How China's Golden Yuan Will Dethrone the Dollar

Since 2010, the government propaganda-meisters have pounded the table with the same message over and over again: namely that the countless trillions of dollars in ongoing banker bail-outs and artificially low interest rates have successfully turned the destitute economy around. They gleefully cheer that the DOW is up 150% since 2009, real estate is bubbling again, gold and silver are useless relics, unemployment is dropping, GDP is rising, the CPI is ruler-flat and just about any American who can fog a mirror can finance a brand new car!

But to further ensure that no one questions their greatest economy in US history spiel, they've rocketed the US dollar up from 79 to over 100 in just the past few months, making the currency look like a high-flying internet stock! On the surface, it sure looks like a miraculous recovery has indeed taken place and America has regained it's rightful place atop the global financial mountain by wildly spending and money-printing its way to prosperity! Who knew that creating more debt in the last six years ($10 trillion) than the US had collectively accumulated since 1776 ($8 trillion) would turn out to be such a good thing. 

Down the monetary rabbit hole we go!

As Obama proclaimed not too long ago, "raising the debt ceiling doesn't raise the debt. No, it just allows the government to pay its bills on time!" For those who don't question that fuzzy logic, glory days must be here again. But to those few Americans not afflicted with cognitive dissonance, perhaps the worst pandemic to ever hit US shores (forget the ebola hoax), things are not nearly what we are being told. So let's make like Alice and steal a peek behind the curtain into Wonderland to see if it spoils their grand delusion, shall we?

THE STOCK MARKET IS FLYING

Yes indeed, the DOW is near 18,000 and the Nasdaq 5,000. Surely, this is proof American businesses and citizens are thriving again, right? Well, not exactly. You see, most Americans are still broke from the previous crash in 2008 so they have no savings to gamble away at the Wall Street casino tables this time. "Big deal," new Fed Chairperson Janet Yellen would argue, "soaring stock markets prove American businesses are booming!" Again, wrong!

Small to medium-sized businesses are deliberately being forced into insolvency by disastrous legislation, such as Obamacare, which favor mega-corps and crush the little guys, leading to further monopolistic consolidation on a very rigged playing field. For the masses who still believe the US is a capitalist system, here's your wake-up call. Since the creation of the Federal Reserve system in 1913, the US has slowly, almost imperceptibly transitioned into fascism and now a full-blown dictatorship! 

For the banks, not the people!

The ugly truth is the stock market is primarily driven by one thing only: trillions of Fed stimulus, aka free money to multinational banks and favored corps to buy back their own stock at an unprecedented pace to keep the elitist party going. The citizens though, given no such stimulus, are forced to pay for it all instead. How's that for a recovery? Withdraw stimulus, raise artificially low interest rates and the stock-bond market bubble instantly implodes!

This is the very reason the Fed can never really end their money-printing stimulus or raise interest rates, even though they have been crying wolf for years that they someday will. All they can do is keep on printing and debasing the US dollar until the sickly bloated house of cards collapses into itself, which appears to be very shortly indeed!

BANKS ARE REPORTING RECORD EARNINGS

It's virtually impossible not to have record earnings when you're given trillions in free money and zero percent interest rate loans courtesy of the Fed, so how is this a surprise? If you gave a broke crack addict a million dollars, he's now a millionaire crack addict. But, being a crackhead, he will quickly spend all of his millions on crack and be broke all over again. That's exactly what's going on at all of the major crackhead  banks, criminally addicted to derivative gambling and easy stimulus money.

Why clean up their act when they know every time their wild bets go tits up, they'll simply receive more free money to do it all over again? So, yes, on the surface, everything looks just peachy for Wells Fargo, HSBC, Goldman Sachs, Bank of America, Citi, Chase et al, reflected by their soaring stock prices, but the floor underneath these megalithic institutions is quickly rotting away.

How a bail-in actually works!

Despite assurances that the banking system is not only healthy, but thriving, many of the biggest domestic and European banks failed the ECB-Fed stress tests last year. Big oopsie! The government is smart enough to know that in the next banking calamity, more bail-outs would be very unpopular with an increasingly stressed out, unemployed and broke citizenry.

So they've concocted a new way to steal from them. Their new ruse,  a bail-in, the opposite of a bail-out, calls for customers to save failing banks during a crisis in lieu of the government. That's right! Adopting the disastrous Cyprus model, depositors are now creditors of the banks and their savings and checking accounts are considered "at risk" speculative investment loans made to them.

When banks fail, depositors will have most if not all of their savings swept away. And remember, the government only creates legislation like this when they are certain it will be implemented shortly. In reaction to this eventuality, smart money has been pulling funds out of the banking system and closing accounts in record numbers -- and so should you!

REAL ESTATE IS BUBBLING

"This time's different." Sound familiar?

Since 2009, the Fed began handing insider hedge funds boatloads of cash to buy up as much distressed properties they could handle so the banks could write these toxic assets off as a profit rather than the liabilities they really were in an effort to prop up that imploded market. It worked!

