Sinclair: “The Chinese are known
and respected for having a plan for everything. In order to have a plan you
have to have an analysis. You can’t pick a plan out of nowhere. In order to
have analysis you’ve got to have facts.
So the Chinese have fully
analyzed what the West is doing, which is in fact destroying itself, and they
are taking appropriate offensive and defensive measures....
“The Chinese have said publicly
and chastised the West continually for their laxity in terms of how they created
internal demand for goods and services. Basically this has to do with how the
West has used fiscal and monetary stimulation. Now the Chinese currency is
advancing in terms of respect and utilization. But you have to remember that
each time that advance by the yuan takes place, it takes place at the expense of
the dollar.
The Chinese see exactly what’s
going on. The Chinese know exactly where all of this is going to go, and they
know the role of gold is going to increase significantly in the physical
market. They also know that gold will eventually have a connection to the new
financial system. What I am saying is the Chinese have the answer.
Every time we go through a
significant reaction in gold, which is brought about by Western manipulation, we
give a gift to the Chinese. He who has the gold has the power. And the West
has basically, since Greenspan, taken everything that former Fed Chairman
Volcker had won for the West, packaged it neatly and sent it to China.
This is what the Chinese know.
This is what their plan is. Their analysis is correct and the future is exactly
as they expect it to be. The US dollar will begin to significantly weaken
primarily because of settlement utilization moving towards the Chinese and away
from the West.
Gold is no longer the enemy of
the dollar. It might in fact be what saves it. Eric, I have been talking to
you about the Western suppression of the price of gold, and while that may last
for a little while longer, I suspect that time period has now in fact come to an
end.
What you are going to see now,
and what the gold community doesn’t understand, is that the Fed and the West are
now going to encourage the price of gold to go higher.”
Eric King: “Jim, as you know up to now the Chinese
have been mercilessly taxing the West out of its own gold. Meaning the price of
manipulation for the West has been devastating in terms of the outflow of gold
out of Western vaults. The advantage to the West of manipulating gold higher
would also be to stop the flow of gold out of Western vaults because the Chinese
do not like to chase price.”
Sinclair: “Regardless of
whatever opinions may be publicly given from Federal Reserve Governors, the
Chairman, or from the US Treasury, there certainly is a very strong
understanding of the history of gold and how important it is to any country,
especially in times of stress.
It is very possible, and in my
opinion probable, that the importance of gold is now being recognized at very
high levels. And from this point forward, it is my strong belief that the
Federal Reserve will be more friendly, rather than the enemy of gold, and the
price in the market will show you that I’m correct.
An increase in the price of gold,
aided by the Fed and the West, would definitely be to stop the further draining
of gold out of Western central bank vaults. China will then compensate by
increasing their mining activities around the world as well as inside China
itself.
The reality is that gold has
never been the enemy of the dollar anywhere else but in the minds of the Fed.
Now they will finally come to view gold and the advancing gold price as their
friend. This is the major shift which is taking place.
What people expected to occur in
1979 has now occurred in orders of magnitude greater than almost anyone believed
possible, and in this ongoing and rolling financial crisis the US is not going
to allow a total drain of its gold reserves. What people around the world need
to understand is that the US government and the Federal Reserve will continue
their active manipulation of gold, only this time it will be to the
upside.”
No comments:
Post a Comment