“Silence in the face of evil is itself evil. God will not hold us guiltless. Not to speak is to speak. Not to act is to act”. Dietrich Bonhoeffer
“Never laugh at live dragons.” J.R.R. Tolkien
The currency revaluation and dollar collapse may be close. My recent article, “What Happened to Germany’s Gold?” seen here was prescient but I did not expect action so soon. On Jan 20, 2014, Bill Holter in his “Buy Gold and Silver” section of “blog.milesfranklin.com” blog quotes, John Embry, a mining company expert that, “It’s Gotta Be Close” Referring to the RV.
My complete article is found on my other website. I could not figure out how to publish the charts on this Blog- it is too new for me. You can read the complete article on www.jpfinancialeducation.com under Articles. It is labeled “Currency Revaluaiton (RV) an Dollar Collapse – ‘It’s Gotta Be Close’ – China and US Reaction”. You can find an Abstract below.
It appears to many that the currency revaluation (RV) are close. The return of 5 metric tons of gold by the US of the 1,500 tonnes given to them for safe storage by the Germans at the end of WWII is a matter of international concern. The Germans gave the United States 1,500 tonnes for safekeeping and then gave another 450 tonnes to France for safekeeping. In 2012, Germany asked for return of the gold. The United States returned 5 tonnes and France returned 32.5 tonnes in 2013. Glen Beck made a video, “What Happened to the German Gold?”, and provided a good dramatization explanation of the FED’s “re-hypothecation”, the use of another’s asset to make money, here. It has gone viral on the net. I wrote and Posted an article, “What Happened to Germany’s Gold”, on my Vertical Rising Blog, here that explained the size of the white collar crime and how it works.
As a result of this FED action, the nation of Germany on January 16 formally declared, via Elke Koenig, the president of “Gafin”, the financial regulator organization for the German nation that, “the gold price manipulation is worse than the LIBOR manipulation”. This is the major nation in Europe making a formal statement that, “the gold price is manipulated.”
Deutsche Bank the next day, on January 17 announced that they were leaving the London gold exchange and selling their seat. Concurrently, China took in another 79 tons of gold for delivery that week. China is now purchasing at the rate of 4,000 tons per year.
The commercial press is beginning to pay attention to these events. Glenn Beck’s video explained re-hypothecation and how the gold was removed from the FED. O’Reilly said on January 16, “If the Fed does not stop the wild spending, the dollar will crash”. He further said that if the dollar collapses, “your savings, investments and home will blow up before your eyes.” In my belief, he is right.
This paper discusses the above events, China’s possible strategy as well as the US reaction. China has prepared themselves for a financial collapse on a global scale and for a financial collapse on a gradual scale. In either case, they win. They have their hard assets in place and their infrastructure in place. In addition, they have enough gold now to back their Yuan if it is required in the case of a financial collapse. If they announced a gold backed Yuan, the dollar would collapse. Their motivation may not be to do so since they are adding to their gold pile at very low prices. The big question remains “when” is a likely time for them to do so. No one knows. However, it could be as early as the Chinese new year which starts February 1 and goes for 10 days. On the other hand, they may continue to wait and continue to build their assets and infrastructure. Again, no one knows. But, China will win in either case – total financial collapse or gradual financial collapse. A possible trigger event happened on January 23, gold broke a major resistance level at $1,260 and closed the week two days later at $1.269. It now stands ready to surge to $1,500 and probably clear $2,000 / oz. by the end of the year.
China will become a reserve currency and will possibly become the world’s reserve currency based on what they have done and are doing. If the back the Yuan with gold, it will become the world’s reserve currency. This will cause a inflation and then a further depression in the US . Only gold and silver will supply protection for the small investor.
The US seems to be planning for riots with DHS, arming the DHS, building concentration camps and coffins. The government is not talking and everything else is speculation. In strong contrast to this approach, China is planning on expanding in Africa by spending $1 trillion over the next 10 years to put in place an infrastructure that will supply mineral resources to their manufacturing complex and finished goods manufactured in China to the Africans.