By Rory, The Daily Coin
Louis Cammarosano, Smaulgld, and I sat down to discuss the flow of gold and silver as the path East is well worn at this point. While the West creates war, the East creates business.
All the talking media idiots constantly complain about how China’s GDP has “dropped” down to around 6%. Did anyone ever factor in that maybe, just maybe, if your economy was ticking along, for example, at 9% with 2 million businesses and over the course of 5 years the number of businesses grows to 3 million, wouldn’t that disburse some of the GDP impact? Wouldn’t that influence how the Gross Domestic Product actually reads? I am not an economist but I am not stupid either.
What’s the U.S. GDP for 2015? Oh yeah, below 2% – but you don’t hear anyone crying about that number, now do ya? According to the talking heads on “financial” TeeVee that number is outstanding! Excellent! or some other form of nonsense they tell us. Lies and deceit. The people are growing weary of lies and deceit.
China has made a lot headlines the past few months since they are now formally acquiring gold on the open market. China, along with Russia and a multitude of smaller “emerging” countries are acquiring as much gold as their accounts will allow. China exports zero of the gold they mine, which is estimated to be approximately 450 tons annually, it is believed the Peoples Bank of China happily acquires all that gold. No one is exactly sure where it goes, we just know it does not come to market. Russia has the same situation. Russia produces approximately 250 tons of gold annually and not one ounce ever comes to market.
According RT Russia now produces more gold than the U.S. –
Russia has produced more gold than the United States for the first time in 25 years. It’s now the world’s third biggest producer after China and Australia, Minister of Natural Resources and Environment of Russia Sergey Donskoy said.
In 2013 Russia increased gold production by 12.6 percent achieving 254,241 tons according to the Russian gold producers union. China, the world’s major gold producer, increased its gold production by 6.2 percent to 428.16 tons a year.
What about all these small emerging countries like Belarus, Tajikistan, and Kyrgyzstan? Never heard of these countries? Well, you will. These countries, and several others, are along the New Silk Road. The New Silk Road (NSR) comes out of China and winds it’s way throw the heart of Asia and has now incorporated a maritime Silk Road that creates a direct connection with Africa from Asia. As we have been discussing here The Daily Coin for almost two years, the Shanghai Cooperation Organization (SCO), EurAsian Economic Union (EEU), BRICS working in conjunction with the Asia Infrastructure Bank (AIIB), Development Bank, Construction Bank and a host of other financial institutions are setting up to completely unplug from the West. Oh they will still do business with the West – Europe and North America, but these countries will no longer be dependent on anything from the West, especially U.S. Dollars. This is have a catastrophic effect on the dollar and euro based economies.
Will the emerging NSR deal in gold, gold notes or gold backed currency? Time will tell. One thing is clear. These countries are not acquiring vast sums of gold to make more jewelry or trinkets. No, this gold has purpose.
Take a look at this chart, compliments of Koos Jansen, Bullion Star and tell me why a country, like Kazakhstan is acquiring as much gold as they have as quickly as they have if there is no purpose. The chart below shows a three fold increase in just under 5 years. Has your bank account increased three fold in 5 years? Well, Kazakhstan’s has.
Give this conversation a listen as Louis and I dig little deeper and shed a little light on gold flowing East.