USD collapsing will make China biggest gold buyers

[pluMmet]

http://www.arabianmoney.net/gold-silver/2012/06/14/fears-of-a-dollar-collapse-will-make-the-chinese-the-biggest-buyers-of-gold-this-year/

You don’t need to be a genius to see the logic behind this move. The dollar might be king today but only against the faltering euro. But what happens when we are reminded that US debts are running at levels comparable with Greece?

As the largest holder of foreign dollar reserves the Chinese are only too painfully aware of how exposed this leaves their savings in a slump. US treasuries are the biggest bubble in history as legendary investment adviser Dr Marc Faber reminded us recently

...

There are less and less safe haven assets in the world and more and more financial markets are manipulated by central banks because they have control over the supply of paper money. Gold and silver they can suppress through the collusion of the bullion banks but this will not withstand the pressure of massive demand for precious metals as the global economic system cracks up.

[Luigi1]

Only one thing wrong with a China takeover...China still exports junk. How much longer can China exploit the world by shipping it junk before the world wises up?

[WallyWeaver]

Only one thing wrong with a China takeover...China still exports junk. How much longer can China exploit the world by shipping it junk before the world wises up?

This is so true.....

I have 3 dogs living at my home (that think they're people, but that's for another time). Each morning, before I leave for work, I distribute an assortment of jerky treats, smoked pig ears, and rawhide chew strips to keep them occupied until I return home. Well recently, Petsmart, where I buy their treats, switched their manufacturer of jerky treats to a product called "Canyon Creek Ranch." I looked on the back to see where it was made and sure enough, it was made in China. I began checking all of the treats in that aisle and just about everything was made in China. So, I went with the new brand. After about a month there was a very noticeable difference in the behaviour of the 2 dogs that were consuming the Canyon Creek jerky:

When we would take the dogs out for a walk the 2 on the Chinese jerky would slow their pace down to an extremely slow walk and put their heads down. If you called their name and told them to pick up the pace they would trot for a few steps and then slow way down again. Also, both dogs, which are normally high energy dogs, would sleep all day and were in general very lethargic. We ended up taking one of them to the Vet and the Vet ran some tests. His conclusion was there was something wrong with the kidney's and he wanted to do some more ellaborate testing (for a bunch of more money, of course). We said no thanks and took the little guy home.

After some research on that particular product we saw that there were many other testimonies of dog owners who had used the Canyon Creek jerky and got similar results with their dogs. I immediately stopped using the Chinese jerky and switched the dogs over to Blue Buffalo products. Within a week both dogs were fully back to normal, hopping and jumping around as if everything was fine.

All that to say, be leary of ANY animal products that are made in China. Blue Buffalo is made here in the US and now all 3 dogs are on it (dry food, canned food, and treats) and they are feeling and looking great.

There are countless stories out there about Chinese products and this is my addition. My advice: If it says "Made in China," than buyer beware.

WW.

[tampa1000]

Only one thing wrong with a China takeover...China still exports junk. How much longer can China exploit the world by shipping it junk before the world wises up?

I have to agree 100%, all the junk in Walmart/Target etc. from China makes me sick!!! If we want American jobs to come back we have to stop buying China's JUNK!

[carlos in san diego]

Only one thing wrong with a China takeover...China still exports junk. How much longer can China exploit the world by shipping it junk before the world wises up?

Before too long...that's all well be able to afford! Cheap junk! We are supposed to loose 30 to 50% of the value of the dollar. Then when you want to buy something the price will have doubled!

It wont take too long before their junk starts to look good to us! Carlos

This is so true.....