Now that prices have gotten back into bubble territory, these same hedge funds have been strategically dumping properties back onto the market, where speculators have been scooping them up looking to make a quick buck flipping them onto someone else.

Due to a lack of affordability, there are fewer buyers in the market looking to actually live in a purchased home as there are speculators seeking to flip them multiple times like a hot potato. This means a big chunk of the homes being traded like paper derivatives have no one living in them. Shades of 2007 all over again, yet who's paying attention? 

As history will surely repeat, expect a real estate meltdown far more devastating than the 2008 collapse to ensue sometime prior to November 2016. Why? It's simple economics, really. Real estate is driven by the strength of its economic capacity. The truth is we are living in a time of national insolvency, massive layoffs, exploding unemployment-under-employment, over 50 million on welfare, etc., yet real estate prices have been climbing anyway due to the hedge fund giveaways and speculative, but unsustainable retail buying. So where is the growth going to come from to support the inflated markets once the stimulus spigots run dry?

Business as usual

The government is flatly lying when they say the economy is growing at a healthy pace. They know their spending policies have irreversibly destroyed the nation and they will allow the tsunami of debt to drown the American people gullible or apathetic enough to believe them!

This is why the Department of Real Estate (DRE) has been for years reporting false and glowing real estate sales numbers every quarter, only to be forced to revise them downward a quarter later when their numbers are audited. The spin-meisters repeatedly get caught in their lies, but shamelessly continue doing it anyway.

EMPLOYMENT IS UP

No, this is yet another huge lie by omission. Unemployment is actually approaching somewhere around 30%, a far cry from their 5% and dropping figure. The government decided it is reasonable to stop counting those who have been unable to find a job for six months or longer. In the land of Oz, they reason if you haven't found a job by then, you simply don't want one, therefore "abracadabra, you are no longer unemployed!" 

Though the Bureau of Labor Statistics (BLS) proclaims that everyone that actually wants to work now has a job, over 100 million unemployed working age Americans still do not, presumably because they've given up, simply don't want to work or decided to retire early even though they're broke. Their other statistical trick is to count part-time work as full-time. Also, if you have to take on three part-time jobs to make ends meet, that is counted as three separate workers with full-time employment. The BS of the BLS sure does stink, ay?

Or better still, read this blog!

Apparently, the Social Security Administration didn't get the memo to cook the jobs numbers though. Their statistics completely counter what the BLS, the Fed and the Obama regime have been asserting and proves the latter trio have been unashamedly lying to America about the supposed recovery. The SSA numbers actually show that America is in the throes of a depression greater than that of 1929!

39% of American workers make less than $20,000 per year. 52% make less than $30,000. 63% make less than $40,000. 72% make less than $50,000. This is as corporations throughout the country slash their full-time workforce with massive layoffs. The vast majority of jobs in America are now temp and part-time. And remember, the vast majority of these are service-oriented, fast food or checkout clerk type jobs that do not pay a living wage.

Is it any wonder then that the national homeless population has exploded? In New York City, the very heart of Wall Street, the numbers of homeless have blown out to an all-time record high of 63,000 people. Sadly, this number includes 25,000 children and families out on the streets with nowhere to go. As the numbers continue to grow, New York, like many cities around the nation are scrambling to find a place to put all of their displaced citizens. For an honest and sobering breakdown of the true US numbers, peruse John Williams' excellent shadowstats.com

THE DOLLAR HAS RISEN FROM THE DEAD

How will this movie end for you?

Like a phoenix rising from ash, the dollar has been screaming upwards at a historic pace. But just like the stock-bond-real estate markets, this rise will be short-lived. What shoots up that fast will crash down even faster once it runs out of artificial steam. Call it a lack of "gravitas" in all of the above. Not to beat an already dead jackass silly, but who's out there buying up all those US Treasuries and propping up the dollar, you ask?

Why, that would be the Fed once again printing money, then loaning it out (giving it away) at zero percent interest to banking institutions to invest in them. Those familiar with grifts such as 'three card monty' or shell games will immediately recognize this for the ponzi scheme that it is. And all ponzi schemes eventually go bust!

GOLD & SILVER ARE TANKING

Since the early days of the Fed and especially since the US defaulted on its debts in 1971, the bankers have been at war with these two monetary metals. You see, throughout 5,000 years of monetary history, currency backed by gold and silver kept governments and banks honest. In effect, a government could not print more currency than gold and silver that was held in their vaults.

In fact, every government in history that has tried to game the system anyway by printing currency far in excess of their gold-silver reserves have predictably collapsed into ruin. Yet, the US government bankers, as well as the entire euro-zone and Japan have been printing more debt than the world has ever seen, thinking somehow things will be different is time. They won't. 

When gold and silver prices rise, it's a sure sign of a flight away from a collapsing currency and back into real money. For instance, from 1931-1971, gold was fixed at $35 per ounce. President Nixon was forced to close the gold window in 1971 because the US leased out most if not all of the gold which was supposed to be housed at Fort Knox to fight their dirty wars and grow their empire.

