China, gold prices & US default threats
China, gold prices & US default threats
http://rt.com/files/opinion/84/00/00/00/photo1.a.jpg William Engdahl is an award-winning geopolitical analyst and strategic risk consultant whose internationally best-selling books have been translated into thirteen foreign languages.
Published time: October 21, 2013 10:50
http://rt.com/files/opinionpost/20/d.../gold-2.si.jpg
24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. (Reuters/Shannon Stapleton)
Budget, China, Crisis, Economy, Finance, Natural resources, Russia, USA
In the very days when a deep split in the US Congress threatened a US government debt default, the gold price should normally jump through the roof, yet the opposite was the case. It is worth a closer look why.
Since August 1971, when US President Richard Nixon unilaterally tore up the Bretton Woods Treaty of 1944 and told the world that the Federal Reserve ‘gold window’ was permanently closed, Wall Street banks and US and City of London financial powers have done everything imaginable to prevent gold from again becoming the basis of trust in a currency.
On Friday, October 11, when there was no sign of any deal between US Congress members and the Obama White House that would end the government shutdown, the Chicago CME Group, which operates Comex - the Chicago Commodity Exchange, where contracts in gold derivatives are traded - announced that at 8:42am Eastern time the trading was halted for 10 seconds after a safety mechanism was triggered because a 2-million-ounce (56.7 million grams) gold futures sell order was executed.
Something rotten in gold market
The result of that huge paper gold sale was that at just the time when a possible US government debt default would send investors in a panic rush to the safety of buying gold, instead, the price plunged $30 an ounce to a three-month low of $1,259.60 an ounce. Market insiders believe the reason was direct market manipulation.
David Govett, head of precious metals at bullion broker Marex Spectron, calls the sudden huge futures sale suspicious.
"These moves are becoming more and more prevalent and to my mind have to either be the work of someone attempting to manipulate the market or someone who really shouldn’t be trusted with the sums of money they are throwing around. There are ways of entering and exiting a market so that minimum damage is caused and whoever is entering these orders has no intention of doing that," Govett said.
UBS gold trader Art Cashin echoed the suspicion.
“…if that happens once it could be an accident of technology, or it could be a simple error. But when it happens five times over a period of months, it does raise questions. Is it being done purposefully? Is somebody trying to influence the market?”
That ‘someone’ market sources believe is the Obama White House, in league with the Federal Reserve and key Wall Street banks that would be ruined were gold to really rise.
In March 1988, five months after the worst one-day stock market plunge in history, President Ronald Reagan signed Executive Order 12631. Order 12631 created the Working Group on Financial Markets, known on Wall Street as the ‘Plunge Protection Team’ because its job was to prevent any future unexpected financial market panic selloff or ‘plunge’.
The group is headed by the US Treasury Secretary and includes the chairman of the Federal Reserve, the head of the Securities & Exchange Commission, and the head of the Commodity Futures Trading Commission (CFTC) which is responsible for monitoring derivatives trading on exchanges.
Numerous times since 1988, reports have surfaced of secret interventions by the Plunge Protection Team to prevent a market panic selloff that could threaten the role of the US dollar. Former Clinton White House staff chief George Stephanopoulos admitted in 2006 that it was used to support the markets in the 1998 Russia/LTCM crisis under Bill Clinton, and again after the 9/11 terrorist attacks in 2001.
http://rt.com/files/opinionpost/20/d5/10/00/gold-1.jpgOne ounce 24 karat gold proof blanks are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. (Reuters/Shannon Stapleton)
He said, "They have an informal agreement among major banks to come in and start to buy stock if there appears to be a problem."
Clearly stocks are not the only thing the government manipulates. Gold these days is a prime focus. The price of gold in recent years—since the eruption of the US dot.com IT stock bubble in 2000—has exploded from around $300 an ounce to a recent record high above $1,900 in August, 2011. Gold rose an impressive 70 percent from December 2008 to June 2011, after the Lehman Brothers collapse and the start of the Greek crisis in the eurozone.
Since then, with no clear reason, gold has reversed and lost more than 31 percent, despite the fact that talk of a unilateral Israeli military strike on Iran and the US financial debacle combined with a euro crisis, and now, threat of US government default, created overall huge demand for investment in gold.
This past April 10, the heads of the five largest US banks, the Wall Street ‘Gods of Money’ — JPMorgan Chase, Goldman Sachs, Bank of America and Citigroup — requested a closed door meeting with Obama at the White House. Fifteen days later, on April 25, the largest one-day fall in history in gold took place. Later investigation of trading records at Comex revealed that one bank, JP Morgan Securities, was behind the huge selloff of gold derivatives. Derivatives are pieces of paper or bets on future gold or other commodity prices. To buy gold futures is very inexpensive compared with gold but influence the real physical gold price, largely because the US Congress, under lobby influence from Wall Street, since 2000 and the Commodity Trading Modernization Act, has left gold derivatives unregulated. The President’s Plunge Protection Team was at work now as well, clearly.
