Kings World News reported on August 15 that there is a dramatic rise in the demand for physical delivery of gold in Asia, not only by consumers, but to the central banks who, we are told, are demanding the physical return – the repatriation – of their gold from western vaults. If true, then the story is as big as Germany’s similar demands over the previous months, demands which, we have seen, were side-stepped, shuffled, and danced right off the floor. If true, the stories mean that the western media is no longer even reporting such stories:
There are, as far as I am concerned, two separate issues here. The first concerns India:
This data is also indicating a massive rise in the importation of gold into China from the previous year. Demand for gold is just exploding all over the place. In India they just increased the gold import duty once again. It’s been rising steadily from 2% to 8%, but India just raised it again — this time to 10%.
It is highly likely that the Western central planners, the Fed and the ECB specifically, have demanded that the Indians impose these taxes and duties in a desperate attempt to choke off physical demand for gold in India. Western central planners can’t use much influence on China, but they can strong-arm India.
So there has been an attempt by the Central Bank of India to greatly decrease the amount of money going into physical gold, but it’s not working. People always find another way to get physical gold. Gold is now the most seized material at the borders and at the airports in India.
There is a very, very healthy black market for smuggled gold into India. This is what happens when you try to artificially kill demand. The people of India want the gold, and the authorities are desperately trying to kill it off and they are not being successful. So the gold is being supplied through the black market and smuggling, and that will just continue.
The second is the linkage of the meme of gold-run, central banks, and western economic collapse:
Western central banks claim that there is a lot of physical gold available for purchase. That is pure propaganda and a lie. I now have reason to believe that Asian central banks are requesting that their gold, some of which has been stored in the West, be sent to Asia. This is what is causing the short covering rally in gold. The Asians know the Western gold system is very close to collapse and they want the physical gold in their possession.
This is what is happening behind the scenes. A very large part of the 1,300 tons of gold that was shipped out of the Bank of England, and gold that is being shipped out of the Fed as well, is going into the vaults in China and other parts of Asia. There is a massive run on physical gold right now and this is creating a squeeze.
The bottom line is the Western fractional reserve gold system is now on the edge of collapse and the Asians know it. You can expect to see many more days like this in the future as the run on physical gold intensifies and the squeeze accelerates.”
In the case of India, it is true, India is vulnerable to western financial pressure, and is caught between a western central bank rock and a BRICSA-China hard place, and it cannot afford to be subservient to either. In my opinion, this constitutes in part Indian moves to beef up its land and naval forces technologically, a point about which I blogged just a couple of days ago.
The second phenomenon, the now-near-constant repetition of the memes of “gold runs” and “western financial collapse” are much more complex in my hack-from-South-Dakota opinion. As I indicated a few days ago, there are indicators that a number of analysts are beginning to entertain the notion of a real factional-infighting war going on within the western world, not only between the traditional rivals and sometimes “uneasy allies,” the Rockefeller and Rothschild financial interests, there are indicators also of prime banks abandoning their traditional alignments with one or another of those dynasties, as there are also growing indicators of a “third force” on the scene, not BRICSA, and not either of those two dynasties… a third force represented by the intelligence communities and their now self-evident surveillance and hacking capabilities.
So I suspect that the real story here may not be imminent western financial collapse, and hence, the Asian run on gold, but rather a profoundly different reason for the Asian run on gold. Simply put: the BRICSA nations do not have the massive electronic spying and eavesdropping capability that the west has, with its NSA, its GCHQ-Cheltenham, its BNDs and Suretes and SISMEs and on and on we could go. That electronic eavesdropping capability also represents, as Catherine Austin Fitts and others have argued, the ultimate insider trading mechanism and potential. It thus represents a vast potential for electronic clearing, for the interference with it, and for a new basis of monetary backing: information.
Thus, while the move to gold by Asia in general may represent a loss of confidence in the western system, I suggest that the reasons for that loss of confidence are somewhat different: some alternative basis is needed for the BRICSA coalition’s financial plans until it can emplace its own independent international clearing mechanisms with similar electronic capability to the West, and that is gold. They are behind, and they know it. But if this is true, then the world is quickly bifurcating into a new type of Cold War situation, one based not so much on rival ideologies, but rival conceptions of currency backing and clearing, one analogue, and one digital.
To continue in this vein of high octane speculation, that world will be more than just a difference of geographical regions… it will also be a world where, perhaps, individuals or communities ostensibly placed or located withing one geographic region, may be conducting transactions in the “currency” of another, a city, say, in Montana, trading not on the basis of “info-dollars” but of “gold reminbi,” and vice versa…
And that, too, is intriguing, for it is the old “technology” approach, versus control of physical assets approach…
See you on the flip side.