I have 3 dogs living at my home (that think they're people, but that's for another time). Each morning, before I leave for work, I distribute an assortment of jerky treats, smoked pig ears, and rawhide chew strips to keep them occupied until I return home. Well recently, Petsmart, where I buy their treats, switched their manufacturer of jerky treats to a product called "Canyon Creek Ranch." I looked on the back to see where it was made and sure enough, it was made in China. I began checking all of the treats in that aisle and just about everything was made in China. So, I went with the new brand. After about a month there was a very noticeable difference in the behaviour of the 2 dogs that were consuming the Canyon Creek jerky:

When we would take the dogs out for a walk the 2 on the Chinese jerky would slow their pace down to an extremely slow walk and put their heads down. If you called their name and told them to pick up the pace they would trot for a few steps and then slow way down again. Also, both dogs, which are normally high energy dogs, would sleep all day and were in general very lethargic. We ended up taking one of them to the Vet and the Vet ran some tests. His conclusion was there was something wrong with the kidney's and he wanted to do some more ellaborate testing (for a bunch of more money, of course). We said no thanks and took the little guy home.

After some research on that particular product we saw that there were many other testimonies of dog owners who had used the Canyon Creek jerky and got similar results with their dogs. I immediately stopped using the Chinese jerky and switched the dogs over to Blue Buffalo products. Within a week both dogs were fully back to normal, hopping and jumping around as if everything was fine.

All that to say, be leary of ANY animal products that are made in China. Blue Buffalo is made here in the US and now all 3 dogs are on it (dry food, canned food, and treats) and they are feeling and looking great.

There are countless stories out there about Chinese products and this is my addition. My advice: If it says "Made in China," than buyer beware.

WW.

To me, it seems your dogs eat better than a lot of people I know in the third world, they certainly have better health care! Carlos

You know guys...the fact is, China is the big kid on the block. We have to get used to the idea. China has taken over were we left off. We have become a mass of consumers and nothing more. Sadly the only thing the US excells at is the art of making war. The military is the only option for many young people because we no longer have our industrial base.

The military industrial complex steers us into one war after another....their wishes are the wills of our politicians. It would seem as though that's what we bread our children for is to feed them to this never ending machine!

Sad case for sure! Carlos

[WallyWeaver]

To me, it seems your dogs eat better than a lot of people I know in the third world, they certainly have better health care! Carlos

I hope this is not meant to make me feel guilty about how I take care of my dogs because it sure smacks of class warfare rhetoric.

WW.

[WallyWeaver]

20, there's so much that's right with your post it's not possible to simply highlight a few parts and then comment on them. Extremely well said.....

WW.

[WallyWeaver]

I can already tell from talking with you during the past few months that you are a responsible person. You don't let other people's decisions affect your decisions and your outcome in life. Stay cool WW!

"True independence is to act in a crowd the way you think in solitude."

Unknown author

20, you make too much sense to be 26, I'm beginning to believe you meant to put 36 when you told us your age...

Stay cool yourself, man. Looking forward to many more interactions with you in the months to come.

WW.

[pattyangel]

Hey 20, you were missed.

Love you post. I agree with you 100%

One of the keys to a successful and happy life is to be flexible enough to respond appropriately to whatever change comes our way, to be able to respond and make good things out of anything.

We have to have a long term visions and delay gratification in order for our dreams to come true. Many people lean on short term visions, only because they are struggling in life.

I plan on being on of the successful one in life and not feel guilty.

[thegente]

People need to take control of their own lives and not rely so heavily on others to create their success / happiness / __________(fill in the blank)

Great advice 20!!

Most people that are griping act as if they're the only ones who've ever had/are having it bad, especially in this crappy economy. My wife and I have had to eat several shitt sandwiches since 2007, lost my biggest client in late 2007, we were pretty much homeless twice, (savings ran out and we had to give up our apt., and were living in a motel from day to day for awhile), then once my new businesss started to become successful, it was shut down by government regs in late 2010..It was like one blow after another for about 3+ years....

All the time this happening, the old saying "winners never quit, and quitters never win" kept my wife and I going...we powered thru all of the bad times, now she has a good job, and my new business is making a steady comeback. All thru those 3-1/2 years of stressful misery, we always kept a sense of humor, and NEVER took it out on one another. And I'm sure that's not even as bad as some other folks must have had/are having it.

Bad times happen to most folks at some time in their lives, you just have to know that if you just keep going, they will pass eventually...Like you said, one can sit around blaming everyone else for their problems, or address the problems head on, and move on to bigger and better things.....get busy livin', or get busy dyin'!!

