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Something Very Bad is Looming! Gold To Rise in Coming Monetary Collapse.

  • Bob Chapman of International Forecaster is sounding the alarm on what is about to happen :
     
    ….something very bad is looming – we don’t know the exact configuration yet, but we think the key is the collapse of the dollar, which will send gold and silver to considerably higher prices. These events could unfold over the next 2 to 4 months. There could be devaluation and default of the US dollar and American debt. You must have at least a 6-month supply of freeze dried and dehydrated foods, a water filer for brackish water, and assault weapons with plenty of ammo and clips. You should put as much of your wealth as you can in gold and silver coins and shares. You should not own any stocks in the stock market except gold and silver shares, you should not own bonds the exception being Canadian government securities, you should not own CDs, cash value life insurance policies and annuities.
     
    And, needless to say, except for your home you should be totally out of real estate, residential and commercial because it will remain illiquid for many years to come. Continue to pay your normal debts down because we do not know how they will be treated when we arrive at devaluation and default. We certainly don’t want to have to tell you this, but the way things are shaping up it doesn’t look good. As we write this the dollar is breaking 80 on the USDX. Interest rates are climbing, and have broken out to the upside. Gold and silver are poised to break into new high territory and the stock market is preparing to retest 6,600 on the Dow. You have been warned, act accordingly.
      
    The Chinese and Russians are the laughing stock of the US and European Illuminists at the G-20 meetings concerning talk about a new world reserve currency to supplant the dollar.  With China’s gold reserves of about a thousand tons and Russia’s five hundred tons, they are like penny ante poker players trying to get in on a thousand dollar ante game.  They need five to ten thousand tons of gold reserves just to be an average player in “The Big Game,” much less a leading and influential player.  The rest of their foreign exchange reserves are denominated in fiat currencies, which are all practically worthless except for the euro and Swiss franc. The euro has about 5% backing of gold and the Swiss could have 25% backing if they again desired gold backing.  China has about two trillion dollars worth of foreign exchange reserves, while Russia has about 400 billion dollars worth.  It does not take a math genius to figure out that two trillion times nothing is still nothing.  They are creditors who hold worthless bonds and notes.  Big deal.  Their only trump card is that they can make gold skyrocket and the dollar tank before the Illuminists are ready to take our financial system down.  This is where their real leverage lies.
       …..
    China and Russia are both well aware that they must acquire substantially more gold if they want to have any say on the matter of a world currency. The trick is, how to acquire new gold reserves without sending gold on a moon-shot or causing harm to the dollar by dumping dollars for gold.  This is the opposite of what the Fed and US Treasury want, at least for now, until they are ready to take the system down to pave the way for a world currency and a one world government.  So the Chinese and Russians are now at loggerheads with the US and European Illuminists.  What China and Russia need to do in their own best interests is an anathema to the Fed and the US Treasury. This may explain the IMF gold sale rumors.  China wants more gold, and this would be a way to grab a large chunk without running the gold price up, which would make the Fed go ballistic.
       …..
    China is caught in a dollar trap.  If they try to unload dollars, they destroy the remainder of their holdings, so they have to keep vacuuming up a large portion of the dollars that are being dumped in the form of treasury bonds to support criminal zombie bank bailouts and rampant socialistic welfare spending which the US government euphemistically calls a stimulus package. If China doesn’t keep sucking up dollars, the US will have to monetize more and more treasury bonds to “save the economy,” which is another euphemism for the socialization of Wall Streets losses courtesy of the US taxpayer.
      …..
    China and Russia are in a very poor position monetarily, at least as bad as Europe and the US, perhaps even worse.  They have no business pushing their weight around when they their gold reserve holdings are inconsequential. So what if they are creditors.  The debts owed to them are denominated mostly, or at least substantially, in dollars, which are becoming ever more worthless as Emperor Obama throws lavish dollar bailout parties for the rich bankers and the social welfare recipients, while the middle class and non-anointed upper class, which could reduce the ensuing inflation caused by these lavish dollar parties via increased production, are given token relief.
       ….
    While China is in a dollar trap, Russia is in an oil trap.  The Illuminati still control the price of oil, so Russia is at their mercy as well.  There recent financial market experience was an absolute disaster as oil tanked.  Their markets were a shambles, and had to be closed down many times to stop panic selling and to control  speculative short-selling.  They had to spend down a large portion of their reserves to support the ruble and their financial markets.  They are hardly in a position to dictate terms regarding a world currency.  If they try to bully Europe with natural gas, this will backfire.  The price of oil will then drop to $15 a barrel.

end

June 1, 2009 - Posted by | Economics, GeoPolitics | , , , , , ,

1 Comment

  1. […] Gold Purchase, the U.S. Dollar, and the Chinese Yuan China Should Buy Gold To Hedge Dollar Fall Something Very Bad is Looming! Gold To Rise in Coming Monetary Collapse. Let the Currency Wars Begin? World Financial System in a State of Insolvency ! Global Financial […]

    Pingback by Where are we in the Gold Cycle? « Socio-Economics History Blog | August 18, 2009


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