To: cmg who wrote (103231 ) 10/13/2013 7:19:41 PM From: TobagoJack Read Replies (1) | Respond to of 217781 to be cogent, i think ... (i) this book en.wikipedia.org "currency wars" was a best seller, still much talked about even amongst people who never saw a copy, and given that ~600K copies were printed and sold, i believe perhaps 6M people are aware of the book, and maybe 60M people are cognizant of the concept (ii) china officialdom had been preparing its population for de-americanisation of savings since perhaps 1985, and very specifically executing gold reform Message 25916530 alongside all other reconstitutions (iii) the real world developments have been accelerating of late, since 2008, when it was absolutely clear that the global monetary system china wishes to be able to opt out of is actually broken and that sooner or later all others must opt out of (iv) in china, given the recent (2010 onward) and socially necessary suppression of real estate speculation per 'preventing a bubble', the ipo force-feed that makes the shanghai stock market a less interesting place than the macao risk exchange, and the pointless national treasury bond instruments given fiat money inflation, folks are gradually but certainly being constrained by the disappearing of investible sectors, hedge-able instruments, and good-enough collaterals. (v) the same process is actually happening all around the world except that given the financial market 'sophistication' everywhere else (deeper markets, more exchange-traded items, faster price reset / discovery and trading-the-bounce) the destination of investment money is confused easier (vi) gold shall be the last investible asset class, unless one treats bullets as an asset class, that which shall reign supreme right after gold goes into deep-keep hiding (vii) given above, what should folks w/ idle savings do? remember, in my part of the world savings does not include stocks (play thing) and bonds (stupid), and really does not include real estate (stuff). savings effectively means money that can be deployed to anything else. (viii) savings is growing, as true income rises, and therefore gold holdings must rise. the savings action is made easier as jpm / fed / ws insist on making more gold available than is annually mined. the amount of gold that de-camped gld etf is on par w/ china import of gold ytd and as gold is not actually consumed when the jewelry in these parts, as correctly pointed out by haim is 24k. at such purity, jewelry is savings. (ix) as the china savings continue to rise even as nyse gld price remain low or goes lower, more good collateral disappears across hong kong's northern border. either the paper-gold world trades at higher hypothecation multiple / leverage or the paper-gold transaction volume must reduce, but perhaps in the interim still more physical gold is permanently 'borrowed' from the western central banks including the fed (x) as the german parliament discovered that it takes the fed 7 years to deliver a pitiful mass of gold when it takes hong kong a few weeks to transit same granted request and a year to deal-in same total requirement, am guessing that the fed gold is ... mostly gone or as good as gone the bank run shall be, and for those who think they can dial-in and getgold as needed per eventual dire imperative, best re-think (xi) as and when the day of global re-think actuate, i would imagine the financial markets shall question the issues of what is real, unencumbered, money-good collateral, and what are mere representations of wealth underpinned by laws to be changed at will, contracts to be voided, bailed-in, seized, or otherwise vaporized cheers, tj p.s. ... and remember, i am the quintessential optimist who discount the possibilities of global war, mass refugeedom, pervasive civil wars, and such same but yes, i do believe we are now playing for keeps, because this time is different and the time line remains Message 29152659 "... 2018 07 18 - 2026 07 18 ..."