WE’RE SURELY OUTSMARTING THE CHINESE

23 comments

Posted on 9th April 2014 by Administrator in Economy |Politics |Social Issues

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As the Federal Reserve, along with their Wall Street banker owners, in cooperation with Obama and his Treasury Dept., have been artificially suppressing the price of gold since 2011, someone has been taking advantage of the bargain prices. Do you think the brilliant Ivy League minds that caused two financial market crashes in the last 13 years have outsmarted those rubes in China? The fact that China ceased buying US Treasury bonds two years ago hasn’t worried the brain surgeons in the Eccles Building. They’ve got everything under control.

China wouldn’t be signing energy deals with Russia, buying up natural resources in Africa, making oil deals with Iran and buying up all the gold they can get their hands on because they are preparing for a dramatic change in the world currency regime. That’s silly. Those foolish Chinese don’t realize that gold is barbaric relic and that the fiat paper USD will always retain its value. Just because Janet prints $2.8 billion more of them per day doesn’t mean a thing. Faith in bankers will make everyone wealthy.

Those wily orientals don’t know what they are doing. 

23 Comments
  1. Bostonbob says:

    Just posted on another thread:

    RSS
    The Chinese Are Acquiring Large Chunks Of Land In Communities All Over America
    Posted by aurelius77 on April 3, 2014

    Has the United States ever experienced a time when a foreign nation has attempted to buy up so much of our land all at once? As you will read about in this article, the Chinese are on a real estate buying spree all over America. In fact, in some cases large chunks of land are actually being given to them. Yes, you read that correctly. China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people. Do we really want a foreign superpower to physically own so much of our territory?

    There are some that are playing down this threat by making a distinction between the Chinese government and Chinese corporations, but things work differently over in China than they do here. In China, the government is involved in everything. In fact, 43 percent of all corporate profits in China are produced by companies that the Chinese government controls. And all of the rest of the companies are very careful to follow the lead and direction of the Chinese government.

    That is why what is going on in places such as Thomasville, Alabama is so alarming. Small communities such as Thomasville are so starved for jobs that they are willing to give land away for free to Chinese companies in order to entice them to build factories…

    Gov. Robert Bentley said Friday that he will announce an economic development project in Thomasville, Ala., Monday morning.

    That project is likely a copper tube plant to be built by Golden Dragon Precise Copper Tube Group. A legal notice published Thursday indicates that the city of Thomasville and others intend to give land and other incentives to GD Copper USA, which state corporation records identify as a Florida-based subsidiary of Golden Dragon.

    And in this particular case, we are not just talking about a small plot of land. We are talking about a 40 acre chunk of land worth 1.5 million dollars…

    The legal notice indicated the city plans to give Golden Dragon a 40-acre site. Thomasville Mayor Sheldon Day has said that land is in a city industrial park south of Thomasville High School. It includes a $1.5 million, 50,000-square-foot building that the city constructed in 2009 to attract businesses.

    In other cases, the Chinese are gaining control over vast tracts of U.S. territory by buying up our large corporations.

    For example, when the Chinese purchased Smithfield Foods, they suddenly owned 460 large farms and became the top employer in dozens of communities all over the United States…

    Smithfield Foods is the largest pork producer and processor in the world. It has facilities in 26 U.S. states and it employs tens of thousands of Americans. It directly owns 460 farms and has contracts with approximately 2,100 others. But now a Chinese company has bought it for $4.7 billion, and that means that the Chinese will now be the most important employer in dozens of rural communities all over America.

    And the Chinese seem to have a particular interest in economically-depressed areas of the country. Perhaps they feel that now is the time to gobble up companies and properties in such areas for bargain-basement prices. For instance, the following is from a CNBC article that detailed how the Chinese are aggressively “putting down roots in Detroit”…

    But of much greater concern is the huge wave of real estate purchases that are quietly happening all around us every single day.

