"There's been a decision to bolster our forces in the Pacific," says Bonnie Glaser, a China expert at the Center for Strategic and International Studies in Washington. "There is no doubt that China will stand up and take notice."Here's the article link: A Not-So-Subtle Threat To China?
Recall that in Orwell's "1984," the world is controlled by three super-states which are at perpetual war with each other. Oceania (Americas, UK/Ireland, Australia and few other areas), Eurasia (Europe, northern Asia) and Eastasia (China, Japan, Korea, northern India).
"Perpetual war?" Think: "War On Terror." The war is about control of the resource-rich areas of the Middle East and Northern Africa. Hmmm...And the three super-states" are dystopic, totalitarian regimes.
I don't know about anyone else, but given that the U.S. system is quickly lapsing into the dystopic state of existence as depicted in Orwell's "Animal Farm," I believe it would be a mistake to dismiss his vision presented in "1984." The contemporary geopolitical developments are becoming stunningly comparative, at least to this observer. That is to assume, of course, that the world does not end up in the state of existence as depicted recently in Cormac McCarthy's "The Road."
It will be interesting to see if China has any response to this development. I'm also wondering if their statement the other day about not engaging in economic warfare using their $900 billion in U.S. Treasury holdings might have been more than coincidental to this development. And then there's this: China Shifting Reserves Into Japanese Govt Debt. There's nothing like gunboat diplomacy...
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- George Bernard Shaw
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The US goobermint/economy is certainly sliding into the ugly. It has elements of '1984' and 'Brave New World' and Mad Max all coming to the fore. The resources are running out...
ReplyDeleteI think we will find out what China plans to do about all this the exact same way we learned of their massive gold hoarding...well after the fact, with numerous feints along the way. I doubt I will like it, as the Chinese probably don't care much about Redneckistanians.
I have one question which, if answered, would allay a lot of the skepticism I have for the price-suppression thesis: What's in it for the bullion banks to take such an enormous risk?
ReplyDeleteWhat would justify them taking enormous naked shorts in the face of a bull market? Why would the Fed, which has taken trillions of crappy loans onto its balance sheet to support the banks, encourage them to compromise themselves to that extent all over again? Is the assumption that the positions are obligations of the Fed rather than the banks? If not, I don't understand the incentive.
Agree Red!!
ReplyDeleteAnonymous, don't take this the wrong way, but I don't care if you buy into all evidence presented by GATA and others over the last decade on the gold suppression scheme.
If you want to learn, you need to take action yourself. Start by going to www.gata.org and go to the beginning of the archived articles. I think they start around 1998 or 1999. Read everything you can by James Turk and others. Read about the lawsuit filed by Reg Howe. Google "Edwin Viera" a noted Con Law expert and read everything he's published.
This is a body of work that has been studied exhaustively by many of us over last 9 or 10 years. Either you invest in it and understand or you don't. The choice is your's.
I will end with a quote from Mike Maloney: "anyone who can look at all the evidence presented about manipulation and still refuses to believe it is either insane or an idiot."
I would only be too happy if it were the case. I'm long the PMs, and the thought that the kitchen sink has been thrown at them to hold them down in the face of bullish fundamentals is as sexy to me as the BoE's doomed support of the pound was sexy to Soros.
ReplyDeleteIf a crime has been committed, I'm simply trying to understand the motive. If these guys are willing to risk all that they've built and that has paid them so handsomely, it doesn't seem unreasonable to ask why they would do so.
Do the work or continue whistling in the dark on this. Arbeit macht frei.
ReplyDeleteBy the way, when I started in this sector 9 years ago, the HUI was at 45. You can calculate the decade to date return. GIve me one fucking investment that has come remotely CLOSE to that.
ReplyDeleteI'll say it again: the PMs are in a secular bull, I have no disagreement on that point (why else would I be long?). You're preaching to the golden choir on that score. :-)
ReplyDeleteI'm simply puzzled as to why JPM et al would expose themselves to the appalling risk of being naked short millions of ounces of gold and silver in the face of it, or why the Fed, which seems to be bending over backward to devalue the dollar and spur inflation would do so as the principal. If the motive is spelled out on the GATA site, I will peruse it when I can.
Again, it's not my goal to antagonize you, simply to understand this particular doctrine and its motivations. Viva oro.
I think the motive is simple. Gold and Silver are the anti-thesis of unbacked, paper fiat currencies and must be controlled. These bullion banks are obviously funded by the printing press but even this has a limit. I think we are very close to a mass-panic in the PM sector and we will see them diverge from equities, with Silver leading the way up.
ReplyDeleteJoe M.
The HUI is gay. It's gone nowhere the last 3 years.
ReplyDeleteWar is peace... Freedom is slavery... Ignorance is strength...
You have to do the work to understand "why." If someone tries to expain it, you won't get it. I have 9 years of studying this shit. It's a large, comprehensive body of work and it's not all on the GATA website. When most people are in bed watching Letterman and trying to get lucky with their wife, I'm working and researching and reading. It's my passion.
ReplyDeleteThe fact of the matter is that it's likely that JPM has a lot of physical silver on the other side of their short. They are, after all, the custodian of SLV. The bullion banks are busy keeping a lid on the price of gold/silver and meanwhile looting all possible sources of physical at prices they know are absurdly low.
This will eventually end in war, ergo my blog post today.
