New 800# Chinese Gorilla in the OCTOBER 2011 G&S market place!!

[beefsteak]

China Declared War On Wall Street And The City Of London
Posted on August 30, 2011 (http://vidrebel.wordpress.com/2011/08/30/china-declared-war-on-wall-street-and-the-city-of-london/) by horse237 (http://vidrebel.wordpress.com/author/horse237/)

China declared war on the City of London and Wall Street when they opened the Pan Asian Metals Exchange and PAGE the Pan Asian Gold Exchange.

Their opening salvo will be fired in October when the Pan Asian Metals Exchange allows international investors to buy into a 90 day rolling spot gold contract which is for allocated gold. They already have a ten ounce mini-gold contract and a similar silver contract. The investor will have the choice of either take delivery of their gold or be paid in Chinese Renminbi. Major European and North American brokerages will allow investors worldwide to invest in the Pan Asian Metals Exchange.

Six major Chinese banks will fix the gold price every morning at 8am their time. [edit: anyone translate this into Eastern Daylight Time?]

Currently, the price of gold and silver are set by the paper sale of silver and gold. The Federal Reserve is willing to pay JP Morgan, HSBC, Goldman Sachs and other banks hundreds of billions of dollars to short gold and silver.

Currently the New York and London banks own and run the gold and silver exchanges COMEX and the London Bullion Market Exchange. HSBC also runs the gold Exchange Traded Fund (ETF) GLD and JP Morgan runs the SLV ETF. ETFs use some bullion and a lot of paper to simulate the spot price of gold and silver bullion. They are designed to siphon billions of dollars in investor funds away the bullion market to paper.

Jeff Christian reported at the [recent] CFTC hearings there [are] up to 100 ounces of paper gold and silver for every ounce of physical bullion.

I have also written of leased gold where the UK and US governments lease their gold to a bank. The government is supposed to retain physical possession of the bullion and give the banks a certificate which is treated as gold. This paper gold is then sold five times and appears on the balance sheet of six banks as an asset.

The Chinese will put an end to paper gold. They will set the price of bullion. They will allocate a bar of gold to every bar on sale in their futures market. This is called allocated gold. The LBMA and COMEX are alleged to have 90% unallocated versus 10% allocated. But I have heard of a married couple from the Mideast who had to threaten a lawsuit to get a ton of supposedly allocated gold back from their Swiss bank. And now Hugo Chavez has driven the market insane by demanding the return of his 211 tons of gold. Ben Bernanke is printing dollars as fast as he can to subsidize tens of billions of dollars in losing short sales.

These new gold and silver investment products will be rolled out in October if not earlier. I have previously said that I expected silver to skyrocket by November. I also said that after silver goes through 53 dollars an ounce there will be no resistance to bullion going higher. When the New York and London stranglehold on the exchanges lose control, prices will jump. Of course SLV and GLD will be exposed for the scams which they are.

If you can have a guarantee of allocated gold and silver, why would you do any business at all with the criminal bankers and Ponzi scheme operators of London and New York?

Major London and New York banks, the LBMA, the COMEX, GLD and SLV are going down.

A Comment On The Rothschilds and the Pan Asian Metals Exchange:

I had previously disclosed the information about the 10% ownership in the Pan Asian Metal Exchange to my regular readers. I cannot put everything into every article.

Go back in history to the Battle of Waterloo (18 June 1815). What did the Rothschilds do? They told the City of London that Napoleon had won. Lord Rothschild appeared in public to sell his shares. But he had his agents buy back all of his shares and those of everyone who was panic selling.

In effect he declared war on the City of London in 1815 and won. The Rothschilds wound up owning the Bank of England until the post-war Labour government nationalized it.

How much do you want to bet that N M Rothschild is long on gold and silver while selling all of their paper?


http://vidrebel.wordpress.com/2011/08/30/china-declared-war-on-wall-street-and-the-city-of-london/

==================

Never heard of this blogger. Anyone else?


beefsteak

[Large Sarge]

HKMEX was setup by the rothschilds...

