Multi-Billionaire Hugo Salinas Price – The US May Be Destroyed By Mass Uprising

Today multi-billionaire Hugo Salinas Price warned that the US may be destroyed by mass uprising. He also discussed gold and the role it may play. September 25 (King World News) – Multi-billionaire Hugo Salinas Price:  In March, 1861, the kind-hearted Czar of Russia, Alexander II, issued a proclamation which liberated the serfs of Russia. Up to that time, the serfs had not been allowed to leave the huge agricultural tracts of land owned by the aristocracy of Russia. The serfs were attached by law, to the place where they were born.  As an unintended consequence of Czar Alexander’s generosity, his action prompted millions of ex-serfs to leave the isolation of the Russian vastness and move to the cities, where they became a rootless proletariat.  * * * * * In 1945, the United States emerged triumphant from World War II, totally intact. The American economy was vibrant. Gold reserves held by the Federal Reserve, amounted to some 25 or 26 thousand tons… Listen to the greatest Egon von Greyerz audio interview everby CLICKING HERE OR ON THE IMAGE BELOW. Sponsored The War having ended, countries around the world, which had sent their gold to the US for safekeeping, began to repatriate their gold.  While the Europeans and the Japanese were busily rebuilding their countries after the devastation of WW II, the US was intact and its population confident that a bright future lay ahead.  The population was so confident, that it began to object to the smoky industries which polluted the air it breathed, and soon the new government policy was to abolish contamination and substitute imports for the absence of production from smoky industries.  In due course, it was found that national production was not really necessary to the well-being of the American nation. Why produce, when the US could purchase everything it wanted by offering the poor exporters of the world, some of the precious Dollars of the US?  The unforeseen consequence of this policy was the de-industrialization of the US, and with the disappearance of its industry, there disappeared its well-paying jobs. But the disappearance of jobs was accompanied with the disappearance of gold from the Reserves of the US Government, as gold was sent abroad, in payment of increasing Trade Deficits with the rest of the world.  Thus came into existence a huge proletariat of unemployed Americans, who live off of government hand-outs. However, hand-outs on the part of government cannot prevent the masses of unemployed or sub-employed, from being unhappy. Unemployment or sub-employment is demoralizing.  As gold disappeared from Treasury vaults, in payment of export deficits, there finally arrived a moment – August 15, 1971 – when President Nixon was forced to stop paying for US Export Deficits, in gold. From that moment to the present, US has paid for imports with irredeemable Dollars.  * * * * *  Thus, we come to the present, where there is a remarkable similarity – for different reasons – in the discontent of the masses of US unemployed or sub-employed today, with the discontent of the rootless masses of Russian kulaks, in 1917.  In both cases: yesterday, the rootless kulaks of Russia of 1917, and today, the unemployed or sub-employed of the US, both are the object of manipulation by revolutionaries who wish to establish a different politic-economic system: Socialism.  * * * * *  The US cannot alter its ways. It cannot “return to gold”, because that would require a wrenching, unbearably painful social re-organization of US society.  President Trump may, perhaps, win the next election. But the fundamental cause of unrest, the unemployment or sub-employment of masses of Americans, cannot be eliminated without a return to gold – which is politically impossible.  Thus, the revolutionaries in the US have the upper hand.  If the revolutionaries come to power in the US, the immediate casualty will be the Dollar, which will collapse in international value and force the US to return to gold. Forced to return to gold, the US will immediately lose its international stature, which is built upon the irredeemable US Dollar.  The great danger for the US and the world is that the Socialists, who are likely to achieve power in the US, may, in desperation, resort to a suicidal World War III. The US would lose that war and nothing would remain of the great US but smoking ruins. Within hours KWN will be releasing an audio interview. Until then… BIG PICTURE: Huge Moves In Commodities Particularly Gold & Silver***ALSO JUST RELEASED: Children’s Hospital Sees An Alarming Rise In Suicide Patients, “Nearly A Child A Day” Last Month CLICK HERE. © 2020 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged. Facebook Twitter Linkedin email Print