China smiles & buys
In effect a war, a financial war, is underway between the Wall Street giant banks and their close allies, including the major City of London banks and banks like Deutsche Bank on the one side, using paper gold derivatives trading in the unregulated COMEX, with covert support of the US Treasury and Fed. On the other side are real investors and Central Banks who believe that the world financial system, especially the dollar system, is teetering on the brink of disaster and that physical gold is the historical best safe haven in such a crisis.
Here, the recent buying of gold reserves by several central banks including Russia, Turkey and especially China, are notable. The short-term derivative gold price manipulations by JP Morgan and Goldman Sachs are creating smiles at the Peoples’ Bank of China and the Russian Central Bank among other buyers of physical gold. Since 2006 Russia’s central bank has increased its gold reserves by 300 percent.
Now, the Chinese central bank has just revealed data showing that China imported 131 gross tons of gold in the month of August, a 146 percent increase compared to a year prior. August was the second highest gold importing month in its history. More impressively, China has imported more than 2,000 tons of gold in the past two years. According to a 2011 cable made public by WikiLeaks, the Peoples’ Bank of China is quietly seeking to make the renminbi (the yuan) the new gold-backed reserve currency.
Hmmmm.
According to unofficial calculations, the Peoples’ Bank of China today holds about 3,500 tons of monetary gold, surpassing Germany, to make it number two in the world after the Federal Reserve.
http://rt.com/files/opinionpost/20/d...ce-threats.jpg
24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. (Reuters/Shannon Stapleton)
And there are grave doubts whether the Federal Reserve actually holds the 8,044 tons of gold it claims it does. The former International Monetary Fund director, France’s Dominique Straus-Kahn, demanded an independent audit of the Federal Reserve gold after the US refused to deliver to the IMF 191 tons of gold agreed to under the IMF Articles of Agreement signed by the Executive Board in April 1978 to back Special Drawing Rights issuance. Immediately before he could rush back to Paris, he was hit by a bizarre hotel sex scandal and abruptly forced to resign. Straus-Kahn had been shown a secret Russian intelligence report prepared for President Vladimir Putin in which ‘rogue’ CIA agents revealed that the US Federal Reserve had no gold reserves and only lied that it did.
The stakes for Washington and Wall Street in depressing the gold price are staggering. Were gold to soar to $10,000 or more, where many believe current demand-supply pressures would find it, there would be a panic selloff of the dollar and of US Treasury bonds. China now holds a record $3.7 trillion of foreign currency reserves and the US Treasury bonds and bills are about half that.
That selloff would send US interest rates sky-high, forcing a chain-reaction of corporate and personal bankruptcies that have been avoided since the financial crisis broke in 2007 only owing to record near-zero Federal Reserve interest rates. That selloff, in turn, would be the end of the US as the world’s sole superpower. Little wonder the Obama Administration is manipulating gold. It cannot last very long at this pace, however.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.
http://rt.com/op-edge/us-debt-gold-price-threats-481/
Re: China, gold prices & US default threats
Quote:
Market insiders believe the reason was direct market manipulation.
But but but the SEC said there was no manipulation so they won't be bothered to investigate it.
You guys and your damn conspiracy theories.
/sarcasm
Re: China, gold prices & US default threats
Market insiders believe the reason was direct market manipulation. our goverment would not let this take place , there always on the job looking for stuff like this
Re: China, gold prices & US default threats
The OP article is one of the most important pieces one will read in years:
1. China and Russia are amassing huge gold bullion reserves to back a new trade zone line of credits
2. One day soon, China will announce a fully convertible Yuan backed by gold.
3. The BRIC trade zone bank in Shanghai will open.
When these events transpire, the US dollar will be devalued proactively or breakdown on the open market. There will be a run on the Treasuries that the FED will not be able to contain. US interest rates will spike higher. And the bottom will fall out of the government budget and the American standard of living. It will all occur very quickly, in days or weeks. I believe this will occur within 2 years.