Have to think on this some more...

but I really see silver as outside their control


and I only know of 3 countries outside their grasp, Malaysia, Iceland, and argentina

Lazard banking has been in China for a long time, and its a rothschild front company...

[JJ.G0ldD0t]

Time to sell gold and buy silver?

[JJ.G0ldD0t]

this seems like kinda big news...

Surprised there aren't more replys.
bump

[mamboni]

Don't worry, we's reading it!!! Yes, might be a good time to pad one's silver holdings.

[k-os]

It's interesting, if it's true.

[DMac]

http://www.youtube.com/watch?v=Bt_H3OWxUSY


http://www.youtube.com/watch?v=cU8VoafEb00

[Large Sarge]

here is the thing, Silver shield did an article on the new exchange from the rothschilds.

http://dont-tread-on.me/the-rothschilds-and-the-hong-kong-mercantile-exchange/


there are a number of glaring things about this, they claim this new exchange will be only allocated gold, and deliverable upon demand.

1. China has a policy of no exporting of any gold, all gold and rare earths (and I believe silver) are kept in china (end of story).

2. So where are they sourcing this new bullion from?

From what I gather it can only come from existing sources of bullion.


So What I think this might be is an appeasement by the Rothschilds, after so many rebuffs by the chinese to take delivery of their metal from COMEX.

perhaps a bargain was reached, and the rothschilds said "rather than end the great game, how about if we cut you in on it"?

From my own thinking, this is not really anymore legitimate than any other exchange, but I suspect the chinese are in more control. And just like our own bankers "shake the trees" to make people lose their positions here, the chinese will be allowed to shake the trees there, and profit.

But I do not see the chinese letting gold bullion flow out the door for FIAT paper.

so what is this thing doing?

its creating a new paper market IMO, possibly drawing some gold from overseas towards china (perhaps a better pay system for miners/refiners at hong kong),

but I want to say this again, I do not think any chinese gold is being put up for sale.

I think the chinese were allowed ot enter the gold paper game, a very prestigous honor in My Book.

[zap]

Just bumping.

[TomD]

Time to sell gold and buy silver?

Not necessarily but you can bet it will be good for both.

[JJ.G0ldD0t]

1. China has a policy of no exporting of any gold, all gold and rare earths (and I believe silver) are kept in china (end of story).

2. So where are they sourcing this new bullion from?

From what I gather it can only come from existing sources of bullion.


.

awesome post...
but hang on a minute...

According to the first vid in DMac's post...


@ 0:43
"Plans include an OTC- multiple currency - market for gold bullion and coins with storage in Hong Kong, Zurich, London and New York. "

And actually it seems to me by being structured in this manner, it makes it easier for the Chinese to be cut in on it (and at the same time maintains the status quo of Western / Rothschild interference and manipulation) and creates another market all at the same time.

Thinking out loud... am I off?

eta: now gonna check the MK vid

[Large Sarge]

awesome post...
but hang on a minute...

According to the first vid in DMac's post...


@ 0:43
"Plans include an OTC- multiple currency - market for gold bullion and coins with storage in Hong Kong, Zurich, London and New York. "

And actually it seems to me by being structured in this manner, it makes it easier for the Chinese to be cut in on it (and at the same time maintains the status quo of Western / Rothschild interference and manipulation) and creates another market all at the same time.

Thinking out loud... am I off?

eta: now gonna check the MK vid


I thought about this some more last night, and one other thing not mentioned is that it gives the chinese leverage to revalue their currency against gold, since it is their exchange, their currency being traded, etc

so if the chinese wanted to revalue the yuan higher against gold (and defacto devalue the dollar against the yuan), they now have that ability, in their own pricing mechanism.

I still think the rothschilds are just including them in the game, its not a knockout blow or anything, as some would hope...

Silver is a knockout blow IMO

[JJ.G0ldD0t]

Wow...

Reverse Greham's law... Good Contracts Chasing out BAD.

and with the Rothschild's driving it.

It seems like this will force the West's hand.
Gold backed currencies- yet not everyone has gold.
Hello gold backed Global currency?