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Children’s Hospital Sees An Alarming Rise In Suicide Patients, “Nearly A Child Or Teen A Day” Last Month

The COVID lockdown continues to take its toll on humanity with a children’s hospital seeing an alarming rise in suicide patients. This is tragic and heartbreaking. September 25 (King World News) – An alarming rate of children are purposefully harming themselves and ending up at Cook Children’s Medical Center. In August, 29 patients were admitted to the hospital after attempting suicide. This marks the second worst month since at least 2015. “We’ve definitely seen a high number of adolescent suicide attempts over the past couple of months, especially during COVID-19,” said Kia Carter, M.D., medical director of psychiatry at Cook Children’s Medical Center. “We’ve also seen younger kids endorse suicidal ideation.” At Cook Children’s, the vast majority of patients treated for self-harming are girls, typically between the ages of 13 and 15. But Dr. Carter says she’s had patients in her unit as young as 4 years old talking about wanting to die. “We’ve seen a huge increase with younger kids knowing what death is because of video games,” said Dr. Carter. “We have to assess their cognitive level and find out if they know what death means or do they think it’s like the video game where they die, but get a backup player.” So far in 2020, 192 kids have been admitted to Cook Children’s for attempting suicide. Compare that to the same time period in 2015 when the hospital saw 88 patients – less than half of the current statistics. Unfortunately, the data from Cook Children’s Behavioral Health Center is in line with a new study from the Centers for Disease Control and Prevention (CDC). The article, released Sept. 11, shows suicide rates among 10 to 24 year olds have increased 57.4% from 2007 to 2018. “It’s a real trend that has been demanding, for a while, a serious public health and research effort to understand what is happening and why,” said Anna Mueller, an associate professor of sociology at Indiana University Bloomington. In an interview with USA Today, Mueller said she doesn’t buy that it’s just social media, though we do know many children express anxiety and depression linked to social media. “Social media plays a big role in the mental health of children and teens,” said Dr. Carter. “They experience bullying online, they may not feel self-worth because they’re comparing themselves to what they see on Instagram. They’re also getting ideas on the internet about how to harm themselves.” Dr. Carter says social media and sites like YouTube have made self-harm almost acceptable. She says children are looking to those avenues to find out how many pills to take or other ways they can attempt suicide. “A lot of kids will research how much medication to take to not wake up,” said Dr. Carter. “I would say 99% of the overdoses we see have some over-the-counter component.” Since January, 31 children have been admitted to Cook Children’s for ingesting too much Benadryl. At least three of the Benadryl overdoses are linked to a TikTok challenge, but the majority of cases were among patients intending to harm themselves. Other drugs commonly found in medicine cabinets such as Tylenol, aspirin and ibuprofen are also frequently used. So why do children and teens take these drastic measures? “When people feel like they’re not going to get better and there’s no way out, they tend to go to these levels,” Dr. Carter explained. “I think the biggest thing is hopelessness. When kids feel like they don’t have anyone to talk to, they don’t feel like they can communicate with their parents or they’re getting bullied and they don’t have a social circle. Some kids also are struggling with gender and sexual identity.” “There are some kids who physically don’t feel comfortable in the body they’re in and they don’t feel that they relate to the other girls or the other boys. We see this occur a lot around age 10,” said Dr. Carter. “A lot of times parents feel like it’s a phase, and that might be true, but I would encourage parents to not minimize it because kids can begin to feel hopeless.” She suggests parents keep an open mind, listen to their children and get them in to see a licensed professional counselor. And she says it’s ok to not agree with their feelings, but to share those thoughts with your spouse or a friend instead of the child. “If you’re resistant to it, your child’s going to shut down and that can cause a whole realm of depression, hopelessness and not wanting to be alive anymore,” she said. With COVID-19 and social distancing, spotting signs of depression and hopelessness can be challenging. Things that may have seemed out of the norm in the past, like avoiding social activities, may not be so odd now. But Dr. Carter says watching for changes in behavior is still key. “Most kids still want to play video games and have their cell phones, so if they don’t want a new video game and all they want to do is sleep, you’re going to want to assess where that change is coming from,” she said. Other signs of depression to look out for include: Declining grades Lack of concern about appearance and hygiene Changes in eating and/or sleep Self-injury such as cutting Less motivation Alcohol/drug use Acting highly anxious or agitated Recklessness If you feel your child needs help, please talk to your pediatrician or call 682-885-3917 for a referral to Cook Children’s Behavioral Health Center. Within hours KWN will be releasing an audio interview. Until then… BIG PICTURE: Huge Moves In Commodities Particularly Gold & Silver***ALSO JUST RELEASED: BIG PICTURE: Huge Moves In Commodities Particularly Gold & Silver CLICK HERE. © 2020 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged. Facebook Twitter Linkedin email Print

