WOW! Those bastions of truth and “journalism” at MarketWatch looked up from todays script and noticed that China and Russia are stockpiling gold!! Let’s see, Russia has been adding, each month, an average north of 15 tons of gold for the past 6 years! China has been in and out of the gold market during this same time frame on two different occasions and is now going into their 8th month on their latest foray into the gold market. Did someone tell these guys to write about this or are they that blind to the world around them?
On July 29, 2019 Brett Arends penned Watch out, America: China and Russia are stockpiling gold If you’re suppose to be following markets and you didn’t notice until Monday that China and Russia are stacking physical gold you may need to find another line of work or demand a better script; because that horse, as we pointed out above, left the stable years ago.
We know he’s not the sharpest tool in the shed by his opening in which he proclaims
I’ve never been a gold bug.
The yellow metal generates no cash, grows no crops, provides no shelter and supplies no useful service. It hasn’t been official money for decades. It isn’t any kind of “safe haven” because it always seems to be crashing or booming or crashing again. It hasn’t been an efficient way of verifying payment since Samuel Morse invented the telegraph. Source
The makings of a sorry propaganda piece have just been spread out across the screen. What Mr. Arends is attempting to do is describe an income producing asset – gold is not an income producing asset, gold is money. Does cash generate cash? If I place a $100 note in a vault will it multiply? Will it grow an ear of corn or turn on my cable TV? No, it will not do any of those things, just as an ounce of gold refuses to be active as well. You see, gold is money. Similar to a $100 note, but different. Outside of the U.S. / western world gold is accepted as payment. Don’t believe me, just ask the Iranians who pay rent using physical gold. Ask the Indians, Pakistanis or most any muslim that lives in a muslim country.
What gold does that a $100 note will not is protect wealth. This is the number one reason for holding gold. An ounce of gold in 1932 would purchase $18.37 worth of goods or services, slightly less than the $20.69 value of an ounce of gold. Please don’t take my word for it, look at what the Federal Reserve Bank says about their product, the Federal Reserve Note.
Now. Gold in 1932 had a value of $20.69 so, let’s take that number and see how it works out in today’s terms. 2018 is the last full year to measure the Federal Reserve Note, U.S. dollar. Where the Federal Reserve states the “dollar is worth” is 100% wrong and they know it. This shows how much value Federal Reserve Notes have lost. It would take $380 today to purchase the same as $20.69 in 1932. There is no “worth”, there is value and nothing else.
Well, well, well. Had I put a $20 note in a vault in 1932 and kept it until today I would need $380 or 19 additional $20 notes to purchase $20 worth of goods or services based on 1932 price of gold. Had I put an ounce of gold in a vault in 1932 I would be able to purchase almost $1,425 worth of goods or services. Seems like something happened along the way to the banking cabals scam.
So, Mr. Arends, once again, shows how little he knows about the monetary system, gold, dollars, Federal Reserve or anything to do with money or currency when he states:
But here’s the funny thing: It’s [gold] been going up. Big time. And for none of the usual reasons.
There’s no inflation. Prices are currently rising by about 1.6% a year.
There’s no obvious economic distress. The U.S. economy is growing by about 2.1% a year.
And there’s no financial panic. Stock markets are rising. Wall Street has been hitting new highs. Junk bond spreads — the extra interest that risky companies have to pay to borrow money — are low. Source
Right…”no inflation”. hmmmm seems like since in 1932 there has been 1,900% inflation. Seems like every time I go to the grocery store and I replenish an item it has either been repackaged into a smaller “more convenient” size selling at the same price as before or the price has gone up. This is called inflation. I know you have seen it, experienced it and understand it. These corporate “journalist” seem to think we are all idiots and are too stupid to understand these simple concepts and we can’t see the items in our shopping cart!!
No “economic distress”?!? hmmmm. Why are 12,000 retail outlets slated to close in 2019? What about Nissan laying off 10,000 employees globally? Yes, we all hear the lies spewed each month by the BLS about 3.whatever% unemployment. We also know this is a lie.
As Peter Schiff recently explained why the economy appears to be “growing” –
The economy supposedly grew by 2.2%, despite a decline in business investment, decreasing imports and falling corporate profits.
The only reason GDP went up is because government spent a lot of money.”
And of course consumer spending. It increased by 4.3% and contributed nearly all of the GDP growth. In fact, many of the headlines credited the American consumer with “rescuing the economy.” Source
No, “financial panic”. Correct, not by China or Russia, they have lots and lots of gold. Why panic? Now, there will be massive panic once the nonsensical lies escape and become better known by more people. There will be massive panic on a grand scale when the stock market corrects by more than 50% and never, ever recovers. That day is coming.
So, gold is money, Federal Reserve Notes, dollars, are not money, they are currency and have exactly zero value. Gold, on the other hand, has value, protects wealth and around the world is still used as currency. Mr Arends is going to have try harder in the future. Oh, but at least he finally noticed what we have been reporting since 2014, the day we started this blog. Welcome to the party Mr. Arends, and yes, Russia and China are acquiring gold to protect their wealth, start a new monetary system outside the criminal Federal Reserve Banking system and will probably launch a gold-backed cryptocurrency for global trade settlement.
It’s really sad to see this level of education on display. The people running these publications take you for a fool and presume you don’t know anything. They treat you like a child and they are the adult in the room with all the wisdom. Well, nothing could be further from the truth.
U.S. dollar hegemony
And there’s an obvious reason for China to buy gold. It wants to break up the global hegemony of the U.S. dollar — the hegemony that former French President Charles de Gaulle called America’s “exorbitant privilege.” It wants to make its own currency, the renminbi, a world player. And Odey argues that buying gold bullion is a natural move. Gold reserves should add to world confidence in the Chinese currency.
In other words, the U.S. president, by “Making America Great Again,” may also be Making Gold Great Again. Source
Really? This just started when President Trump was elected in 2016? What you’re saying is the global financial meltdown in 2008 / 2009 had nothing to do with China and Russia acquiring gold, China fighting with the IMF to get the RMB added to the basket of currencies and Russia de-dollarizing to the tune of selling off 84% of their U.S. debt – this is all a manifestation during the Trump era? QEnfinity by the ECB and Federal Reserve, that began in 2010, had nothing to do with China and Russia acquiring gold? WOW! – Try again.
Now you can’t say you didn’t know. Got physical gold / silver close at hand?