Anyway, it is tricky out there, and you really need to adapt, and think outside the box these days to make things happen for you and yours!!

[thegente]

Very well said Gente! Thanks for sharing your story with us man. Wow! I'm sorry to hear about all of the BS that hits. You know what they say, "when it rains it pours..." But I'm glad to hear that you never gave up. You showed perseverance!

I was going through some tough times a few years back, and it's like you said, things get worse before they get better... Aint that the truth! But, I kept going, learned to think outside the box, came up with a business venture, and took action. After that things took a turn for the better. The main thing is to not blame others and learn to be responsible in life.

Thanks again for your post Gente!

Edited June 15, 2012 by thegente

[HughJeffin Byrd]

The main thing is to not blame others and learn to be responsible in life.

I agree with this wholeheartedly 20, BUT we must also not be naive and take everything at face value of what we're told... after careful research one sees there is something afoot, and all is not what it seems... we should not blame others UNLESS we have substantial evidence to back it up... :: cough:: Like a full audit of the Fed Reserve coming :: cough ::

Also, I'll go on record as to fully blaming JP Morgan for the price of my physical silver being manipulated... if you're reading this Jamie... FU

Edited June 15, 2012 by HughJeffin Byrd

[HughJeffin Byrd]

I understand what you're saying.

Silver: Look at it like this though, Silver is exceptionally cheap right now due to the manipulation. The manipulating won't last forever, now's a good time to buy more! Time to do some bargain shopping! Only thing needed after that is patience...

Federal Reserve: The excessive printing is detrimental for the common man. But think about it like this, without this excessive printing you probably wouldn't be holding silver, right? I mean, the whole point of owning silver is because of the possibility of hyper-inflation which is a reaction of the FED's printing.

The point is, we need to learn to be responsible and have the ability to respond to the environment around us. No matter what life throws at us, we need to be able to respond.

I know I know...but I'm broke =\

I think if people had the money to buy physical right now, good ol JP would be in a crap load of trouble... a lot of their paper would be called in for physical.

Btw, since you showed everyone my girl last night, I only feel it's right to blow up your spot... Ladies and Gentleman, without further adieu, meet the great woman behind the great man known as 20mil:

http://img.thesun.co.uk/multimedia/archive/01307/bolton2_682_1307076a.jpg

[HughJeffin Byrd]

Also...I believe every so often, people realize they are being manipulated and are pushed to the brink where they must act in order for self preservation... Revolutions are necessary at times to keep the wolves at bay... it just so happens the whole world is realizing this all at once, maybe for the first ever? I dunno, our recorded history only goes back so far.

Bwaaaaahaaaaahaaaaa! Damn you're sexy. Was this taken before or after your profile picture, you look a little older in this one!

(Just kidding)

LOL

Yeah this was pre-mole removal...I couldn't take that thing anymore

Edited June 15, 2012 by HughJeffin Byrd

[WallyWeaver]

20,

To answer the question on my profile page I have two dogs, myself. They're the 2 in the picture on my profile page (Dobermann and American Pitbull Terrier). I'm also housing my Mom's long-haired Chihuahua so it's a pretty interesting mix. Believe it or not they actually all get along very well with each other. Oh, and there's no question my 2 furry kids equal some of my most prized possessions. Thanks for asking.

...

I have to say, you definitely have the correct point of view and are doing a good job of pointing people in the right direction this evening. It's all about having the right perspective.... and you are right on the money throughout this thread. It's the old glass-half-full or glass-half-empty point of view, and determining which point of view you have, I suppose. I consider the time we are in now to be one of the most exciting (investing wise) that I have ever had the opportunity to be a part of. This is the time to be taking advantage of the abundance of information that we have available to us and using it to position ourselves for maximum profits....

....

