Monday, September 15, 2014

China’s Gold Demand Implodes

It has been quite a while since I have posted anything about gold.  But, I have written extensively about the shiny metal over the years.   I have accurately called major moves in gold through the use of my trading system, including nailing close to the absolute top in gold.  I have talked endlessly about the clear flaws of those who view gold as “honest” money and discussed the cruel history of gold as money.  That is, gold has always been used by those who control or own most of it to victimize those who don’t, be that the state or state actors or banks.   Gold as money is a feudal concept that values the god of ownership over the freedom of people.   In a feudal society, people are repressed and ownership of gold, resources and assets is a brutal and cruel indicator of wealth.   In a free society wealth is not derived through the hoarding of scarcity, assets or resources such as gold, equities or land but rather the “monetization” or capture and socialization of that which free people do naturally.   That is, produce, create and invent.  A free society is an abundant society with enough for all to share.

Where exactly did anyone learn that gold is honest money?  Someone who owned or controlled a lot of gold told you that.  Most likely a state predator or someone who worked on behalf of taking from those who have little through state violence.  The attachment to gold is driven by ego and all of its vanities, selfishness and outright evil.   Those who spout the benefits of owning gold are the same people who have accumulated large quantities of it through state violence or participating in the exploitation of humanity.  Pure self-interest.  The same self interest that drives gold miners around the world to literally destroy millions of acres of land, communities, water supplies and ecosystems with their horribly toxic mining methods.

Gold is a religion.  It is an ego-driven belief system created out of fear and ignorance.  That fear-based belief system keeps people from connecting to the greater truth that resides within every sentient being.  Fear you say?  Yes, fear.  How many people who hoard large amounts of gold would give it all away to those who have nothing?  Their attachment to gold is driven by fear.  And the thought of them giving their gold to those from which they have taken everything places their mind in a state of fear.   This fear-based belief keeps them ignorant and creates blind spots in their ability to experience truth.   This fear and attachment to gold keeps people from connecting to their higher power, to Allah, God, their own divinity or whatever you are most comfortable calling the place in your mind where unconditional love and human values resides. 

Attachment to gold is nothing more than worshipping the Golden Calf.  Democratic money is liberal and abundant money.  It is fiat money.   It is not fiat money controlled by class, hierarchy, corporations and the state.  Frankly, that monetary system has never existed and it most likely never will.  Because money is an institution of the ego created by the state for one purpose and one purpose only.  Control.  The only system of trade that is just and true is barter.  Something that I have noted many times is likely to be the world’s next trade settlement system. 

All of these words have come across this blog time and again.   And so have the words that the day would come to pass when China would no longer be able to afford to keep buying gold.   Yet this very belief is what has driven gold’s high priests to state that the future of gold prices remains bright.  The gold high priests mocked such a position when I was first writing those words.  Now China is starting to reveal itself.   Now gold’s high priests have a new fear being losing their gold.  It is that China may not be the future demand for gold that so many told us they would be.  The gold bulls continue to believe that gold is going higher.  As I noted some time ago, the participation rate in the gold futures market has literally collapsed and is down 90% by some measurements since it’s implosion from its all time high. 

Can gold worshippers push gold back beyond old highs with rapidly waning liquidity around the world?   Well, where is that money and leverage going to come from with so many global economies now spinning off less and less profit and quite a few now in outright recession and depression?  More gold bailouts by central banks, the very institutions gold worshippers tell us that gold will protect them from?   How paradoxical is that belief system?  Gold has been bailed out by central banks time and again through their endless pump of liquidity to prop up asset prices for the benefit of the aristocracy.   So maybe money and leverage needed to push gold higher come from stocks?  Bonds?  Real estate?  Who exactly is going to be the counterparty trade that allows the status quo to offload these or other “investments” at such stratospheric valuations?  Do tell.     Who is going to take the trade for Apple at a valuation of $700 billion or Facebook at $200 billion?   Those who believe states like China and Russia or elites converting all of their cash to gold don’t tell us that doing so would trash every nation’s economy that tried to do so.  And, the last time I checked, you can’t eat gold.  I suppose some outlier that I am not aware of is possible but the data I see doesn’t support gold retesting old highs at this point in time.  

It appears over the last handful of months that the earth under China’s massive Ponzi Scheme may finally be shifting uncontrollably.  Speak of which, who the hell is still offering to give China dollars at the pegged yuan exchange rate?  The minute there is any whiff of  risk, China is going to have to break their peg and watch their currency implode.  Interestingly too, Switzerland, a country that the aristocracy loves for its secrecy and culpability in endless financial and war crimes against humanity, has been considering a return to the gold standard.  I have written about this as well.  That the return to the gold standard would collapse any economy that attempted it by suffocating the money supply.   Well, and I wrote years ago that we may see a day when criminal elites attempt to return the world to the gold standard to lock in their gains while sending the rest of us off of an economic cliff.  But they would fail.  

Gold could easily collapse to its 1998 lows.  Or, if money loses its ability to conduct commerce and trade, as is clearly possible, gold could become essentially worthless.    

All of what is written above is a synopsis of what was anticipated on here over the years.  Gold is not honest money.   Nor are those who control it and the propagandized memes and beliefs they create, actually anywhere near honest.   One cannot serve two masters.  It is either money, greed, gold and attachment to worldly possessions or truth. 

 China’s gold imports start a staggering dive.  Is this temporary or the start of a new trend? 

posted by TimingLogic at 11:40 PM

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