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Investors Need To Understand This Simple Truth About Today’s Takedown In The Gold & Silver Markets

On the heels of the brutal takedown in the metals markets, investors need to understand this simple truth about today’s takedown in the gold and silver markets. Gold & Silver TakedownSeptember 23 (King World News) – Alasdair Macleod:  Eric, I welcome the smash-down in gold and silver because it is probably the last opportunity for ordinary people to acquire more real money cheaply before paper currencies increasingly lose purchasing power and move towards a final collapse, which is increasingly certain.  The psychology of a sudden decline in prices is designed to hit investors hard. But we must not forget that physical gold and silver are being hoarded because they are sound money, so our response is very different: it is to welcome the opportunity to buy more, while clueless investors are panicked into selling… To learn about one of the most exciting silver plays inthe world click here or on the image below Let’s look at some truths from the money point of view. First, bank shares are on their knees while stock markets are close to highs, which tells us that the risk of a major failure is significant. That being the case, do you want gold, silver or money on deposit in the bank? No need to answer that one.  Here in the UK we are going into a second covid crisis. The same is happening elsewhere, and I guess it is also on the cards in America. Where does that leave the V-shaped recovery? No need to answer that one, other than to observe the recent statistical bounce in GDP will vanish. The central bankers’ response we already know: whatever it takes, and that “whatever” is accelerated monetary inflation to infinity if necessary.  That is why this dip in precious metal prices is the last opportunity to accumulate real money, and be thankful. Gold & Silver Price Objectives, Plus Silver Bull Just Getting Started***ALSO JUST RELEASED: Weighing On Gold, Gold & Silver Price Objectives, Plus Don’t Worry, Silver Bull Just Getting Started CLICK HERE. ***To listen to 8-time Graham & Dodd Award Winner Rob Arnott, whose firm oversees $150 billion click here or on the image below. Rob Arnott: Legend And 8 TIME Graham & Dodd Award Winner! ***To listen to Stephen Leeb discuss the upcoming chaos and why gold and silver will be the primary beneficiaries click here or on the image below. ***To listen to billionaire Ross Beaty discuss the coming chaos and why gold and silver will be the primary beneficiaries click here or on the image below. Billionaire Ross Beaty, Chairman of Pan American Silver! © 2020 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged. Facebook Twitter Linkedin email Print

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Michael Oliver – Gold Readying For Largest, Most Significant “Thunderbolt” Bull Move Higher