For 5,000 years, "he who controls the gold makes the rules." that is not lost on the bullion bank and the Rothschilds.
Thanks, Dave. That was all I was asking. I had incorrectly gleaned the notion that all of these shorts were completely naked, hence my puzzlement.
ReplyDeleteThe market mechanics of how JPM can acquire enormous stores of metal (though I don't follow how being the custodian confers ownership ... the presumed owners of SLV silver are SLV unit holders) while suppressing its value in the futures market, all in the face of a secular bull, will take some additional pondering on my part to work out.
Be that as it may, you have answered my question, and I appreciate it.
Being custodian doesn't mean they own it. But they control it. And the prospectus for GLD/SLV has not safeguards in it to protect from fraud/looting. In fact, the prospectus is worded in a way which enables it. See my GLD report I posted in either Nov or Dec.
ReplyDeleteIf JPM needs or wants the physical silver in SLV, it's their's to take.
http://www.zerohedge.com/article/fed-gses-%E2%80%93-put-it-balance-sheet
ReplyDeleteDon't miss this one in the maelstrom that is ZeroHedge. It's just banksters doin' the paper shuffle...all the bad debt into the Goobermint backed banks!
Redneckistanian
"When most people are in bed watching Letterman and trying to get lucky with their wife...."
ReplyDeleteHow does that happen??!! LOL
In martial arts, there's a concept known as "breaking down." There are optimal positions for the entire body to easily and effectively apply technique that works. However, most folks don't bother to explore that deep. The point is, most folks in finance don't want to explore that deep, either. Consider this: Perhaps all THREE (Oceania, Eurasia and Eastasia) are financed by the same sociopathic financiers, who loan-to-own! Folks in each group fight each other, but are controlled by same financiers. That's why I wrote years ago on GreatRedDragon.com that the only way to win was not to play. Physical gold and silver holdings pulls your wealth from their money stream. Everything else keeps in you in their game of heads they win, tails you lose. Can you imagine a world where 99% of each of those three groups combined against the 1% of the sociopaths causing most, if not all, of the world's financial problems?
ReplyDeleteThe rules of COMEX allow delivery of ETF shares as an alternative.
ReplyDeleteAmmo the other Precious Metal. I am no Tin Foil hat Dope, but I will say this, load up.
ReplyDeleteThe dollar can't be devalued. It's not "valued" against anything, eg: gold. It's impossible.
ReplyDeleteStirrings of a New Push for Military Option on Iran
ReplyDeleteby Jim Lobe, July 10, 2010
"From a marketing point of view, you don’t introduce new products in August," explained then-White House Chief of Staff Andrew Card back in September 2002, in answer to queries about why the administration of George W. Bush had not launched its campaign to rally public opinion behind invading Iraq earlier in the summer.
And while it’s only July — and less than a month after the U.N., the European Union (EU) and the U.S. Congress approved new economic sanctions against Iran — a familiar clutch of Iraq war hawks appear to be preparing the ground for a major new campaign to rally public opinion behind military action against the Islamic Republic.
The U.S. monetary authorities can no longer rely on Europe to ride herd with more QE II, so they will set events in motion that will allow them to do what they are so desperate to do. When the economy, and its bellwether, the stock market, which under girds every pension about the land, are knocked absolutely flat again-and they will be, the way will be paved for the Federal Legislature to get behind QEII. They wouldn't go for it today, but when the public is screaming for largess as they witness their pensions go up in smoke. The worm will turn again in favor of the money master.
ReplyDeleteAnd some more better war will also provide yet another necessary distraction and impetus to enact QE II. In the meantime, Obama is doing his best imitation of a totalitarian dictator by barring access to the GOM, helping BP cover up, and assisting in the spreading of propaganda about the (lack of) progress in capping the gusher(s).
Edward - I don't disagree w/your analysis of 1984. Can you say "Bilderbergs?" LOL.
ReplyDeleteTara - you need to rethink your view there. Or get back on your spaceship. If yesterday it only took $1190 to one ounce of gold, and today it took $1210, the dollar has declined in value vs. gold. In fact, gold has been going up in value against ALL paper fiat currencies. All of them. Bar none. The better way to think about is that 1 oz. of gold is one ounce of gold. But the amount of dollars required to buy one ounce of gold has increase by over 400% since 2001. That is a de facto devaluation of the dollar. You are spending too much time worshipping Denninger and Mish. They are wrong.
If you're worried about the purity of American eagles and you don't trust the U.S. Govt, buy 1 oz. Austrian philharmonics instead. It's a .9999 coin, which the eagle is not, and it trades at a smaller premium to spot. In the end, all 1 oz. gold coins will trade for the same price.
ReplyDeleteThe masses have been so programmed to believe prices just naturally go up. All one need do is look at the FED inflation calculator to see the USD has been devalued by 96% since 1913, and this is a low-ball number because the stats have been jiggered for so long.
ReplyDeleteWe probably only have about 2% real purchasing power left and it is about to go up in a flash fire of epic proportions.
A fiat currency is nothing more than a stealth devaluation vehicle designed to benefit the elite.
Joe M.
Hezbollah says has list of targets in Israel
ReplyDeleteSheikh Nabil Kaouk responds to IDF's release of maps and aerial photographs of weapons depots and command centers in southern Lebanon, says Shiite group has bank of military targets inside Israel to hit in any future war
AP and Ali Waked Published: 07.11.10, 17:37 / Israel News