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P.I.G.: Three Golden Guarantees|
- and the shysters telling you not to hold gold
Alasdair Macleod admits he once touted the quackery that is "technical analysis" and which is akin to killing a bird and reading it's entrails to predict the future.
Here's his attempt to spin World events and his denial of a far higher gold price: There is irrefutable evidence that China has been planning for a post-dollar world since shortly after her leadership threw in the towel on communism and embraced free markets.
- The Quiet Revolution: Gold's Monetary Rehabilitation Is Building
That Alasdair Macleod should adopt the language of the hackneyed propaganda that cites "communism" vs "free markets", should be a clue that he's full of it and by "it", I of course mean BS. Also, conspicuous by its absence is any comment in the anglo/zionist propaganda of the Great Satan lifting the 40 year ban on crude oil exports and converting LNG terminals for export rather than import from the gangster-run, thieved prison-state of Amerika, not to mention the illegal wars started in Ukraine by Victoria "F**k the EU" Nuland and George Soros and Syria, which is, clearly, confirmation that the petro-dollar is dead, if not already buried.
Here's the shaky foundation on which Macleod bases the crux of his BS: The regulations appointing the People’s Bank with sole responsibility for gold and silver date all the way back to 1983, since when we can confidently assume the PBOC has quietly accumulated gold on behalf of the state at prices that varied between $250-500 over a nineteen-year period. We know this, because in 2002 the PBOC then permitted private ownership, setting up the Shanghai Gold Exchange to facilitate physical acquisition. This would only have happened after the state had had a clear run at accumulating sufficient physical gold for its future purposes.
Macleod then makes huge assumptions, more shaky foundations, much as shyster, Albert Einstein, did in his quackery on on relativity: My estimate for state ownership of bullion, based on contemporary prices, an analysis of capital inflows in the 1980s, followed by trade surpluses in the 1990s and before the public were permitted to buy in 2002, is approximately 20,000 tonnes.
And yet more BS, cherry-picking "currency in circulation" rather than monetary base of money supply: Even so, that may be not be enough gold bullion owned by the state at current prices to operate a simple gold exchange standard, being the equivalent value of ¥5.22 trillion, compared with currency in circulation of ¥7.15 trillion. For comparison, when President Roosevelt devalued the dollar to $35 in January 1934, the US Treasury held gold worth $7.44bn at the new price against currency in circulation of $5.72bn.
The house of cards built on the above BS foundations is a price for gold which could only be called, "unambitious": Therefore, if the Chinese government has 20,000 tonnes, and if it is to have the same currency cover as America had on 31 January 1934, at current exchange rates gold would have to be priced at $2,317.
The distraction from gold, buttcoins, went from $1,000 to $20,000 in less than a year and has now crashed to about $7,000. Meanwhile, gold is actually down 2% measured in "nitroglycerine" Poodles and only up 2.5% measured in "worthless paper" USD. By comparison, China imposes a 2% DAILY limit on her currency relative to the "worthless paper" amerikan gangster funny-money. The tight control over the gold price shows the banksters are soiling their masters of the universe underpants. It is highly likely that the stable price is designed to deter investment, just as the rocketing price of buttcoins is designed to draw in the suckers just before the crash.
Jiminy Rickards is even funnier: Excessive Federal Reserve money printing from 2008–2015 combined with projected U.S. government deficits over $1 trillion per year for the foreseeable future, and a U.S. debt-to-deficit ratio of 105% rising to over 110% in a few years, leave the U.S. dollar extremely vulnerable to a collapse of confidence on the part of foreign investors and U.S. citizens alike.
- “Money Is Gold — and Nothing Else”
The "collapse of confidence" in paper funny-money is what I would define as a hyperinflation. Very obviously, the negative interest rates (but only on excess reserves) by the ECB and BoJ are designed to deter flight from the "worthless paper" USD, whilst Brexit and now Quitaly are also designed to support it. A hyperinflation of the "worthless paper" USD is what Egon Von Greyerz is now predicting: "WILL POVERTY, DISEASE AND WAR LEAD TO 3 BILLION FEWER PEOPLE?" So what does Rickards recommend?
I recommend that investors keep 10% of their investable assets in physical gold (with room left in the portfolio for “paper gold” in the form of ETFs and mining stocks).
Like Macleod's gold price, this could be called "unambitious". Mark O'Byrne of Goldcore reports that some are only holding gold and only selling when they need some spending money.
But for the "worthless paper" USD, Rickards recommends: For purposes of simplification, we’ll assume the overall portfolio contains 10% gold, 30% cash, and 60% equities. Obviously those percentages can vary and the equity portion can include private equity and other alternative investments.
Yes folks, Rickards says the paper funny-money will become worthless, so you should hold 10% of your wealth in gold but 30% in the "worthless paper" USD.
Yet, gold is "cold, hard cash"; the safest financial asset of all. Why would you hold 60% of your assets in shares which are clearly in a bubble (Amazon is an extreme example with 1,000:1 p/e ratio), or 30% in paper funny-money which Rickards claims will become worthless? It's not as though a dutch pension fund WASN'T ordered to sell gold to avoid losses and when the price of gold rose DIDN'T sue the dutch government for the loss. It's not as though the Great Satan and its poodle DIDN'T start two World wars in order to defraud the entire planet with what the Germans in the 1930s derided as "jew confetti".
Furthermore, gold has a lot going for it.
"P" is for Peak Gold: Funds for exploration are historically high, $54.3 billion, up 60 percent over the past 18 years.
. . .By 2010, only 18.6 million ounces of gold was discovered, a severe drop from the 61.5 ounces found in 2009.
- Global Gold Mining Supply Looks Set To Decline
That 61.5 ounces (presumably millions of ounces) was the peak discovery so far this century according to the above article. Yet it's only 1,913 tonnes against annual mining of about 3,000 tonnes and it's not as though it will all be mined in one year. China's consumption is almost 2,000 tonnes and India accounts for the rest. Only scrap supply satisfies demand for the other two thirds plus of the World population.
It's possible that existing mine supply could continue to feed the market demand. But already there are signs that existing sources are also struggling. China's annual production, the World's largest, has plateaued for the last three years at about 450 tonnes. At it's peak in the 1970s, South Africa produced over 1,000 tonnes a year. Yet in 2017, Metals Focus reports that it only produced 157 tonnes despite mining as deep as 5km below the surface: "Gold Production On The Cusp Of Peaking" and is now in 7th place behind Peru. Russia has just announced she will double gold production and overtake the gangster-run, thieved prison-state of Auztralia to take 2nd place. This is similar to the poodle state announcing a series of auctions of gold in 1999 which saw a 10% fall in the price of gold between the time of the announcement and the first auction. James Turk's "More Proof" article showed that the poodle-state actually IMPORTED gold around that time. In other words, the poodle state had sold the 700 tonnes of gold long ago and the "sale" of gold was actually just settling gold leases in paper funny-money, whilst buying the 310.3 tonnes it now declares as its gold reserves and it's why Gordon Brown declared that he "got a good price" for the gold.
"I" is for inflation. As I posted above, the "West" is so heavily indebted that it will have to default and as Gary North pointed out, default via inflation is the easiest way, politically, to do so. This entails raising the price of goods and natural resources, so will inevitably impact the gold price. Like peak-gold it guarantees a far higher gold price.
. . . continued