What is taking place around the world these days is analogous to the children’s game of Musical Chairs, where everyone is happily going round and round at the beginning of the game but knowing that at some point the music will stop and that if they don’t have a chair to sit in they will be out of the game! I see Precious Metals (PMs) as being the chairs and, when the current financial music stops, those without PMs will be left holding nothing but paper money and history is full of examples of paper money suddenly becoming worthless!
So says SeniorD, the primary commentator on the hundreds of economic, financial and investment articles posted on www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) in this exclusive submission to munKNEE.com.
SeniorD goes on to say:
Because China (and probably other countries like Russia and India) are not providing “full disclosure” about their gold acquisitions or the total amount of gold they now hold, their actual amounts could easily be far different from what they have said publicly. These amounts could be very important should the US$, which is now the world’s reserve currency, suddenly became challenged by one or more of these countries that also have very large gold holdings.
Imagine if Russia, India and China (RIC) decided to “pool” their gold reserves, in an Asian gold depository similar to Fort Knox. Together, they could promote replacing the US$ with their new gold-backed RIC currency! Even suggesting this would have huge implications in the financial world and cause many countries that are our long time trading partners to start asking questions about not only their US$ holdings but their own gold holdings and especially if they are being held in other countries’ depositories.
While this might sound far-fetched, it is in no way different from any other takeover where those that position themselves beforehand, reap huge profits afterward. There is really little that any one or more countries could do to keep this from happening, since most of their central bankers (and all their well-connected friends) would immediately protect themselves by acquiring all the available gold that could be had.
Globally, many investors would become much wealthier, while many others would lose vast sums overnight as paper-backed currencies all had to adjust their value to the RIC. Large countries like the USA could threaten to stop trading in anything other than US$ but then those countries like China that are now holding large amounts of US$ would simply start spending them as fast as possible, if they had any left; since they would have been already reducing their US$ positions before promoting their RIC currency.
- China Converting U.S. Dollar Debt Holdings Into Gold At Accelerating Rate
- China Continues Buying Gold Like There Was No Tomorrow! Here Are the Impressive Numbers
U.S. Losing Economic War with China
I believe that the USA and many of its financial supporters are losing an economic war against the Chinese (and their supporters) and the value of the US$ will indicate how the battle is progressing!
- Noonan: “Gold” War Has Replaced Cold War in China/Russia vs. U.S. Struggle for Economic Dominance
- Russia & China Have Power to Collapse U.S. Economy! Is Hoarding of Gold Their First Step In Doing So?
If the Chinese are successful in getting their currency used instead of the US$ then things will be very different in the future, especially for those relying on the US$.
China Adding Allies to Circumvent Use of the USD
We are witnessing a financial war where China is now adding allies to circumvent the use of the US$, which makes China’s currency even more valuable! Every trade that happens without the US$ will only make the next trades easier to do. China now has the global reach to undercut just about any trade and they have continued to add to their PM stocks while at the same time helping to lower the value of PMs worldwide.
- Singapore – China Agreement Yet Another Sign of Ongoing Decline In U.S. Dollar
- Watch Out! Russia & China Stripping USD of Its Dominant Role in World Trade
It may sound counterproductive but from China’s vantage point, depressing the value of PMs now, only allows them to acquire more at better prices while at the same time acknowledging that what is low today (for PMs) can become much higher tomorrow. When the correction comes (aka the fall of the US$) look to PMs to be THE commodity to have!
When the Music Stops Those Not Sitting on PMs (i.e. holding Fiat Money) Will Be Out of Luck!
I believe that what we are seeing when we study current PM charts is that PMs value is being manipulated, as never before which makes sense if you believe that the big banks are trying every trick in the book to force PMs lower so they can obtain as much gold (and other PMs) as they can before what they are doing becomes general knowledge!
- The Big Banks are Blatantly “Harvesting” Your Money! Got Gold?
- Noonan: “Your Savings are in the Crosshairs of the World’s Bankers!” Got Gold – Physical Gold?
Deep Throat advised “Follow the money”; I therefore believe that if China and Russia and others are still acquiring PMs then so should all long-term investors.
Imagine just this one scenario; the U.S. stock market climbs while other foreign banks buy PMs at discounted prices, until the US$ stops being the world’s reserve currency. Overnight PMs would skyrocket, the US$ would plummet and all those not in on the “deal” would suffer as their portfolios’ value became a small fraction of their previous worth.
The End Of The World As We Know It (aka TEOTWAWKI )
For too many Americans TEOTWAWKI has already happened! The meltdown of the financial system and the government decision to bail out the BIG’s instead of Main Street and the American middle class was TEOTWAWKI.
