Madness Coming To Gold Market: ‘There Are Thirty To Fifty Owners For Each Ounce Of Gold That’s Out There’

As I’ve said many times before:

“Only physyical gold and silver are real.

Everything else is an illusion.”

Paper investments in gold and silver will not be covered and there is a bloodbath coming.

The coming crisis will make 2008 look like a walk in the park.


 

gold-trap

Madness Coming To Gold Market: “There Are Thirty to Fifty Owners For Each Ounce of Gold That’s Out There” (SHFTplan, March 25, 2015):

Though the price of gold has seen a significant drop over the last two years from it’s all time highs of about $1900 per ounce, many experts and analysts believe that western central banks and their colleagues at major financial institutions have been manipulating the price. The rampant manipulation is believed to stem, in part, from the formerly Rothschild owned London Gold Fix, an organization made up of five large banks that make a daily determination of what the price of gold should be.

It is this unilateral control by western banks that recently prompted the Chinese to create their own Shanghai Gold Exchange. What separates the two is that the Chinese will be using their currency, the Yuan, as the reserve rather than the U.S. Dollar. Moreover, unlike their European counterparts, the Chinese will be trading in actual physical dollars.

The Daily Coin explains:

Read moreMadness Coming To Gold Market: ‘There Are Thirty To Fifty Owners For Each Ounce Of Gold That’s Out There’

The De-Dollarization Axis: China Completes SWIFT Alternative, May Launch As Soon As September

A clerk counts Chinese 100 yuan banknotes at a branch of China Construction Bank in Hai'an, Jiangsu province

The De-Dollarization Axis: China Completes SWIFT Alternative, May Launch As Soon As September (ZeroHedge, March 9, 2015):

One of the recurring threats used by the western nations in their cold (and increasingly more hot) war with Russia, is that Putin’s regime may be locked out of all international monetary transactions when Moscow is disconnected from the EU-based global currency messaging and interchange service known as SWIFT (a move, incidentally, which SWIFT lamented as was revealed in October when we reported that it announces it “regrets the pressure” to disconnect Russia).

Read moreThe De-Dollarization Axis: China Completes SWIFT Alternative, May Launch As Soon As September

The Chinese Buy Billboards Announcing The Renminbi As ‘The New World Currency’

The Chinese have put out billboard ads announcing the renminbi as the new world currency (Sovereign Man, March 4, 2015):

When I arrived to Bangkok the other day, coming down the motorway from the airport I saw a huge billboard – and it floored me.

The billboard was from the Bank of China. It said: “RMB: New Choice; The World Currency”

China-rmb-world-currency

Given that the Bank of China is more than 70% owned by the government of the People’s Republic of China, I find this very significant.

Read moreThe Chinese Buy Billboards Announcing The Renminbi As ‘The New World Currency’

China Housing Bubble Bursts: Q3 Land Sales Crater 50%

China Housing Bubble Bursts: Q3 Land Sales Crater 50% (ZeroHedge, Sep 29, 2014):

China may be doing everything in its power to divert attention from the simple fact that its housing bubble, the largest in the world in terms of both assets comprising it as well as divergence from fair value, has burst. But while there is no clear threshold of what constitutes a bursting bubble when it comes to housing, the latest data out of Soufun, China’s largest real-estate website, which said that land sales have dropped a massive 22% to 1.7 trillion Yuan in 2014 so far, is likely as clear an indication as any that Beijing is about to panic.

And if that was not enough Bloomberg adds that land sales in 300 cites followed by Soufun fell almost 50% Y/Y to 415.9 billion yuan in 3Q, while residential land sales declined more than 50% to 265.3b yuan in 3Q.

Read moreChina Housing Bubble Bursts: Q3 Land Sales Crater 50%

UK Hints At Next Reserve Currency, To Issue Chinese Yuan-Denominated Bond

UK Hints At Next Reserve Currency, To Issue Chinese Yuan-Denominated Bond (ZeroHedge, Sep 15, 2014):

Yuanification continues around the world. As The USA attempts to corral its allies in a ‘broad coalition’, an increasing number of people – including domestic economic policy advisors – are shifting away from the USD as primary reserve currency. However, the move by British Chancellor of the Exchequer George Osborne, announced Friday, is likely the most notable yet in the world’s de-dollarization. As Xinhua reports, the British government intend to be the first nation (ex-China) to issue Renminbi denominated bond and to use the proceeds to finance the government’s reserves of foreign currency. Osborne described this dialogue outcome as “a historic moment” and a statement of British confidence in the potential of the RMB to become “the main global reserves currency”.

As Xinhua reports,

Read moreUK Hints At Next Reserve Currency, To Issue Chinese Yuan-Denominated Bond

The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

xi-jinping-vladimir-putin

The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan (ZeroHedge, Aug 27, 2014):

Several months ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.

