We were expecting some kind of big financial event this year. In fact we've been expecting it for the last six to nine months, but it keeps getting pushed down the road. Well the time for waiting is nearly over as next week's April 19th fixing of the price of gold in Yuan on the Shanghai Exchange is going to create monster tsunami sized waves to the western banking system that is barely afloat on leaky life rafts. This event has not been a big secret. The Chinese have been planning this for a long time. They have been secretly and openly buying gold on the open market and mining gold inside the country. Now they are in a position where they hold enough 'real' gold to influence its price and take on the artificially manipulated London market.
By pricing the fix in Yuan, China is also sending a message that its currency will be eventually backed by physical gold. That will send shock waves throughout the fiat currency world and make those currencies that don't trade the Yuan near worthless. Going it alone is not easy, but China this time has a good partner in Russia. Russia too has been accumulating physical gold in massive amounts. Don't forget India, which has the accumulation of gold as a national obsession.
Sound crazy? Why then is there an emergency Federal Reserve Meeting on Monday and then a meeting between Yellen and Obama and Biden right after? Why are all the western G20 and the IMF bankers in DC this week for meetings? Its likely that they are trying to avoid the house of cards falling down because they know their fiat currencies are a fraud backed by nothing at all. Once again, I suspect its business as usual -- pushing off the hard decisions and actions until the last possible moment.
With a gold backed Yuan, there would be no need to accumulate a lot of dollars and thus trillions will be flowing back into the US, creating soaring inflation. Some estimate 30% or more inflation. Some derivatives are going to be blown out of the water and many businesses with interest abroad will fail because of the exchange rate collapse. In other words, hard times are ahead.
Rumors are that the meeting with Obama and Biden is not just for a briefing, but a warning that martial law may be required in the event of multiple bank failures and currency control. There may even be 'bail ins' where the banks borrow or take your money you've deposited to keep themselves afloat. There would likely be riots and civil disorder from an already very unhappy American public who can't get to their money and are living hand to mouth.
It would not be a shocker to many who have been prepping for this and the expected NWO to be created out of the chaos. But for most, its going to be a life changing, life or death change. Best advice right now is to have plenty of cash on hand as the banks are likely going to be closed, along with all the ATMs, and credit cards.
All this may be just a theory, but one won't have to wait long to see the results. April 19th is just one week away and it may take a week or so to develop. In the meantime, its going to be an interesting week to see what panic measures are going to be installed and if they even have a remote chance of working.
Seriously thinking about delaying my return to Kalifornia at the end of this month if things go sour quickly.