A few months back I theorized the rest of the world led by a Chinese/Russian alliance might let loose with a “truth bomb” or a series of them. It is clear the U.S. has been on a pathway in the desire to start a war. We have pressed in Syria and the Ukraine but so far to no avail. From the standpoint of the U.S., it is my opinion that a war is “necessary” to point at and blame for the financial collapse surely coming because in no way can “policy” be blamed.
The upcoming month of June will be a telling one as the situation in Greece comes to possibly a final head. Tiny Greece is important for several reasons. The first and most obvious, they are certainly a firing pin for the derivatives market. Should they default, what will it be called? Somehow, some way, a Greek default cannot be classified as one because a cascade of failures will immediately follow. Financially, Greece can take the Western financial system down all on its own.
Next, Greece is also a member of NATO, what will they do when the current economic and financial sanctions on Russia run out? Will they vote to extend the sanctions or vote in their own interest against them? Or, will they accept financial help and the cash flow from the proposed natural gas pipeline? A lesser question is what will happen to their EU status? Will they quit, get kicked out or remain as a black sheep in a dirty family?
I ask these questions again because Greece now says they will run out of money on June 5th. They have already pilfered pension funds and sequestered local agency monies, while pleading for the previously pledged but so far withheld aid. Atop this and more important are the sanctions on Russia due to end also in June. June is a very pivotal month!
To this point, the Chinese and Russians have been patient but firm dealing with the U.S.. Russia has warned about arming western Ukraine and placing firepower on Russia’s borders. China has sternly warned the U.S. regarding the disputed islands in the South Sea, a near spark incident was avoided last week. My point is this, the U.S. has been pushing while Russia and China have stood their ground. How long this can go on without some sort of “accident” morphing into conflict is questionable. As an example are the recent events surrounding the Spratly islands in the South China Sea , can the U.S. really push China in their own back yard? China and Russia are fully aware of the U.S. falling further and further into a weakened position in many ways, time is running out before a financial collapse and they know a wounded animal often strikes in desperation. They must in my opinion do something very soon to neutralize the U.S. or face the reality of fighting.
As I began with, I believe the only form of neutralization is some sort of “truth bomb” or a series of them. How best can this be done? I believe it must and will be done “financially”, let me explain. If the ROW can neuter the U.S. financially, they will seriously hamper U.S. efforts to make war. As a side note, “the truth” will also take most all public support away for making war. I believe the process may have begun this past week.
While you may react with “oh it’s just propaganda” because of the source, Pravda posted an article over the weekend speculating China will very soon announce their gold reserves. The article speculates China has amassed 30,000 tons of gold. This may or may not be true, but I can easily prove 10,000 tons just on the back of a napkin. Whether the number is 10,000, 30,000, more or somewhere in between is moot in my opinion because it is MORE than the U.S. “claims” to have. It would also call into question “where” exactly all of this gold came from. As I have written before, China need not ask for an “audit” of Western gold, should they provide audited numbers; market participants will make the connection themselves.
I believe there are several questions needing to be asked. Is this a “30,000 ton bluff” by Russia? I don’t think so but if it is, what is the upside? Would Russia really throw this figure out publicly without clearing it with Beijing? Would China really bluff about how much gold they have? My opinion is no, they would not. I have said all along I believed China would announce their holdings probably this year. If this is the “pre pre announcement”, it is a very big number and one I believe only as an opening salvo. Should China themselves make this announcement, please understand the “golden nuclear bomb” this would actually be. The financial system of the West will be destroyed overnight!
Before going any further, let me put a few of the various dots on the table. First and maybe what they were waiting for, the Western credit markets have had two very big convulsions in the last 10 days, these flash crashes have occurred as nearly all liquidity was briefly lost. While speaking of liquidity, this seems to be drying up across the board including the equity markets as volume has gone comatose. U.S. economic numbers are unmistakably weak and recession will be known by the end of June or early July. Another classic sign of illiquidity is the shortage of collateral available to the shadow banking systems in both the U.S. and in Europe. A “margin call” to a system undercapitalized and under collateralized is a deadly recipe.
We also saw a story last week where several of the larger ETF’s have contracted for rather large credit lines to use in a “market event” causing mass liquidations. This is an entire story in itself and a humorous one at that! What makes the ETF’s believe their financial institution will be left standing and able to lend during a panic? And even if standing, during bad times the old saying goes …”credit lines are made to be pulled”! Worst of all, if they actually do use the credit lines because their various investments cannot be sold, won’t this ultimately injure remaining shareholders and make those who panicked first …the best? And especially if their investments do not immediately snap back, they will be required to sell more and at lower prices just to pay the loans (if they get them) down! Very poor “preparations” if you ask me.