Pretty interesting week up ahead, eh? Greek elections on Sunday, FOMC meeting from Tuesday through Thursday.... we should know a lot about how the rest of the summer will go, and possibly how things will go until November, by the time Thursday is over with. I have strongly been considering closing out most of my positions on the stock market tomorrow and putting just about everything I've got into AGQ. It would definitely be a gamble but if the Fed announces any type of intervention next week it could be a great move..... I guess I have one more night to sleep on it.

With that, I'm off to bed. Hope you have a great evening.

WW.

[Maggie123]

Now This is a Great Thread! This is why I love this site so much!

Respectful Debate Does Happen Here.

Carlos... I respect You Very Much and I believe much of your truth has been "hard won". I agree with about most everything you have been trying to tell us.

May I say that my best friends son just flew out for boot camp to Chicago today, he will be in the Navy. I am praying now for his safety, he is a wonderful kid. I honestly think he did do this because he didn't see a better opportunity, and he was trying many different avenues before this choice!

20 Mill You are so young... you haven't had time to hit your bump's yet. I do have to say I love your enthusiasm and you have inspired me many times. Thank You I have one Question about our new economic plan though...

Quote

"we are a post-industrial nation. This is not necessarily a bad thing. Here's why: Many of the currently rising industries tend to be highly automated and thus need fewer workers than traditional industries. As high-tech industries have grown and older industries have declined, the proportion of American workers employed in manufacturing has dropped. Service industries now dominate the economy, leading some observers to call America a "postindustrial" society. Selling a service rather than making a product, these industries include entertainment and recreation, hotels and restaurants, communications and education, office administration, and banking and finance."

Ok if everyone is offering a "Service" WHO IS GOING TO BUY THE SERVICES WITHOUT ANY PRODUCTION? I just don't see how that will sustain our great nation? Um, I thought that went to India anyways.

On a more positive note...

To The Gente, I Appreciate You and all of your post. Congrats on making it through a very hard time. Salutes to You and your Wife!

Wally, we had our moment about the big banks and their responsibility in our current situation, but I believe we came to a truce about that. I am a huge animal lover and my babies will not be getting any Chinese products from now on! I so appreciate the heads up about that. Thanks Man!

Hugs To All For A Facinating... Thought Provoking Thread. Keep It Up Guys!

Appreciate Each Of You... Just For Who You Are.

Maggie

PS. Wally, My Grandaughter certainly won't be eating their products either!

[WallyWeaver]

Man 20, you've put together some good stuff here.... looking forward to coming back and taking a closer look at it (I just quickly glanced over it).

I have to get back to back work but I thought I'd say I just closed out the majority of my non-AGQ holdings and moved all of that capital over to AGQ. I got in at $41.64/ share and it's already up $.11 in 10 minutes, sweet......The only thing I'm holding now is AGQ and Kinder Morgan Energy Partners (KMP). KMP is pure dividend gold ($1.20/ share) and it's down $9/ share anyway from when I bought it so I'm holding. KMP is a keeper for the next 5 years at least, in my opinion.

Okay, that's it, back to work.

I'll check back in later.

WW.

[Maggie123]

Sorry for not getting back to you sooner 20 Million. That was a lot to read!

All of it was interesting and I appreciated your perspectives.

I don't view myself as a victim by any means, so stop with that approach, it won't work on me. I have worked hard all my life and have been blessed in many ways.

20 Million the point here is our country is in trouble and I am concerned for my kids and grandkids future. I am concerned for those less fortunate than we are. When the whole country is on the brink, are you going to say it was their own fault... they brought it on themselves... by the way they viewed things? NOPE! Not buying that one for a single minute! I think some compassion for each other will be in order. We may not have the opportunities that we once had.

I could bring in articles from Mainstreet all day to refute your rosey picture, but the truth will come out, probably sooner than I could convince you of anything being wrong with our system. It will not be able to sustain itself, let alone us, for much longer. Too much damage has been done and we will have to pay for it.

Did you know we helped create the crisis in Europe with some lovely paper called Mortgage Backed Securities and other cool names?

