The Elites Fear What Will Crash The Global Financial System

"Today one of the legends in the business spoke with King World News about what the elites fear is going to crash the American economy and the global financial system.  Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also discussed the massive demand for gold from China as well as what to expect from the gold market in the future.

Barron:  “The flow of gold into China is massive and it hasn’t abated.  If anything, it has picked up speed.  If you look at the growth in Chinese gold demand over the past few years, it won’t be long before we see almost the entire annual gold production in the world going to China....

“This has huge implications for the futures markets such as COMEX.  Will they be able to continue delivering gold in that environment?  The other big concern for various countries and entities around the world is:  If they loan or lease their gold out, will they ever get it back again?  Countries and individual entities are becoming less willing to lend or lease their gold because they are losing faith that they will ever get it back.  This will cause additional stress in the already strained delivery system as we advance through this bull market in gold.

If we look back, it’s almost a year ago to the day when the bear raid started on the gold ETFs.  Basically the bullion banks were raiding the last major depository of gold in the world outside of central banks.  The ETFs were being raided because they were arbitraging the price.  Bullion banks were getting anywhere between a $50-$70 premium for each ounce of gold they sold to Shanghai.

So for a number of months the bullion banks withdrew gold from the ETFs, they shipped the gold to Switzerland, where it was recast, and then the gold was shipped to Hong Kong and Shanghai to satisfy the massive Chinese buying.  Also, I believe that lat year European Central Bank President Mario Draghi was pressured into saying the ECB was going to sell Cyprus’ gold.  This is what started the waterfall decline.  But this smash had the effect of knocking all the gold out of the weak hands.  

So the weak hands are out of this market, but I don’t think the central planners are ever going to be able to pull that stunt again.  I believe that if they ever tried it again the queues around the world to buy gold would be even longer than they were in 2013.  For now the Chinese continue to buy all the physical gold they can get their hands on.  As fast as the gold is produced, it goes right out of the refineries to the Far East.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/17_The_Elites_Fear_What_Will_Crash_The_Global_Financial_System.html