western central bank monetary gold is being supplied

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Guest Post: China And Gold | Zero Hedge


keep the price down, because ETF sales and diminishing supplies of non-Asian scrap have been wholly insufficient to satisfy this surge in demand. So why is the Chinese Government so keen on gold? The answer most likely involves geo-politics. And here it is worth noting that through the SCO, China and Russia with the support of most of the countries in between them are building an economic bloc with a common feature: gold. It is noticeable that while the Wests financial system has been bad-mouthing gold, all the members of the SCO, including most of its prospective members, have been accumulating it. The result is a strong vein of gold throughout Asia while the West has left itself dangerously exposed. The West selling its stocks of gold has become the biggest strategic gamble in financial history. We are committing ourselves entirely to fiat currencies, which our central banks are now having to issue in accelerating quantities. In the process China and Russia have been handed ultimate economic power on a plate.
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Threaded list - expanded 50 comments per page Date - oldest first Save settings

Select your preferred way to display the comments and click "Save settings" to activate your changes. new Manthong Mon, 10/21/2013 15:36 | 4076951 When the stack gets large enough, their their domestic and geopolitical interests will prompt them to minimize

43 -1

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Guest Post: China And Gold | Zero Hedge


the value of their dollar reserves and cut us loose. Their gold is the hedge that will allow them to do that. Thank you .gov and Fed.
reply

new Grande Tetons

Mon, 10/21/2013 -

15:42 | 4076966 8 Anyone 0 remeber the Global IQ chart posted on ZH a few weeks ago? Totally unrelated.

reply

new BaBaBouy

Mon, 10/21/2013 - 16:26 | 4077107

17 The 0

WESTern POLITICOS Are Commiting

Fucking FINANCIAL SUICIDE (On Its' Peoples). The Day Will Come When 1 Ozs GOLD Will Get You A Spanking New Loaded F150.
reply

new Doa K

Mon, 10/21/2013 16:33 |

4077158 different strokes, 15 ozs will get you your 65 foot getaway ketch.
reply

3 And 0 for

new LongJohn-Silver

Mon, 10/21/2013

prefer smaller, cheaper boats for my gold boating "accidents". I only purchase them with paper dollars.
reply

4 I - 16:41 | 4077182 0

new Manthong "A

Mon, 10/21/2013 - 16:56 | 4077232

2 Spanking New Loaded F150" 0 ..maybe a slightly used F-22


reply

new

Mon, 10/21/2013 - 19:26 | 4077496

TwoShortPlanks

the next TSP hit prediction is a series of 'American Brides' websites popping up, and it's just around the corner now....silicon enhanced Rats jumping ship in three, two, one...just like the Russian ladies did two decades earlier. Likewise, in the financial sector, look at JPM, HSBC and Sachs, they've fleeced the COMEX and LBMA, their clients, and the general public in one Gold raid after another. Then they've assisted China in raking-in Gold Reserves and whithout any doubt whatsoever, they've feathered their own nest with Gold and a new place to roost, China/Asia.

5 The USSA is the USSR2.0 in 0 financial collapse terms. So,

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Guest Post: China And Gold | Zero Hedge


Forget everything you've heard over the past 5 years; it means fuck-all. The best measure of any economy are the 'Jumpers'. For me, the greatest satisfaction will be to see the Talking Heads on the MSM eating out of rubbish bins (used and then discarded). http://twoshortplanksunplugged.blogspot.com.au/2013/10/goldus-sovereign-coup-detat-and.html http://twoshortplanksunplugged.blogspot.com.au/2013/10/goldis-equity-in-sdr-ipo.html http://twoshortplanksunplugged.blogspot.com.au/2013/10/occamsrazor-in-gold-space.html
reply

new

Tue, 10/22/2013 - 00:01 | 4078413

HardlyZero

2 It makes sense as China 0 will be the new world


leader, and reserve currency. JPM sold their largest building to China...and all the rest. So giving China cheap Gold, and allowing US to get cheap Gold to Germany, and suppressing the price of Gold...its all the same effort. WIN-WIN-WIN-WIN for the banksters. Get yours while the price is still low.
reply

Tue, 10/22/2013 - 01:57 | 4078543 new Par Contre

Kong's unique status to launch a major experiment: eliminate the HKD link to the USD and instead tie the HKD to gold. This would allow Hong Kong, a long-established financial center with a fairly wellrespected legal system and free market economy, to become the new Switzerland with its own hard currency (but still under Chinese control, of course).

