2014 Coud Be A Yawner; Be Prepared For A Weekend Surprise…(Read!!)
By Michael Noonan
GoldSeek.com
Sunday, 13 April 2014
For the past year, we have been saying that the charts for gold and silver are likely bottoming in a normal manner, and it takes time for a this kind of formation to complete itself. It remains the case, to date.
What is likely to cause a sharp price reversal to the upside for gold and silver? If both were allowed to simply adjust to inflation, you would see a fairly substantial rally. Given that will not be the case, what will be a/the catalyst for a precious metal [PM] change in trend?
Could it be enormous purchases of whatever-is-available physical gold by countries like China and India? No. That has been in the works and a known fact for a few years now, and gold continues to languish near recent lows.
How about prospects for a U S-prompted breakout of war? [No other country seems interested in starting one.] No. Libya failed to ignite anything, nor did the Arab Spring or the ongoing Syrian situation where the US sees chemicals everywhere, except in rebel hands.
What about Iran and its “nuclear proliferation” that needs to be stopped? No. Pakistan and North Korea have nuclear capabilities well beyond that of Iran, so a nuclear threat from a country that does not have nuclear capability is another US false flag. What Iran does have that neither Pakistan nor North Korea have is oil. Wait. Are not all contracts for trade in oil based on use of the petrodollar? The first “yes!”
How about the US-sponsored coup d’etat in Ukraine as an instigation for war? No. It has been well-checked by Putin, so far. Wait. Are not all contracts for natural gas trade based on use of the petrodollar? A second “yes.”
What about the loss of the petrodollar as a world reserve currency? Would that cause the prices for gold and silver to rise dramatically? A huge yes for that one.
Come to think of it, the reason for the US-led invasion of Iraq was due to Saddam’s cache of Weapons of Mass Destruction. Turns out, there were none, but Iraq did have oil, just like Iran, and both countries were selling their oil for gold, by-passing the use of the US fiat-issue petrodollar. The elites have consequences for when their rules are ignored. Iraq was invaded, and partially ruined, and Iran has been economically sanctioned
Syria is not known as an oil-producing nation. True. That is not the threat to the US. What is a threat is the strategic location of a Syrian port used as an integral part for sending Russian natural gas to Europe. A successful pipeline that is not run by the US is a huge concern, especially because the natural gas coming from Russia will not use the petrodollar. Without the petrodollar standard, the US cannot export its inflationary fiat to the rest of the world.
Countries that use the petrodollar hold large quantities of US treasury bonds to facilitate trade agreements. If countries, let us say like Iraq and Iran, stop basing oil trade on the petrodollar, other countries will follow suit. The elites cannot allow this to happen. Both countries are relatively small compared to the BRICS alliance, of which China is fast-becoming the world’s biggest energy user. All of the BRICS nations,[Brazil, Russia, India, China, South Africa], and a host of other countries are starting their own trade agreements, and guess which country is “odd man out?” The elite’s own United States. The elites cannot allow this to happen, but they cannot stop it, either. This is a problem for them.
The Rest…HERE