Today Michael Oliver, the man who is well known for his deadly accurate forecasts on stocks, bonds, and major markets, told King World News that gold is readying for its largest, most significant bull surge. Within hours KWN will be releasing an audio interview. Until then… “Thunderbolt” Move Coming For GoldSeptember 18 (King World News) – Michael Oliver at MSA:  MSA has noted in many prior reports over the past two years that the downward shift in the Dollar Index is likely to prove to be major, but to be sure gold “knew” that was to be the Dollar’s next major trend well before the Dollar even began its recent leg of decline. Gold did not need the obviousness of a Dollar drop to commence what is likely for the metal to be its largest and most fundamentally significant bull move. Dollar’s recent pause in its decline is very much in line with gold’s recent steady holding pattern — likely for both to just be the pause before the next thunderbolt move. Up for Gold and down for the Dollar. Ray Dalio And GoldAlasdair Macleod:  We were talking about Ray Dalio’s warning that the dollar’s decades-long position as the global reserve currency is in jeopardy because of steps the U.S. has taken to support its economy during the COVID-19 pandemic. Of course, he is dead right. Also, we are about to be hit with a second wave of covid and all the restrictions on economic activity that go with it. The Fed has no option but to increase monetary inflation, not because it achieves anything, but because they can’t stop now. Also, the Chinese have warned they may have to accelerate their sales of Treasury bonds, which could collapse the Fed’s efforts at maintaining the bond bubble and take the dollar down with it. The only protection we have as individuals is to own physical gold and silver. Within hours KWN will be releasing an audio interview. Until then… Major Update On The Gold & Silver Markets***ALSO JUST RELEASED: Post-Fed Meeting: Major Update On The Gold & Silver Markets CLICK HERE. © 2020 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged. Facebook Twitter Linkedin email Print

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Wow, Plus A Look At FOMC

With stocks and gold on the move, here is a look at something that may wow readers plus the FOMC. FOMCSeptember 16 (King World News) – Peter Boockvar:  Ahead of the FOMC statement and press conference today, I’m not going to repeat my usual critique of Fed policy but will instead quote an ex Fed Governor and let him do it himself. In a letter to the WSJ editor a few weeks ago commenting on an editorial on the Fed, Robert Heller, a Fed Governor from August 1986 to July 1989, said this: “The congressional mandate as stated in the Federal Reserve Act of 1977 is for the Fed to provide for ‘stable prices’ – not 2% annual price increases. A 2% inflation will double the price level every 35 years. The late Paul Volcker said that, ‘stability at 2% is an oxymoron,’ and he was also fond of saying: ‘Once it’s (inflation) out of the bottle, there is no way to put it back in.’ He learned that from experience.” He finished by saying: “The Fed should heed the wisdom of monetary policy giants like Paul Volcker and Milton Friedman and provide for stable prices in its policy decisions and not target an average inflation rate of 2%, which will result in an ever-increasing price level.” Either way, we’ve seen over the past 10+ years that pinning rates at zero or below and buying up trillions of bonds doesn’t result in higher inflation nor faster economic growth. It’s certainly not clear now why the Fed thinks by doing more of this type of policy is going to get a different result. Low rates forever doesn’t stimulate behavior that wouldn’t have happened otherwise… IMPORTANT:One of the great gold opportunities in Nevada and you can take a look at this remarkable company and listen to the fantastic interview with the man who runs it by CLICKING HERE OR BELOW Sponsored That said, combining this monetary actions with trillions of fiscal deficit spending might have a different outcome and inflation might be the result to the detriment though of real wages and standards of living. Thus, we should then view current Fed policy as just financing US government deficit spending and of course doing their best to lift asset prices rather than being a direct stimulant to economic growth. I also think the Fed should be tying policy in the coming quarters more to the effectiveness of a vaccine since Covid is the only reason we’re in this situation to begin with. INFLATION: WowLawrence McDonald, Former Head of Macro Strategy Société Générale:  Month-over-Month vs Year-to-Date Palladium: +8.5% v +22.8%Copper: +6.4% v +10.2%Nickel: +6.0% +8.7%Zinc: +5.5% v +8.5%Tin: +3.2% v +5.8%Alum: +2.3% v -1.7%Platinum: +1.5% v +1.0%Cobalt: +0.1% v +2.2%Silver: -0.8% v +53.2%Gold: -1.0% v +30.0% Inflation? MUST LISTEN: Billionaire Ross BeatyTo listen to the incredibly powerful audio interview with billionaire Ross Beaty discussing skyrocketing gold and silver and why this gold bull market will be the biggest he has ever seen in his lifetime, plus Beaty also recommends one stock that investors should consider buying now click here or on the image below. GOLD BULL: This Is The Key Right Now***ALSO JUST RELEASED: GOLD BULL: This Is The Key Right Now CLICK HERE. © 2020 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged. Facebook Twitter Linkedin email Print

