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The Rule of Gold after the Financial Collapse
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“You can own silver and gold but never any fiat currency issued by someone else”
Peter Cajander
 In a secular world, the operative “Golden Rule” is “He Who Has the Gold Makes the Rules”. The condition of the global financial banking system is untenable. The aggregate amount of debt worldwide is anyone’s guess. The introduction of derivatives and counter claims pushes the chain of obligations into the unknown. All that is left is for central banks to create mountains of uninterrupted counterfeit money to roll over and delay the inevitable. The IMF chart of World Currency Reserve is a skyrocket line to oblivion. It does not reflect a healthy stockpile of treasure, but certainly manifests a new debt machine running to infinity. The Bullion Vault explains this reality in the following manner.
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Recent droughts and floods have contributed to increases in food prices
These are pushing millions more people into poverty and hunger, and are contributing to political instability and civil unrest. Climate change is predicted to increase these threats to food security and stability. Responding to this, the world’s largest agriculture research consortium today announced the creation of a new Commission on Sustainable Agriculture and Climate Change.
Chaired by the United Kingdom’s Chief Scientific Adviser, Professor Sir John Beddington, the Commission will in the next ten months seek to build international consensus on a clear set of policy actions to help global agriculture adapt to climate change, achieve food security and reduce poverty and greenhouse gas emissions.
There is a rich body of scientific evidence for sustainable agriculture approaches that can increase production of food, fiber and fuel, help decrease poverty and benefit the environment, but agreement is needed on how best to put these approaches into action at scale. Evidence also shows Read more…
North Korean Nukes Might Fit on Missiles, Aircraft: U.S.
(Mar. 11) – U.S. National Intelligence Director James Clapper, left, and Defense Intelligence Agency Director Lt. Gen. Ronald Burgess attend a Senate Armed Services Committee hearing on Thursday. Burgess warned North Korea might now possess nuclear weapons suitable for delivery by missiles and bomber aircraft (Mark Wilson/Getty Images).
North Korea could now possess nuclear warheads compact enough to be fitted to missiles and carried by bomber planes, U.S. Defense Intelligence Agency Director Lt. Gen. Ronald Burgess said on Thursday (see GSN, March 10).
(Mar. 11) – U.S. National Intelligence Director James Clapper, left, and Defense Intelligence Agency Director Lt. Gen. Ronald Burgess attend a Senate Armed Services Committee hearing on Thursday. Burgess warned North Korea might now possess nuclear weapons suitable for delivery by missiles and bomber aircraft (Mark Wilson/Getty Images).
“The North may now have several plutonium-based nuclear warheads that it can deliver by ballistic missiles and aircraft as well as by Read more…
Richard Lehmann: China May Corner Gold Market
China has likely begun a campaign to convert its dollars to gold that could end up with the nation cornering the gold market, says Richard Lehmann, editor of the Forbes/Lehmann Income Security Investor newsletter.
China is alarmed about potential weakness for the dollar, he says in an interview with Steve Forbes.
So “I’m concerned that basically China is probably already on a program to diversify the dollar into gold. I don’t think they want any other fiat currencies or want to minimize that amount.”
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If China buys enough gold, at some point it can simply dictate the price, Lehmann says. And it has the means to do so, given that Chinese currency reserves total almost $3 trillion, and the world’s gold supply is now worth about $5 trillion, he says.
So China could “in one stroke, basically take control of the gold market and tie the dollar to gold so that effectively, if every six months the dollar deteriorates 5 percent, they can just upgrade the stated price at which they wanted to buy gold and thereby upgrade and up-value their gold reserves, but also keep the dollar in check.”
With plenty of other investors buying gold too, many experts expect it to continue rising. Richard Russell, author of the Dow Theory newsletter, says in a commentary obtained by King World News that the precious metal may reach $6,000 an ounce.
Details About India and China’s Plans to Stockpile Crude Oil
Energy expert Matt Badiali writes in DailyWealth that plans out of China and India to create strategic oil reserves of their own could put a floor under the price of oil for years to come:
China and India are faced with the same dilemma the U.S. faced in 1973. Neither country has enough petroleum to keep its citizens rolling for long. Both are exposed to a dangerous, economy-killing oil shock. And both are starting to build and fill strategic petroleum reserves of their own. They have no choice but to buy oil like crazy at these levels.
China has about 102 million barrels already in reserve. It plans to add another 168 million barrels of storage starting this year. It will finish its planned 500 million barrel reserve – equal to three months of imports – by 2020. To hit that mark, China will need about Read more…
Oil Should Spike Higher Following Saudi Riots and Nigerian Elections in April
The following special report on oil (LA Blog Only, leverageacademy.com/blog) discusses the oil market, providing reasons to be bullish on the commodity given unrest in the Middle East, Nigerian elections in April, and rising domestic consumption in oil producing countries, including Venezuela, Nigeria, and Iran. According to the article, the rise of oil prices could easily cause the next recession. In 2010, soft commodities outperformed energy, but that will certainly change given the political headwinds abroad and continued monetary easing in the developed world. Therefore, the Bernanke “Put,” combined with political unrest will be to blame for continued sharp price increases in the energy commodity sector.