I dunno. Knock out? no. Bleed out - I think maybe.

[Large Sarge]

the rothschilds are behind each side....

I am not sure on max's analysis on greshams law for the contracts.

you need to look at delivery procedures from HKMEX, Delivery charges, Delivery times, And Delivery locations.

While COMEX offers up a mountain of red tape and paperwork to slow your delivery of metal, the metal ostensibly will be delivered, and at certain locations.

if I get my metal in Hong Kong, then I want it stored in switzerland or delivered to me in the U.S.,; what is the additional delivery costs for that?

you see....?

plus the volume is so low on this new exchange....

[JJ.G0ldD0t]

I thought about this some more last night, and one other thing not mentioned is that it gives the chinese leverage to revalue their currency against gold, since it is their exchange, their currency being traded, etc

so if the chinese wanted to revalue the yuan higher against gold (and defacto devalue the dollar against the yuan), they now have that ability, in their own pricing mechanism.

I still think the rothschilds are just including them in the game, its not a knockout blow or anything, as some would hope...

Silver is a knockout blow IMO


Right...
I agree- but that is ALL bad news for the dollar. Hell - we are already WELL on the way to dollar collapse- this only exacerbates it.
uuuughh... this one is gonna make my head explode-

This is a really big deal I think.

[DMac]

This all seems to eerily like the early 1900s to me. This time China is the US and the NY/London is Europe.

They did this same scam when they started the Federal Reserve. I am starting to think this is not going to have the impact being speculated. Minor, IMO.

For example, here is a list of global gold exchanges:

US- New York Open Outcry; Electronic Trading CME
UK- London LBMA
China - Shanghai SGE; SHFE
Hong Kong CGSE; HKEX; HKMEX
India - Mumbai NCDEX; MCX; NMCE
Indonesia - Jakarta JFX; ICDX
Japan - Tokyo TOCOM
Pakistan - Islamabad NCEL
Turkey - Istanbul IGE
United Arab Emirates - Dubai DGCX
Europe EUREX
Nepal - Kathmandu MEX
Russia - Moscow RTS
Singapore SICOM
South Africa - Johannesburg JSE
Taiwan - Taipei TAIFEX
Thailand - Bangkok TFEX
Brazil BMF

I'm a firm believer that China is Rothschild owned. Opening another commodity exchange for gold in China is not going to cause JPM/HSBC shorts to go up in flames.

A country looking to make real waves in the global markets needs to open a major oil trading exchange, in any/all currencies. That would set the PTFail on a kinetic action.

That said, I still think we break $50 silver in December :P

[JJ.G0ldD0t]

the rothschilds are behind each side....

I am not sure on max's analysis on greshams law for the contracts.

you need to look at delivery procedures from HKMEX, Delivery charges, Delivery times, And Delivery locations.

While COMEX offers up a mountain of red tape and paperwork to slow your delivery of metal, the metal ostensibly will be delivered, and at certain locations.

if I get my metal in Hong Kong, then I want it stored in switzerland or delivered to me in the U.S.,; what is the additional delivery costs for that?

you see....?

plus the volume is so low on this new exchange....

I get that ( I think :D )

I believe that the Chinese end game here is to push out the dollar by bolstering the strength of their currency.
(as of right now - subject to change at any time :) )

[Grog]

1. China has a policy of no exporting of any gold, all gold and rare earths (and I believe silver) are kept in china (end of story).



How do gold Panda's fit into this policy?

[Shami-Amourae]

I'm a firm believer that China is Rothschild owned.

Ching-chong-oy-vey.

[beefsteak]

How do gold Panda's fit into this policy?

Grog,

That is an interesting query, and triggered some responses here.

