Leeb:  “How many times can the Fed say they may taper next month.  One of these times they may taper, but I thought that the last employment reading was not particularly good.  It’s also becoming obvious that the West does not want to see the gold price moving higher....

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“We have been seeing that China’s intake of gold is considerably greater than that what is being reported.  All that is reported is the gold they get through Hong Kong.  That has already reached 850 tons this year.  So China will take in well over 1,000 tons of gold this year, and possibly as high as 1,100 tons of gold through Hong Kong.

But the Chinese are taking gold in from other sources as well, and no one really knows the extent of it.  This does not include central bank buying.  So how many years is China going to be taking in 1,500 or more tons of gold before they say to themselves, ‘This is a lot of gold we have and the dollar is a pretty lousy currency.’

Why would China want dollars when there is no guarantee the US will be able to keep the government open past mid-January.  China also runs the risk of a US default or something catastrophic when they hold dollars.  So when you see the price of gold drop on propaganda from the Fed, when we know that China’s purchases of gold have been greatly accelerated, it’s time to buy.

We know that Obamacare is literally blowing up.  There are stories all over the media that your data isn’t safe if you go to Obamacare.  Also, states that have been successful at it, like Massachusetts, are paying through the nose.  To me this is not a recipe for falling gold prices and a stronger dollar.

Remember, the Fed is already buying over $1 trillion a year.  So if they move to buying $700 billion a year, who cares?  That’s still an extraordinary amount of money printing.  They are still monetizing the debt.  This is unsustainable.

But the Fed comes out with this Joseph Goebbels style propaganda today, and in order to make it look credible they smash the price of gold.  You know, Eric, 6 years or 7 years ago I didn’t believe in conspiracies.  But when you have the rigging of the LIBOR market, as well as so many other markets staring you in the face, it’s becoming obvious that something is wrong with the gold market.

It’s obvious that the US dollar is losing its supremacy.  Various countries no longer want to trade in dollars.  What do they turn to, Europe?  That’s where you have right wing forces taking over even in places like France.  Europe is a mess.  It’s a question of when, not if that continent explodes.

This means that major countries such as China have to turn to gold.  That’s why the Chinese are accumulating gold at an all-time record pace.  It’s also looking increasingly obvious that the West is in some kind of agreement with China to sell them cheap gold.  There is no other way to explain the price action.

Regardless, all this type of manipulation and dishoarding of gold from the West to the East does is hasten the day in which China, Russia, and Germany are going to introduce another reserve currency to the world.  And the yuan is going to have a prominent role there. 

This is why the Chinese are buying up all of the available gold for sale in the world.  They are literally in a race to accumulate gold.  You can see it in the data.  Yet the Western based Ponzi scheme paper markets in gold take the price lower.  Yes, there is something strange going on here but I can promise you it’s unsustainable.  The Chinese will revalue gold when they are ready and that day is coming.

Then it will be goodbye dollar and hello gold.  And when I say, ‘hello gold,’ I’m not talking about a run to the old highs.  I’m talking about gold many thousands of dollars higher than current levels, and quite possibly over $10,000 an ounce.  There is just no way around this outcome, but until that day comes, the West will desperately cling to Fed propaganda and paper gold price suppression until it blows up in their faces.”

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