China To Buy $80 Billion Worth Of Gold

July 13th, 2009 (16) Posted By Erik Wong.

EconomicPolicyJournal:

Jihadi Killer Radio Hour
Follow Pat on Twitter
  • JCD

    China has been buying up gold and other commodities for some time now in an effort to diversify away from gold and pave the way for a replacement reserve currency. The Chinese have got to know by now we ARE NOT good for the money, period. It doesn’t matter much anymore what the 30 year 15 year10 year so on and so forth yields are anymore, there will be nothing made on any of them.

  • Sixchuter

    I stopped listening a :58. This representative doesn’t seem to understand that the Fed is NOT a part of the government. The Fed is a privately owned bank.

    http://www.petitiononline.com/fedres/petition.html

    • Sully

      There’s a good idea… let’s give Barney Frank control of the money supply.

    • Sixchuter

      Nice red herring, Sully. I couldn’t care less about the petition. I posted that link, so others could educate themselves about the Fed. Do you want people to see the name Barney Frank, and ignore the link? Whose side are you on?

    • Sully

      Certainly not on the side of those that bash central banks with no workable alternative, like the idiot that posted that posted that petition online. He’s full of shit and if his ‘plan’ works then Barney Frank and Max Baucus, as Chairmen of House and Senate Finance Committees, would be directly responsible for the money supply.
      Whose side are you on?
      And as an ‘educational tool’ that petition sucks.
      K?

    • JCD

      Congress is supposed to control the printing of and coining of money, as per the US Constitution. Yeah, congress is run by a gaggle of criminals and fraudsters, but so is the Fed, and the Fed seems to have just about zero oversight. It’s a choice between horrible and unconstitutional, or horrible and constitutional.

    • Sully

      C’mon JCD. WTF?
      McCulloch v. Maryland – 1819
      SCOTUS determined 9-0 that a ‘central bank’ was indeed reasonable government action.
      Decision reaffirmed 1824, Osborn v. Bank of The United States.

      Alexander Hamilton argued for a Central Bank and eventually convinced no less a figure than George Washington of its constitution.
      ality.

      Don’t get me wrong. I have issues with Central Bank*ers*. IMO, Volcker completely sucked and ‘helicopter’ Ben Bernanke is running a close 2nd so far and I back efforts to make the Fed more transparent, but abolishing them? Not without a better back-up plan than Congress.

    • JCD

      Are you reading me correctly? I stated that a private fed banking system was unconstitutional and that is was the job of Congress to issue money, or as is clarified by the referenced 1819 court case, a gov’t run bank.
      It also had more to do with the state of Maryland trying to tax the 2nd federal bank.
      I’m not necessarily arguing against a private fed bank so much as them having the kind of unchecked power that they have.
      The whole thing was rammed down our throats in 1913 by JP Morgan and company in the middle of the night – very similar to what is being foisted on us today in similar fashion by the commie-crats.
      The fed is largely responsible for the “bubble” economies over the years. The fed needs to have oversight and not be allowed to have too much power, same with gov’t, same with labor unions.

      If the American people ever allow the private bankers to issue and control the nations money supply & currency, the corporations and banks that will grow up around the central bank – first by deflation, then by inflation – will deprive the people of all their property and wealth until their children’s and children’s children wake up homeless, penniless, and hungry on the continent their forefathers conquered — Thomas Jefferson

      “To preserve independence, we must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude.”
      Thomas Jefferson, President of the United States of America,1801-1809

    • Sully

      Yeah I’m reading you correctly. You keep saying the Fed is unconstitutional (and you then mischaracterized Chief Justice Marshalls opinion in the case I referenced) without producing proof of your own that central banks have been found to be unconstitutional.
      And ‘bubble’ economics is not a Fed creation. Honestly… read some economic history. Greenspan did not invent “irrational exuberance”.
      I suspect your real issue should be with the ‘necessary and proper clause’ of the Constitution. That’s where many of the economic and big government woes of our country are sourced.
      Ah well, at least we agree more transparency at the Fed is needed. I just can’t see any benefit to Congress having more control. Especially after Fannie Mae and Freddie Mac.
      And thanks for the Jefferson quotes. I’m a big fan. But if you’re looking for a vociferous foe of central banks and ‘paper money’, give James Madison a look. ;-)

  • unkaglen

    China,along with the rest of the world is getting away from the dollar as fast as possible.They are moving just fast enough to ensure they don’t cause whole sale panic.
    They,like anyone with an ounce of common sense know America under Obuma will destroy it’s currency and economy…….