From that point the US dollar became a completely fiat currency backed by nothing but faith and enforced by military intimidation to any nation who dared oppose the dollar's tyranny. Not coincidentally, the price of gold rose from $35 in 1971 to over $1900 by 2011 due to this massive dollar-printing scheme. In an effort to hide this disparity, the Fed's minion banks have been massively paper-shorting the gold and silver markets to keep a tight lid on prices as they know higher prices will reveal to the world that the dollar is toast! 

CHINA SCOOPING UP PHYSICAL GOLD & SILVER

Any doubt who's winning the currency war?

Despite the western central banks' collusive trading shenanigans and fraudulent paper-shorting of the physical commodity markets, savvy nations and investors alike have been taking advantage of the temporary fire-sale prices, loading up on physical gold and silver. The coup de grace is that nations, especially China, that hold a huge amount of inflated US treasuries have been exchanging them for artificially cheap physical gold and silver bars and coins, setting themselves up to become the new world reserve currency -- and it's happening now! 

In a clear signal that things are about to get very scary for dollar and euro holders, HSBC, one of the banks at the forefront of the illegal gold-silver price suppression scheme as well as the biggest money laundering institutions for drug-traffickers and terrorists, has suddenly and shockingly announced they are closing all seven of their London gold vaults. HSBC is the custodian for GLD, the largest gold investment trust in the world with over $60 billion in assets.

The only reason they would inexplicably shut them down now is because, just like Fort Knox, their vaults are also most likely empty. But then where did all the gold go? It may well be that China, Russia and India cleaned them out long ago and that the GLD has been illegally selling paper claims on gold that doesn't exist! Even in this time of rampant banking fraud that's still considered a crime.

China flaunts their intentions!

China specifically has been steadily increasing purchases of gold and silver for the past decade we now know in a bid to position the yuan to replace the dying dollar as the new world reserve currency. Don't think this is happening? Well, just as HSBC shutters their vaults, the London Bullion Market Association (LBMA) has been forced to relinquish their death-grip on the trading mechanism of the monetary metals to allow China more price-setting influence.

Why? Because China obviously has all the physical gold and not the phony paper claims the LBMA dishes out. In fact, China has gone one step further, recently announcing they will be opening their very own yuan-denominated physical gold fix this year, perhaps bypassing the fraudulent London market altogether.

China has also been deleveraging from the dollar by trading it for US real estate and strategic business infrastructure the past several years. In 2013, China's Fosun International quietly bought the iconic Chase Manhattan Plaza for $725 million, far below what was considered market price. Speculation was that Chase defaulted on debt owed and China actually foreclosed and took their building at a steep discount.

A Chinese flag now flies on Wall Street

A greater clue is this building houses the largest gold vault in the US and is linked to the Federal Reserve gold vault directly across the street. Could it be that China also influences the Fed? Either way, it's obvious China has filled their new US vault full of gold! Along with purchasing US infrastructure, China is aggressively cutting gas pipeline deals with Russia, furthering trade with Germany, India, the Middle East as they develop in Asia, Africa, the UK and South America. 

This author recently journeyed to Buenos Aires, Argentina to find the Industrial and Commercial Bank of China (ICBC) everywhere throughout the city. In the very high-end Puerto Madero development district, the ICBC building towered over the landscape of waterfront condos for the super-rich, leaving no question as to who owned everything. Ironically, this waterfront borders the Rio de Plata,  "the river of silver," which once represented Argentina's vast wealth through the accumulation of silver and gold. Sadly, they are once again on the verge of hyper-inflationary collapse, with China right there to pick up the pieces on the cheap.

CONCLUSION -  WHAT YOU CAN DO

The ICBC monolith dominates Argentina's port

In closing, it has become plainly clear for all who are paying attention that the dollar's reign is coming to an abrupt end. Smelling blood, China has begun a global awareness campaign to position its renminbi (RMB) as a viable replacement to the dollar in trade.

Whether the yuan becomes the new reserve currency shortly is besides the point and I am certainly not suggesting to dump dollars for yuan. No, what makes the most sense is doing what historically has been the best trade of all during times of extreme economic insanity through unconscionable money-printing.

That is, resolve to take full responsibility for one's own financial well-being. Ignore the government propaganda machine that seeks to pitch the masses of sheep over a steep cliff and instead follow the flow into real money right now. The signs are all there for a return to a gold and silver-backed monetary system once again. So those who have theirs ahead of time, will not only survive the coming monetary reset, but will in fact thrive during it! Despite the protestations of the criminal banking money-printers who scream that gold and silver are useless relics of the past, history proves them liars! Until next time, may you have the best in life, spirit, health and love....

Chinese wait in long lines to buy gold...

...while Americans wait in long lines to buy iphones!
This will not end well for one of these countries. Can
you guess which?