“Hey
look, I found some Asian gold traders!”
How many times have I said this; “There isn’t a price high enough you can
take gold in Asia, that can’t be undone by the bullion banks in New York”. And so,
here again today our hapless Chuckleheads in Asia bid it up first hour last
night, and like the sun rising in the east, bullion banks have sold it down; in
so many metaphorical ways our friends are like the clueless young skulls full
of mush who still think, despite the overwhelming clear evidence of the facts
which show the ”thug” robbing the convenience store and then attacking the
police officer, and now have a “narrative” for the SJW’s to paint every cop in
the U.S. cold blooded killers.
So, let’s take a look at the
Chuckleheads and their motivations; what I find is something far more interesting
than buying high and selling low. On the surface it makes no sense for these
people to do what they do almost every night, which of course is “bid it up”
and buy gold. Why would anybody that isn’t insane continue to do this and lose
money almost every single night? Does the mystical Mrs. Watanabe have an
unlimited checkbook and never check her P/L?
I think what is at play here is not
short term trading, but a long term strategy of the Chinese & Ruskies to
buy spot gold in Asia, take delivery, and build their stockpile of gold
reserves, and if they get clipped a few bucks on the price so be it. In other
words, they want the physical and don’t give a rats donkey what they have to
pay for it.
Since 2012, what you are seeing is the
largest transfer of wealth in the history of the world, as gold flows “West to
East”!
And in my humble opinion, the reason
behind this move is simple; both the Chinese & the Ruskies want to end U.S.
financial hegemony in the world by having currencies [i.e. the Yuan & the
Ruble, respectively] that are backed by gold. And on that day when they
announce to the world the transformation back to “gold backed” currency, the
gig is up for the U.S.; you are now looking right down the barrel of a gun and
for all practical purposes, the U.S. is Venezuela. And all without a shot being
fired!
There is no doubt in my mind, the
reasons behind U.S. Dollar dominance in the world is, 1) crude oil is priced
and trade in Dollars [petro Dollars], and 2) The Federal Reserve has co-opted
world wire transfers and undermined the “SWIFT” system Europe uses and thus
ends up “clubbing” those countries that don’t “toe the line” politically and
are thus forced to hug the U.S. Why do you think both the Chinese & the
Ruskies have set up a new bank clearing system to bypass the Fed & SWIFT
and have also set up futures contracts in gold and oil based in Yuan &
Rubles? It isn’t because they’d like a futures contract.
So, while we take advantage of their
actions because we are traders, and almost with 90% certainty Asia & New
York are inversely correlated in terms of price, never forget that what they
are doing [I think], in terms of their ultimate objectives has nothing to do
with short term trading. And for us, that spells great news, and it’s why [I
think] this correlation stands is valid almost all the time.
Ok, we’re in Thanksgiving week, and
while I know there will be signals today to make a buck or two, this is
basically a Holiday week, so I won’t be posting the hypothetical trades I could
have made today or tomorrow. Over the Thanksgiving Holiday I’ll be working on
all the stock indices plus Amazon & Google; trust me, the work involved in
this is massive, and I don’t want to release things until I’m happy with the
data and the manual. And while I would love to have it done today, it will be
here very shortly; in other words, quality over quantity!
It’s a beautiful day in Paradise, time for the beach. Until tomorrow …
Have a great day everybody!
-vegas
OPEN A DEMO AND/OR LIVE ACCOUNT AT THE LMFX
LINK IN THE “DOWNLOAD LINKS” SECTION OF THE WEBSITE TITLED “OPEN TRADING
ACCOUNT – DO IT NOW!”
No comments:
Post a Comment