Re: China, gold prices & US default threats
Is this just a temporary hissy fit, or the beginning of the end of the petrodollar standard, the last tangible prop holding up the US dollar:
Saudi Arabia severs diplomatic ties with US over response to conflict in Syria
- Saudi Arabia is an important ally to the U.S. as it provides a secure source of oil
- Saudi diplomats now promise a 'major shift' in relations with the U.S. over inaction in the conflict in Syria
- Secretary of State John Kerry says he is committed to keeping a good relationship with the Saudis
By Reuters Reporter
Read more: http://www.dailymail.co.uk/news/arti...#ixzz2iYLEc4QQ
Bandar is pissed.
http://gold-silver.us/forum/attachme...1&d=1382538357
Attachment 5531
Re: China, gold prices & US default threats
Are TPTB sending us sheeple a message?
CNBC Warns The De-Crowning Of The U.S. Dollar Ahead Of Collapse
http://www.youtube.com/watch?feature...;v=VhKnbGZAMy0
Re: China, gold prices & US default threats
Yodaspan says: "To the turd you listen!"
The Twilight of the Dollar Gods Draws Near with Turd Ferguson
http://www.youtube.com/watch?feature=player_embedded&v=xm4oMzyHON0
Re: China, gold prices & US default threats
Quote:
Originally Posted by
mamboni
The OP article is one of the most important pieces one will read in years:
1. China and Russia are amassing huge gold bullion reserve to back a new trade zone line of credits
2. One day soon, China will announce a fully converable Yuan backed by gold.
3. The BRIC trade zone bank in Shanghai will open.
When these events transpire, the US dollar will be devalued proactively or breakdown on the open market. There will be a run on the Treasuries that the FED will not be able to contain. US interest rates will spike higher. And the bottom will fall out of the government budget and the American standard of living. It will all occur very quickly, in days or weeks. I beleve this will occur within 2 years.
makes total sense based on their behavior & purchasing habits.
Re: China, gold prices & US default threats
Saudi spy chief says Riyadh to ‘shift away from U.S.’ over Syria, Iran
By Amena Bakr
DOHA (Reuters) – Saudi Arabia’s intelligence chief has said the kingdom will make a "major shift" in relations with the United States in protest at its perceived inaction over the Syria war and its overtures to Iran, a source close to Saudi policy said on Tuesday.
Prince Bandar bin Sultan told European diplomats that Washington had failed to act effectively on the Syria crisis and the Israeli-Palestinian conflict, was growing closer to Tehran, and had failed to back Saudi support for Bahrain when it crushed an anti-government revolt in 2011, the source said.
It was not immediately clear if Prince Bandar’s reported statements had the full backing of King Abdullah.
"The shift away from the U.S. is a major one," the source close to Saudi policy said. "Saudi doesn’t want to find itself any longer in a situation where it is dependent."
The United States and Saudi Arabia have been allies since the kingdom was declared in 1932, givingRiyadh a powerful military protector and Washington secure oil supplies.
The prince’s initiative follows a surprise Saudi decision on Friday to reject a coveted two-year term on the U.N. Security Council in protest at "double standards" at the United Nations.
Prince Bandar, who was Saudi ambassador to Washington for 22 years, is seen as a foreign policy hawk, especially on Iran. The Sunni Muslim kingdom’s rivalry with Shi’ite Iran, an ally of Syria, has amplified sectarian tensions across the Middle East.
More…
Re: China, gold prices & US default threats
Quote:
Originally Posted by
mamboni
The United States and Saudi Arabia have been allies since the kingdom was declared in 1932, giving Riyadh a powerful military protector and Washington secure oil supplies.
About time we brought Women's Rights and Gay Rights and Democracy to these "Royal" crypto-Jew assholes.
:rolleyes:
Re: China, gold prices & US default threats
Quote:
Originally Posted by
mamboni
those must be for Buffaloes.
Re: China, gold prices & US default threats
Quote:
Originally Posted by
mamboni
Saudi spy chief says Riyadh to ‘shift away from U.S.’ over Syria, Iran
By Amena Bakr
DOHA (Reuters) – Saudi Arabia’s intelligence chief has said the kingdom will make a "major shift" in relations with the United States in protest at its perceived inaction over the Syria war and its overtures to Iran, a source close to Saudi policy said on Tuesday.
Prince Bandar bin Sultan told European diplomats that Washington had failed to act effectively on the Syria crisis and the Israeli-Palestinian conflict, was growing closer to Tehran, and had failed to back Saudi support for Bahrain when it crushed an anti-government revolt in 2011, the source said.
It was not immediately clear if Prince Bandar’s reported statements had the full backing of King Abdullah.
"The shift away from the U.S. is a major one," the source close to Saudi policy said. "Saudi doesn’t want to find itself any longer in a situation where it is dependent."
The United States and Saudi Arabia have been allies since the kingdom was declared in 1932, givingRiyadh a powerful military protector and Washington secure oil supplies.
