Posted on 05/29/2009 10:30:09 AM PDT by TigerLikesRooster
Hitmen Contracts to Bust Comex
by Jim Willie, CB. Editor, Hat Trick Letter | May 28, 2009
Major dislocations are coming. Tremendous disruptions are coming. Price discontinuities are coming. Price chart patterns might be rendered useless soon. Last week, the case for a grand Paradigm Shift was made, covering many elements in order to paint a mosaic.
Taken in isolation, any one point is important in its own right, but not enough to convince of a structural change. Taken in entirety, the many points create a full picture that is more easily recognized. The ruinous events of the Wall Street banks last September and October surely served as an extreme event loaded with profound disruption. The Chinese have proceeded with a transition to yuan-based domestic banking, with an installation of yuan swap facilities around the world, with an ASEAN regional fund again supplied by yuan for flexible purposes, with permission granted to two Hong Kong banks to sell yuan-based bonds, with an admitted rise in significant gold bullion reserves, and with continued verbal battles over legitimacy of the USDollar as the global reserve currency.
These Chinese initiatives in recent weeks, occurring rapidly, are serving as a collective extreme event with the potential for profound disruption. A gold-backed yuan currency would surely cause massive disruption in a climax merger of events. The barter system set up between Russia and Europe will bypass the US$-based settlement system, as will the barter system set up between Russia and China. The avoidance of contract settlement in USDollars would result in extreme disruption to the global banking system. The creditor nations are plotting to organize and launch alternative currencies, maybe to fortify existing currencies (like the euro or yuan or ruble) with a gold component, maybe also with a crude oil component.
(Excerpt) Read more at financialsense.com ...
Ping!
Interesting reading
I guess its good news that the Chinese are buying my husbands place of employment then.......*sigh*
Are you learning Mandarin yet?
The very next person that posts something with that numbing cliche’ “Paradigm Shift” in it is a lisping gayboi.
Will someone that understands this article please give me a simple overview. Thanks.
Did someone clean out all the paper bits that get stuck in a shredder and try to make an article of them?
We are getting very close to the time when the excrement will hit the blower requarding the US Dollar.
Timmy “The Used Car Salesman” is going to China this weekend for talks (pleading) for them to keep buying our worthless paper (dollars). Look for talks to be described as “productive”.
Silver is the king this month, then gold.
But I don’t take as much joy in seeing that as I would if I saw any other investment of mine jumping by the same percentage or at the same rate. Interest rates are just about to blow, the country in general is screwed, and I am really starting to think that a six-year-old today might grow up never seeing a small shopping center that has every single space occupied.
Not to put too fine a point on it, may I read between the lines and suggest that his visit is demanded by the leader of the country -- China.
The thesis is that to support the dollar the FED has been lending gold which is then sold short to depress the international price of gold. There are now a lot of contracts out there for delivery of the gold, the gold no longer actually belongs to the US Govt, and as soon as folks who lent gold they don't have have to make good on the gold, the valuelessness of the US$ will become apparent and we will look like Zimbabwe.
I don't kwow whether to lend any credibility to the theory. On the other hand, the US economy is clearly under stress. How many folks do you meet in an average day who do something that you regard as providing a good or service that someone ought to want to pay for, and how many folks just sit there and collect "rents" to obstruct the world with rules, regulations paperwork, process, prohibitions, and more fees? What net does America produce anymore that anyone else wants? We don't make computer components except the AMD or Intel processor. We are a nation of consumers, and obstructors and awfully damn arrogant about it, actually.
I’d say go down to the header “Comex Stress Near a Breaking Point” and read just that section, as a start. I don’t know if that’s a good summary of the whole article but it’s a decent primer on the relationships among The Dollar, gold / silver, and interest rates.
The goldbug theory of gold manipulation is that the gold price is an indicator of the level of fiscal irresponsibility in the monetary system, and “They” are keeping the price of gold down (some say it should be $3000 now not $1000) in order to imply that all is well.
Thanks.
........The thesis is that to support the dollar the FED has been lending gold.....
I thought they quit that back about 2002 or so
Interesting that they can find 5 chart calls where he’s “wrong” but regardless of that “crappy track record” gold is still up amazingly over the term?!?!
I can’t count the number of people on fingers and toes who’ve told me or commented generally that gold (and other PMs) is a crappy investment over the last 6 years, frequently pointing to retracements and dollar associated beat-downs, but I’m up 300% to date over that period... Go figure...
The S is without a doubt hitting the fan for anybody who hasn’t been paying attention or was in a coma lately and whether or not some prognosticator is off by a couple of months about X or Y is irrelevant. Picking nits over it is the financial equivalent of plugging your ears, covering your eyes, and going “NYAA! NYAA! CAN’T HEAR YOU!!!”...
Simple overview- your gold and silver is going to be worth a lot more. Your government (and it’s fiat currency) is going to be worth a lot less.
Interest rates are about to spike up bigtime. This will have all kinds of nasty implications.
If you have land, grow food and make a lot of money.
If you have ammo, keep as much as possible for as long as possible.
That’s what I’m getting from the article anyway. I read Jim Willie all the time, and he usually talks way over my head. But he’s pretty darn astute.
I bought more heirloom seeds last night.
cool- I have a hydroponic experiment going right now myself.
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