“The rule of Gold”, a safe haven or a recurring theme?

Investors around the world find themselves in a new frenzy buying up Gold shares along with commodities such as food and oil, thus building up a market dynamic capable of bringing the world to its knees, definitely with serious Geopolitical repercussions. If the QE packets were never implemented, the commodity prices would be much lower and we would not pay food as if it was a luxury we cannot afford. This is a serious accusation of course, but we will back it up with facts. So, what the “Wall Street Gentlemen” were doing while “Ben” was making the money flow, was to buy food and oil stocks, boosting their prices to “astronomical” values and then when the QE travesty was about to be stopped, they were cashing out and then “withdrawing to the safe haven of American bonds”. Those are the claims of the top analyst Panos Panagiotou, being nothing more than the mere truth, the modus operandi of today’s markets in a post Cold-War era, which resembles everyday more and more, Paris before the outbreak of the French Revolution. “Democratic values and the Arab Spring”, well the truth is not so “romantic”, let alone realistic. Should the world prices at food not had been skyrocketed, the Middle East countries would not suffer the extra heavy poverty repercussions, which led to the ignition of the biggest threat since the Yom Kippur crisis. Mubarak may have been a dictator, but he is not the one, who is militarizing Shina now, demonstrating a polemic rhetoric resembling that of Nasser many many years ago. Mohamed Morsi is the one who is doing it, the “Big Democrat”, elected by “The people”, the same people, who pursue the Jews living in Egypt not in a less dreadful way than the Nazis did.

Beyond, though, the extremely serious backfires, which the political regimes have to face, another major danger “lures in the catacombs of Fort Knox. It is highly questionable whether Fort Knox holds the necessary Gold reserves (if it holds any reserves besides a little gold dust here and there) in order for the American economy to react to a potential shifting of the global financial rules. Let us note, that since 1971 the dollar dominated the markets, thus displacing gold totally as the most reliable reserve. We believe that our worries do not lack a rational base. As:

  •   The Russian Central Bank recently bought another 18.5 tons of Gold raising its reserves to 936.2 tons overall (!!!). Gold shines impressively, but we doubt that it was bought in such large quantities because of this particular feature of the precious metal.
  • The “King of the Vultures”, George Soros, bought another 50 million Euros worth of Gold, thus reducing his portfolio in “paper stocks”. Is Soros getting old and wants to take something real in the afterlife with him? Again we do not think so!
  • Bernancke has not yet started FED’s new QE sequel (Something like the Chainsaw massacre or The new “24” series starring Kiefer Sutherland as Jack Bauer, trying to stop financial terrorists from flushing the world back to Stone Age) yet. So unless “The hawks” are aware of something that we are not, then the Gold frenzy is not backed up by the same reasons they were stated above (Cheap money flow)
  • Germany closes its pincers around the South, with Greece ready to give up territorial sovereignty in order to put an end to the almost three year tragedy, which so far has the cost the life of more than 3000 citizens (suicides). Soon Spain, Italy and Portugal will fall and the EU is going to be turned de jure into a Germanic Federation.

Taking all of the above into consideration, our estimation is that there is soon going to be a Geoeconomic rearrangement with the rule of Gold appearing once again as a reserve. Should that happen, and we honestly pray that we are wrong, the US financial system will collapse instantaneously, as, even if Fort Knox does prove out to have some Gold reserves, those reserves will not be enough to counter the new Eurasian financial typhoon. Russia is now in the WTO, cash will be flowing in the country vastly sooner rather than later. Germany, will create an open market with Putin’s Eurasia and Russia securing the exploitation of Natural Resources in the Eastern Mediterranean Sea. Israel, is going through a new dangerous period, with its survival as a nation being disputed by the radical elements popping up like mushrooms all over the region. It is only natural that it will seek new patrons in the broader Geopolitical rearrangements that are taking place as we speak. Putin’s recent visit there and Netanyahu’s enthusiasm over his visit (quoting enthusiastically: “Gospadin Presidient, Mr President”) are not just diplomatic maneuvers, Israel’s relations with the US are going through a profound crisis! If this study by our Research Center is wrong, then we will happily stand corrected with a relief which will be shown in future essays. If we are right, though, this means that we will live in times, when nothing will be the same again as the United States will stand helpless and unable to revert its Geopolitical isolation and the fall of a once mighty empire.

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