    The following is from a recent CNBC article entitled “Chinese buying up California housing“…

    At a brand new housing development in Irvine, Calif., some of America’s largest home builders are back at work after a crippling housing crash. Lennar, Pulte, K Hovnanian, Ryland to name a few. It’s a rebirth for U.S. construction, but the customers are largely Chinese.

    “They see the market here still has room for appreciation,” said Irvine-area real estate agent Kinney Yong, of RE/MAX Premier Realty. “What’s driving them over here is that they have this cash, and they want to park it somewhere or invest somewhere.”

    So what happens when we get to the point when the Chinese government and/or Chinese citizens own 10 percent of all the real estate in the entire country?

    Will it be a problem then?

    What about if we get to 20 percent or 30 percent?

    At what point will we be forced to admit that we have a major problem on our hands?

    Link::

    http://endoftheamericandream.com/archives/the-chinese-are-acquiring-large-chunks-of-land-in-communities-all-over-america

    9th April 2014 at 2:30 pm

  2. Bostonbob says:

    While the Chinese are stockpiling hard assets we are stockpiling debt.Which one sounds like it will work out in the long run?
    Bob.

    9th April 2014 at 2:31 pm

  3. TeresaE says:

    @Bostonbob, this has been going on for the past 12 years or so.

    They are not only buying our companies, they are buying the rights to vast amounts of our natural resources.

    They are also building entire (tax free to American gubment) cities, and importing their citizens to live and work within them.

    Would WE be able to do that in China? Since NO American company operates in China without majority Chinese ownership, the answer to that is NO.

    Warren Buffett once warned that our children were going to wake up sharecroppers paying taxes to both China and the US government.

    Allowing them to buy up our resources, our very land, is cementing this as an outcome.

    Imagine if millions of “temporary” Chinese decide they want to make the rules, then what?

    Why are we setting up industrial free trade zones that only foreigners can live and work in?

    At what point do the smart people wake up and realize that this isn’t accidental?

    We, the middle class, are being sold out and culled.

    Soon we’ll all be like Chinamen. Silenced, poor and willing to kill our babies to keep our jobs.

    Guess the elite and politicians believe they will be spared.

    I don’t believe it, but they must.

    9th April 2014 at 3:08 pm

  4. card802 says:

    I’ve argued this point with close relatives before, it doesn’t matter what you believe about gold.

    What matters is what the market believes about gold, it matters if the new reserve currency is going to be backed, either fully or partially by gold or a combination of PM’s. There’s a reason why our gold is gone and controlled by the east.

    About six years ago China started making trade swaps not using the dollar. The latest country to join the long list of country’s trading with China not using the dollar is rumored to be Saudi Arabia. The prez has warned China and Russia not to enter trade swaps with Iran using a alternate currency.
    I bet he has them shaking.
    I’ve also read that Germany is not so impressed with US anymore and may also dump the reserve and by the end of the year Saudi Arabia and Iran will be buddies in their commitment to destroy the evil Babylon.

    Bye bye PetroDollar.

    9th April 2014 at 3:10 pm

  5. Bostonbob says:

    TE,
    The only good thing is my daughter will be majoring in Chinese next year and my son has had 6 years of Chinese.
    Bob.

    9th April 2014 at 3:21 pm

  6. Bostonbob says:

    TE,
    Fortunately my daughter will be majoring in Chinese and my son has had 6 years of Chinese.

    谢谢
    Xièxiè

    Bob.

    9th April 2014 at 3:47 pm

  7. Bostonbob says:

    Sorry I did not see it post the first time.
    Bob.

    9th April 2014 at 3:48 pm

  8. Econman says:

    We should all start learning how to speak Chinese…fast.

    9th April 2014 at 3:50 pm

  9. Bostonbob says:

    On the other hand the dollar still accounts for 90% of the over the counter Forex trading:

    Is the yuan tearing down the the US dollar?
    Posted by Houses and Holes in Australian dollar at 2:04pm on April 9, 2014 | 10 comments
    Share on Facebook Share on Twitter Share on Reddit
    +

    So say the South China Morning Post:

    At least 40 central banks have invested in the yuan and several others are preparing to do so, putting the mainland currency on the path to reserve status even before full convertibility, Standard Chartered said.