- A Disaster of Unprecedented Proportions (The End Of The World As We Know It) Is Coming Sometime This Decade and It Will Be Irreversible!
- I Repeat: “Economic disaster of unprecedented scale is coming!” Here’s Why
- We’re Heading Toward Another Nightmarish Financial Crisis! Here’s Why
- Another Crisis Is Coming & It May Be Imminent – Here’s Why
The next attack on what is left of middle American wealth is happening now with the call for reducing or eliminating Social Security and/or Medicare!
President Obama must stand strong and cut the military budget and/or the military black budgets or America will suffer a financial civil war between the haves and the have-nots.
The Global Economy Is Collapsing! Got Gold?
The global “economy” is now nothing but a biased shadow of what it was a decade ago as the central banks continue to print money overtime and enable their countries ultra-wealthy to sell gold using naked shorts, which has the effect of scaring small to medium investors into selling their PMs because of fear and/or need.
- Economic Collapse Is a Distinct Possibility – Are You Prepared (even a little bit)?
- More Weapons of Mass Wealth Destruction Likelier By the Day
As the numbers of those with money to spend continually decline, thanks to current monetary practices, the global “economy” will continue to collapse, which at some point in the near future cause the current fiscal version of the fiscal-musical chairs game to end with those only holding flat money left out of PMs recovery!
Gold Is Insurance Against Dramatic Loss in Value of Fiat Money
I view PMs, like I do insurance; you purchase it because if something unexpected happens, you don’t want to be able to pay the entire bill for it yourself. Yes, until that something happens you are paying for your insurance (think not making any money from the money invested in PMs), but that amount is small compared to what you might lose should disaster strike (dramatic loss in value of flat money) which would then require you to accept a huge reduction in the value of your portfolio.
You purchase insurance because if something unexpected happens, you don’t want to pay the entire bill for it yourself. Yes, until that something happens you are paying for your insurance (you do not make any money from the money invested in PMs while you hold it), but that amount is small compared to what you might lose should disaster strike (consider a dramatic loss in value of flat money) which would then require you to accept a huge reduction in the value of your net worth ( loss to your portfolio because you have no gains in the value of your PMs to offset the loses to your flat money.
What percentage of your income do you spend yearly to “own” Insurance? Perhaps the same percentage should be used for your PM holdings in your portfolio because, after all, how many readers consider having no insurance as prudent?
The USD Is Approaching a Tipping Point In Value
There are now too many other BIG fiscal “players” in the global marketplace for the US$ to continue to stay THE worldwide standard forever; and when little by little deals are made in other currencies, the US$ will begin to slip at which time PMs and their value vs. the US$ will also change dramatically in what I call the US$ tipping point.
- Dollar’s Days As Reserve Currency To End In 2 Years (10 Years Latest) – Here’s Why
- The Collapse of the U.S. Dollar is Unavoidable! Here’s Why
Depending upon what causes the shift in the US$’s value (a war vs. a new ongoing resource transaction for oil sales), PM’s value will respond accordingly! Think of this as a 1-2 combination fiscal punch that will leave those holding only US$ reeling, while at the same time, those still holding PM’s will remain much more secure than ever before.
Central Banks United In Pushing PMs Lower
I believe that we are now in a period that is unique in history, in that the central banks and their governments are working together, as never before, to push the value of PM’s downward in order to prop up their continued printing of ever more “flat” money (aka paper money) that in reality now has little actual value. I see this “united effort” as an agreement between these same central banks that will allow them some additional time to re-position their own holdings, so that they all can not only add additional PMs to their own holdings (at a discount) but at the same time remove as much PMs as they can from as many small to medium investors as possible, which will make PMs even more valuable in the future since most of it would then be held by these same central banks.
A great analogy is the children’s game of musical chairs, where everyone is happily going round and round at the beginning of the game but knowing that at some point the music will stop and those without a chair to sit in will be out of the game! I see PMs as being just the chairs, when the current financial music stops, those without PMs will be left holding nothing but paper money and history is full of examples of paper money suddenly becoming worthless!
Adding to this situation is the fact the these same central banks are now still adding gold and possibly silver, at depressed prices, to their own portfolios, which should be seen as giant waving red flag for all investors, because they are telling us one thing while doing the exact opposite thing themselves! In reality, they are just issuing statements, supported by ever better looking charts, illustrating numbers being generated by these same central banks/governments, to justify the value of their own “strong” currencies while at the same time allowing only their biggest players to use newly printed paper money to short PM’s value.