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Treasury Secretary Mnuchin Sends Gold Price Higher But Look At What Else Is Impacting Markets, Plus Robin Hood Traders Learn A Hard Lesson

On the heels of Treasury Secretary Steven Mnuchin sending the price of gold higher by stating, “Now is not the time to worry” about the Fed’s balance sheet or the fiscal deficit, here is a look at what else is impacting markets. September 14 (King World News) – Peter Boockvar:  If what we’ve seen over the past few weeks is the beginning of a correction of some sort more than what’s been seen already, we need a further cooling of bullish sentiment and we’re just not there yet as measured by last week’s II numbers and the updated Citi Panic/Euphoria index. Within II, Bulls are still at around 60 at 59.5 while Bears are around 16. A spread of more than 40 is not what bottoms are made of. And, here is a chart of the Citi index where .41 is the Euphoria threshold. I’m surprised it’s not down more. Robin Hood Traders Learn A Hard LessonEvidence of the newbies that are now trading stocks in their Robinhood accounts that apparently weren’t around in the month of March, I found this quote in the weekend WSJ from some 31 yr old: “As someone new to the stock market, I didn’t realize it could hit periods where you have a pullback like this.” This belief even after the 30%+ decline in a few weeks in March. I guess the best tuition paid on a market education is the money lost in one’s trading account… To learn which company Eric Sprott just bought a 20%stake in click here or on the image below The FOMC meeting on Wednesday will be the obvious focus this week and after what Powell said in his Jackson Hole speech, I’m not sure we’ll see anything really new. I’m guessing there is a possibility they announce a change in the complexion of their QE buying. The Fed now owns about 1/3 of the entire agency MBS market, behaving like the BoJ, and maybe they will start buying less MBS and more Treasuries where they are currently buying about $80b of Treasuries per month. With rates where they are and the growing likelihood of a workable vaccine coming soon, they shouldn’t be buying any or at least much less I believe. But we know any foot off the pedal, however slight, is not something they are thinking about thinking about.   The only thing of note overseas was the Bank of France’s business sentiment index for August which jumped to 106 from 99. The estimate was 100. The internals though were mixed. Industrial activity slowed from July but where strength was still seen in autos as inventories are rebuilt. Also, “Services sector activity continued to firm, but at a slower rate than the previous month. Growth was seen almost across the board, and particularly in the transport and temporary work sectors. Publishing and IT activities nevertheless lost ground.” Construction “remained buoyant.” The euro is higher but bond yields are lower as the ECB struggles with already having done so much with little ability to do more. We also saw industrial production for the Euro area but it’s for July and it was about as expected with the m/o/m recovery continuing but activity still down 7.7% y/o/y after a 12% crop in June. Nothing market moving here. MUST LISTEN: Billionaire Ross BeatyTo listen to the incredibly powerful audio interview with billionaire Ross Beaty discussing skyrocketing gold and silver and why this gold bull market will be the biggest he has ever seen in his lifetime, plus Beaty also recommends one stock that investors should consider buying now click here or on the image below. Gold Ready To Soar, Out Of Hand, Shocking Chart & More***ALSO JUST RELEASED: Gold Looks Ready To Soar Again vs Stock Market, This Has Gotten Out Of Hand, Shocking Chart! Plus Got Gold & Silver? CLICK HERE. © 2020 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged. Facebook Twitter Linkedin email Print

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Billionaire Ross Beaty On Skyrocketing Gold & Silver, Chaos And Collapse

