ECONOMICS BACK GOLD TO $10,000 AND BEYOND. CHINA HEADING FROM NO 2 GLOBAL ECONOMY TO THE SELF INFLICTED SCRAP YARD?

Most financial academics and analysts all agree, Gold on the rise, because, they say, “the world is so unstable with money being printed at an alarming rate, the only way for Gold is up.” Several CEO’s of major Global banks and financial groups believe that $10,000 an ounce may just be the start. Analysts and CEO’s that are forecasting these rises include, Mr Frank Holmes CEO of U.S. Global Investors. “Although most institutions have been conservative with their Gold predictions they are now forecasting levels above $10,000 an ounce”. Mr Holmes said, ” fundamentals back up the numbers”. He said, “what is amazing is that in America, is that we have unprecedented deficits with no real major wars and no recession”. “What happens when we get a recession or a major war or conflict, we get incredible money printing and Gold prices automatically go up on the currency depreciation. So if something does break out, Gold is then going to rocket’, he said.

Other Predictions by Major Global Financial Institutions all point to the China/US trade war

Probably the most universal discussion on why Gold has to fly to unprecedented levels is the biggest story on the planet. The USA and China trade War. China has a population 4 times the size of the USA and as such is still considered a developing country. China has the second largest economy in the World behind the US. Every commentator will tell you that the Chinese economy will claim No1 spot in the world. The analysts believe that will be the case of becoming N1 economy in the world, if China retains the “Developing Country Status”, that meaning, it does not have to pay any tariffs or duties on its exports to other countries in the “World Trade Organization” (WTO). That includes Australia. Work is underway to prevent this mismatch.

WELL,WELL, WELL, THE GAME CHANGED AND CHINA NOW NOT SO SURE TO BE NO 1 ECONOMY

Well, that was the probability, until the US President put China back in their box and announced billions of dollars of tariffs on products exported into the US from China. “Enough was enough, China has been playing us for years and the former US government has let us get played, so its over for China, we are going to put in a new level paying field, starting with all US companies to leave China and return to America,” the President of the US, Mr Trump, said. That was the start of the rise and rise of Gold. In 1990 Gold $US300 twenty years later $US1500.

WE NEED TO CHANGE OUR TERMS OF TRADE- AUSSIE GOVERNMENT CALLS THIS A FREE TRADE AGREEMENT

Australians cannot buy any land in China, no residential, no commercial and no industrial. Chinese can buy what they like in Australia (no questions asked). Australian export Companies pay 50% Duty of Aussie wine into China, Chinese pay no Duty when exporting wine into Australia. Everything being exported from Australia to China has duty/tariffs of 25-75%. Every single product exported into China, has Chinese tariffs and duties Nothing from China to Australia has any duties/tariffs. The worlds second biggest economy and still call themselves a developing nation. what a Joke.

How is this: No one can buy land or real estate in China other than Chinese Nationals. Australians cannot buy real estate in China. If China export Wine, Honey, Cosmetics, Rice, Pork, Bananas into Australia, we do not have tariffs or duties to be paid on them. If we export the same products to China we have to pay: 50% duty on Aussie Wine and Cosmetics, 25% on the other products. Everything that goes into China from Australia cops 25% to 75% tariffs and duties. Why? because people like Rudd and Turnbull spent their political lives kissing China’s arses, instead of protecting Australia’s arse. So has Scomo got it by the horns now? He says he has , lets see.

Chinese State owned and Private Companies scramble to 3rd World Countries to stop the tariffs and duties of the Trade War. China has no chance of being repaid its massive billions of $$$ loans to African countries. The chance of recovering $1.00 is zero. China put $US5B into DRC to build a railway line and some roads. That was 8 years ago. Result: No railway ever built, President of DRC built palaces throughout Europe, Chairman of China Rail, executed. One Belt No road policy.

It is thought that if the downturn in the Chinese manufacturing industry continues on the current slide, the unemployment rate will explode and put China into recession. Most State owned Companies are flocking to Vietnam, Indonesia, Malaysia, Philippines, Bangladesh and other poor “developing country status” countries and setting up their manufacturing operations to escape the punishing US tariffs. The Chinese are also loaning Billion of Dollars to African nations, and are starting to find out that the chance of ever receiving a cent back is looking pretty unlikely. I don’t think they realized corruption in Africa was worse than China. Now they know. The big problem with that is that Chinese culture is, “hang onto the money” so most of the $$$, invested overseas, will never find its way back into the Beijing money stream. China will just have all these state owned and private companies, scattered all over the world paying taxes in those countries, with nothing going back into the coffer at home. Seemed like a good idea at the time.

WHO IS GOING TO BLINK FIRST. XI OR TRUMP. YOU CAN BET YOUR PRECIOUS LIFE IT WONT BE TRUMP. CHINA PLAYED HIM ONCE TOO OFTEN

Once in recession, China will have to start the printing presses and start printing money around the clock for the next 10 years. There is not enough Gold in China to back the printing of money so the depreciations of the Chinese Reminb (Yuan) will devalue dramatically and the price of Gold go into orbit. At the end of the day when recession comes, the only way to stabilize a countries currency is to back it against the countries Gold reserves. The reason that the world relies on the US$$ for trading is because the currency is backed by the biggest Gold Reserves in the World. China’s currency is backed by GDP which is controlled by its manufacturing base, that supports its export surplus, which is declining by the day. The outcome is already laid. If the US/ China trade war isn’t over within the next 3 months, it kaboom!. Three months is not a long time, you may say, but when you have a massive iceberg like China slipping into the ocean its impossible to stop. It just keeps on sliding. The bigger you are the harder you fall. No point ringing the African Countries and the Solomon Islands asking for loans to be repaid, sorry, Mr President, we cannot repay, but thanks for the call. Good Luck, bye bye. There will definitely, no net offered to catch China’s decline, coming from the US. Trump has made that very clear. He said, “China made certain promises and never kept one of them, they played me once too often, BIG MISTAKE, BIG MISTAKE.

Goldman

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