Finance: What Do They Know?

Finance: What Do They Know? By Mike Savage.

It has been no secret that Russia and China have been preparing for a post-US dollar dominated world for some time now. They have been doing this by setting up their own version of the SWIFT system which is what allows all participants worldwide to transfer funds to each other for trade settlement. …

In addition Russia, in particular, has been actively selling US dollar assets and purchasing massive amounts of gold. I believe the amount of gold China has would dwarf what anyone else holds. They are the world’s largest miners of gold and not one ounce can legally leave China. Many, who have been watching import numbers for over a decade, like Stephen Leeb and others, believe China may have as much as 40,000 tons of gold. They admit to only having a fraction of that.

To compare, the USA says it has 8,000 tons of gold but there has not been an audit of that gold for decades. I hope it is there for all of our sakes.

Another reason I believe that we are now getting very close to a sea-change in our economies is that most of the major central banks are adding large amounts of gold to their balance sheets. This could possibly be because of the Basel 3 rules changing the landscape in a few weeks time where the naked shorting of the gold market will likely not be unlimited anymore as the short positions have to be balanced with an asset starting January 1, 2022. In other words, there will now be a cost involved for those who are artificially suppressing the price. …

Just this week there were two reports that illustrate what I am talking about. The Irish Central Bank raised their gold reserves 33% but won’t comment saying “gold buying transactions are commercially sensitive”. My opinion is that they, like all other central banks, want to create the illusion that gold is risky. This keeps the regular folks from driving the price up while they are buying. Keep in mind that there are two assets they can list on their balance sheet as “riskless” US Treasuries and GOLD.

Thailand added 90 tons of gold between April and May. Of course, they wanted to do that quietly so the price remains low — again as they buy with both hands. …

What is it that these people (many who can conjure up just about any amount of “money” they want at any time) know that is compelling them to load up on gold and other hard assets at this time?

There are a lot of things that just don’t feel right like “markets” that keep moving higher as insider selling is massive. … I believe that caution is warranted for all of the assets being artificially propped up at this time like stocks, bonds and real estate in particular. …

Too many people are complacent. They believe that the “Fed has their backs”. The Fed has their own and their buddies backs but not ours.

Many think that because the central banks have gotten away with “printing” hundreds of trillions of currency units without MAJOR consequences that they will never come. I’ll bet those in Weimar Germany, Venezuela, Brazil, Argentina, Turkey and many other places thought the same thing.