Other dots include, the AIIB, an alternative clearing system to SWIFT, currency hubs all over the world, physical metals exchanges and even the ABX which plans to arbitrage between Eastern and Western markets. China has very rapidly recreated the “old silk road” trading route which includes both Iran and Greece, both sticking points in the side of the West.
I believe the Sino/Ruso alliance now sees weaknesses in the West, it is exactly what Sun Tzu would look for. The economy is slowing, liquidity is drying up and leverage is maxed out. Volatility has now struck the all-important credit markets of which are relied on to support the West’s way of life. What is next? I believe an announcement of China’s holdings will only be the beginning and put the U.S. on her heels as to our holdings. Next, and I mentioned this previously, I would not be shocked if Edward Snowden has done a data dump similar to what was feared with Mr. Assange of Wikileaks.
We already know of so many and various “dirty deals” which banks have pleaded guilty to, “proof” of Western deceit will be believed because of all the fines and “non” admissions of guilt already paid and entered. In essence, it very well may be the East pulls the curtain back on the Wizard of OZ! A data dump by the Russians and Chinese regarding the finances of the West (including a lack of gold), how markets are rigged and economic numbers “created”, along with information regarding various false flags and the misdirection of the public would go a long way. The “questions” are numerous and may have a starting date of 9/10/01 when Donald Rumsfeld announced the Pentagon’s “missing” $2.3 trillion …which was never spoken of again after the following horrific day.
Much, if not everything has a paper trail to it. Enron’s misdeeds and hollow derivatives were conveniently washed away the following day as well as any paper trail to the “world bonds” issued during the Reagan years …and cashed in within the two weeks following 911. Nearly everything since then still has a paper trail attached to it, should Russia/China have the ability to expose and prove some of it, our financial system will be toast!
In the event of a little sunlight touching Western “dirties”, currencies and bonds will be smoked along with of course the precious Dow Jones. An exposure would effectively cripple us financially, torpedo public support and effectively make it very difficult for the U.S. to run around the world further swinging a bat and stirring up war. In essence, an exposure would take the ability to point blame elsewhere off the table …and the past policy itself will finally eat the blame it deserves!
…..and the truth shall set you free. The sooner the better imho. Thanks Bill.
I hadn’t heard about Rumsfeld and $2.3 trillion missing. You did mean, trillion?
Have to look that one up, unless you can refer me to a better sources than a Google search.
yes, with a very capital T! It was forgotten about after 911 happened. Plus, the “records” just so happened to be located where the “plane” struck the Pentagon.
Plane? Try missile, just the downward force of an airliners wing at 600 mph would tear up that pristine lawn plus second story windows were intact plus…..I can go on and on. We don’t believe in propaganda we believe in truth backed up with science and physics that have no agenda
did I not put “quotation” marks around it? Did you not detect any sarcasm?
Interesting hypothesis of what might happen Bill. Personally, I think China and Russia sit tight for a while longer, not fire any kind of opening salvo via information and let the US and the West crash from a thousand small cuts China and Russia are taking in their own self-interest. If they exposed a lot of the ‘dirties’ of the US and the west in a preemptive fashion, the US government might still be able to propagandize and twist the situation to convince the American people that Russia and China wanted and started the war. Most of the American people are really dumbed down. Even those with higher education. If the economy full on nosedives due to obvious and intended action by Russia and China, then I think the American people for the most part will buy the fear and propaganda the US government is selling and back an attempted war.
Whether the US and the West would be able to function economically in order to fight it is another matter. It is questionable that they would be able to do it. Also, the domestic front might explode here in the US, making it impossible to attack Russia and China. Protests, leading to riots (if bad enough economically, then for food), leading to martial law, leading to the start of some kind of civil war type scenario of gov’t verses freedom loving people who do not bow down to them. The police state has been built since 9/11 for just such a scenario IMO and I’m sure the Pentagon, etc has been war gaming just such a scenario for a number of years, so they will have some kind of plan.
It is a tight rope I think China and Russia are walking, so who knows what will happen. Seems that it will come to a head this summer in some fashion though.
Pravda making the announcement was an opening salvo across the bow!
It is one big house of cards and it is getting very difficult for the US to continue holding what they feel is the trump card.
In the end China and Russia are forces that cannot be manipulated.
Time for the truth and for people to come home to the reality of how we got here to this bad place.
