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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Riskmgmt who wrote (101610)	6/27/2013 1:24:19 AM
From: Hawkmoon	3 Recommendations Recommended By Cogito Ergo Sum Snowshoe teevee Read Replies (1) \| Respond to of 219500

I think part of the exercise on the part of Sovereign Gov't and CBs buying up gold was to preserve the illusion of inflationary pressures, therefore, economic expansion, looming just around the corner. But this has proven fruitless, thus far. In China, the largest producer and importer, of Gold, it's seems apparent that they are looking for commodities to prop up the collateral for their shadow banking system. Maybe they are looking for something more high quality than Copper and Iron, which seems to be backing many speculative financial bets right now.. zerohedge.com zerohedge.com But now Gold is collapsing in value as collateral as well.. Which suggests that the sovereign buyers are afraid of "catching a falling knife" in the face of the PBOC's newfound reluctance to continue financing the casino economy there.. That's a very clear signal to western CBs that if the Chinese are willing to make the hard financial decisions (with the benefit of having a dictatorial authority to do so), anything the western CBs do is likely doomed to failure. All they can now do is attempt to buffer the consequences. They are no longer able to sustain the inflationary illusion they have attempted to create by propping up gold. Deflation is not good for Gold or Silver. In Deflation, cash is king.. (and ultra-short ETFs may be "God", so long as the derivatives backing them up don't fail).. Hawk