Emerging market demand, especially in China, which now consumes nearly 10mm barrels of oil per day, will also be driving the demand side of the equation. Money supply in China was also up 19.7% in 2010, because of the rapid Read more…
Soros: Communist Chinese Model Of Order May Become “The Envy Of The World”
Billionaire investor George Soros has once again cited China’s dictatorship as the model for the rest of the world in a speech at an elite gathering in Europe.
Soros told the exclusive Travellers Club, that “China’s model of state capitalism, in which the interests of the individual are subordinated to those of the government, poses a danger if its example becomes“the envy of the world.”
“Perfect order and global governance are not realistic expectations.” Read more…
China Taps Antisatellite Weapon for Missile Defense: Cable
China in an early 2010 exercise attempted to intercept a mock enemy missile with the same weapon it had used to shoot down one of its orbiting satellites in a test three years earlier, suggesting the nation’s antisatellite technology was also designed to defend against strategic missiles, the Washington Times reported yesterday (see GSN, Jan. 14, 2010).
The apparent multipurpose nature of China’s SC-19 missile — described in a U.S. State Department communication obtained by the transparency organization WikiLeaks — represents a marked stride in China’s efforts to bolster its armed forces, defense officials said (see GSN, Feb. 7).
“The U.S. Intelligence Community assesses that on 11 January 2010, China launched an SC-19 missile from the Korla Missile Test Complex and successfully intercepted a near-simultaneously launched CSS-X-11 medium-range ballistic missile launched from the Shuangchengzi Space and Missile Center,” the State Department document says.
“An SC-19 was used previously as the payload booster for the January 11, 2007, direct-ascent antisatellite (DA-ASAT) intercept Read more…
Earthquake in SW China destroys scores of homes, causes casualties
KUNMING, CHINA (BNO NEWS) — A strong earthquake struck the Chinese – Myanmar (Burma) border region on late Thursday morning, seismologists said, destroying scores of homes and a supermarket and causing an unknown number of casualties.
The 5.8-magnitude earthquake at 11.28 a.m. local time (0458 GMT) was centered in the Dehong Dai and Jingpo Autonomous Prefecture in China’s Yunnan Province, close to the border with Burma. It struck about 10 kilometers (6.2 miles) deep, making it a shallow earthquake, according to the China Earthquake Networks Center (CENC).
Several minutes after the initial earthquake, CENC said two aftershocks with magnitudes of 4.5 and 4.7 rattled the area. Reports of damage and casualties were coming in, the state-run Xinhua news agency said.
Xinhua cited county officials as saying that “many houses” in the region had collapsed, causing an unknown number of casualties. A supermarket also collapsed, it added, without giving other details.
In October 2010, a light 4.7-magnitude earthquake destroyed a school in Taikang County in the country’s Hennan Province, injuring 12 students. The quake also destroyed dozens of other homes in the region.
And in August 2010, more than 300 homes were damaged and 12 people were injured when a moderate 5.0-magnitude earthquake rattled Sichuan province. Before that, on April 14, nearly 3,000 people were killed and more than 12,000 others sustained injuries when a powerful 7.1-magnitude earthquake rocked northwest China’s Qinghai Province.
Oil will go up ‘ballistically’ if unrest shifts to Saudi Arabia, says Marc Faber
INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor sees oil prices extending their bull run despite the 15% run-up this year alone.
In an optimistic scenario demand for oil will rise as the global recovery takes hold, and in a pessimistic scenario prices still go up if the Middle East unrest spreads and crude production is curtailed. In both cases, he says, you should be long energy and energy related shares.
Speaking to CNBC today, Faber said: ” I think long term you should be exposed to energy in either scenario….if you are extra bearish and believe that War World III is going to start soon, as I believe, or in an optimistic scenario”.
Addressing the fundamentals of the oil market, Faber said: “What we had over the last couple of years is essentially a reduction in demand from the developed world, the US, Western Europe and Japan, and continued growth in emerging economies.
“So, if you take a very optimistic view of the world, namely a global economic recovery, demand in the Western World will pick up and demand in the Emerging World will continue to rise strongly, so from a very optimistic point of view you should be long oil,” he recommended.
On the flip side, “in a very pessimistic scenario you have to assume that unrest will shift to Saudi Arabia and other countries in the gulf and at that stage the production is curtailed and in that case obviously oil will go up ballistically.”
Brent crude futures could hit US$200 a barrel if political unrest spreads into Saudi Arabia, Societe Generale said on Monday.
Under what the bank called Geopolitical Scenario 3, “unrest spreads to Read more…
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