# attempt at translation of DAK47. If I should not report back in 24 hours, you are to assume I am missing in action.
adding to
Message #91207 from Doug A K at Nov 15, 2002 7:37 AM
I am very glad you understand. (no) All i understand is that i know enough of which needs to be understood.
# "I don't have the answers either ..
"
Using that called a question disguised as an opinion
# "you dissin me?"
(aka) a guess ... i have place possibly hidden physical gold activity that will satisfy a need between enemies such that they agree to work together under the understanding that each side thinks that the other side undermines their health.
# "Conflicted enemies need a standard to trade."
Topic is physical gold, the selling and buying.
Time period most active here is last 5-10-20 years.
"sides" are the United States and China.
.
The United States wants to trash physical gold so that worldwide it is knowned (sic) NOT as money or store of value, or hedge against times when fiat currencies become bad money.
Now take into the Bob Johnson account of numbers that tell us each year these past 5-10-20 years, the amount of physical gold needed for jewerly, industry, coins and whatever, that requires a delivery of the physical, is xyz tonnes per year average, and each year that amount is mined and recycled such that the supply side is always able to satisfy the demand, such that
these past "too many gold bug years", the price under $290 ..(# all of these past conditions) .. ... "ruled."
# "supply-demand rules are in operation, let us say, according to BJ"
Lets bring in Zeev's awareness to echo Fed Greenspam "told u so" that Central Banks will make sure the supply always feeds demand so that at no time will there be a shortage and push up the gold price.
The glue that holds this all together is that the USSR collapsed leaving the United States the most powerful, having no contest with any other nations in military might and the US dollar.
All this is old news to all here, and the fact that the powers that be in the US knew, that to keep the US top dog forever, required the US dollarto remain number one, no matter how bad a shape it becomes, ... just so that all currencies, in all nations remain "fiat" and (thus are) seen as more "bad & corrupted" (# than) the bad & corrupted sick US dollar.
# "The US wants to have a stronger dollar than other nations so gold interferes with this concept, as the US runs the paper money machine at the IMF."
Now we need that leap of faith, like religion, where physical gold can be used as the only money real enough, such that it can not be anything except true & honest a.k.a. physical gold cannot sin, like fiat paper money can lie about its worth, using them printing presses.
# "gold's worth is theoretical and the issues complex, but it cannot be printed like money so it is a fundamentally more reliable currency."
So the US trashed the gold price keeping it under $290 "forever" with the expectation that it would become that useless barbaric relic. (oops)
# true..
China saw this 5-10-20 years ago and knew that the foundation of the "forever" strong US dollar required, as stated above, that all nations have fiat without any backing, ... and no matter how bad or poorly managed or "created" the US dollar was, others were in worst shape, so that as dominos fall hitting each other, until them all-fiat currencies go belly-up, ... the US dollar will still be the most powerful. (now)
Here is my guess that tells why Bob Johnson's numbers are false.
The Chinese government (# who)sees the gold price under $290 as the low end, .. for where it can be, know that even if it went lower, that(# if)they look long term into the future .. (# they) .. know gold is good to have.
So the Chinese know that if they start a long term in 5-10-20 years of buying that gold under $290, that they could each year double the amount needed on the demand side, and this would drive up the price, ... and that was not good for them. But they realized that
the United States was (# going to) to trash gold for 5-10-20 years and did not want the demand greater than the supply.
# ??? not sure what this means the Chinese did.
Also, the US did not want any trend or nation saying gold was money and a store of wealth. So the United States and China made a deal, in secret under the table (that) the Central Banks that the United States could "pressure enough", would be, the supply for the China demand.
# the US fed gold to China. hmmmm I know they did a deal with the Japs over T-Bills. I know the Arabs demanded gold, but this Chinese trade deal.. dunno..
If so, then, knowing that the amount of physical gold that exists above ground, it is not really an over-reach for the US or Russia or China to buy "it all", just so that they could purchase it all for under $290, ... piece of cake
except to do so would push up the price. But in this possibility, China bought all it wanted these last 5-10-20 years under $290.
If so, then, the question is how much? .. or, better yet, compared to the Bob Johnson's yearly gold supply numbers, was it a fraction of that, (# ?what ) or equal to that, (# ? what) or more?, and .. if more, then the central Banks that Zeev says have enough to satisfy any increased demand would be (# the) correct (# assumption?)...
Only if the amount China bought was a small amount.
# "scenario of chinese buying amounts... "
# what he is saying is, the means by which all this buying could take place, and the price held down too, is not clear.
# I think that he does not take into account that for every seller there is a buyer, and if the selling forward is the "operational short" that trashes prices, it does not matter if the Chinese buy loads. They can be the CB borrower-acquirer in this short operation, and end up with all the physical gold. (In the process of financing production, they borrow gold and sell it. Then they finance production and take receipt of physical gold later. In a falling market they would not have to repay the borrowed gold, except as cash, at which time "CB sales" are registered.)
But if not, and China's wealth might be used to buy big time, and if so, the amount leaving Central Banks these last 5-10-20 years might be huge amounts, not tiny ...using Bob Johnson's numbers.
.
But then i no got the numbers and don't really care what they are since all i need to know is that what i speculate could have happened.
# "the preceding is merely a scenario"
.
If so (how?> then the United States will lose the game and China will win if the US dollar collapses and China and others have gold backed currencies.
I do admit that the US dollar will still remain king based on it being out there in the world in massive amounts,
# amounts do not matter really. I think he means the precedence of financial position.
but over time currencies, gold backed, the good money, drives out the bad money. (???) And if the United States really replaced it physical gold with paper gold, then oopsie, the US fiat dollar will have to be used to purchase that physical gold on the open market that China may sell some at $25,000.00 an ounce.
.
No GATA talk here, just a simple what if thats possible using the forever always condition that government leaders suck.
# I thot they blew.
doug
EC<:-} |
