China, Russia, Germany, India & A Roadmap To $10,000 Gold

"...This is all part of who should have the reserve currency.  Again, it will be some combination of the yuan, rubles, the German mark, possibly part of the Indian rupee, but it will be convertible into gold.  Chinese leader, Xi, recently visited India.  Xi has said China will invest up to $400 billion in infrastructure for India.  That’s a great deal of money.  It’s far more than the West would ever be willing to invest in India.  So Xi is consolidating Chinese power throughout the entire eastern part of the world.”

Leeb added:  “The Wall Street Journal recently had an article about how successful shale oil drilling has been.  They also talked about the increased productivity of this technology.  The Wall Street Journal pointed out that over the last 10 years the maximum productivity of a shale well has gone from 800 barrels per day to 2,400 barrels per day.

The Journal also noted that it took 60 times more water to in order to achieve the increased productivity.  It also took 2.5 times more cement.  Well, how do they get that water and that cement into that shale well?  They deliver it with trucks, and that takes a tremendous amount of energy.  This is what has been called ‘The Red Queen Phenomena.’  Yes, we can increase productivity but it’s going to take a lot more energy to do it.  

So basically what you have here are contrasting policies.  There is one in the East in which China is spending trillions of dollars on renewable energies.  Germany is running their entire electric grid on alternative energy.  China is also assuring that India has a renewable energy policy.

Then we have the U.S. with its shortsighted shale policy that is losing its influence around the world.  To have the world’s reserve currency you must have military and economic dominance, and the respect of the world.  The U.S. is losing on all of those fronts day by day.  We are losing it to China and the East.

Eric, the flow of gold and power continues from the West to the East.  Xi is setting up international gold exchanges in China.  Xi and the Chinese are also attracted to partners who have a lot of gold such as India, Russia, and Germany.

So there is very little downside left in the gold market.  But the upside targets haven’t changed at all.  Gold will be at least $10,000 an ounce or higher.  We will have to see $10,000 gold in order to rationalize the kind of trade the world does.  That’s the bottom line.  So investors have to own the metal ahead of the coming repricing of gold in order to protect themselves.  

Virtually every news item I read points to a major inflection point.  The world is moving dramatically toward the East.  This will create one of the greatest wealth transfers in history and only the savviest investors in the West will come through this historic transition not only unscathed but prosperous.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/9/23_China,_Russia,_Germany,_India_%26_A_Roadmap_To_$10,000_Gold.html