There is so much more... it is like peeling an onion once you start looking around with your eyes open. No, I am not talking about the fellows you mentioned, I am talking about just being aware. You are right about being prepared. You are no doubt a brilliant young man. I am just a little surprised at some of the things right in front of you that you seem to not see. For instance the war machine, our corrupt governments and central banks, the ponzi scheme that can not be sustained...

[Maggie123]

" Did my answer make sense to you? I didn't think it was too "optimistic" it was just stating the facts of how a company is valued and that manufacturing doesn't really mean all that much. You asked a question, with a little bit of sarcasm, and I answered with pure facts, which you probably weren't aware of anyways.

Brands, logos, trademarks, innovation, technology, etc...are much much more valuable then the manufacturing aspect of a company. I don't see how that was a "rosey picture" as you put it. It's just the truth!"

20 Million, it seemed to bother you that I was sarcastic about our jobs going overseas. Sorry.

It does mean a great deal to the people here that need jobs and would like to produce our own higher quality products. I feel great when I can find a product that was made in the USA. I would like for our kids to be able to get better jobs than delivering pizza when they get out of college.

20 Million I have been fully aware of how it has been more profitable for the companies that take their production overseas. I guess I am saying it is a rosey picture for them, not so much for us. That is the truth!

It is important that we all see the truth so that we know how to fix our problems.

I'm sure not cheering about any of it.

[Luigi1]

So much for China taking over the world. China is about to begin it's own version of our real estate meltdown only their's will be much worse as it involves mostly a commercial real estate bubble burst.

It's manufacturing & export base has slowed down thanks to the global recession with hopes of little or no improvment in near future.

It has over built, over developed over purchased & over loaned. Inflation due to the high costs of raw materials has affected them as well as the rest of the globe.

The Yuan will RV not because the Chinese like us but out of fear of global trade wars & unfair trade tactics.

China needs us more than we need them. They are learning a lesson in humility.

If America goes down the toilet, it will take down many nations with it including China.

[Shinnidan]

*sighs*

[Luigi1]

Short, sweet, and to the point. Also, another problem with China, is they are very secretive with their numbers. But it has been proven that a lot of their commercial real estate are basically "shells" and have no actual business inside.

May I add...right now China is more deeply invested in a bankrupt EU than in the USA. They are very worried a collapsed EU with drag them down & the USA.

[WallyWeaver]

Many great points 20, and I do not see any holes in your arguments at all, so far. Well done.

Something else to consider, and I think you have been hinting at it on this entire thread, is the economic potential that the US still possesses and the ability of that potential to get us out of the mess we are currently in.

It is true that we see article after article brought here about the impending economic collapse that the US faces. While I agree that we, and also the world, are in a lot of trouble, I have to look optimistically at it and say we can still get out of it. We are still the world's strongest economy, after all, as you have pointed out. And yes, we owe a lot of money to a lot of different nations (China, Japan, etc.) and even to the Federal Reserve (the largest holder of US debt). But, in my opinion, impending doom is not our only possible outcome.

I will give two points (there are more than 2 but I will give 2):

1. Look at South Dakota. South Dakota currently has the lowest unemployment rate of any state in the US. S.D. recently made national news because the state legislature is voting to cancel all state property taxes..... WOW! The state of South Dakota no longer needs to collect revenue from property taxes because they have an over abundance of revenue coming in from..... oil. That's right, the oil industry is experiencing such a boom in South Dakota (BAKKEN formation) that is providing so much money to the state government they are actually cutting their citizens' taxes to 0%!

Now consider this: a few decades ago the US used to produce 10 million barrells of oil per day. Today we produce a little over 5 million barrells per day. If we just did this one thing: focus on getting oil output back up to 10 million BPD that alone would probably rescue the US economy. Think about it... what if the US became an oil supplier to the world rather than an oil consumer? For the purpose of brevity I'm not going to give an argument for how much oil we have left. Suffice it to say that in many places that I have read the US has access to somewhere around 200 years of oil at somewhere around 10 million BPD. So that is really just an environmentalist talking point...

