Citizens of America’s two biggest creditors China and Japan are now fighting each other to buy Gold and Silver. But could they be doing something more intelligent with their time and money?
Mrs. Wang, China’s mythical housewife is buying Gold hand over fist, so is Japan’s mythical housewife Mrs. Watanabe. Unlike during past downturns in the price of Gold, the peasants (anyone not a partner at Goldman Sachs or JP Morgan) are reacting with long queues at the local bullion dealer with fistfuls of fiat, fractional bank reserve notes to swap for the currency of kings: Gold.
Apparently, the emerging world ‘gets it.’ There will never be an exit from the Quantitative Easing by any of the world’s central banks. (The ECB has just reduced rates to ½% to match the UK). The Fed in America is sticking to their ultra-low rates and Japan led the parade decades ago with their Kamikaze ZIRP (Zero Interest Rate Policy) monetary madness.
In private conversations, the world’s central bankers let slip that their plan is to keep interest rates close to zero for 10, 15 years or longer – however long it takes to increase the global population enough to create enough ‘violence growth’ to start retiring some of the $100 trillion in debt on these bank’s books.
In other words, there is no exit. There can be no exit. There will only be more money printing and all fiat currencies around the world will continue to be debased until the sheer size of the global population is so great growth occurs as overpopulated areas start fighting each other for air, water, and food. This is the banker’s plan: everybody fighting everybody with the survivors needing credit (inflation) and the losers dying (deflation).
Citizens of America’s biggest creditors; China and Japan, aren’t waiting around, they are doing the equivalent to picking up their pitchforks and torches and buying gold in record amounts. On the NYSE $16 bn. in ‘paper gold’ was sold via the exchange traded fund GLD while Chinese housewifes (and other members of their households) bought that amount and then some. The wealth that is Gold is being transferred from West to East. Paper gold is being swapped for physical.
And what about the China and Japan saber rattling the disputed Senkaku islands? I implore both the Chinese and the Japanese to see past this silly island dispute and instead focus your combined, massive buying power to take enough physical gold and silver off the market to put the Western paper bugs and market manipulators out of business. Your skirmish over islands is a rear-guard action that will amount to nothing. Instead, fight the real enemy: the US dollar and the bankers who – by virtue of the Dollar as world reserve currency – get your people to finance America’s wars in the Mid-East and Africa.
This is the time to do some deep soul searching and realize the enemy is not each other China and Japan, but the common enemy, the US dollar.