China Declares War On The U.S. And Gold Is Insurance

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”  HENRY FORD

China has quietly declared war on the U.S. worthless dollar but can you blame them?  They already have in place Chinese Yuan Swap facilities, which started the non U.S. dollar trade practice years ago.  In 2012 China completed trade agreements with most nations they trade with called BRICS.   They also have a BRIC Development Fund with a reported $200 billion already funding infrastructure needs and to deal with their toxic U.S. T Bonds.  They will be busy replacing these bonds with gold and the chartered bank (Bank of China, Peoples Bank of China) will compete with the IMF and World Bank.  BRICS is simply a source of hope for justice seeking non-aligned countries to attack currency volatility. 

These countries export and import some $6,000 billion a year and their trade agreement is for three years for up to $30 billion per year trading their own currencies.  The date for implementation has reportedly been moved up to start earlier than later in 2013.  These BRICS nations have a combined foreign-currency reserves of more than $4 trillion and account for 43 percent of the world’s population.  This will be a huge shift in power from the traditional U.S., U.K. and European world banks to the emerging eastern world.  Today 70% of U.S. dollars are used outside this country for trade purposes, what will follow is a tsunami of dollars rushing back into the U.S.  This will set off a chain reaction of too many devalued dollars chasing too few goods.  This will be the hyper-inflation we have been warning against.  Food prices here in the U.S. will assuredly skyrocket from 18% of our take home pay to double or triple as the U.S.’s standard of living drops to a second world country.   Today third world countries, even Egypt, report 50% to 80 % of one’s income is used for food.  Gold and silver are tangible stores of wealth and insurance to purchase the food and fuel your family will need!

The decades old U.S. sanctions against Iran have also backfired.  These sanctions forced Iran to develop alternative sources of imports and alternative methods of payment for trade settlement among Eastern nations and they prefer it.  Iran has numerous trade partners with Syria, Iraq, Afghanistan, North Korea, Libya, Yemen, Ethiopia, Somalia and others.  Now India and Turkey act as gold intermediary agents with established banking entities and will converge with the Chinese Yuan Swaps already in place.  These countries understand gold to be real money and an exchange for goods, services as well as an artistic art form to adorn themselves in as it has been for centuries.   They simply have no faith in the dollar as a store of value.

One would suspect that the $30 billion planned yearly trade amounts are severely under stated and actual trade amounts will be increasingly closer to $100 billion or possibly $1,000 billion or more, just as China never accurately discloses their gold holdings.  The Chinese people are simply sharp poker players, quiet and discreet, not proud, arrogant or ignorant to show their cards.  If they would such a play would inevitably raise even more anger and ire of the U.S. Fed, IMF and the World Banks and start a war overnight. 

China also has figured out the Fed’s plan when Ben (Buzz Light Year) Bernanke instituted “Q-Infinity and Beyond” and the newly hinted “Q-Finity and Not Beyond”.  They have come to realize that either they would be paid with worthless dollars or quite possibly not at all.  When interest rates inevitably rise and the U.S. can no longer afford to pay back our “Chinese credit card” the U.S. will default on their bond debt repayments.   

China also has been amassing gold reserves quietly and only admits to owning 1000 tons. Most assuredly they now possess some ten times that amount or even more than 10,000 tons.  In just the 1^st quarter of 2013 500 tons of gold was sold to China.  Gold is their insurance, an alternative to the U.S. dollar, and quite simply their back up plan.  Gold should be yours as well!  Only 2% of the populace owns any gold while the rest place their faith in their government and banking institutions that are both utterly bankrupt. 

Now what would you expect the power elites, who own the Federal Reserve, to do now?  I suspect they will press their “bought politicians” to figure out a way to start the physical real war.  We conduct surveillance of all our allies in the name of national security.  We have the technology, and we aim to use it for any purposes.  Our government seems to be operating outside of the law and Snowden called them on it.  There are no parameters they can’t cross to cross.  Today there are some 8 countries, Afghanistan, Iraq, Syria, North Korea, Miramar, Sudan, Iran, Iceland have not agreed to the International Monetary Fund’s Article 8 trade agreement, several countries we have been in conflict with over the past 20 years.  Why, because the Fed is in a dog fight to retain their reserve currency status and these countries do not wish to comply with the powered elites nor use the dollar to settle their debts with other nations of which trillions of dollars are made by the Feds.  The Fed may well be facing collapse, I say good riddance!  

Now Russia and China are passing ships through the Suez Canal for practice exercises and there are boots on the ground in Syria and Putin will most assuredly back the Assad regime.  If that isn’t enough Russia is surely antagonizing the U.S. by entertaining Edward Snowden’s request for temporary asylum.  Israel will more than likely draw us in since they attacked Syria’s Russian munitions’ sites last week.  The U.S. is very unpopular these days and will be dropped from the party list.  Most assuredly our 1,000 military sites internationally make us a feared nation however the U.S. is no longer considered a team player, very unpopular these days and soon will be dropped from the party list.  We won’t be invited to the dance and soon to be shunned by the new power structure of the east. 

I have said before, “A depression is followed by currency wars, followed by trade wars, followed by world wars!”  Wars rarely come as a surprise to those in power but only as a surprise to those who end up fighting it, the populace.  It should be evident that all warfare is caused by deception of the powered elite.  The U.S. started this new currency war when the Federal Reserve started printing dollars uncontrollably under Ben Bernanke, Chairman of Governors of the Federal Reserve.  The trade wars have started, the BRICS who started trade agreements using their own currencies are fighting back against unfair rates of exchange for the constantly devalued dollar.  They are refusing to be subjected to the U.S. currency swap fees.  China’s new “gold backed bank” will quite possibly eliminate the World and I.M.F. Banks.  Other nations will be glad to trade using a gold backed “Yuan Renminbi” which would insure the constant value of their money.  Saving again would become the logical thing to do as one’s money could not be devalued through money printing. 

If you believe that a currency war is starting to gain traction you are correct in your thinking.  My customers, whom own gold, have told me that they refuse to part with their precious metals.  We are in the beginning stages of backwardation and the hoarding of gold by the thinking man has begun.   

Gold and silver prices are realistic, for the time being, when compared to their costs to mine, refine, manufacture, and distribute; will you jump in or capitulate?  The decision is yours!  The economic situation is not improving no matter what the media reports about job gains and decreasing unemployment numbers, increased housing sales or new stock highs. The only bright light at the end of this tunnel is precious metals; protect your family before it’s too late!

Roxanne Lewis is a precious metals broker and business woman in western Colorado dedicated to educating others to protect themselves and their family’s assets.  She writes weekly articles http://www.whynotgold.com under her weekly BLOG and ARCHIVED articles of the past.  VISIT her website that features VISIBLE, CONSTANTLY changing pricing every 15 sec. from the COMEX.  Find out why customers say, “I’ll be back.  You have the lowest prices I have ever found!”  She may be reached @ [email protected]