Today billionaire Ross Beaty, Chairman of Pan American Silver, spoke with King World News about skyrocketing gold and silver prices, chaos and collapse as well as China’s coming gold-backed currency and more in this powerful interview. Gold, Chaos And CollapseSeptember 12 (King World News) – Billionaire Ross Beaty, Chairman of Pan American Silver: “We have been on a secular bull run (in gold) and we’re very much into that right now. It’s a very, very good time to be in gold to some degree like the 1970s because of all of the chaos that was going on (which is very similar to what we are seeing today). And the fact that we have a different monetary paradigm today, it seems like the central bankers have lost their brains and they are flooding the world with paper. They’re trying to juice growth again because of COVID and it’s just not working, and it’s not going to work. And so we’re going to end up with the same sort of collapse and chaos, added to all of the civil unrest and the turmoil in the US election cycle right now. It’s just a strange world and there are a lot of weird things going on, and I know how it’s going to end on the monetary side but I just don’t know how it’s going to end on the political side.” This Time The Bubble Is So Much More EpicEric King:  “Ross, you and I have been around and we’ve looked at bubble markets many times go up and collapse. The one in 1973-1974, I remember one of the veterans describing it well, that you would get up, the market would go down one percent each day and then you would go home. And I think the stock market was chopped in half back then. But this time around the bubble is so much more epic. If you and I sat down and looked at how manic things were in the stock market back then (leading up to the 1973 collapse), it’s not even close to what we are witnessing today.” “My Solution Is Being Long Gold”Ross Beaty:  “Nobody would believe, in the 1970s nobody would believe we could be where we are today with the condition of the global economy and the condition of the US stock market. It’s just incredible. It’s almost unbelievable. But it is what it is and you have to accept reality. Eric, we could talk for a long time about the levels of disfunction in certain places. There’s plenty in the US, Canada, China and Japan. There’s a lot of disfunction in the world right now. My solution to this is actually being long gold.” Enter The Chinese DragonEric King:  “Ross, you and I were talking before we went on the air about the 1970s, that stagflation. Silver went up 38-times in price, gold 25-times. But the one element that my good friend Pierre Lassonde talks about when he comes on King World News is the difference between this bull market and the one that we saw in the 1970s, it’s really China. It’s the Chinese. They are such big gamblers. They love to gamble. And we didn’t really have them in that 1970s bull market in gold. But they are here this time and they have a lot of money, and Lassonde thinks that’s going to propel an even larger mania than what we saw in the 1970s. Ross, give me an idea how big you think this bull market will be.” Ross Beaty:  “I would never disagree with Pierre. He’s brilliant and he’s a wise, wise man. China is the defining difference today. Thank goodness the Chinese people love gold. They absolutely love gold. If you ever go to China you can see gold shops all over the place. And they sell almost pure gold. They love it. It’s part of their core and there’s 1.3 billion of these consumers of gold. So it’s definitely part of the gold equation and it’s one of the many reasons I’m bullish on gold. China’s government likes gold for lots of reasons and one of the reasons is they want to get off the US dollar. And over time you are going to see the renminbi be a big part of the world financial equation as another reserve currency. China has so much interest in making it happen that I think it will happen soon. And actually gold is going to be part of that as it is today. Gold Backing Up China’s CreditChina is doing swaps right now with their own currency trying to stay away from the US dollar based, for example, oil swaps, with gold backing up their credit. So gold is being used as it’s been used for millennia within a new economic reality where the Chinese are actually very big players today. So right now I don’t see any change looking out for years. I think gold is going to remain strong. Gold and silver, they do these long term trends. And so right now we are kind of half way through a big bull market. COVID has just added fuel to the fire. It’s going to make this particular bull market longer and stronger than I’ve ever seen in my lifetime. The Lesson Right NowBut I think right now the lesson is not to…to continue listening to this incredibly powerful audio interview with billionaire Ross Beaty discussing chaos, collapse, skyrocketing gold and silver prices, and Beaty also recommends one stock that investors should consider buying right now click here or on the image below. © 2020 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged. Facebook Twitter Linkedin email Print

