Sorry, No Gold Today....We sent it to China!!!

[CLINT-THE-GREAT]

http://dailyreckoning.com/sorry-no-gold ... -to-china/

-The Great

[beauanderos]

GREAT article, thanks for posting

[Numis Pam]

OMGoodness! Very thought provoking indeed.

[Z00]

As long as they leave the silver here for us peasants. But even the asian's are recognizing the high price of gold and turning to silver. When Zero Hour occurs, the price of gold will skyrocket overnight and it may start to get hard to get change for a silver dime.

A question for everyone:

What are your plans for "Zero Hour"?

[beauanderos]

What are your plans for "Zero Hour"?

"Sorry, Folks, but due to supply disruptions... all sales have been suspended"

[SilverDragon72]

Good article. If you don't hold it, you don't own it.

[agmoose]

Thanks for the link, excellent read.

[Rosco]

Thanks for the Info I believe but Wife not on Board , I buy with My Allowance every other Month

[neilgin1]

As long as they leave the silver here for us peasants. But even the asian's are recognizing the high price of gold and turning to silver. When Zero Hour occurs, the price of gold will skyrocket overnight and it may start to get hard to get change for a silver dime.

A question for everyone:

What are your plans for "Zero Hour"?

thats a GOOD question, and i'll ask a question in return, before i answer.....good deal? (its 0230 up here, i woke early, for lands sake, SOMEBODY has to maintain zombie watch up here!)

what does "Zero hour" mean to you? do you wargame out various scenario's?

"Zero hour"....hmmm. For instance, did any of us really presume ahead, that in regards to the 2nd Amendment, that "Zero hour" would be this horrific DUBIOUS event at an elementary school?....and then within a week, the market for both firearms and ammo would abruptly change? Not only price increases in the order of 100-200%, but the sudden unavailibility of most firearms, accessories AND bulk ammo?

we didnt, but the precursor was that in the months prior, our fellow citizens bought all of the above in record numbers....right?

Now we know that in January, the US Mint set records in sales of SAE's, even to the point, they ran out of planchets, i read Feb was similar....should we draw a parralel to this?

What would "Zero Hour" look like?....would it start with some terrible sell off in stocks?....to the point that the NYSE and Nasdaq would halt trading?...cooked or not, equities are trading are trading robust, bears are getting tortured, so maybe thats not IT. (personally, i wouldnt put one clad dime in stocks, even the stalwarts, McDonalds comes to mind, followed by defense manufactuers, big pharma, i always like ADM, Archer Daniels Midland....Netflix had me fooled...COMPLETELY, i thought that it was a short at 60 for pete sakes! tells you what i know....last looked, it was trading 160-180....i'm a customer, and in hindsight, they offer a very good, value service, $8.95 a month for thousands of titles?)

let me stay on topic......what tips "Zero Hour"?....it has to be something....sudden, abrupt.

What about some "default" in the EU zone?...that cascades?....no, not sexy enough, its got to be, like the elementary school "event", something violent and jarring. I think something like a cyber "attack"...real or manufactured, where one day, we just cant "log on". Cant access your bank accounts, or do net commerce?.....pount of sale terminals, in grocery stores, gas stations, ATM's....down. That would be an event, where dot gov could declare a "national emergency", wouldnt ya think?

might even affect the electrical grid, or that would be part of it. And the disturbing aspect is; we wouldnt even know, if it was internal, or external, would we? (thats why Rand Paul's filibuster was such a powerful moment in national history, in a very clear way, he asked a question, that went right to the heart, of what many Americans feel and fear. Dont think that this moment doesnt have legs, not ALL of "them" are vicious little rodents, just watch for the ones in BOTH parties, who slam Rand...thats the 'tell")

it could be anyone of several potential global hotspots blowing....a strike on Iran comes to mind....or notice the way the North Koreans appear to have gone bat shite crazy, and this situation could seriously devolve in many ways...we dont know. The North Korean thought process is so beyond anything we regard as normal, AND its a situation, where a traditional display of American military might is a no can do....unless of course, we're ready to go beyond the pale of acceptable war-fighting, and i think the Chinese wouldnt react favorably to such a wargasm.