First thing I thought of was the knowledge WSJ shared almost 40yrs ago in their coverage of the then emerging Panda Bullion Coin program. If memory serves, our Trade Balance of Payments with China were just beginning to get out of hand, aka, reaching into the $50B MONTHLY levels and causing angst here stateside by the corporate governance in DC as well as prognosticating economists. The WSJ made it clear in the article from which I am recalling from memory, that China was permitted to take gold in exchange for our trade imbalances in a regular gold delivery blessed by DC and funneling that gold into their Panda Program. China simply did not have on hand enough gold to initiate that program let alone maintain it at levels they extrapolated it would grow into in the intervening 40 yrs. However, the Chinese have always been known for their "long term planning" to put it mildly.

My second response: We have no way of knowing exactly to whom they target marketed their Panda Bullion Coin Program, when it was conceived let alone currently. True, Panda America (Cali) is obviously a "sanctioned outpost" for Panda distribution in the USA. There must be others, since gold as bullion is so reviled in the western economies. But one thing is certain, sale of Panda's generates fiat currency, which China MUST have had, and still has some overiding need for, since they also need so many commodities imported of which they are currently short.

Pandas are a beautiful bullion coin as far as my wife and I are concerned. Only have owned under a half-dozen of their fractionals in the last 40 years. Only have one 1 genuine 3 yuan in a dainty pinkie ring for the wife, PLUS 1/10 left, which had been colorized. And, the colorized one is "light in the socks" so I suspect it's plated, but...it was painted, cute, and she wanted it. What's a fella supposed to do in that instance?

I'll confess what I did. I paid Gold Prices plus Panda premium for a painted fake. You know the old saying, right? "If momma ain't happy...." ;D


beefsteak

[Large Sarge]

here is the rare earth ban

http://www.zerohedge.com/article/china-halts-rare-mineral-exports-us-and-europe-prices-set-surge


here is the 40% reduction in silver export by the chinese

http://www.zerohedge.com/article/chinese-silver-exports-drop-40


and here is the gold issue, from 2009 (apparently it just went to rumor stage, for Gold)

http://www.commodityonline.com/news/China-may-ban-export-of-gold-silver-21219-3-1.html

my apologies on the gold issue,

but it seems to me the chinese have realized that silver is the real achilles heel of the financial system.

and Wynter Benton keeps talking about a central bank is hoarding silver, and I am inclined more to believe it is China than mexico.

[JJ.G0ldD0t]

I get that ( I think :D )

I believe that the Chinese end game here is to push out the dollar by bolstering the strength of their currency.
(as of right now - subject to change at any time :) )

here's some evidence that they are making war on the dollar.


http://english.aljazeera.net/indepth/features/2011/09/201199175046520396.html


China buys gold, challenges US dollar
WikiLeaks cables allege that China is buying gold to weaken the US dollar's supremacy as the world's reserve currency.




http://english.aljazeera.net/mritems/Images/2011/7/28/201172885323188734_20.jpg China plans to let its currency trade freely on international markets by 2015 [EPA] China is shifting some of its massive foreign holdings into gold and away from the US dollar, undermining the dollar's role as the world's reserve currency, accoding to a recently released WikiLeaks cable.
"They [the US and Europe] intend to weaken gold's function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the US dollar or Euro," stated the 2009 cable, quoting Chinese Radio International. "China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold."


The cable (http://cables.mrkva.eu/cable.php?id=204405) is titled "China increases its gold reserves in order to kill two birds with one stone". Taken together with recent policy announcements from Chinese banking officials, it may signal moves by China to eventually replace the US dollar as the world's reserve currency.


Last week, European business officials announced that China plans to make its currency, the yuan, fully convertible for trading on international markets by 2015. Zhou Xiaochuan, governor of China's central bank, said the offshore market for the yuan is "developing faster than we had imagined" but there is no definitive timetable for making the currency fully convertible. Presently, the yuan cannot be easily converted into other currencies, because of government restrictions.


China's gold holdings are small compared to other major economies. It has 1,054 tonnes, the sixth-largest reserves in the world, according to data from the World Gold Council.



Dollar's dilemma
Buying gold and allowing the yuan to be traded freely would weaken the US dollar's dominance as the international reserve currency. The move would have major implications, making it more expensive for the US government to borrow money and to run perpetual trade and budget deficits.
"The US is used to having the position of having the key reserve currency, but others are eager to replace it," said Josh Aizenman, a professor of economics at the University of California and president of the International Economics and Finance Society.


