Someone sent me this link yesterday to a 3 minute clip of Paul Harvey from back in 1965. How prescient and clairvoyant was this man to say what he did nearly 50 years ago? He spoke these words long before any of what is happening today was even dreamed (nightmared) of by even one out of 1 million people. I urge you to listen (read the captions) and if you’re old enough, think back to what the world was like when he recorded this.
I wanted to write a short piece about China and how it has been accumulating Gold. They officially “admit” that they have 1,054 tons, this figured was released nearly 3 years ago in 2009 and is surely stale. If you look at the chart below, and add the imports and domestic production together since 1999 you come to a figure of nearly 5,000 tons.
Do you believe that they have exported ANY Gold or sold ANY Gold over this time frame? If so, can you think of any logical reason for them to do so? I cannot. Did they have ANY Gold at all prior to 1999? Probably so, maybe not much and probably more Silver than Gold but that’s another topic. In any case, the point I am trying to get at is that China is probably THE largest holder of Gold on the planet other than possibly the population of India (non official holdings).
Is this important? Well, yes I think it is very important. I think this is important because if true, China would be the 2nd largest holder of Gold in the world. Not only that, if as much anecdotal evidence suggests, the U.S. has been a seller of its Gold for years then China would be THE largest holder in the world. They are also neck and neck with Japan and our own Fed as the largest holders of U.S. Treasury bonds. They may hold the most Gold and are also a top holder of our debt at the same time.
Do you understand what this really means? It means that they hold ALL of the financial cards. Their treasury has options… ours does not. Their currency is not “over issued”, ours is. Their currency is probably undervalued while ours is without a doubt overvalued. They can effectively dictate higher interest rates to us if they wish just by selling our bonds. Yes, The Fed can (and will) step in to purchase what is being sold but this requires a bigger balance sheet and diluting the currency further. In a nutshell, we have weaved our way into a corner with only one way out, print and borrow more. China on the other hand has engineered itself straight into the driver’s seat. It is as true today as it always has been, “He who has the Gold makes the rules.” By connecting just a few dots, it looks as if China has the Gold and thus will be making the rules in the foreseeable future.
Hey Bill– He doesn’t sound prescient or clairvoyant to me. He sounds like a typical superstitious, conservative, fascist. I do remember what the world was like back then. The Vietnam War was just getting started, and for what??? If you believe in capitalism then let it work!! Let communism collapse as the people realize it doesn’t work!! I discovered libertarianism sometime after this broadcast. It made so much sense to me. This relic’s audience believe in devils and superstition. Their ignorance is why we are where we are today. Nothing to admire here.
Hey-hookshot- why not stop communism before it gets embedded so we don’t have to live through it? In any case, opinions are like…well you know, we both apparently live in different worlds and we are all entitled to our opinions. It is my opinion that Paul Harvey was spot on nearly 50 years ago and we landed where and how he warned. “Sorry for my ignorance”, maybe Christian or Nadler would be better reads for you.
Bill… there are so many people in this world today who have no clue as to just how evil communism was… and still would be had it not died a just death. This idiotic philosophy was directly responsible for the murder and torture of hundreds of millions of people around the world. Dante described the 9 levels of Hell. Marx and Engles deserve to be in the 99th level, IMHO. This system was set up with fences, guards, dogs, mine fields, and machine gun nests to keep their people IN and not our people out. You know something sucks BIG-TIME when people are forced at gun-point to endure it and are killed if they refuse. In spite of this, many tried to escape it and died in the effort. The few who made it are genuine heroes, IMHO.
As to Chinese gold production, who knows what that figure amounts to? It’s probably more than we think. China IS hoarding gold and LOTS of it. They are not doing this because it is pretty. There is a VERY good reason for them to be doing this. They are shrewd and calculating, so it is not difficult to see that whatever it is that they are doing is not for our benefit.
My personal guess is that China will push the world community to create a partly or fully gold-backed currency that will replace the US dollar in world trade. They are tired of being paid for their goods in ever-cheaper US dollars. In their place, we would be too! They are simply not going to take this. They will fight back with whatever tools can be used and gold has a history thousands of years long of being a tool of just that type. Whatever their plan is, we can be assured that it will be intricate, well thought-out, and superbly implemented. We need to watch them VERY closely and be ready to make our counter moves. They are coming for us and if we do nothing they will get us. If they do, I can guarantee that it will be far less pleasant than any of us can possibly imagine.
Bill-Do you need to believe in a book of fairy tales(the bible)to live a good moral life? Do you believe people need the threat of hell to do the right things in life? What about reality? What about the truth? Aren’t they important? Or is it all about feeling good? Deluding yourself that you are going to heaven when you die. Paul Harvey is a “religious junkie”. I respect people who live honest lives. People who do so not because they fear hell, but because to not live an honest life is to be a slug, and who wants to be a slug? Also, I’m totally invested in precious metals because I see how the socialists on the left and the fascists on the right have bankrupted this country. That’s why I read you.
What about reality? You are watching reality unfold. So sorry that I live in a fantasy world because I believe there is God, I live my life the way I do out of being “just” because that is who I am and have always been. I have always done deals on a handshake because that to me is worth as much or more than your signature. You are barking up the wrong tree here, Paul Harvey was spot on with how we got to where we are now, just because you do not believe in God doesn’t mean that people who do are either bad people or delusional. Like I said, everyone has an opinion and just because you have yours does neither make it correct or others’ incorrect. Being a Libertarian is merely connecting the dots and using common sense and logic under a fair and just legal system. It is about one’s “Liberty” or…here it comes…your God given rights. I am no religious freak and have never tried pushing my religion on anyone, in fact, I believe that “churches” for the most part are businesses, it does not change my belief that there is a creator. Sorry the radio cast scared you so much, next time I’ll post one of my long time martial arts Master…sounds pretty much the same except a little more esoteric. By the way, as a Libertarian do you believe in The Constitution? Oh, you do? Maybe we need a new one with any reference to “God” erased?
According to Bloomberg, a Chinese government spokesman, Gao Wei, “has just announced that China needs to add to its gold reserves to ensure national economic and financial safety, promote yuan globalization and as a hedge against foreign- reserve risks”.
Why would the Chinese announce this publicly when they are busily accumulating as much gold as possible. Is this an announcement to the world that the US dollars days as global reserve currency status are numbered?
One might surmise that couldn’t they?
I can tell from reading the comments how spot on Mr. Harvey was all along.
I did not intend this to be anything about religion, only that Paul Harvey was correct about the moral fabric being torn and paving the way to where we are now.