It is always about connecting the dots.
Bill, you have done it well my friend.
There is no way that article came out of Russia without it having some serious accuracy to it.
The truth will come to the surface and when it does the world will be a different place.
The West caught themselves with their own arrogance.
Lies ALWAYS come back to haunt you.
On the subject of war….what are the chances of Greece being attacked.
War has always been about money and power. Greece being attacked would benefit nobody.
In fact taking Greece down would take down the banking system.
I use this ridiculous idea to express the true motivation to war.money….money….money
I suspect war is not in the cards.(east vs west)
Before that happens the truth will come out and I am in a agreement that the truth is NEAR.
Just a little more time and the charade will destroy itself from within.
Now I have to read this great piece on more time.
What a fantastic summary of things Bill.
Just a matter of time and timing.
Both Russia and China have handed more than enough rope to the west to hang the entire corrupt, western financial system many times over.
The mysterious buyer of US Treasuries with the “Belgian” label, has recently been exposed as being China! Why would China covertly be adding to their US Treasury holdings, while publicly liquidating some at the same time? Visions of more Sun Tzu?
The commonly held argument that China would not liquidate their US Treasury holdings all at once, because it would make their foreign reserves worthless, does not hold water.
China would most certainly take that route to accomplish their aims, preventing the West from resorting to military action. The loss of value in their foreign reserves would just be written off as the cost of doing good business.
The end result being a vastly diminished western, all-around power structure (political, financial, military) and the aims of the new Asia-Sino block accomplished.
they can pull the trigger at any time.
… this sounds fron day to day more horrible.
Is it that you have got new Information that you come up with such a horrifying theory?
Seriously … I ve got the shiffers over it and it makes me feel sick …
Thank you Bill for your work you put in!
I did not plan to write but when I saw the news, I knew I had to say something about it, IT IS BIG NEWS BEING IGNORED!
I was wondering about that Pravda piece that China has 30,000 tons of gold. It seemed to be coming out of the blue and seemed really weird to be coming out of Russia. I knew that this information was important but couldn’t figure out the game plan. Thanks for connecting all these disparate pieces of information. Seeing the bigger picture helps to make sense of all of this.
Pravda did not send this out without approval from Moscow …and Moscow did not approve it without the say so from Beijing.
There is a not a chance in hell that this got out without full approval and by design.
Time is very short.
Thank You Bill for taking the time to write this piece.
Very very important development I suspect.
… yes, and Moscow wouldn’t do anything wrong to unstable the solid bound with China.
Like Putin or not – but surely he stands loyal to allies and friends.
So does China. ( see North Korea, for which they surely often not amused about).
the release of this article was no mistake.
Great read as always. Bill if China/Russia have information and want to spill the beans, their biggest challenge will be getting the Western MSM to give the stories any traction. Can you think of something they might have up their sleeves on that front, or is your thinking that if they crash the Western financial system, everyone will be so shocked that the media moguls will then have the guts to publish something closer to the truth?
how would an “audited” announcement of their gold reserves work?
A big thank you to Bill Holter. We are fortunate to have your insights and wisdom.
very welcome Jim.
i for one minute do not believe this. anything this simple is not believable. my take is that russia, china and the usa are in collusion to create the nwo order TOGETHER.
so what if china has 30k tons of gold? all of this is smoke and mirrors & i don’t believe anything written by anyone.
furthermore, what sounds feasible today probably isn’t. again, more dog and pony shows. if one looks in “that direction” then the action/truth is more than likely in the other direction…governments and people are liars.
“something” has to be true, doesn’t it?
Move over Hilary..Bill Holter for President.lol
You really are a shinning light Bill.
Love your style of writing and even more importantly love who you are as an individual.
Honest, Sincere and one of us.
Hope some day I get a chance to buy you a beer or my favourite a glass of Pinot Noir.
Maybe one day soon I can travel to hear you and Mr. Sinclair speak and do just that…cheers.
thanks Mike, I’m a beer drinker.
I kind of figured that with that cool hat you wear.
It is a sad thing to watch the number of smart well learned Americans stand up and speak against the decisions and actions of their Government.
What will become of America as the top of the class leaves to go live elsewhere….We are seeing this now.
I am not sure America as a nation can survive what is coming.
I just cannot see it work through this with the lack of honest leadership.
History against repeats.
Greed and lack of principle always takes societies down.
that’s my “formal hat”.
What will become of Canada… my home????
maybe a U.S. lapdog, we will see.