So pick and choose the tipping point event for "Zero Hour". Frankly, it might be things just muddle along for a time period, that is longer then we presume....we could go like this till 2018, or longer. We could. All signs point to this growing season, being a very good season for American farmers. As it stands now, we could grow 14 bln bushels of corn, 3 bln bushels of beans, the winter wheat should be a great crop, spring wheat , probably the same....so national food security in 2013 appears solid.

its always been my belief, that any kind of "Zero hour", should be handled on a "watch and wait" basis, and at the pain of sounding like a broken record, rather than stash a roll of paper fiat, just keep stacking those humble $100 face value "bricks" of nickels, think of each of the fifty $2 rolls, as a SOLID two dollar bill.

if your food larder is 'challenged', meaning if you are part of the "nine meals way from disaster" crowd, start by storing 7 days worth, then 14 days....then a month, and so on.

But hear me, i cant SAY to any man, "Have Faith"...or "Embrace a Simple Faith in God", because its a Gift given from Above. All the various "preps", or "stacks"are utterly meaningless, unless you know God, and your utter dependence upon Him, to where you have what Moses had, which is being able to talk to God, "face to face, like a man talks to a friend", thats why the Most Important Thing in any "Zero Hour" situation is inside that Bible, that might be dusty with neglect...or not even in your house at all. Within that Sacred Text is the Foundation to prevail thru any "Zero Hour". You have can have a "stack" 8 feet tall and 4 feet wide...a larder brimming, but if that stack is all you got....you're worshiping an idol, and as God leads me to say, "you are in grave peril". God is love, pure sweet agape love, but He is a Jealous God, and will brook no rivals, especially those foolish enough to worship idols....and i'm not talking about "religion", i'm talking about Relationship.

he who has ears to hear..i wrote the above paragraph with love, not with "religioustic hardness", but this nation has been in the grips of worshipping the "golden calf" for a very long while, which is tragic. that has happened to many a nation, and the story always end the same.......very fondly to you all, neil, a Hebrew who follows Jesus

[neilgin1]

http://dailyreckoning.com/sorry-no-gold-today-we-sent-it-to-china/

-The Great

thats a REALLY good article, The Great.

The Chinese, they're a 6,000 year old civilivation, they've experienced a lot of hard historical lessons, and ramping to 10,000 tonnes of gold is the smart move. Last i read, we SUPPOSEDLY hold 8500 tonnes, though the truth of that figure is in question.

The Chinese are no one to play with, or try to dominate, but they are not this secure monolith, people make them out to be, imo. It would be a bad situation, if we or they decide to have a rumble. But they do have many weakness, enough to rival ours.

what? well their economic growth comes at a price, many of their industrial centers are enviromental nightmares, and i'm not talking about endangered owls, both their air and water in these areas are toxic. i've seen vid's out of just Beijing, and there is no such thing as a clear day, its like something out of a bad movie.

i wouldnt say they care much at all about their citizenry....that attitude is millenia in the making, its just now the "mandarins" are the Peoples Republic of China leadership, a thin strata, over hundreds of millions of what they regard as "peasants", who WANT a middle class life. and never forget it STILL is a "communist" nation....the largest left, no such thing as the Constitution, Bill of Rights,. etc. i know things are getting dicey here, but at least, we still HOLD to our freedoms. The PRC leadership can be ruthless.

and the main point i wanted to illustrate, is that China is NOT 'food secure". i'm going to post the lastest WASDE Global Grain outlook

http://www.usda.gov/oce/commodity/wasde/latest.pdf

go to page 10 and 11...Global wheat, look who EXPORTS wheat, and who imports it, and who grows JUST enough to feed their own people...two nations stand out, China and India.....China grows 120 million metric tons (mmt) and they dont really export or import any wheat......HUGE population, same with India, they grow 94-5 mmt, and actually were able to export 6 mmt.....to put that all into context, we grow 55-61 mmt, but we're the largest single largest wheat exporter, selling anywhere from 28 to 35 mmt's of wheat a year.

