Commentaries

Russia and China Are Selling Treasuries and Buying Gold…

Fred Hickey of the High Tech Strategist newsletter fame gave a brutally honest interview with The Wall Street Cheat Sheet about the financial/economic condition of the United States and how China and Russia, two of the largest financiers of our Government, are protecting themselves from the reckless policies of Obama and Bernanke. Here’s is a quote:
No one seems to be talking about this, but in a recent US Treasury foreign holdings report I saw a flat line where the mainland Chinese were not buying our treasuries anymore. Their position was holding; meaning, they were buying just enough to offset the maturing bonds. Now we’re seeing outright declines. This has gone on for several months and now it’s an outright decline…The Russians are also reducing their positions. They reduced $10 billion in December and it’s dropped from a $140 billion almost to $118 billion over the last few months.

Here is a link to the interview and a must-read: Sell Paper – Buy Gold. Here’s another insightful snippet:
I never loose sleep with my big gold position, but I do loose sleep when I have a big dollar position. I always see pullbacks in gold as buying opportunities because what I’ve discussed are the big forces really moving things. There are very few people on this planet that understand the big macro picture behind the movement to gold. We’re now in a 10 year bull market in gold. We ran a twenty year bear market, so it might be a twenty year bull market. We may be only halfway through.
We know that China is voraciously accumulating a lot of gold. Recently a senior researcher recommended that China buy a lot more gold in order to raise its gold holdings up to at least 10% of its foreign reserves. They have 1000’s of tonnes to buy in order to accomplish this. Here is what Russia is doing, chart courstesy of Richard Nachbar:
(click on chart to enlarge)

Large Central Banks, big institutions and wealthy individuals are just now beginning to direct paper money flows into physical gold and silver. Liberty Coins, a very large coin dealer, reported its 2nd biggest day in silver sales and 5th largest day in gold sales in 30 years of business last Friday after gold and silver were taken down in price on the Goldman/SEC news. This is direct evidence that more people are beginning to understand the golden truth.

The ECB has barely sold any gold so far this year – the first time the last 10 years that European Central Banks have not unloaded a steady supply onto the market. Politicians, Wall Street and CNBC can blow all the smoke they want up our collective ass, but they CAN’T hide the growing movement of funds from fraudulent paper money into gold and silver – honest money for 5,000 years.
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