Question: If you are playing poker in one town and you are starting to think the game is rigged, do you really want to end up holding only the house’s chips that are good in just one town or something of real value like gold and silver coins which are accepted in every town or some of both?
What Our Fiscal Future Might Look Like
Could the Fed and the big banks actually be planning on the US Dollar tanking? Consider this, they have the entire world now investing in the US Dollar and we have been printing US$ as fast as possible to keep up with the demand. Personal credit has tightened its hold on those still in the middle class, while the big banks are getting their money at almost zero interest. Now ask yourself why the Fed and Congress have allowed this to happen.
Could the following scenario unfold. one day very soon?:
- The value of the US$ plummets, but not before the central banks and the big banks scoop up all the available gold and other PMs they can, to limit their own losses. When the financial dust settles, both of their positions are vastly improved compared to where they are today.
- The central banks, now with their vaults full of PMs bought at bargain prices as compared to 6 months ago, agree to comply with peoples demand for a gold standard.
- The big banks would be only too happy to devalue the paper US Dollars value (say 100 old US$ = 1 new US$ (USN$) since they will be paying back all US debts with USN$ pennies instead of US$. Imagine the Fed and Big Banks a hundred times or more powerful than they are today!
By the way, if you think conversion from US$ to USN$ will take long enough to give you some warning, so you can also convert your money to PMs, think again!
I’m predicting that:
- USN$ will be implemented over a Sunday evening followed by a Bank Holiday the following Monday, and Tuesday if necessary,
- electronic conversion “cash” credits will be used until all physical cash conversions are verified as factual.
agents of the Treasury, working with DHS and local law enforcement, to maintain order, would then determine on a case by case basis, by looking in every safety deposit box, that everyone’s stash of cash.
1. China GROSSLY Understates Its Gold Reserves! Here’s Why & What They REALLY Are
Today China came out with their Central Bank Gold Holdings reporting 1054 tonnes but this is impossible. Here is why. Read More »
2. China Converting U.S. Dollar Debt Holdings Into Gold At Accelerating Rate
China, Russia and other nations are exiting their dollar-denominated holdings in favor of gold. This action should put pressure on the dollar and U.S. treasuries, pushing not only central banks, but mainstream investors towards the safety of precious metals and other tangible assets that cannot be defaulted on. There will be a rush out of dollars and into assets with no counter-party risk, it is just a matter of how soon it happens. Read More »
3. China Continues Buying Gold Like There Was No Tomorrow! Here Are the Impressive Numbers
China continues to buy gold with both hands, keeping up all the gold they produce and importing even more! Imports were up 50% in October vs. the previous month; up 68% in November and up 74% in December. What will January bring given the continued weakness in the price of gold? Probably even more buying! Read More »
4. China’s Role in the Future of Gold
In this infographic we look at how gold growth in China will impact the future of the precious metal. In Q4 of 2011 and continuing into 2012, China has bought more gold overall than even India and will continue to play an important role in consumption. Read More »
5. China & the West View Gold Very Differently – Here’s Why
6. Noonan: “Gold” War Has Replaced Cold War in China/Russia vs. U.S. Struggle for Economic Dominance
With the Western central bankers conducting a clearance sale, and depleting their physical holdings in the process, China and Russia are importing gold at cheaper and cheaper price levels. In the war for gold, the East and West are still winning, but for vastly different reasons. Let me explain. Read More »
7. Singapore – China Agreement Yet Another Sign of Ongoing Decline In U.S. Dollar
Finance executives in Asia see the writing on the wall. They can see that the dollar is in a period of terminal decline, and that the Chinese renminbi is going to take tremendous market share away from the dollar – and they want a big piece of the action. To that end representatives of the Hong Kong Exchange and the Singapore Exchange, THE two dominant financial centers in Asia, have signed an agreement to combine their forces in rolling out more financial products denominated in Chinese renminbi. This has massive consequences for the global financial system – and the future of the U.S. dollar. Read More »
8. Russia & China Have Power to Collapse U.S. Economy! Is Hoarding of Gold Their First Step In Doing So?
Most Americans simply don’t understand that Russia and China have the power to collapse the U.S. economy by going to a gold for oil system. All they have to do is pull the trigger. Let me explain. Words: 1515 Read More »
9. The Big Banks are Blatantly “Harvesting” Your Money! Got Gold?
When prices are set by companies that can profit by manipulating or rigging them, we’re screwed. This “harvesting” of our money in ever-more-creative and hard-to-detect ways is not just stealing by reaching a hand into our pocket and taking out money, but stealing in which banks can hit a few keystrokes and magically make whatever is in our pocket worth less. This is corruption at the molecular level of the economy – Space Age stealing – and it’s only just coming into view. Words: 630 Read More »
10. A Disaster of Unprecedented Proportions (The End Of The World As We Know It) Is Coming Sometime This Decade and It Will Be Irreversible!
“The end of the world as we know it” is what David Korowicz predicts is coming sometime this decade – an “ultimate” crash that will be irreversible – TEOTWAWKI
11. Dollar’s Days As Reserve Currency To End In 2 Years (10 Years Latest) – Here’s Why
The American dollar will be overthrown…in as short a period as 5 to 10 years says one analyst while another believes it will happen as early as 2015, 2016 latest. Here’s why. Read More »
12. I Repeat: “Economic disaster of unprecedented scale is coming!” Here’s Why
I get tired of preaching economic disaster and I am sure readers are just as tired of reading about it. Yet, it is coming regardless. The disaster will be of such importance that one cannot overemphasize it or warn too often about it. It will be a disaster of unprecedented scale. Read More »
13. 5 Red Flags of Imminent Economic Collapse
These 5 red flags will give you anywhere from a few days to a few months of warning that things are about to change drastically…and well before those around you grasp the full extent of what is going on. This is hopefully a scenario that never happens as this will truly be the end of the world as you knew it. Read More »
14. Another Crisis Is Coming & It May Be Imminent – Here’s Why
Is there going to be another crisis? Of course there is. The liberalised global financial system remains intact and unregulated, if a little battered…The question therefore becomes one of timing: when will the next crash happen? To that I offer the tentative answer: it may be imminent…[This article puts forth my explanation as to why that will likely be the case.] Read More »
15. Noonan: “Your Savings are in the Crosshairs of the World’s Bankers!” Got Gold – Physical Gold?
Obama has introduced the MyRA account and it is the prelude for eventually taking over the country’s entire pension programs, taking over all the accounts, (stealing your lifetime savings), and exchanging them for the US Treasury Bonds the Fed cannot sell to countries anymore. This is the only way the US government can cover its trillion $ (and growing) deficit spending. Got gold- physical gold? Read More »
16. Economic Collapse Is a Distinct Possibility – Are You Prepared (even a little bit)?
Do you share concerns about the world today, and the path we are headed on? Do you believe a total economic collapse is a real risk? Many would say it’s a concern but doubt it’s actually going to happen. It’s always been okay, so it probably always will be, is certainly the view that most of us hold. The thing is, though, that it hasn’t always been ok and it could easily happen again. Are you prepared for such an eventuality? Read More »
17. More Weapons of Mass Wealth Destruction Likelier By the Day
Households in the U.S., Europe and Japan may soon face fiscal shocks worse than any market crash. Powerful economic players are deciding that with an ever-deteriorating global fiscal outlook, conventional levels and methods of taxation will no longer suffice. Indebted governments may soon consider making weapons of mass wealth destruction , such as the IMF’s one-off capital levy, Cyprus’s bank deposit confiscation, or outright sovereign defaults, likelier by the day. Read More »
18. The Collapse of the U.S. Dollar is Unavoidable! Here’s Why
The mother of all collapses is still in front of us. Below are my reasons why that is the case and how to protect yourself financially from such an eventuality. Read More »
19. We’re Heading Toward Another Nightmarish Financial Crisis! Here’s Why
We have not seen so many financial trouble signs all come together at one time like this since just prior to the last major financial crisis in 2008. It is almost as if a “perfect storm” is brewing, and a lot of the “smart money” has already gotten out of stocks and bonds. Could it be possible that we are heading toward another nightmarish financial crisis? Read More »
20. Will This Be The USA in 2014?
The economic condition of the country continues to decline toward its rendezvous with an, as yet, unknowable catastrophe. Here is… a look (not a prediction) at a series of not improbable events that could develop [and which] would change our economic world overnight. Words: 1550 Read More »
21. Watch Out! Russia & China Stripping USD of Its Dominant Role in World Trade
Before China and Russia can boot the U.S. military out of Asia and Eastern Europe, they have to strip the dollar of its dominant role in world trade, especially of Middle Eastern oil and that’s exactly what they’re trying to do. [Let me explain.] Words: 816 Read More »
22. Gold: The Ultimate Insurance Against Economic Armageddon
Most economists and investors still labor under the illusion that there’s a way out of debt that doesn’t involve a drastic reduction in the paper value of wealth but smart investors aren’t so sure and want at least a portion of their assets out of the financial system, i.e. in gold bullion. Words: 649 Read More »