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China's Gold Ambitions and What They Aren't Saying

China's Gold Ambitions and What They Aren't Saying | The Truth Behind the Headlines | Scoop.it
China’s largest gold producer is already a force to be reckoned with. But if the visionary head of China National Gold Corporation gets his way, it’s going to be much, much bigger.


The fact that China is talking about the role of their gold reserves now, in the Financial Times no less, speaks volumes as to where they are in achieving their reserve ratio of gold to foreign exchange reserves for the Yuan.   It's a well-known secret that China has effectively nationalized their mining industry with not an ounce of production leaving the country for export or exchange purposes (except to buy the ood lot of Iranian oil at cut-rate prices) and that they've been doinng this for years.


The last time they announced a change in their official Gold reserves it was June 2009 and it shocked the markets.  from that point forward central banks have been net buyers of gold on a monthly basis far more often than they were net sellers.  The hoarding of Gold for reserve purposes had begun with that announcement. 


They've imported 383 tons of Gold in the first half of the year through Hong Kong.  That's a staggering amount of Gold.


The timing caused maximal damage to the U.S. politically as well.  It  is also no secret that China and the U.S. are headed for a real showdown.  Military showdown?  I don't think so.  I think WWIII is already happening and it's happening in the oil fields of the Middle East and the OTC derivative and gold swap markets in London, NY and Hong Kong.


So, what do we expect to happen with the next announcement?   My guess is it will ignite a massive sale of the Dollar and a commensurate rush into Gold.  China has inked no less than 30 bilateral trade agreements with countries around the world.  They are needing fewer dollars to facilitate their trade and this loss of flow is what is staying the Fed's hand on above-board QEIII.  The Fed has been in a tightening/sterilizing mode for months trying to use the Dollar and the Euro-zonefear tradeto attack its rivals in the currency markets.


With the Bond markets topping I'm wondering if the acceleration of gold importation is being done now with U.S. treasuries and not just recycled trade dollars now that the U.S. economy is falling off a cliff.

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Peter Pham Presents: The Pursuit of Alpha in Vietnam - Peter Pham Presents: The Pursuit of Alpha in Vietnam

Peter Pham Presents: The Pursuit of Alpha in Vietnam - Peter Pham Presents: The Pursuit of Alpha in Vietnam | The Truth Behind the Headlines | Scoop.it

Could we please get rid of this silly ban on a potentially great product.  Things have progressed so far that it's hard to even know at this point whether hemp would make a good economics sense anymore.

 

Let's legalize the cultivation of it and find out.

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Guest Post: While All Eyes Are On Europe, Japan Circles A Black Hole | ZeroHedge

Guest Post: While All Eyes Are On Europe, Japan Circles A Black Hole | ZeroHedge | The Truth Behind the Headlines | Scoop.it
Submitted by Charles Hugh-Smith of OfTwoMinds blog,While all eyes are on the absurdist tragicomedy playing out in Europe, Japan is quietly circling a financial black hole as its export economy is destroyed by its strong currency and the global...

 

Nonsense from the otherwise excellent Charles Hugh-Smith.  By focusing on nothing but the debt situation and how the strong Yen impacts exports, he is missing the other very obvious par t of the equation, that imports are cheaper.  This is simple import/export stuff that has been forgotten in all of the idiotic mercantilism propagated constantly and parroted by poeple who should, frankly, know better.

 

Japan's companies are deploying those strong Yen in the trillions around SE Asia and in doing so are effectively getting younger, the same way that China is.  This notion that political borders determines a countries demographics is worthless and clouds rational analysis. Young, cheap Vietnamese working in a suzuki Factory are economically tied to Japan's production base and Vietnam's consumption base.

 

It's economic dual-citizenship.

 

I've been hearing for years how the strong Yen will kill Japan's export markets but it hasn't happened yet.  Only in 2011 when a large chunk of their economy was swept out to sea nad rendered unusable from radiation did they finally run a current account deficit even though the Yen has been strengthening around the world for more of the century, oh by the way.

 

The strong Yen shook compaies like Toyota up and made them wake up to the quality of their competition.  And it is making their cars better, which is why they'll sell 10 million cars and trucks this year.

 

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Toyota Erases the Memory of Fukishima | Stock News

Toyota Erases the Memory of Fukishima | Stock News | The Truth Behind the Headlines | Scoop.it
Toyota (NYSE:TM) reported excellent Q1 FY 2013 earnings Monday morning before the bell and they were outstanding.  The world's largest auto manufacturer earned...
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