gold, page-14289

I would agree AverageJoe that the current monetary system has given almost anyone with an income an opportunity to participate in wealth and lifestyle creation. The only problem is the system requires more and more money supply (debt is money) to continue 'successfully' just like a ponzi scheme is great if you are in early and get all the benefits heading up to you at the top… The USD has been running unchecked since early 1970's. 40 years give or take is a good benchmark for the maths associated with this type of system. Doesn't matter the money supply or size of economies, the maths is the same.

Derivatives and such like in the textbooks discuss endlessly about risk hedging and such like being the point but the reality is different somewhat as is usually the case in these kinds of things. Given their widespread acceptance they are excellent tools for managing price of the underlying asset by the sheer weight of money play in these asset classes. Being able to sell endless paper contracts allows for movement of gold and every class of underlying asset globally to be put pretty much wherever those looking to manage these assets want them to go. Essentially controlling everything is for the greater purpose of allowing the system to continue which you discussed/posed questions/ideas to that its served us all very well for 'a good life'. Its great until its not of course.

China like many other sovereigns is actively disposing of US treasuries at a steady pace. Why do they have any value given the US will not pay its debt back organically… and as we know if the debt is paid back then there is no economy as all debt is money - remember ? Its madness and yes people need to park money somewhere… I can't stress enough that getting out of paper and digits and in to real asset/hard assets/tangibles BEFORE the monetary ponzi scheme concludes.

Fiat makes fiat but its best spent to totally before it ends. It is no surprise that China is spending in to physical mines globally, land/property/gold/silver/stockpiling/strategic ports etc…

They are using fiat to make fiat but converting in to real as they go along. China would back their currency in a flash if they felt the system was going to totally collapse. That is the USD. And they likely have well over 10,000 tonnes of gold and that's conservative.

JFI