2. My second point is the untapped capital of US businesses. I don't want to get too personal here but I am blessed to work for a Fortune 500 company. As a matter of fact the company I work for is in the top 15. And let me tell you something I know for a fact about my company: my company is sitting on records amount of cash and is doing nothing with it. We are barely hiring and when we do it is usually with a temp. agency. We used to aggressively invest in our infrastructure but even that has slowed way down. We have actually had several rounds of lay offs and "early retirement" packages that were given out over the last 2 years. And yet, again, we have plenty of cash, so why all the belt tightening?

The reason is the uncertainy of the future, and specifically, the uncertainty of what next year will look like. 2013 marks a turning point for businesses as far as increased regulation and increased taxes imposed by the US government. And both of these will be increased in no small degree. Businesses understand this. That's why many US businesses, not just the one I work for, are holding onto their cash because they are afraid of what the future will bring. And for the purpose of self preservation in the face of uncertainty it is wise for businesses to hedge themselves as much as is within their power.... And again, my company is not alone: I just read an article a few months ago that reported many US businesses are sitting on a record amount of cash. Many of the large public companies, rather than invest in infrastructure or engage in hiring new employees, have been using their cash to make huge stock buy backs of their own shares....

My point in saying all of that is this: another way to fire up the economic engine of the US is to get all of these companies to feel comfortable enough about the future to start investing in growth again (ie. hiring new employees, investing in infrastructure, etc.). We could start with dramatically reducing the power (or abolishing completely) of the EPA. That would take a huge amount amount of regulative strain off of US businesses. Also consider the tax burden US businesses face. Maybe, if Romney wins and both Houses of Congress have a majority of right-leaning representatives we can create a tax structure for businesses that will make them want to invest in the future again. That way, instead of reading story after story of businesses leaving the US maybe they will start coming back. Again, the point is: restore a business friendly environment here and the US economy will begin firing on all cylinders again.

Think about how well positioned we would be to face an economic hardship if unemployment was under 4% and gas was around $2/ gal.....

Did I paint too rosy of a picture? Maybe, but only in the sense of will our politicians have the political will to fire up our economy again? We have the resources and the ability to control our own destiny (in a sense) we just lack the political will. That's all that is missing.

All that to say we can still turn it around, it's not too late. I don't buy all of the doom and gloom. If that makes me a blind optimist than I guess that's what that makes me. Will we turn it around? I actually like our chances to have one more good, decade long run of economic prosperity in this country, depending on the outcome of what happens in November. I think the country is groaning for the US to get its economy back on track. The proof is, since November of 2010, just about every election we've had, even the special elections, have been won by small government, pro-business politicians. That is an undeniable fact.

Of course, if Obama wins a second term and the Congress goes left than all bets are off. If that happens I give the US about 3 to 5 years to extreme economic hardship like we have never seen before...... But I don't think that will happen. The political will of the people has been speaking too loudly.

WW.

[WallyWeaver]

20, I'll be voting for Mitt as well. On a side note, I hope he picks Marco Rubio as his V.P., I really like Mr. Rubio.

I am unable to pm you or leave a comment on your profile page. I do not and have not used Skype before, unfortunately. I did post my email on my profile page, though, if you want to go that route.

Hope your day goes well.

WW.

[Goldiegirl]

Before too long...that's all well be able to afford! Cheap junk! We are supposed to loose 30 to 50% of the value of the dollar. Then when you want to buy something the price will have doubled!

It wont take too long before their junk starts to look good to us! Carlos

To me, it seems your dogs eat better than a lot of people I know in the third world, they certainly have better health care! Carlos

You know guys...the fact is, China is the big kid on the block. We have to get used to the idea. China has taken over were we left off. We have become a mass of consumers and nothing more. Sadly the only thing the US excells at is the art of making war. The military is the only option for many young people because we no longer have our industrial base.

The military industrial complex steers us into one war after another....their wishes are the wills of our politicians. It would seem as though that's what we bread our children for is to feed them to this never ending machine!

Sad case for sure! Carlos

My dog does...that's for sure....no China crap for him. All organic treats made locally and he eats meat...with some veggies...

I'm sick of China's crappy merchandise.