1 I wonder if China won't take advantage of Hong 0

reply

new Bindar Dundat The

Mon, 10/21/2013 - 16:57 | 4077240

6 Chinese are simply converting 0 greenbacks to solid gold before


green backs go the way of the wetbacks.
reply

new

Mon, 10/21/2013 - 21:03 | 4077911

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Guest Post: China And Gold | Zero Hedge


FreedomGuy

6 My thoughts, as well, Bindar. I actually respect China for 0


the future. Say whatever you want about China but I respect the fact that they play to win while we just play.

taking action and preparing for

reply

new zorba THE GREEK

Mon, 10/21/2013 -

34 0

15:43 | 4076968 The Western leaders are traitors selling us down the river.
reply

new OutLookingIn

Mon, 10/21/2013

7 Without - 16:13 | 0 a canoe 4077092


or paddle! Remmeber the "Golden Rule;" They who own the gold, makes the rules.
reply

new CheapBastard

Mon, 10/21/2013 16:31 |

4077153 The looks on people's faces when they wake up one morning to find the dollar has been devalued 20% [or more] in the name of some Fair Cause.
reply

13 0

new auric1234

Mon, 10/21/2013 - 17:28 |

8 0

4077323 Nah, this has already happened. And they didn't even notice. Try 95%.

reply

new Big Slick Good point

Mon, 10/21/2013 - 19:41 | 4077681

occurs in a mere 6 years. (How long has Choom been in office again?)

4 auric1234. At 3% CPI, 0 CheapBastard's 20% devaluation

reply

new McMolotov

Mon, 10/21/2013 -

15:44 | 4076974 27 That would cause panda-monium... -1


reply

new akak

Mon, 10/21/2013

4 ... 0

- 18:19 |

4077468 especially in the face of all the Western anti-

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gold propapanda.

Guest Post: China And Gold | Zero Hedge

reply

new Bunders

Mon, 10/21/2013 - 20:24 |

4077798 pandamoanium. Or panda-groanium maybe.


reply

1 That 0 caused

new Nothing but the...

Mon, 10/21/2013 -

huge hole for themselves. They continue to repeat their mistakes and plunder on regadless with their fiat QE. Harvard university should recall the degrees he was awarded - the man is quite clearly pretty dumb and clueless.

16:52 | 4077220 2 The most 0 amazing part of all this, is the Fed are digging a

reply

new Pareto

Mon, 10/21/2013 -

0 0

20:13 | 4077768 +100 The FED is actually enabling the move to an alternative reserve currency(s).
reply

new Pladizow

Mon, 10/21/2013 15:35 | 4076952 Why China is pushing it's people to buy gold? = http://www.youtube.com/watch?v=YPXncTuwFIE
reply

6 -1

new DaveyJones

Mon, 10/21/2013 -

18 0

15:38 | 4076959 LOoking at China's diverse preparation, it's almost as if they've been around longer than us
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new john39

Mon, 10/21/2013 -

by the same people currently behind the global banking scam ponzi. how much money from the opium warms ended up in western bankers' coffers? the chinese have not forgotten.
reply

15:45 | 4076981 13 The 0 Chinese have been screwed over a few times

new Kirk2NCC1701

Mon, 10/21/2013

do NOT trust the Anglo-American Alliance. They are turning the tables with the old Divide & Conquer with their Direct Settlement process between GBP/CNY, thus leaving the USD out in the cold --> reduced global demand for USDs.
reply

6 Which is - 17:07 | 0 why the 4077270

new DaveyJones

Mon, 10/21/2013

- 20:07 | 0 well said. 4077748 0 they aren't gonna let it happen this time.
reply

new mickeyman

Mon, 10/21/2013 -

to sell gold. It helps with unemployment. See http://www.worldcomplex.blogspot.ca/2013/10/why-we-face-

15:39 | 4076960 0 There are solid Keynesian reasons for western governments -12

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ruin.html

Guest Post: China And Gold | Zero Hedge

reply

new DaveyJones

Mon, 10/21/2013 -

15:45 | 4076979 9 "solid -1 Keynesian reasons" say that three times backwards or forwards
reply

new Pladizow

Mon, 10/21/2013 - 15:53 | 4077011

18 "solid 0

Keynesian reasons" - OXYMORON?


reply

new HoofHearted

Mon, 10/21/2013 15:59 |

4077041 Keynes actually had a decent idea or two. It's assholes like Krugman and Obama that have fucked up Keynes's ideas. The neoKeynesians...now there's a bunch of dipshits. I can't tell you how many meetings I've been two where someone starts a lecture, "We assume a neo-Keynesian model with the following parameters..." and I ask, "Why would you assume neo-Keynesian anything? Hasn't that been thoroughly discredited?" Yes, I've been asked to leave a few lectures.
reply