    Twenty-three countries have publicly declared their holdings in yuan, in either the onshore or offshore markets, yet the real number of participating central banks could be far more than that, said Jukka Pihlman, Standard Chartered’s Singapore-based global head of central banks and sovereign wealth funds.

    Pihlman, who formerly worked at the International Monetary Fund advising central banks on asset-management issues, said at least 12 central banks had invested in yuan assets without declaring they had done so.
    The US dollar is still the world’s most widely held reserve currency, accounting for nearly 33 per cent of global foreign exchange holdings at the end of last year, according to IMF data. That ratio has been declining since 2000, when 55 per cent of the world’s reserves were denominated in US dollars.

    The IMF does not disclose the percentage of reserves held in yuan, but the emerging market countries’ share of reserves in “other currencies” has increased by almost 400 per cent since 2003, while that of developed nations grew 200 per cent, according to IMF data.

    Pihlman said “a great number of central banks are in the process of adding [yuan] to their portfolios”.

    “The [yuan] has effectively already become a de facto reserve currency because so many central banks have already invested in it,” he said.

    There’s more than a little over-excitement here. The Chinese economy is the second largest in the world yet the central banks holding yuan don’t look much larger than those holding Australian dollars.

    Besides, there is a quantum difference between central banks holding a few of your pennies and global markets pricing absolutely everything in relative terms off your currency. The US dollar still makes up one side of 90% of the world’s $700 trillion in over-the-counter forex, equity, commodity, interest rate and credit derivative transactions, making the yuan (and everything else) almost completely irrelevant.

    A second point worth noting is that if you’re going to be a true reserve currency then you’re also going to have to run huge current account deficits, or there simply won’t be enough of your dough to go around. While the notion of 1.3 billion consumers going hog wild at the mall suggest such is possible in the future, with very low average incomes and entrenched savings habits, China has a long way to go before it’ll be chucking out enough yuan to satisfy that criteria.

    While the next chart from JP Morgan will no doubt one day come true, it probably won’t be in my lifetime:

    Is the yuan tearing down the the US dollar?
    Posted by Houses and Holes in Australian dollar at 2:04pm on April 9, 2014 | 10 comments
    Share on Facebook Share on Twitter Share on Reddit
    +

    So say the South China Morning Post:

    At least 40 central banks have invested in the yuan and several others are preparing to do so, putting the mainland currency on the path to reserve status even before full convertibility, Standard Chartered said.

    Twenty-three countries have publicly declared their holdings in yuan, in either the onshore or offshore markets, yet the real number of participating central banks could be far more than that, said Jukka Pihlman, Standard Chartered’s Singapore-based global head of central banks and sovereign wealth funds.

    Pihlman, who formerly worked at the International Monetary Fund advising central banks on asset-management issues, said at least 12 central banks had invested in yuan assets without declaring they had done so.
    The US dollar is still the world’s most widely held reserve currency, accounting for nearly 33 per cent of global foreign exchange holdings at the end of last year, according to IMF data. That ratio has been declining since 2000, when 55 per cent of the world’s reserves were denominated in US dollars.

    The IMF does not disclose the percentage of reserves held in yuan, but the emerging market countries’ share of reserves in “other currencies” has increased by almost 400 per cent since 2003, while that of developed nations grew 200 per cent, according to IMF data.

    Pihlman said “a great number of central banks are in the process of adding [yuan] to their portfolios”.

    “The [yuan] has effectively already become a de facto reserve currency because so many central banks have already invested in it,” he said.

    There’s more than a little over-excitement here. The Chinese economy is the second largest in the world yet the central banks holding yuan don’t look much larger than those holding Australian dollars.

    Besides, there is a quantum difference between central banks holding a few of your pennies and global markets pricing absolutely everything in relative terms off your currency. The US dollar still makes up one side of 90% of the world’s $700 trillion in over-the-counter forex, equity, commodity, interest rate and credit derivative transactions, making the yuan (and everything else) almost completely irrelevant.

