Silver To Eclipse $100 On Skyrocketing Chinese Demand

With gold and silver rebounding, today acclaimed money manager Stephen Leeb told King World News that silver is now setting up to eclipse $100.  Leeb believes that China, which has been the primary driver in the gold market, is now going to push the silver price over $100 as their consumption of physical silver is poised to skyrocket.  Here is what Leeb had to say in this powerful and exclusive  interview.

Leeb:  “We are seeing massive demand for photovoltaics out of both Japan and China.  We are also continuing to see massive demand for silver in the Middle-East for this type of energy infrastructure as well.  Eric, KWN readers need to understand that the demand for silver is literally set to explode because of the enormous increases in demand for physical silver because of photovoltaics….

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“While all of this is happening, the mainstream media is saying that China is about ready to fall apart.  But the reality is that China plans to urbanize a remarkable 200 million people over the next 10 to 15 years.  Well, the cost is roughly $50,000 per person.  So China is going to be spending a massive amount of money for materials — copper, lead, zinc and especially silver.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/16_Silver_To_Eclipse_$100_On_Skyrocketing_Chinese_Demand.html

Game Over – “It’s All A Farce, The Fed & German Gold Is Gone”

Today one of the savviest and well connected hedge fund managers in the world shocked King World News by taking us once again on a trip down the rabbit hole that was nothing short of breathtaking.  Outspoken Hong Kong hedge fund manager William Kaye spoke with KWN about the missing Fed and German gold, where it has gone, and how much gold the People’s Bank Of China (PBOC) really owns.  This interview is going to stun readers around the world.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in part I of his remarkable interview.

Kaye:  “Global hegemony (leadership or dominance) is changing in a way that most people don’t fully comprehend.  This area of the world, the Asia-Pacific, China in particular, is positioning itself to be the leading global power as we look out over the next five to ten years.

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My sources tell me that contrary to the public numbers that are available, China has anywhere between 4,000 to possibly 8,000 tons of (physical) gold….

“They are not only the world’s largest producer of gold, but they are the largest importer of gold in the world.

This is an ongoing process for China.  This is a strategic initiative.  So China is massively accumulating the gold that is being extricated from the West at a very rapid pace.  The dynamics here are very geopolitical, and the Far-East is being elevated by this.

In the ‘New World Order,’ which will ensue when this raid ends, China’s position, Russia’s position, Brazil’s position, will be greatly enhanced.  The position of the United States, as well as Europe and the UK, will be greatly reduced.  Those are the major consequences.”

Eric King:  “Bill, you say China has over 4,000 tons of gold already, possibly as high as 8,000 tons.  Where do you see them heading in terms of their overall ownership of gold?”

Kaye:  “Well, they’re not done yet.  Gold has been leased out, and we do know this (takes place) because it’s been admitted to by the major central banks.  The Fed has admitted it, the European Central Bank has admitted it, the Bank of England has admitted it.  They’ve all admitted that they engage in wholesale leasing of gold to the market.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/9_Game_Over_-_Its_All_A_Farce,_The_Fed_%26_German_Gold_Is_Gone.html

Gold, Financial War & The Fed’s Dangerous Exit Strategy

With the United States celebrating Independence Day, oil still trading over $100 a barrel, and continued uncertainty in the Middle-East, today King World News interviewed the director of international economics at the Council on Foreign Relations in New York. Dr. Benn Steil warned KWN about the Fed’s exit strategy, and also spoke about China’s large hoard of U.S. dollars, and their massive accumulation of gold.

Eric King: “What we are looking at right now is a financial war between the U.S. and China.”

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Dr. Steil: “That’s right. In the 1940s the U.S. was the world’s largest international creditor, and Britain was the world’s largest international debtor. Today, China is the world’s largest international creditor, and of course the United States is the world’s largest international debtor.

And it’s fascinating to see that the United States today takes the same position in terms of identifying the flaws in the global monetary architecture that Keynes and the British took in the 1940s. For example, former Treasury Secretary Tim Geithner, in 2010, proposed imposing caps on persistent current account surpluses. Of course that was aimed at disciplining Chinese economic behavior….

“This was exactly the sort of position that Britain was taking in the 1940s, Harry Dexter White and the FDR administration condemned. So where you stand depends on where you sit at the time.”

Eric King: “This is also a quote (from Dr. Steil) ‘At present, the United States has no need to accommodate calls for it to sacrifice its exorbitant privilege (having the world’s reserve currency) to some vague vision of the global good. It will only waver when the market initiates a clear shift toward alternatives.” What about that (Dr. Steil)?”

Dr. Steil: “Well, in the 1940s there was a deal to be done between the United States and Britain. It was a harsh deal, and it was an imbalanced deal as I explained, but nonetheless it was a deal to be done. Britain needed financing to get through the war, and the Americans needed British acquiescence to make the dollar the global unit of account.

But the situation with China today is not the same, and let me give you just one little anecdote to illustrate this: In 1956, the Eisenhower administration forced the British out of (the) Suez (Canal) by threatening to withhold emergency IMF support.

Now, the United States, at the time, could afford to provoke a sterling crisis at no cost to itself because in 1956 U.S. holdings of British securities amounted to only one dollar per U.S. resident. Now, compare that to today, where Chinese holdings of U.S. securities amount to over (a remarkable) $1,000 per Chinese resident.

So China cannot afford to provoke a dollar crisis today because it would be hurting itself at least as much as it would be hurting the United States. And that’s why there is really not, in my view, a deal to be done right now between the United States and China to remake the global international architecture … As you quoted, China has a vast stash of dollar-denominated assets, and it doesn’t want to do anything that would undermine the global purchasing power of this hoard. So they are in quite a bind.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/4_Gold,_Financial_War_%26_The_Feds_Dangerous_Exit_Strategy.html