another VERY telling stat here, is look at North Africa and the Middle East...try and try, but they can grow only HALF their wheat needs....but they do have a lot of oil, dont they?....and we wonder why "rebels" ganked Qaddafi, why there was an "arab spring", WHY, Syrian "opposition" forces wage war on the assad regime? Half the time i spend thinking our intel guys are just venal....the other half, i realize, that these guys are playing a very complex game of geopolitical "chess", so we can walk into a Kwik trip and be able to buy a really good $3 cheesburger, a $2.39 gallon of milk, or a $1.99 pound of butter....and then when i see a prime American hero like Rand Paul walk into the Senate, speak truth during a filibuster....ALL OF THIS, makes me realize, strange as these times are, not only am i proud to be an American, thankful this is my country, but all HOPE is NOT GONE.

in conclusion, for us fathers out there, here's an idea for you, Cargill, one of the leading seven global grain trading houses, is a great company, its STILL owned by the Cargill/MacMillians after 120 years. Cargill offers a 3 month summer internship for young people in college, to see if said young person is right for Cargill, and Cargill is right for our precious children. English degrees, MBA's are well and swell, but to become a Cargill grain trader is something special. People RARELY leave Cargill, and Cargill trades EVERYTHING, the corporate culture there is good, its healthy....you dont hear of scandals at Cargill, they frown on anything that bring reproach on the companies reputation. Of course, i pitched this to Neil Jr, but the lad is making me proud in the field of Chemistry. (at 17, in college, he just got an A on his mid term) the lad indicated to me, he has a very keen interest in Bio-chemistry. (btw, he's the ONLY white boy, in a class of Chinese students!...thats telling)

anyway, i thought i would tell you this about Cargill, my fellow fathers out there...its not a bad deal, in fraternity, neil

[Z00]

neil .. very good post.
My question about Zero Hour was mainly about the event that forces the Comex to default on the delivery of gold and/or silver. Some country or individual will demand delivery and there will not be enough physical available to fill the order and they will offer a cash settlement instead.
The repercussions may well spread across many items, as you have mentioned. That is why a great many of us on this forum are preparing to be self reliant. We can stock up on food, off grid supplies etc. But what about purchasing power. Being able to barter is fine if you have thought of EVERYTHING that you will possibly need.
I read an article a while back where the author made the statement that he didn't need to have anything but beans, bullets and band-aids. He said that if you didn't have what you needed it was your "failure to plan." I wish I was as all knowing as he felt he was.
When the PM prices spiral out of sight and the dollar tanks, what is the amount of PM's you will need to have stacked.?
My feeling is that this must be measured in ounces. The figure that comes to mind is the equivalent of 1 years income. If you have an income of 15,000 or 150,000, you're stack should equal the current dollar value of a year's income.
While I personally am no where close to that lofty goal, I can imagine a few here that may be.
Meanwhile, I strive in that direction, along with all the other "preps" mentioned. You'll notice that I do not sell anything on here, I do not buy numi items, my focus is buying at spot for stacking. If I get an item that has any numi value, I do not even consider it. When the SHTF all numi value will go out the window. The only thing of interest will be "how much does it weigh."

'Nuff said for now. (1 finger typing is tiresome) Any insights or comments?