As a reserve currency, the US dollar is the default for international transactions. If, for example, a South Korean company wants to buy wine from Chile, chances are they will carry out the transaction in dollars. Both companies must then purchase dollars to conduct their business, leading to greater demand. The value of global commodities, such as oil, is also generally demarcated in US dollars.
Being a reserve currency allows the US to borrow at low interest rates, as central banks around the world are eager to buy US government debt. "Any country that can finance its expenditures by printing money or selling bonds is essentially getting a free lunch," Aizenman told Al Jazeera.
With China's apparent change of heart, that "free lunch" now might come with a hefty tab. Given the massive US trade deficit, average Americans might be sent to the restaurant's kitchen to wash dishes if the dollar loses its status as the world's reserve currency.



"China, until recently, was focusing on buying the US dollar through bonds," Aizeman said. Since the economic crisis, the US dollar has dropped compared to other major currencies, particularly the Swiss franc, Canadian dollar and Brazilian real. This leaves China in a bind, analysts said.


Currency reserves
In March 2011, China held $3.04tn US dollars in reserves, Xinhua news agenecy reported. It is the largest holder of US treasuries, or government debt, with $1.166tn as of June 30, 2011, according to the San Francisco Chronicle. Thus, major devaluation of the dollar would hurt China, as it would be left holding wads of worthless paper.
"If you owe the bank $100, that's your problem. If you owe the bank $100m, that's the bank's problem," American industrialist Jean Paul Getty once remarked, in a parable that sums up China's predicament.
"China is locked into a position where they cannot sell a big portion of their dollar reserves overnight without hurting themselves," Aizenman said. "It is too late for now to diversify rapidly the stock they have already accumulated."


The answer: Buy gold. Everyone seems to be doing it. The value of the glistening commodity, useless for most practical purposes, increased almost 400 per cent, from less than $500 an ounce in 2005 to about $1,900 in September.
"Gold has risen in value because of uncertainty in the world economy," said Mark Weisbrot, the co-director of the Centre for Economic and Policy Research, a think-tank in Washington. "Normally, gold would rise due to high inflation. It is a store of value that increases if there is inflation. But in this case it is going up because nobody knows where else to put their money."
In the WikiLeaks cable, China alleged that "the US and Europe have always suppressed the rising price of gold", but neither Weisbrot or Aizenman think such a policy is taking place or even possible.
Presently, China places strict controls on its currency, limiting foreigners from doing business in the yuan or trading it on foreign exchange markets. That could change in the next five years, according to governor Xiaochuan's recent announcement.


By owning such large reserves of US currency, and through controlling the yuan, China can keep its currency lower than it would be if it floated freely. This makes Chinese exports cheaper.
The relationship, in which Chinese investment in US government bonds allows low interest rates for Americans to buy Chinese products, has worked well for the last 15 years. In 2010, the US ran a $273.1bn trade deficit with China.


"We pay our debts in dollars so we can print money to pay our international debts," Weisbrot told Al Jazeera. Because of the dollar's status as a reserve currency, the US "can run trade deficits indefinitely" while borrowing internationally without serious repercussions, giving the world's largest economy a "big advantage", he said.
If gold, the yuan, or a combination of other currencies replaced the dollar, the US would lose that advantage.
Without a replacement in the near term, nothing will replace the dollar as the world's reserve currency in the next five years at least. But nothing lasts forever. "When they [China] want the dollar to fall, they will let it," Weisbrot said. "The dollar will fall eventually but that could be a long time away."


The fate of the dollar notwithstanding, a separate WikiLeaks cable (http://cables.mrkva.eu/cable.php?id=185826) outlines some of the broader ambiguities of the world's most important economic relationship, or "ChinAmerica", as it has been dubbed by historian Niall Ferguson.


"No one in 1979 would have predicted that China would become the United States' most important relationship in thirty years," the cable stated. "No one today can predict with certainty where our relations with Beijing will be thirty years hence."