By: International Forecaster
Something is going on that your government does not want you to know about. Very few journalists have written about it and little or nothing has appeared in the mainstream media.
Something we have been writing about for years is the Shanghai Cooperation Organization known as SCO. Some of the members are large oil producers and some, like China, are large oil users. Some have very large US dollar surpluses. Some are large commodity and gold and silver buyers. In fact, members are in a great part responsible for driving these prices higher. We believe there is a conscious effort to accumulate gold and silver, dump dollars and to back their currencies with gold.
China and Russia are both large gold producers and for a number of years have been buying up domestic gold and silver production, so that it never reaches the market and does not affect prices. If anything the absence of sales tends to push the markets higher. India is another very visible buyer. Even Iran with its oil surplus recently announced that they had purchased 340 tons of gold.
This buying has served to thwart the efforts of US policymakers, the Treasury, other central banks in Europe and the Fed, from being able to continue the blatant suppression of both gold and silver prices. The SCO in part changed that and now they and the public are winning the war for a fair and free gold and silver market. The current class action lawsuits, including RICO, are a testament to the market manipulation in silver, which is finally coming to an end. HSBC and JPMorgan Chase, the latter that is the major owner of the Fed, are going to be finally prohibited from rigging these markets.
Other SCO members and observers are accumulating gold as well and must believe that there could be a return to sound money; otherwise they wouldn’t be gold buyers. Buying gold is certainly preferable to holding US dollars, which have consistently fallen in value versus other currencies over the past ten years. Then again all currencies have fallen versus gold over that period, some 19.6% annually. It is nice to see nations are finally waking up to the reality that fiat currencies will all over time deteriorate versus gold.
In addition some of these nations, such as China, are spending dollars by buying natural resources and other things in other nations in an attempt to relieve themselves of excess dollars earned in trade. Both Russia and China fully realize that the US dollar is in serious trouble and has been for a number of years due to fiscal debt and the unbridled creation of money and credit by the Federal Reserve. They well know the dollar is in serious trouble and what the outcome will probably be.
The only investors who are being afforded protection are those who have invested in gold and silver and commodities. That is less than 2% of the American population.
As long as quantitative easing is official Fed and Wall Street policy, gold is going to continue to rise with silver, and the stronger the case is that gold is the real world reserve currency. That means all currencies will eventually have to be backed by gold.
All Things Considered – John’s Commentary:
There is one thing that must be heeded – our trading partners are dumping their rapidly declining dollars and buying rapidly appreciating tangible assets. They see the future of every dollar they hold as each round of QE makes them worth less. You and I should heed their example.
Action to take: Dump a portion of your dollars and put them into tangibles. I mean physical, hold in your hands tangibles. This portion does not include paper or some other proxy instrument. A wholly owned tangible carries no counter-party risk and is not another person’s liability.
What to buy: Gold and silver coinage – free and clear agricultural land.
Quote of the day: “Betting against gold is the same as betting on governments. He who bets on governments and government money bets against 6,000 years of recorded human history.” – Gary North
