Jim’s Mailbox

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Jim/Bill,

Deep State antics are easy to spot.

JB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jim/Bill,

You have told listeners, this was China’s plan.

Dave

China (Officially) Buys Gold For 7th Straight Month As Treasury Holdings Tumble
July 8, 2019

China continued its renewed (public) gold-buying spree in May adding another 10 tons of the precious metal to its reserve – the seventh month of buying in a row.

“It’s a diversification away from the U.S. dollar, particularly given the trade tensions and the potential technology cold war that’s evolving,” said Bart Melek, global head of commodity strategy at TD Securities.

“We have to remember that gold is nobody’s liability.”

While this figure is hotly contested as being an underestimate of Chinese State’s actual gold holdings, its the only figure available, and whatever the real number, its notable that the Chinese government has revived the trend of announcing physical gold purchases each and every month.

“Given the U.S.-China tensions, it is little surprise that China is attempting to diversify away its holdings of the dollar and Treasuries,” Howie Lee, an economist at Oversea-Chinese Banking Corp. in Singapore, said in an email, adding that it’s likely to continue adding in the coming months as its reserve holdings still lag countries such as the U.S. and Germany.

“Aside from its attempt to diversify its holdings of dollars, owning more gold reserves is also an important strategy in China’s rise as a superpower,” Lee said.

More…

 

Exactly Wolfgang!
Bill

Jim/Bill,

Much like the parable of frog, the public is being kept from understanding the impending dangers of the Fed interest rate policy decisions on equities, and more importantly, of China’s plan to move from US Treasuries into gold.  Any swift action would create panic in the markets, and China would not be able to sell its US Debt positions.  And gold would soar beyond their reach.  Thus, the slow and steady transition.

A frog sitting on a saucepan handle. The boiling frog is a fable describing a frog being slowly boiled alive. The premise is that if a frog is put suddenly into boiling water, it will jump out, but if the frog is put in tepid water which is then brought to a boil slowly, it will not perceive the danger and will be cooked to death.

en.wikipedia.org/wiki/Boiling_frog

 

 

 

 

 

 

 

 

There has been much speculation lately on the Federal Reserve and its ongoing tightening policy. If you were to only read mainstream economic news you would think the Fed had already reversed course and “capitulated”, but this is not the case. The Fed continues to hold interest rates at their neutral rate of inflation while also moving forward with asset dumps from their balance sheet. Nothing has changed since December/January when the Fed first made minor changes to its public statements hinting at “accommodation”.

https://www.zerohedge.com/news/2019-07-09/gold-will-rise-even-if-fed-doesnt-cut-interest-rates

China continued its renewed (public) gold-buying spree in May adding another 10 tons of the precious metal to its reserve – the seventh month of buying in a row.

“It’s a diversification away from the U.S. dollar, particularly given the trade tensions and the potential technology cold war that’s evolving,” said Bart Melek, global head of commodity strategy at TD Securities.

“We have to remember that gold is nobody’s liability.”

https://www.zerohedge.com/news/2019-07-08/china-officially-buys-gold-7th-straight-month-treasury-holdings-tumble

Be aware

Be cynical

Be safe

CIGA Wolfgang Rech