The prince’s initiative follows a surprise Saudi decision on Friday to reject a coveted two-year term on the U.N. Security Council in protest at "double standards" at the United Nations.
Prince Bandar, who was Saudi ambassador to Washington for 22 years, is seen as a foreign policy hawk, especially on Iran. The Sunni Muslim kingdom’s rivalry with Shi’ite Iran, an ally of Syria, has amplified sectarian tensions across the Middle East.
More…
Quote:
It was not immediately clear if Prince Bandar’s reported statements had the full backing of King Abdullah.
Sounds like it's just a threat to the US to do what they were told and remove the enemies of the Saudi/Israeli Jews.
It must suck being a puppet for these people.
The US should stuff a few missles up their Saudi asses...and Israel's too.
Re: China, gold prices & US default threats
Western Central Banks Suppressing Price of Gold As China Preparing for the Demise of the Dollar GLD, MUX, TNR.v, GDX
http://www.youtube.com/watch?feature=player_embedded&v=XMrKDYvwF1c
Re: China, gold prices & US default threats
Switzerland’s Gold Exports Go Through The Roof
Posted on October 24, 2013 by Mark O'Byrne — 1 Comment ↓
The People’s Republic Bank of China (The Chinese Central Bank), tend to shy away from routine reporting of their outright gold purchases to the IMF. A sensible strategy given their implied policy of reducing dollar reserve risk.
Today’s AM fix was USD 1,336.25, EUR 968.79 and GBP 825.76 per ounce.
Yesterday’s AM fix was USD 1,333.00, EUR 968.68 and GBP 825.13 per ounce.
Gold fell $6.90 or 0.51% yesterday, closing at $1,333.30/oz. Silver slipped $0.12 or 0.53% closing at $22.56. Platinum rose $2.94 or 0.21% to $1,433.24/oz, while palladium fell $1.50 or 0.20% to $742.50/oz.
Gold inched up in London as the dollar fell to a two year low against the euro. The yellow metal is on track for a four week high, as investors buy precious metals on increased safe haven demand. Gold Krugerrands (1 oz) are trading at $1,403.75 or premiums between 4.75% and 5.5% and Gold Kilo Bars (1 kilo) are trading at $44,354.53 or premiums between 3% and 3.5%. Premiums are holding steady.
The poor economic data published recently in the U.S. is signalling that the economic recovery is on shaky ground, and this has increased the allure of bullion.
Koos Jansen’s blog, “In Gold We Trust” explores the recent surge of bullion exports from Switzerland.
In it he notes that Switzerland holds four of the largest gold refineries on the planet – Metalor, Pamp, Argor-Heraeus and Valcambi. These refineries are estimated to be responsible for 70% of the world’s refining nestled in the Swiss Alps, and therefore a major amount of the world’s gold is distributed there.
If you look at 3Q, Switzerland has imported 808 tons of gold in 2013, and exported 680 tons. Year to date the country has imported 2,420 tons and exported 2,184 tons.
http://dzswc0o8s13dx.cloudfront.net/...1_24-10-13.png
Courtesy of Koos Jansen’s – “In Gold We Trust”
Jansen notes that this is a new record for exports for the small country with a yearly estimate of 2,912 tons for exports. It is surmised that 1,100 tons of the gold bullion is set to flow East to China or Hong Kong.
In 2013 from January to August published figures list Hong Kong as having imported 598 tons from Switzerland. Jansen writes that although most of this is sent forward to Shanghai, however the Chinese are also importing directly from the Swiss.
This is verified from Shanghai Gold Exchange (SGE) physical deliveries and from Alex Stanzcyk, Chief Market Strategist at Anglo Far-East Bullion, who Jansen spoke with directly. Stanzcyk said, “China imports a lot that’s not going through Hong Kong (or through the SGE!)”.
In the interview Stanczyk explained how one of their partners had lunch recently with the head of the largest global operations company in security transport. He said there is a lot of gold that they’re moving into China that’s not going through exchanges. If the gold is for the government they don’t have to declare where it’s going. They don’t have to declare where it’s going in, or where it’s heading. If you look at the way the Chinese do things, why would they tell?
The People’s Republic Bank of China (The Chinese Central Bank), tend to shy away from routine reporting of their outright gold purchases to the IMF. A sensible strategy given their implied policy of reducing dollar reserve risk.
Read more at http://www.maxkeiser.com/2013/10/swi...z6kJiHBu71q.99
Re: China, gold prices & US default threats
PCR talks about world rejection of the dollar, the US federal budget debt bomb, the coming collapse of the dollar....and gold:
http://kingworldnews.com/kingworldne...g_Roberts.html