Why would china want to hurt the west. We buy there products ? right ?
although a non agressive nato would be nice.
but how much longer will we be able to buy their products …and, what exactly are we “settling” the trade with?
I think the technologic ( scientific ) world might eventualy fix things. Although I personaly don’t like where its going, I have to admit the internet changed things for the better. I feel on that path we should take a breather and slow down, because its going to fast.
When I visited silicon valley about 25 years ago, I couldn’t believe how many chinese And other oriental people I saw running around. Even at the time I knew they were absorbing it and taking it home…..
what is apple without samsung, did apple make samsung ?
Does china lets say brics want to take down the financial octopus ? I ask because I don’t know. I am not smart enough , but as Inunderstand stuff like options was designed by producers and direct consumers off a product as a form off insurance. What logic is there for 3rd parties like banks and speculators to toy with lets say the coffee price through derivatives. I could have written gold, copper or silver….
the system is broke, but maybe it always was…..
no, they don’t want to take the whole thing down, they only want to insulate themselves from when the West does fall.
The West (specifically USA) may soon find themselves unable to settle their trade purchases with US currency.
Can you imagine the chaos if and when that occurs.
Canada I am afraid seems to have chosen to be a lap dog and unless they grow some gonads soon they may find themselves also with difficulties.
You can only buy what you want if you can pay for it with what they want.
Canada has no Gold. USA maybe little to none.
Thank Goodness Canada still has resources to trade with…..
It does look like the East is ready to make a big move. However they do it will determine how we react.
When I say WE I mean the people not the country.
When this goes down it will be the people that will make the final decisions.
They have shown themselves untrustworthy to be allowed to decide for us.
Politicians will be heading for the hills because they will have lost control due to their lack of integrity.
Are gold mines in all countries to someday become crown companies.
If it comes down to haves and haves not on the subject of gold it may become a risk that Western countries may take over their gold producers.
What a mess that would be.
I tend to agree with dirk, the US is still China biggest client, it’s not to their advantage to precipitate the US demise. True they settle in US dollars, but China use the $ to buy gold at depress price (don’t think they buy US treasury like they used to). Even though I agree with your ending conclusion, I’m not so sure why china would make a move to speedy things up, at the moment they have the best of both world.
Also China holds huge amounts of US Treasury, they would hurt themselves as much as the US. Until they divest, it’s not to their advantage to rush things.
Wondering if China accumulate gold only to eventually peg (or partially peg) the Yuan to it or maybe they want to use it as a hedge against the massive amount of US Treasury they hold?
but, for how long can the U.S. continue to consume?
All the more reason for them to label Russia Today as a terrorist organization and threatening to shut it down.
when the truth hurts.
My only thought about China releasing their gold holdings is that it came out recently that China has been purchasing a lot of US Treasury’s through Belgium. Now they are the largest holder of our debt. Why would they want to lose all that value in a currency collapse?
…and also the largest holder of gold in the world?
My version of The Brave New World.
It will be argued that nationalization of gold companies will increase the government’s revenues, create new jobs, improve working conditions, and safeguard the country’s sovereignty.
This may be what occurs in some or all countries once the world returns to a gold standard.
I see no other way to bring confidence to a fiat system unless there is something backing that fiat.
Coming to us soon.
New fiat system. Possibly ….eventually backed by gold for at least international trade.
Digital cash system with little or no cash payment option for domestic trade.
When cash disappears Gold and Silver in one form or another will likely become the new medium of off the grid trade.
Barter is going to be a growth industry.
You know that things are under control when the governments begin to ban cash.
Sorry folks for rambling on today.
I will be silent now.
Roseanne Rosanadana …nevermind!
Bill, as you have spoken so many times in the past about finacial armagedon, i have yet to hear you adrress where all this dept goes. As an average income earner with moderate dept, in a collasp, does my dept cease to exist. does it reset with the winning currency with a different value when the smoke clears. will hyperinflation happen after defalt and allow me to pay off dept with inflated dollars. will the average person be allowed to start new dept free or will our labors and what ever we have left once again be taken from us to start a brave new world where the winners take the spoils.
I have written about debt until blue in the face, it will not go away, there will be no jubilee and it will be reset with whatever new currency or currency ratios.
Isn’t China a member in the BIS? Aren’t all these central bankers ran by the very few people who run the BIS? All the powers that be will just continue the Ponzi scheme in another currency platform, maybe a Yuan / gold currency.I really hope Russia and China are independent from these scum banker oligarchs but it’s hard for me to believe.
“I really hope Russia and China are independent from these scum banker oligarchs but it’s hard for me to believe.”