14 0

new Bear

Mon,

4 -1

10/21/2013 - 16:10 |

4077086 Its the NeoCons vs. the NeoKeys in a dual to the death. Together wars and butter spending will kill us.
reply

new

Mon, 10/21/2013 - 16:22 | 4077115

NOTaREALmerican

1 Re: It's assholes like Krugman and -2 Obama that have fucked up Keynes's
ideas Well, Krugman is just an idiot savant with a beard. But Obama is just doing what any politician would do when allowed to spend anything he wants without have to pay for it (tax anybody). The best money in the world is free money. The second best money is other people's money. As Cheney said: Reagan proved deficits don't matter. Obama is just listening to Reagan.
reply

new

Mon, 10/21/2013 - 17:16 | 4077286

buyingsterling

11 I'm no fan of Reagan's last 7 1/2 years in office, but at least the 0
man actually liked America and Americans.

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reply

new mickeyman

Mon,

1 You 10/21/2013 16:03 | -1


4077057 didn't notice my tongue in my cheek.
reply

new Bear

Mon, 10/21/2013 16:08 | 4077080 0 The correlations presented on this blog seem 0

accurate, but there was no attempt to establish a causal relationship between unemployment and selling of gold. I suspect that the negative correlation are more a function of economic conditions than gold ownership.
reply

new mickeyman

Mon, 10/21/2013 - 22:01 | 4077860

government economist really need to establish a causal relationship, or would he just keep betting on the correlation?
reply

1 Would a 0

new mickeyman

Mon, 10/21/2013 -

0 If MDB were 20:44 | 4077850 0 here, he would have said something nice.
reply

new Magnix

Mon, 10/21/2013 -

to SDR? What about the value of the properties? Gold? I've always wanted to know how it works as if its impossible to fathom.

15:40 | 4076962 2 If US is forced 0 to join SDR, how are they going to convert $50K USD

reply

new Magnix

Mon, 10/21/2013 15:53 | 4077005 This is interesting info to convert USD to SDR - http://coinmill.com/SDR_USD.html#USD=65000
reply

2 0

new Ghordius

Mon, 10/21/2013 -

16:02 | 4077051 5 "If US is 0 forced to join SDR" What? It's not about "forced to SDR" It's about "accepting USDs". Bad enough, worse than bad
reply

new Winston Churchill

Mon, 10/21/2013 -

7 0

16:21 | 4077112 Thats the beauty of the plan.Only your debt will be converted to SDR's.

That will include the new debt created by a wealth tax on your property. The the Govt. can screw you again by fixing asset coversion rates at one tenth of the debt conversion rate. Totally enslaved debt serfage.For the children ,and fairness of course. Its good to be king.

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new Kirk2NCC1701

Mon, 10/21/2013 -

23 0

"First thing we 15:41 | 4076964 do is kill all the lawyers" -Shakespeare.

When TSHTF... "First thing we do is kill all the financial and political scumbags and cocksuckers* on Wall St and in DC" - IMHO. Long speed-boats and 1-way Air Taxi tickets out of both Dens of Iniquity. * With apologies to regular cocksuckers.
reply

new Pladizow

Mon, 10/21/2013 -

15:56 | 4077019 13 Man will -5 never be free until the last King is strangled Diderot

with the entrails of the last Priest. Denis

reply

new buyingsterling

Mon, 10/21/2013 - 17:20 |

4077301 enslaving anyone, or sticking a gun to their heads. If you're going to hate religion, reserve it for those religions that act like the mob - those that won't let you leave and will kill you if you do (Islam comes to mind, at least the Islamists who take their religion seriously).
reply

4 Priests aren't -2

new

Mon, 10/21/2013 21:00 | 4077898

MeelionDollerBogus

with no provocation. I don't trust this lull period after centuries of genocide & rape by the priests. Why YOU trust it I have no idea. CERTAINLY NOT based on the last 1000 years of history.
reply

0 They were. They led entire holy wars of genocide INCLUDING into Muslim lands 0

new Al Huxley

Mon, 10/21/2013 -

from Normandy to England and gave instructions that all moneyers ... be deprived of their members ... Bishop Roger of Salisbury commanded them all to assemble at Winchester by Christmas. When they came hither they were then taken one by one, and each deprived of the right hand and the testicles below. All this was done in twelve days between Christmas and Epiphany, and was entirely justified because they had ruined the whole country by the magnitude of their fraud which they paid for in full." -The Laud Chronicle (E)

10 "1125 A.D. 16:26 | 4077137 0 In this year before Christmas King Henry sent

http://www.wvwnews.net/printer.php?id=2765

Share the link....


reply

new Uchtdorf

Mon, 10/21/2013

- 16:43 | 0 Can't 0 view at 4077188 work. The filters said "Racism & Hate". Wish you had given us a warning.

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reply

new Al Huxley

Mon, 10/21/2013 17:09 |

1 I 0

4077258 don't get that warning - sorry. It's a sublink, I'd never actually checked out the root/parent site.
reply

new Jendrzejczyk

Mon, 10/21/2013 18:34 | 4077514

3 No 0 racisim or hate in that link.

Maybe too much history and truth. Waaaay too dangerous.

reply

new

Mon, 10/21/2013 21:00 | 4077899

MeelionDollerBogus

1 It's zerohedge. Everything truthy is ray0 ciss.


Hope'n'change for Murrikkka!
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