zaterdag 25 oktober 2014

Willem Middelkoop Seminar on Gold

A splendid seminar by Willem Middelkoop on gold. You can't understand a thing about it, but I sure can. Just follow the highlights that I'm going to summarize.

China purposely stopped buying U.S. bonds in 2010 and made a deal with the U.S. to buy up the important J.P. Morgan vault building in order to store its physical gold.

In 2012-2013 China started to buy U.S. bonds again probably because they made a deal to get cheap gold from the U.S. Willem estimates China has 3000 tonnes of gold now.

Willem says we are in a major bond bubble and advises you not to take part in bonds.

Plans are being made behind the screens to reset sovereign debt. Switzerland is actually the only country that hasn't ever defaulted on debt. When this reset comes, bonds will default. Pension funds are now heavily invested in bonds, so don't count on your retirement.

The SDR, a basket of currency reserve assets, will compete with the U.S. dollar. The composition of the SDR will probably start to include renminbi and ruble (today we have USD, JPY, GBP, euro). And of course gold, which the Chinese have a lot of.  It is very important to monitor the COFER at the IMF:
http://www.imf.org/external/np/sta/cofer/eng/
http://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4