I’ve thought about that a lot and I believe that China and Russia act independently of the west. They hate the US, as does most of the world. If they were all secretly colluding in some one world government then all the skirmishes and bluffs and political ballyhooing we’ve had over the last few years would have all been a very grand soap opera, which I just don’t believe.
And just culturally, I highly doubt the Chinese are going to allow themselves to be controlled by western interests. They may end up colluding on certain things as they have already done such as suppressing the gold price the last few years, but they act independently.
Western control includes Europe, Japan, Australia, India, and I’m not sure about Latin America and Africa, but probably those as well.
I Think I’m destined to learn a new language. Hummm lets see, Chinese? Russian? Think I prefer Hebrew.
Hebrew is probably the right choice since both Russia and China will invade Israel at Armageddon, from which they will both lose. In spite of the eventual outcome, they are now sharpening their swords.
Yelp, It’s that “hook-the-jaw” thing. Nice thing about Hebrew, the language of heaven, it will come to us in a blink of he eye.
As I see prophecy, the U.S. has virtually no mention; therefore at some point the U.S. looses power before any prophetic unfolding. But the immediate removal of 30% of a population would certainly cripple a super power especially after one considers the positions in society held by those suddenly gone.
I also read Sinclair’s site and note the current over-lap.
I’m wondering if at some point that will be the only place to soak in your insight and if we will be gifted the privilege of interaction with you there.
don’t know yet, as of now, about 20 different sites carry my work.
I was wondering if you or Andy maybe could do a article on how the miners themselves are able to keep going with these current prices. It would seem at some point that supply has to dry up just due the lack of profit for them. At what point do they decide that it’s not worth it to keep mining with such low prices?
If one was prone to conspiracies one could state that maybe this is part of a plan to destroy the PM miners so that they (fiat paper pushers)could further control PMs.
Not going to happen.
Why do I say never will they destroy the PM mining sector completely.
Because only the West is trying to convince us that PMs have no value, in addition the world needs an asset to bring back confidence to a paper currency.
BTW. BITGOLD may be a good way to exit some of your cash out of third party risks. http://www.bitgold.com
It does bother me a little that the East has such a large ownership stake in mining interest all over the world.
Great Rob Kirby piece on KingWorld today about China gold hoard.
A blockbuster article Bill, many thanks. You can gauge its importance by the fact that the western msm have made a concerted effort not to report the facts you present.
I do hope that the Russians reveal satellite photos of the events of 9/11, proving it to be a false flag event, from which evil a whole boatload of other evils ensued, illegal invasions, torture, demonisation of muslims, unlimited surveillance, manipulation of markets with impunity, and lies all round.
I further hope for a French type revolution, guillotines and all, following these revelations and the sheeple waking up.
After which truth tellers like yourself will stand out as heros of our black times. I hear you are teaming up with Jim Sinclair soon. Good luck in this venture, and I keenly look forward to further articles from you.
Thanks Sanjeev, or… truth teller will get an all expense paid trip to a FEMA camp?
Thanks again Bill. It’s good to read your articles. Jim Rickards posted an article at
explaining why gold bugs are dead wrong. In summary, he explains that China simply wants to join the IMF as one of ‘da boys’ to rig currencies just like the rest of them. Funny thing though is that in his last two paragraphs he encourages the buying of gold for some of the same reasons you have been giving – that is, the lost of confidence in central banks will cause gold to climb significantly. I would be curious to know your thoughts on Rickards’ dismissal of the importance of how much gold China has or will announce they have.
a CIA asset.
I Have Jim Rickards book Currency Wars but I stopped reading it because something inside tells me that his message only rings partly true.
I usually go with my Gut.
He may be a great honest guy I do not know.
Just does not ring for me.
Please take no offense Jim…Just not fully sold on your position of things.
it’s the “CIA way”.
Do you think there is a connection between the Pravda article on China revealing their gold, and John Kerry’s recent spontaneous visit with Putin? If so, what could he be cooking up?
yes I do, I think the U.S. will back away from Ukraine as they owe $40 billion in the next 30 days.
great summary bill, those who follow your work know you could have summaried it with the simple statement – “china and russia have america and NATO by the short and curlies”.
i believe they will keep the screws tightening, everybody has had a gut full, and if america oversteps “the red line” they will be forced to tighten the screws more. but because the leaders of china/russia/BRICS are also politicans they will continue playing the game as long as possible.
it will be america, through desperation, that spits the dummy. god help us all when that happens … kev
thanks Kev, yes you are correct.