[neilgin1]

neil .. very good post.
My question about Zero Hour was mainly about the event that forces the Comex to default on the delivery of gold and/or silver. Some country or individual will demand delivery and there will not be enough physical available to fill the order and they will offer a cash settlement instead.
The repercussions may well spread across many items, as you have mentioned. That is why a great many of us on this forum are preparing to be self reliant. We can stock up on food, off grid supplies etc. But what about purchasing power. Being able to barter is fine if you have thought of EVERYTHING that you will possibly need.
I read an article a while back where the author made the statement that he didn't need to have anything but beans, bullets and band-aids. He said that if you didn't have what you needed it was your "failure to plan." I wish I was as all knowing as he felt he was.
When the PM prices spiral out of sight and the dollar tanks, what is the amount of PM's you will need to have stacked.?
My feeling is that this must be measured in ounces. The figure that comes to mind is the equivalent of 1 years income. If you have an income of 15,000 or 150,000, you're stack should equal the current dollar value of a year's income.
While I personally am no where close to that lofty goal, I can imagine a few here that may be.
Meanwhile, I strive in that direction, along with all the other "preps" mentioned. You'll notice that I do not sell anything on here, I do not buy numi items, my focus is buying at spot for stacking. If I get an item that has any numi value, I do not even consider it. When the SHTF all numi value will go out the window. The only thing of interest will be "how much does it weigh."

'Nuff said for now. (1 finger typing is tiresome) Any insights or comments?

OH!! okay, i understand what you mean by "zero hour"....(thanks for the kind words)

my gut tells me, they would just flip the byrules and go to cash settlement, put the PR and the banking and govt machinery to work to stifle any dissenters.

the reason i say this is, we used to trade LIVE hogs, 30,000 pound contracts, about 150 head, various physical delivery points, i'm going to say Waterloo, IA....lots of other delivery points, its been over 30 years...but then long after i was off the floor, they changed the contract to LEAN Hogs, with a cash delivery mechanism, as opposed to the on the hoof, pig. Reason? the whole pork industry changed, went to the economy of scale, which became 3,000 head interior confinement facilities, as opposed to countless family farmers, who had a 120 acres, planted in corn (getting a $1.50 bushel) and he would have 40-60 head of hog grazing, or in his lot, and probably milk 20-40 head of dairy...and at the end of the year, net anywhere from 9 to 20 thousand dollars...and NOT feel bad about it. $20k a year farming in 1983?....you could live on that....and the hogs you could buy 30 lb feeders for 19 cents a pound, put that corn thru them, finish them to 260 pounds...off to market, put that check with your milk check, life is good. Then the huge interior confinement hog facilities came in, and killed the market.

everybody i know that farms, does something else....the guy that planted 100 acres of beans, runs the towns largest heating and plumbing outfit. My neighbor, he's a good friend, he planted his dad's home place, 80 acres in no till corn last year, he drives an hour and a half each way, to build multi-unit rentals.

the exchange would just go to cash delivery and dare you to out lawyer or out politician them...thats what i think they'd do....and maybe get away with it for a while.

You got a sound plan going.

[Z00]

That "while" may be short lived. If there is that type of default, the demand for physical will spike very quickly.

[68Camaro]

Good info. Consistent with many other reports.

I'm a bottom line guy. Bottom line notes:

non-Western Central Banks are buying Gold (though it's unclear from whom).
Most Western Banks have stopped open selling. What goes on in the background however, is uncertain. Is the US selling gold? Who knows.
US can't deliver a trivial (for Central Bank levels) amount back to Germany in less than 7 years.
China is producing and buying more than rest of world put together, and keeping it all.
No one but China knows how much gold China has, but some quick math suggests they may be at 5000+ tons and accelerating.
China has indicated a desire to get to a Gold standard with their currency and break from the US.
China is working plans to do improve their gold reserve without overly disrupting the $1T in US that they own (or owned).
They are selling or trading away US T-bills, quietly, and have stopped accumulating T-bills.
When COMEX goes down they will simply default. Anyone not in a chair when the music stops will be sucking air.
Markets will crash - but the DOW is still being supported, so until the day that starts, the DOW will appear to be solid. But it will crash when the bottom is pulled out from under it.

[neilgin1]

Good info. Consistent with many other reports.