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CHINA’S MAJOR CHESS MOVE: This Is The Real Reason China Is Stockpiling Commodities

This is the real reason for China’s major move to stockpile commodities. Within hours KWN will be releasing an audio interview with billionaire Ross Beaty, Chairman of Pan American Silver. He gave a very powerful interview about the crisis the world is facing today and what to expect from major markets, including gold and silver. Until then… Gold, Silver, Commodities SurgeSeptember 11 (King World News) – Alasdair Macleod, reporting from London:  “Eric, you will recall the importance of 23 March, when the Fed switched to unlimited monetary inflation only days after cutting its funds rate 1% to zero. Gold rose from $1,460 to a high of $2,075 on 7 August. At the same time, base metals began to rise, and a wide range of other raw materials from lumber (+250%) to lean hogs (+73%) also rose.  The chart below puts the relationship between gold and commodities in context: it could be the most important chart of this year. ONE OF THE MOST IMPORTANT CHARTS OF 2020:S&P Commodities (Blue) vs Gold (Orange) The pecked line divides 2020 into two. First was the intensifying deflationary sentiment ahead of the Fed’s rate cut to zero on 16 March, and its promise of unlimited inflation in the FOMC statement of 23 March. And secondly, the inflationary period that follows. It was at that point that the S&P500 reversed its fall of 33% and started its dramatic move into new high ground, and the dollar’s trade weighted index peaked, losing about 10% since.  Gold took the hint and rose 40%, while commodities turned higher as well, gaining a more moderate 20%. The gold/silver ratio collapsed from 125 to 72 currently, as the monetary qualities of silver resumed its importance.  The S&P GCSI commodity index was initially suppressed by the WTI contract delivery debacle in April, but its bullish move has resumed. Both gold and commodities are clearly adjusting to a world of accelerating monetary inflation, where bad news on the economic front will accelerate it even more.  And here it is worth noting that a contracting global economy is perversely positive for commodities measured in fiat, because their prices reflect increasing supplies of fiat money losing purchasing power at a time when both supply and demand are being equally diminished. More money ends up chasing fewer goods.  Furthermore, in the long-term commodity prices are far more stable measured in gold than in fiat money, which tells us that theoretically commodity prices will keep pace roughly with gold. And when all commodities are rising, particularly when the global economy is contracting, that tells us fiat dollars are losing purchasing power.  Now comes the really important bit: China is already acting on this trend. They are selling dollars to buy and stockpile global commodities in enormous quantities, even selling down their holdings in US Treasuries to do so. A look at the exchange rate tells us they are not selling their own currency to buy commodities, only dollars. Bear in mind they can buy commodities at any time, so there has to be a reason for their stockpiling.  China’s Chess Move Is To Preserve WealthSo far, commentators have not got this message: it is less about commodities, which are always available, but China is extracting value from her fiat dollars while she can. Clearly, she has taken the view that the dollar will lose value.  Commodities, as well as gold and silver, are the only safe haven for China in these inflationary times. And if China is dumping fiat dollars for tangible raw materials, she is sending a signal to other nations that they should do the same.  When the bubble in financial assets bursts, what is saved from the wreckage can basically choose between fiat cash and commodities, which includes precious metals. And with cash losing purchasing power that leaves commodities.  China is clearly ahead of the game.” Within hours KWN will be releasing an audio interview with billionaire Ross Beaty, Chairman of Pan American Silver. He gave a very powerful interview about the crisis the world is facing today and what to expect from major markets, including gold and silver. Until then… BOOZE BINGE! Record Run In Gold, Shades Of 2009…***ALSO JUST RELEASED: BOOZE BINGE! Record Run In Gold, Shades Of 2009, Lowest Level Ever, Plus Another Record CLICK HERE. © 2020 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged. Facebook Twitter Linkedin email Print

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