Gold Down Hard!

National Day Golden Week Holiday and the West is selling!

On the market today we see gold heading south like it was on a water slide at the Wisconsin Dells.  Many mainstream outlets reporting higher dollar and job reports.  But what's not being reported is the fact the Central Banks don't want the public to sense there is a failure in the monetary system.  For some time now Russia and China have been beefing up their reserves in gold, compared with China, Russia has registered higher average monthly gold reserve purchases between January and June 2016 at 14 tons a month, according to latest IMF figures.  Many speculate at some point one country will switch to a gold standard for its currency which would crash the dollar.  China and Russia, the world’s No. 1 and No. 3 producers of gold are making waves in the market where Eastern Empire has never been this strong in human history against the West.

On 8/31/2016 China made history of issuance of SDR bonds since 1981, the World Bank plans to sell as much as 2 billion SDR of such bonds in China.  On Saturday just last week, the Chinese yuan currency was added to the IMF's special drawing rights (SDR) basket, joining the US dollar, euro, yen, and the British pound.  What's interesting today in the price drop of gold @ $40 so far, China is on holiday, 'National Day Golden Week Holiday' this is a common local holiday.  Could you imagine the panic when you can't reach your broker if he took off?  This is a real kick from the West and the timing is too perfect for a play on gold.

Western economics are in panic mode, the banks have lost all respect from the public and States.  Wells Fargo is losing customers by the basket full along with state and city customers like California and Chicago, so far.  Looking at European banks, Deutsche bank is in crisis mode and that's being kind.

Chart from wolfstreet.com

From the looks of the monetary system, the metals are still your best bet because all the tea in China will not prop up these markets.  We've been experiencing the plunge protection of stock markets from QE around the globe and the shorting of metals.  Back during the U.S. depression the government debt to GDP ratio was 30%, today that ratio is 104% and China's ratio is 43%, you can see why the Western Empire wants to step on the Dragon's tail.  In the words of Paul Harvey "and now you know the rest of the story".

Gold settles $1270 from a high in July of $1400    

GoldSilver (w/ Mike Maloney)

Dollar coming off the Top- Hello Yuan

Hey Ben Got Yuan? I don't think Ben likes that!

Over the weekend (4/13/14) was the news coming out of China that several Central Banks have invested in the yuan and several others are preparing to do so, putting the mainland currency on the path to reserve status even before full convertibility.

The US dollar is still the world's most widely held reserve currency, accounting for nearly 33 percent of global foreign exchange holdings at the end of last year, according to IMF data. That ratio has been declining since 2000 when 55 percent of the world's reserves were denominated in US dollars.

The 23 central banks known to have yuan holdings, 11 are from Asian markets with close trade links with mainland China: Australia, Hong Kong, Indonesia, Japan, South Korea, Macau, Malaysia, Nepal, Pakistan, Singapore and Thailand, according to public records from either central banks' own statements or central bankers' interviews with the press.

The rest are five from Europe - Austria, Belarus, Norway, France and Lithuania - and seven from South America or Africa - Bolivia, Chile, Ghana, Kenya, Nigeria, South Africa and Tanzania.

The yuan has effectively already become a de facto reserve currency because so many central banks have already invested in it.

Full Article @ South China Morning Post

China has stopped buying U.S. Treasuries along with other countries and with that China and Japan are purchasing hard assets the country has left. China’s Shuanghui International bought Smithfield for $4.7 billion to feed a growing Chinese appetite for U.S. pork. Smithfield founded in 1936 as a single meat-packing plant in Smithfield, Virginia. Smithfield Foods is the largest pork producer and processor in the world. It has facilities in 26 U.S. states and it employs tens of thousands of Americans. It directly owns 460 farms and has contracts with approximately 2,100 others. But now a Chinese company has bought it and that means that the Chinese will now be the most important employer in dozens of rural communities all over America.

The Chinese are on a real estate buying spree all over America. In fact, in some cases, large chunks of land are actually being given to them. Yes, you read that correctly. China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people.  Sen Harry Reid and son are involved with a Chinese energy giant ENN Energy Group, to build a $5 billion solar farm and panel manufacturing plant in the southern Nevada desert.  Yep cowboy, The Bundy Ranch!  Go to the story, click ENN jpg.

In the vid is Stacy Herbert and Max Keiser of part one of episode 587 "the dollar at the bottom of the shampoo bottle."

Channel "RT TV"

G.C.C.U.