The strategic reasons for are now about to change in the next six months. Anybody who doesn’t own physical silver or gold could miss out. I think there’s a big change coming on. – Alisdair Macleod, Shadow of Truth
The Shadow of Truth interviewed Alisdair Macleod to get his take on the economic reports which show an economic contraction in the U.S., the recent move higher in precious metals prices and his thoughts on what China’s next move is with respect to their obvious hoarding of physical gold.
While the mainstream financial media and moronic Keynesian “economists” have chosen to ignore the high volume of negative economic reports, it’s become obvious to many that the U.S. economy appears to be in trouble.
When I look at what’s going on with the U.S. economy, they’re continually having to revise down growth expectations. Every bit of anectodal evidence that comes through…all indicates that things are slowing down very very sharply.
Many of us are now predicting another round of QE, quite possibly before the leaves are finished falling off the trees this fall around the country.
The one thing the Fed really is frightened of is contracting bank credit. And this idea of collateral liquidation leading to more selling of collateral by the banks to cover loans is sort of self-feeding into nasty collapse if you like in asset prices. Now that’s not going to happen because they are going to print money to insure it doesn’t happen. We are very very close to that sort of tipping point and I think that people who have an understanding of this are not going to hang around and wait for the Fed to print money. They are going to go quite quickly, I think, against the dollar.
After discussing the current rally going on in the price of gold and silver, we shifted our discussion to the ongoing shift of the global physical gold market from London to Shanghai. From his contacts with Swiss refiners, Alisdair discovered that Swiss refineries are taking in gold from Arab countries and recasting it from LBMA .995 400 oz bars into the new Chinese 1 kilo .9999 standard. And the Arabs are taking it back and putting it back into storage.
I find this fascinating because it tells me this market is slipping from London…it tells that the Arabs really do realize that their future is supplying oil to Asia rather than anywhere else, particularly China.
Based on this, it would appear that the Arabs are preparing themselves for a shift from a dollar-centric reserve currency world into one which is based on a gold-backed currency of some form, likely originating from the BRIC bank, which intends to issue a BRIC SDR that will contain gold in its currency “basket.”
Are the Chinese ready to start letting the price of gold and silver rise in value? Alisdair explains his view on this matter in this incredibly engaging and educational interview: