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Interesting post from a Gold Bull on Silicon Investor....

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From: SliderOnTheBlack 7/15/2005 10:02:14 AM
of 183

China...THE catalyst for Oil AND Gold Prices.


I'll start with Gold...then I'll put on my Oliver Stone hat and switch to Oil:


On July 7th I talked about the coming influence from China opening up the physical market for gold:

http://www.siliconinvestor.com/readmsg.aspx?msgid=21484481

Yesterday, Merrill Lynch predicted China's Physical Demand will push Gold to $725 by 2010.


...yes, "Merrill Lynch" ~

http://www.financialexpress.com/fe_full_story.php?content_id=96431


re: Oil the USA's Economic & Geopolitical WMD of choice:

The Soviet Union - then...and China - now.


...did anyone see any clips from the Clinton Administration's former CIA Director Adm. James Woolsley's testimony on the Hill concerning the CNOOC-UNOCAL deal, Wednesday on Television !?!?!?!

In Woolsley's entire public career, I can NEVER recall seeing him that emotional and intense !

Access video, or a transcript of his testimony and you'll be on your way to piecing together one of the single most misunderstood investing theme's in the marketplace... CHINA.

Of course in a completely unrelated matter... today's Financial Times featured 2 stories out of Beijing this morning:

(1) Zhu Chenghu a Major General in the Communist Peoples Liberation Army ( an organization not involved with WalMart Supply Chain Management by the way...)announced that China is prepared to use Nuclear Weapons if the US confronts China over Taiwan...not to mention that they are already supplying the technology to allow North Korea & Iran that ability as well...

(2) "The Bush Administration has told key Senators that is expects China to revalue its currency in August, ahead of a planned visit to Washington by President Hu Jintao in September..."

...now that's what I call some Big-Boy's with Toy's (nuclear) - Sabre Rattling.


In February 1999, 2 PLA Air Force Senior Colonels, Qiao Liang [STC: 0829 5328] of the PLA Air Force Political Department and Wang Xiangsui [STC: 3769 3276 4482] of the Guangzhou Military District PLA Air Force Political Department, published "Unrestricted Warfare" - Assumptions on War and Tactics in the Age of Globalization.

A piece worth reading, if not a prerequisite for any investor wishing to really understand how US:China Geopolitic's are driving many present facets of the Financial Markets and will continue to do so for some time to come...

In their treatise, the Communist PLA lays out their plans to wage modern warfare in the Currency, Commodity & Financial Markets.

<whodathunkit !?!>

The Reagan administration was able to collapse the last Communist Super Power, the former Soviet Union; via exploiting inherent inefficiencies in their Economic System.

Oil was used as a Weapon of Mass Economic Destruction during Reagan's Cold War with the Soviets...via the Saudi's flooding the Oil Market collapsing Oil Prices and thus Soviet Revenue, simultaneous to an escalation in Defense Spending where it was NOT a $1 for $1 escalation in spending that toppled the Soviet Economy and thus - the Soviet Political Leadership... but, due to the Soviet Economic Systems inherent inefficiencies... it was exploiting those systemic inefficiencies and forcing the Soviets to actually have to spend $2 to $3 on Defense for every $1 the US was spending - that led to their collapse.

That was then...and this is now:

Today the Oil Market is once again not trading freely, as the USA is once again using OIL as an Economic & Geopolitical WMD to collapse the latest and perhaps the last remaining Communist threat to US sole Super Power Status... China.

We are once again exploiting the inefficiencies in a Communist Economic System, whereby the Chinese must spend a multiple of what the US does to translate each $-price per barrel of Oil into $'s of GDP.

[ PS: The London Stock Exchange is coming out with a new "OIL ETF"... whodathunkit !?!?!]

The US is now doing to China... exactly what we did to the former Soviet Union - exploiting systemic inefficiencies in the Communist Economic Systems to collapse their Economies and in turn - the Communist Political Leadership.

Toppling the Communist Chinese Leadership accomplishes many goals:

It eliminates the Military threat of a rising China, breaking the Nuclear Supply Chain to North Korea, Iran and other rogue states. It slows China's voracious appetite for Natural Resources and their strategic acquisition of the same and perhaps most importantly politically - where one only needs to follow the money -

...it swings open the doors of Capitalism to the greatest Financial Opportunity of modern times to cheaper, unfettered investment and of primary importance - allows "control" for the Fiat Central Bankers of the West.

Many question not only the reality of the US using Oil as a modern Economic/Geopolitical WMD, but also the risk to the US Economy.

To a small degree there is the double-edge sword degree of risk of collapsing the US Economy. But, the US is exponentially less impacted by rising Oil Prices than is China.

This is a much misunderstood fact. Tax Receipts are ramping all across the US due to the windfall of rising Property Taxes from the Housing Bubble AND the windfall of taxes on Oil & Gas..... and the windfall to the Saudi's is recycled to offshore, unregulated Carribean ventures that prop up our Treasury Market...funding our $200 Billion Dollar pOILitical venture in Iraq....and not only did we not see it coming, we never felt a thing...

...as the US Citizenry is sedated on the Opiate of a Housing Bubble, cheap & copius Credit and a Market that has a guaranteed 'Act of Terrorism' Greenspan/ESF-PUT in place and is being pushed along toward DOW 11,000 in an effort to "sell" the transfer of that MASSIVE UNFUNDED LIABILITY called - Social Security from the US Government to the private accounts of the soon to be - US Sharecropper Society...

US Citizens with record debt levels, no job, or wage growth, unfunded Pension & Social Security Plans, sedated via cheap credit and a Housing Bubble...while the Exit Door is nailed shut via the new Bankruptcy Reform Laws and Bush's plan to transfer the unfunded liability off the balance sheet of the US Government to that of the US Consumer via enticing them with the propped up Equity Markets being offered upon the Silver Plattered Chopping Block held so willingly by the greedy Investment Bankers...

aka - the planned Political & Economic-Enslavement of all but, the Wealthy Elite of US Society.

Truly Warren Buffett's - "Sharecropper Society" awaits 95% of the US Populace dependant on the Political Welfare of the Elite Globalist State...that will transfer their jobs to Bangalore for an extra .02 cents a share, will sell out Border Security for NAFTA, will trade North American Energy Independance for Billions in Profits for the Bush/Cheney pOILitical Machine & the Saudi's...assuring the misallocation of prescious resources to maintaining the inefficient dependance of the Global Economy on fossil fuels instead of New Technologies and North American Resources...

...Tom Ridge the former US Senator & Homeland Security Advisor was on CNBC the other morning in his new Monied-role (only in $$$$ America) hyping "implantable human micro-chips" with RFID techology...and YOU dared think I am going off on a conspiratorial tirade !?!?!?!?



George Orwell was not wrong, just 25 years early...2009, not 1984.

$lider`

Rogue