    A second point worth noting is that if you’re going to be a true reserve currency then you’re also going to have to run huge current account deficits, or there simply won’t be enough of your dough to go around. While the notion of 1.3 billion consumers going hog wild at the mall suggest such is possible in the future, with very low average incomes and entrenched savings habits, China has a long way to go before it’ll be chucking out enough yuan to satisfy that criteria.

    While the next chart from JP Morgan will no doubt one day come true, it probably won’t be in my lifetime:

    20120103_JPM_reserve

    9th April 2014 at 4:00 pm

  10. underfire says:

    Who (in America) gives a dam. We’ve got food stamps, free phones, bought off politicians, don’t have to work if you don’t want. Thinking about stuff like this is for dumb smucks like on tbp.

    9th April 2014 at 4:18 pm

  11. AWD says:

    The USSA has been playing a game of “three card Monty” with the Chinese, thinking we’re winning, when we’ve been losing. They send us stuff for the Wal Mart FSA slobs to stuff inside their trailers, and we’ve been sending them IOU’s. They don’t need our IOU’s anymore, they’ve got plenty already.

    That was a great rant, Admin. Laughed my ass off. Obama and Yellen are the rubes. Russia and China are making us look like the imbeciles our leaders are. Maybe Barry will shut down the military before there’s another world war. The banksters and elites are willing to go to war to protect our financial sovereignty. Everybody is already stocking up on Yuan. The die is cast. Game over.

    9th April 2014 at 5:28 pm

  12. SKINBAG says:

    A ‘non profit’ with direct ties to a Chinese real estate organization just purchased E.H. Harriman’s (a 19t/20th century rail road tycoon)mansion in NewYork.

    9th April 2014 at 6:17 pm

  13. WE’RE SURELY OUTSMARTING THE CHINESE | Mind Control Rebellion WE’RE SURELY OUTSMARTING THE CHINESE | Awareness Is Key… says:

    […] Administrator As the Federal Reserve, along with their Wall Street banker owners, in cooperation with Obama and […]

    9th April 2014 at 6:34 pm

  14. Mikey says:

    Response from the White House

    Um, ah, yeah, this article is um you know correct! We have ah, um a plan. But as you know plans cost money, so ah yeah, we will just loan some more into existence as ah, we are America, party at my place tonight after golf.

    9th April 2014 at 7:38 pm

  15. llpoh says:

    Chinese take the long-term view.

    Americans take the short-term view.

    Americans are fucked.

    9th April 2014 at 8:23 pm

  16. AWD says:

    Llpoh, that’s all you got? 3 sentences ending with an expletive? I was hoping for a long-winded diatribe.

    It seems China and Russia were flying under the radar for a long time in their “long term view”, but now the volume of their schemes is spilling out like a broken dam. They are taking affirmative action in our demise, in as much as affirmative action has lead to our demise. They are getting out from under our financial burden post haste. Admin forgot to mention the deals Russia and China are signing with India, the second most populous country in the world. Truly amazing. We’re being replaced as a world power right before our eyes, right under Obama’s nose.

    It’s no small wonder the U.S. is being left out in the cold. We don’t produce anything anymore, we devalue our currency to the point of worthlessness, the government is predatory, especially where taxes and regulations are concerned. We do we have to offer the world? Corruption? Debt? Socialism and welfare? Unions? 112 million people that don’t have to work for a living? Or the chance to let our military murder several million of their citizens and destroy their country? We’re like a suicide bomber running around threatening sane and productive people in their own homes.

    9th April 2014 at 8:47 pm

  17. AWD says:

    Lotus

    Shut the fuck up, and come back when you learn how to complete sentences you English-challenged cretin.

    9th April 2014 at 8:49 pm

  18. llpoh says:

    AWD – that is it. Short and sweet. It really does explain the difference. The Chinese are patient bastards. Americans demand instant gratification.