  • ji

    “know America under Obuma HAS DESTROYED it’s currency and economy…….”
    Even if ob were to leave office this second, experts say will take 15-20 years to get back what we had under Bush.
    Those trillions have to be repaid first.

  • JCD

    We will never get back what we had under Bush, because unfortunately that was mostly debt fueled consumption, driven by the loose lending policies dismantled over the last 20 years. Thanks to politicians on both sides, to be honest.
    It’s a good thing in many ways though, the reason cars, houses, and college educations are so high is because of loose lending standards, among other things. When credit is cheap and so easy to get people use way too much of it driving up the prices of big ticket items. The result is high prices on secured items and education, and people in way too much debt. Not good. De leveraging is occurring now at the consumer level, but not in government or within the banks, who simply changed the accounting rules (aka FRAUD) so that they don’t have to report their true debts and toxic assets. Thus people think the banks are stable again — heh, they aren’t, they are all BANKRUPT. Keep your money OUT of the banks!

    • JCD

      All this is unsustainable of course, regardless of what 0bama, Bernanke, and Turbo Tax Timmy Geithner think. It will all come crashing down soon. Methinks it will once the 0bama admin forces the banks to start ramping up this mortgage modification program. The banks will then be forced to do one of the following:
      1) Show their true losses via making the modifications, and fail spectacularly soon.
      2) Admit failure now (aka, do the RIGHT thing), and fail spectacularly really really soon.
      3) Sloooowly implement the mortgage modifications while also making the foreclosures happen they should have forced through months ago on the worst loans. There are seriously tons of people out there sitting in houses they haven’t made a payment on in a year, just living in those mansions for free.
      Spectacular failure still because the modified loans won’t be happening at anywhere near any kind of rate to “save the economy” (it’s beyond saving, get over it), this will just be massive failure, but in slower motion as the banks do what government has been doing – delay the enivitable and pretend we won’t notice them defrauding us all and our kids to the tune of millions.

      The 3rd scenario is the most likely, by the way.

  • Sully

    Hope you aren’t waiting for that kind of help… ‘mortgage modification’ isn’t gonna happen on any meaningful scale. It would be a massive bailout of the middle class and Barry couldn’t care less about any middle class.
    His biggest problem is that “toxic assets” got identified as mortgages. People now think he will eventually get around to helping them out. He already helped as much as he’s going to… He gave the middle class Joe Biden.
    TheOne is far too busy figuring out how to get the Chinese, the Saudi King and others to finance His Socialist agenda while also paying back their losses on the ‘securitized debt obligations’.
    What do you think that bow to the Saudi King was all about?
    How do you ‘bailout’ the financial services industry to the tune of ~ $ 3 trillion (some put that number as high as 9) and it’s STILL not liquid?
    We are definitely not in Kansas anymore.

  • Wilsonpd

    Isn’t Rep Kirk one of the 8 RINO’s who voted for Cap-n-Scam? Why on earth would you want to listen to anything he’s got to say about finance? He thinks that “Carbon Credit” derivatives are a good thing!

  • Anon

    I have to agree with Sully on this one. Much as I don’t like the idea of a US Central Bank run by the Establishment Internationalists who use it for their own purposes, I like even less the idea of politicians using the Fed as their private piggy bank to print as much money as they want whenever they want.

    Robert Mugabe, the President of Zimbabwe, has had the power to print money for a long time, and inflation is running at a hellish speed in that country as a direct result, because if he doesn’t have any money for whatever reason, he just prints some.

    We live in an imperfect world, and I don’t see a workable alternative to an Independent Fed. Politicians, Republicans or Democrats, simply cannot be trusted with the power to print money.