I'm a bottom line guy. Bottom line notes:

non-Western Central Banks are buying Gold (though it's unclear from whom).
Most Western Banks have stopped open selling. What goes on in the background however, is uncertain. Is the US selling gold? Who knows.
US can't deliver a trivial (for Central Bank levels) amount back to Germany in less than 7 years.
China is producing and buying more than rest of world put together, and keeping it all.
No one but China knows how much gold China has, but some quick math suggests they may be at 5000+ tons and accelerating.
China has indicated a desire to get to a Gold standard with their currency and break from the US.
China is working plans to do improve their gold reserve without overly disrupting the $1T in US that they own (or owned).
They are selling or trading away US T-bills, quietly, and have stopped accumulating T-bills.
When COMEX goes down they will simply default. Anyone not in a chair when the music stops will be sucking air.
Markets will crash - but the DOW is still being supported, so until the day that starts, the DOW will appear to be solid. But it will crash when the bottom is pulled out from under it.

i KNOW you're "bottom line", and in what you posted above there is no lie.

i'm wondering, when do we go back, read these posts and say, "we knew"..........knowledge is power, but i feel impotent........we knew, but what did we do?

feels like every person here is doing everything they CAN do, but if we war fight China?...i cant envision any 'winners'. its way out my job description to affect any change in that regard, so i will recede.

[Z00]

There is nothing we can do in the present environment to effect any change. All you can do right now is actively prepare yourself and those you value. and, as camaro pointed out in another post, that has reached the CRITICAL stage.
Unfortunately, it will have to get worse before the masses will see the need for a forced change.

[beauanderos]

There is nothing we can do in the present environment to effect any change. All you can do right now is actively prepare yourself and those you value. and, as camaro pointed out in another post, that has reached the CRITICAL stage.
Unfortunately, it will have to get worse before the masses will see the need for a forced change.

whether any of our forum members see it as such... membership and active posting (clear, critical thinking, and sharing of thoughts) is a form of mental prepping... every bit as important as any other aspect. We have a small core of people who speak out, not unlike society. I would very much like to see our silent majority begin to contribute their ideas as well. Don't just lurk, browsers, join and speak out

[Z00]

The problem is that many do not want to post their plans or activities for opsec reasons.
I myself do not post very much for that reason.

However, I just found a great buy on Ramen noodles. The days of 10 cents a pack seem to be long gone. Now you have to look at 20 cents as a good price.

[ZenOps]

The US supposedly holds about 8500 tonnes.

But I'd bet people would be surprised at how much Canada has.

Wait for it...

3.4 Tonnes for the entirety of Canada. We don't need no stinking gold, we want the stinking nickel Why would we want gold? That would just invite nations like North Korea to try and get it.

Must be something to it, because Canadians were richer than US citizens last year.

[ZenOps]

Assuming that a commodity house will pay a premium to not have to deliver physical is a dangerous game.

If MF Global is any indicator, not only will they not have the gold or not pay a premium - They will simply declare bankruptcy and you will not get your gold or the dollar equivalent.

Could the Comex do a selective bankruptcy in the precious metals division only? Sure they could. Because they could argue that people need to get their corn contracts to eat, but gold could always be declared illegal if things got that bad.

And then you are up the creek.

[scyther]

The US supposedly holds about 8500 tonnes.

But I'd bet people would be surprised at how much Canada has.

Wait for it...

3.4 Tonnes for the entirety of Canada.

I knew it would be low, but not that low...

[dannan14]

The US supposedly holds about 8500 tonnes.

But I'd bet people would be surprised at how much Canada has.

Wait for it...

3.4 Tonnes for the entirety of Canada.

Scary situation for Canada, but they do actually have quite a bit of gold...it's just locked up in the gravels of the Yukon!

[SilverDragon72]

You know, if one really thinks about it....how do we REALLY know how much gold each country has? China probably owns our share as it is...

[fathead]

im heading to hong kong in a few hours myself. you wouldn't believe how much chinese people love their gold. the best part is that you can buy canadian gold maples at spot price.