This changed in late June when first Gazprom’s CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People’s Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.

And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.

Until now.

According to Russia’s RIA Novosti, citing business daily Kommersant, Gazprom Neft has agreed to export 80,000 tons of oil from Novoportovskoye field in the Arctic; it will accept payment in rubles, and will also deliver oil via the Eastern Siberia-Pacific Ocean pipeline (ESPO), accepting payment in Chinese yuan for the transfers. Meaning Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is conerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world.

Read moreThe Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

When You See This Happen, You Know It’s Game Over For The Dollar

In my opinion gold in (extended or permanent) backwardation is signalling a total loss of confidence in the $US Dollar and is a clear sign that the dollar endgame is here.

The Great Depression will soon look like a walk in the park.


Dollar-Endgame

When You See This Happen, You Know It’s Game Over For The Dollar (ZeroHedge, July 16, 2014):

Exactly 70 years ago to the day, hundreds of delegates from 44 nations were busy at work in Bretton Woods, New Hampshire creating a brand new financial system.

World War II had just ended. Europe was in ruin.

And since the US was simultaneously the largest economy in the world, the primary victor in the war, and the only major power with its productive capacity intact, it was easy to dictate terms: the dollar would dominate the new system.

Every nation would hold dollars as the primary reserve currency, and the dollar would be redeemable for gold at $35/ounce.

Read moreWhen You See This Happen, You Know It’s Game Over For The Dollar

By ‘Punishing’ France, The US Just Accelerated The Demise Of The Dollar

By “Punishing” France, The US Just Accelerated The Demise Of The Dollar (ZeroHedge, July 4, 2014):

Not even we anticipated this particular “unintended consequence” as a result of the US multi-billion dollar fine on BNP (which France took very much to heart). Moments ago, in a lengthy interview given to French magazine Investir, none other than the governor of the French National Bank Christian Noyer and member of the ECB’s governing board, said this stunner at the very end, via Bloomberg:

  • NOYER: BNP CASE WILL ENCOURAGE ‘DIVERSIFICATION’ FROM DOLLAR

Here is the full google translated segment:

Q. Doesn’t the role of the dollar as an international currency create systemic risk?

Noyer: Beyond [the BNP] case, increased legal risks from the application of U.S. rules to all dollar transactions around the world will encourage a diversification from the dollar. BNP Paribas was the occasion for many observers to remember that there has been a number of sanctions and that there would certainly be others in the future. A movement to diversify the currencies used in international trade is inevitable. Trade between Europe and China does not need to use the dollar and may be read and fully paid in euros or renminbi. Walking towards a multipolar world is the natural monetary policy, since there are several major economic and monetary powerful ensembles. China has decided to develop the renminbi as a settlement currency. The Bank of France was behind the popular ECB-PBOC swap and we have just concluded a memorandum on the creation of a system of offshore renminbi clearing in Paris. We have very strong cooperation with the PBOC in this field. But these changes take time. We must not forget that it took decades after the United States became the world’s largest economy for the dollar to replace the British pound as the first international currency. But the phenomenon of U.S. rules expanding to all USD-denominated transactions around the world can have an accelerating effect.

In other words, the head of the French central bank, and ECB member, Christian Noyer, just issued a direct threat to the world’s reserve currency (for now), the US Dollar.

Read moreBy ‘Punishing’ France, The US Just Accelerated The Demise Of The Dollar

MSM Admits: ‘The US Dollar’s Domination Is Coming To An End’

us-dollar-black-hole

–  Wow. Mainstream press: “The US’s dollar domination is coming to an end”  (Sovereign Man, June 18, 2014):

“Whoever is winning at the moment will always seem to be invincible.”

– George Orwell

Wise words indeed as they aptly describe misguided confidence in the US dollar.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT), which helps manage the global banking system, tells us that US dollar settlement accounts for the vast majority of global trade.

And as Orwell suggests, many people take it for granted that just because the dollar is in the lead today, it will be that way forever.

They couldn’t be more wrong. There’s been a dominant reserve currency for thousands of years.

Read moreMSM Admits: ‘The US Dollar’s Domination Is Coming To An End’

Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles

Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles (ZeroHedge, June 26, 2014):

A little over a month ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative. This changed rather dramatically overnight when in a little noticed statement, Gazprom’s CFO Andrey Kruglov uttered the magic words (via Bloomberg):

  • GAZPROM READY TO SETTLE CHINA CONTRACTS IN YUAN OR RUBLES: CFO

In other words just as the US may or may not be preparing to export crude – a step which would weaken the dollar’s reserve status as traditional US oil trading partners will need to find other import customers who pay in non-USD currencies – the world’s two other superpowers are preparing to respond. And once the bilateral trade in Rubles or Renminbi is established, the rest of the energy world will piggyback.

Read moreGazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles