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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.
So writes Michael Noonan (edgetraderplus.com) in edited excerpts from his original article* entitled Gold And Silver – In East v West Gold War, Both Are Still Winning.
[The following is presented by Lorimer Wilson, editor of www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Noonan goes on to say in further edited excerpts:
The moneychangers have run their centuries old scam of storing private gold and issuing gold receipts, in exchange, making it easier for the holders of gold to carry paper, convertible into gold upon demand, instead of the physical gold itself. The moneychangers noted that the owners did not demand their gold back, preferring to keep the receipts, instead. The moneychangers began issuing receipts many times more than the actual gold backing the receipts, creating “new money” and the assumption of gold backing.
Paper alchemy was created, and it was highly profitable for the moneychangers, which became central banks. It worked quite successfully until several years ago when the elite’s Ponzi scheme began to unravel. Fast forward to 2013, and the central bankers of the West are having trouble fulfilling the unprecedented demands of physical gold from the East. One thing the Rothschild formula for theft did not take into account was an
opposing force greater than its fiat financial might.
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The East vs. West Gold War
a) The East
China [and Russia] represent the East, importing gold at cheaper and cheaper price levels, as the Western central bankers have been conducting a clearance sale…depleting their physical holdings. In the war for gold, the East and West are still winning, but for vastly different reasons.
China loaned Mao’s gold to the NY central bank, and it would not [could not] return it. The gold was gone, loaned out, sold, we will not likely know the true story, but it was gone. Paper was the name of the game for the West. Physical gold, silver, and natural resources was, and still is the name of the game for China and Russia. Both have been dumping US Treasury bonds in exchange for gold, silver, and any other asset that is not a derivative of paper. Because of the NY central bank experience, China is out for revenge.
- Noonan: Is Gold’s Decline Being Caused By Fed Payback Time to China?
- A Look At the Great Chinese Gold Rush
- China Converting U.S. Dollar Debt Holdings Into Gold At Accelerating Rate
Russia has always been a known adversary and is winning against the US by default, simply waiting for the US to self-implode, which it is doing. Where China holds the majority of physical gold, Russia holds energy trump cards over the US and its faltering scheme of the petro-dollar. It is fast being replaced by sounder forms of collateral and trade outside of the Western fiat scheme. The US has become isolated. Russia has vast amounts of natural gas to supply Europe, replacing, in part, oil.
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b) The West
How is the West winning in the war for gold supremacy? By default, which is all it knows how to do. The entire Western world remains in the financial grip of fiat obligations. Everything is dependent upon the central banking system that is close to collapse. The fiat Ponzi scheme is being kept afloat by China and Russia not forcing the totally insolvent Western banking system to make good on its debts. Instead, China is being rewarded by cheap gold prices and cheap New York real estate that comes with the added bonus of the largest commercial gold vault (they bought 1 Chase Plaza for $750 million, about half of its value, from JP Morgan which also happens to house the world’s largest gold vault) located across the street from the Federal Reserve gold vault.
In spite of the fact that there have been:
- record sales for silver and gold coins by the public,
- record imports of physical gold by China and other countries to a much lesser degree,
- disappearing gold reserves by COMEX and LBMA,
- the highest demand ever for physical ounces of gold by paper holders,
- etc, etc, etc.
they have had zero impact on the price of gold…In fact, the price of gold was down 28% for the year! Why? Because the greatest, and only impact on the price of gold has been the central bankers and their concerted effort to suppress prices, and a very successful endeavor for the past few years. In this regard, Western central bankers have been winning the paper battle on gold, but they are also losing the most important war, economic dominance.
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Keeping Score
Because the natural laws of supply and demand does not apply to gold and silver, the only way we can track the influence of endless paper supply on the market is through the most reliable source, the market itself, and the best way to track the market is through charts.
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
*http://edgetraderplus.com/market-commentaries/gold-and-silver-in-east-v-west-gold-war-both-are-still-winning
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