Posted on 09/14/2017 6:02:38 AM PDT by Thistooshallpass9
So, will this gold be traveling about?
What about gold plated Wolfram?
China is getting ready this month to sell $2 billion in bonds. But these aren’t bonds in Chinese currency. It’s selling bonds in U.S. dollars — something China hasn’t done in many years. If investors buy bonds from China using U.S. dollars, it means they are lending those U.S. dollars to China. So when China said it’s offering dollar bonds, it’s saying it wants to borrow dollars. The question is — why? China already has some $3 trillion in U.S. dollar reserves.
Try as they might, the currency of a Communist dictatorship that has neither a political or legal legacy respecting private property rights will never be trusted. The US dollar is coveted by investors because if you have them you have essentially bought into the guarantee of private property that is the constitutional law, legal precedent and the cultural tradition that respects and private property. Thus far despite taxes and the rise of the regulatory Left private property is not subject to arbitrary confiscation. The result is that people around the world seek dollars for security and invest in American equities, bonds and real estate. They then know their wealth has Constitutional protection. It is also why the stock market and real estate markets do well even if the economy is weak. Foreign capital keeps flowing in seeking a safe harbor.
There is an old Economic rule. Bad money drives out good. I wonder how it will play out with the yuan-gold arrangement.
“In addition to reducing a major source of funding for the U.S. government’s enormous deficit spending,”
Translation:
The US destroyed their dollar with the Coinage act of 1965 and then began printing Fiat Currency, 6 years later the Italians and the Brits Called the US on their Fiat Currency and demanded payment in Bullion. Nixon promptly Closed the Gold Window in 1971 and set us the path of Destruction at the hands of the Moneychangers.
China is now poised to CALL THEIR BLUFF and expose the fraud and shenanigans perpetrated by the Moneychangers for the Whole World to see. Sadly we will pay a huge price for allowing the Fraudsters known as Central Bankers to print all this Funny Money.
Hold on tight folks, this could get pretty wild
Ping for later...
“Bad money drives out good.”
That is true in the long run, but the central banks keep printing fiat money so that they can keep shorting paper gold and paper gold, and at least for now, is essentially dictating the physical gold price. We have not as yet seen a big spread between the paper gold price and the price of physical gold with a premium.
I think we will need to see someone (probably China) essentially take over the gold exchanges from Comex before will see gold price based on market forces. But, who’s to say that China couldn’t or wouldn’t play the same shorting game with their currency.
The first time there is even the hint of a crisis and the bond holders demand physical gold, there won’t be enough gold in all of China to keep up.
Can anyone say “default”.
White Liberal Elites want American Markets to crash... their butt boys in the press will be playing up this kind of story...
Also. How about we stop buying Chinese goods and start producing them ourselves. Buy American, Hire American. I vaguely remember someone saying it.
If we keep fracking, export oil to china, then take gold in payment...
...that would negate their whole scheme.
Bingo!!! You get the prize. The US is killing the markets with fracked oil. China will be sending us their gold for our black gold...
“Try as they might, the currency of a Communist dictatorship that has neither a political or legal legacy respecting private property rights will never be trusted.”
But if they actually follow through and tie it to gold that will quickly change. Whether they can pull that off remains to be seen.
“The question is — why? China already has some $3 trillion in U.S. dollar reserves.”
I agree that makes no sense - they could just sell $2 billion worth of treasuries and accomplish the same thing.
As for the prophecies, in Revelation there are 10 kings (who are not rulers of any nation) who rule what is now called a Union. Divvy up the world into 10 unions and they each get one. Rev 17:12
Petraeus is a North American Union guy. He’s on youtube.
The USA should just simply quit buy Chinese made junk. This would soon impact China as we are the largest purchaser of their junk
It may have something to do with a scheme to manipulate our dollar. Putin has also been making remarks about plans Russia has to influence exchange rates relative to the dollar. It could also be a sidebar to manipulating stock prices . . . or both.
“It may have something to do with a scheme to manipulate our dollar”
But 2 billion is like a drop in the ocean - it won’t do squat in either direction to the dollar.
Me either right now . . . But the Fed is considering allowing a large number of T-bills to mature which would play into and into a hedge on the dollar. Maybe just an astute heads up play. Especially if it raises interest rates. The buggy though is tax reform. It will open the flood gates here. That is why I believe it’s why Trump is play his game right now with the Dramacrats. Testing the waters......
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