    It is the ant versus the grasshopper played out in real life. The ant wins, the grasshopper starves.

    ants-plan.jpg

    9th April 2014 at 9:13 pm

  19. Marc says:

    Why is it that we have precise charts for Chinese gold imports as well as a fair understanding of how much yellow metal is currently hoarded by that government and/or its central bank but not a clue as to what is really going on here? If gold is nothing more than a relic or commodity like wheat and copper then why is knowledge regarding tonnage currently in storage treated like an official secret? I just don’t get it. I’ve seen plenty of slick illustrations which claim to compare national gold reserves. Our pile is invariably depicted as the Mount Everest of the bunch. Illustrations and assurances stop a little short of the real thing. Germany found that out the hard way.

    9th April 2014 at 11:37 pm

  20. HYMN says:

    The article was very good and informative thank you. The whole transfer of wealth and power that’s taking place is truly unprecedented. Unfortunately i agree we are our own worst enemy. Furthermore i believe it’s too late for MIGHT to make things right, that has worked in the past but i feel the jig is up. Unless ol’ Ronald Ray-Gun went ahead with that idea he had. So, now that the die has been cast, what now ?

    10th April 2014 at 1:32 am

  21. ZombieDawg says:

    It’s not just the (center of the universe) USA that this is all happening you know !
    The Chings are buying up land, farms, mining rights and damn near anything they can or will need in every country that has them !
    Just wait till SHTF..and people in every country are starving due to climate change/economic collapse/environmental damage and the good old Chings will just give you a nice oriental smile and say “We own it. You starve. Velly Solly”

    Blacklist chinese crap now ! Screw ‘em.

    https://www.pnmic.org/

    10th April 2014 at 1:54 am

  22. Joe says:

    ZombieDawg

    Yeah, right. It’s all the chinese fault that have the gold. It’s never your fault accumulating those debts. It’s never your fault that the gov you voted for to have wars, export jobs, inflate currency and writing blank check for social welfare. The chinese don’t point the gun to ur head, your gov rob you with inflation.

    Grow up and act like an adult.

    10th April 2014 at 7:39 am

  23. Administrator says:

    It’s On: Gazprom Prepares “Symbolic” Bond Issue In Chinese Yuan

    Submitted by Tyler Durden on 04/10/2014 12:33 -0400

    Curious what the fate of the petrodollar is? Look no farther than this Interfax update blasted moments ago by Bloomberg: “Gazprom Considers ‘Symbolic’ Yuan Bond Issue, Interfax Says.”

    Bloomberg adds that the gas giant is considering proposals from potential organizers to market bonds in yuan, Interfax reports, citing people with knowledge of the matter.

    •Gazprom unlikely be able to gain more than $300m due to mkt volume, newswire reports
    •No mandates, deal timeline yet
    •Issue may add new investors, become a “topical” public relations act amid tensions with U.S., EU
    Well, yes. It’s called “symbolic” for a reason. More importantly, it is a symbol of what happens when one can “create” money de novo without the presence of the world’s increasingly defunct reserve currency, either secured by gas or by future cash flows, i.e., unsecured.

    Confused? Read:

    •Petrodollar Alert: Putin Prepares To Announce “Holy Grail” Gas Deal With China
    •Russia And China About To Sign “Holy Grail” Gas Deal
    •40 Central Banks Are Betting This Will Be The Next Reserve Currency
    … and the New New Normal flow of funds will suddenly become clear –

    1.Gazprom delivering gas to China.
    2.China Gazprom paying in Yuan (convertible into Rubles)
    3.Gazprom funding itself increasingly in Yuan.
    4.Russia buying Chinese goods and services in Yuan (convertible into Rubles)
    And all of this with the US banker cartel completely disintermediated courtesy of the glaring absence of the USD in any of the above listed steps, or as some may call it: from the Petrodollar to the Gas-o-yuan (something 40 central banks have already figured out… just not the Fed).

    10th April 2014 at 1:09 pm

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