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About That Oil For Gold-Backed Yuan Contract: Two Points EVERYBODY Has Missed

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from SilverDoctors:

Two and a half points really, and it’s more like everybody plus one who misses these simple points…

The first point (and a half) is a counter to this statement which everybody accepts as doctrine:

Anybody can buy gold with dollars at any time – no gold backed oil contract needed.

I won’t name names. We’re all on the same side here, but for some reason this topic is more polarizing than it should be.

Let’s think about “anybody can buy gold with dollars now” for a moment.

Dollars come from the United States. The benchmark global gold price in dollars comes from the United States.

It makes sense that if a company/country is selling a crap-ton of barrels of oil for dollars, said company/country would be most efficient in purchasing their physical gold on the COMEX with those dollars.

It’s not like a company or country can walk into some local coin shop with $350,000,000 in U.S. dollars and scoop up a 259,259 Chinese Gold Pandas.

They need the COMEX.

Here’s the problem:

If the U.S. futures market price of paper gold is nothing more than a debt based fiat currency price for something that never actually gets delivered, but rather, gets cash settled with more debt based fiat currency, then the company/country that just sold their oil for dollars is not really able to just take those dollars and buy gold as the “matter-of-fact” statement claims.

Secondary note to the first point (this is the half point):

We see what happens to world leaders when they announce orbegin to sell their oil for something other than dollars.

Anybody who is not familiar with this, the answer is death of said leader and destruction/plundering of the country by the war machine.

There is a flip-side to the oil-for-gold proclamations that we are missing:

Say Oil producers Canada or Mexico, or pick some non-bedfellow countries that attract the war machine, such as Turkey, Syria, Iraq, or Venezuela, who all of the sudden decide, “We are selling our oil for dollars, but we will immediately take them and buy physical gold from the COMEX with all the proceeds.”

Are the neo-cons, the deep state, the ESF, the Fed, the gold cartel and the other nefarious players just going to sit by and say:

“sure dude, whatever floats your boat”.

Not a chance. Said groups will spring into action, most likely of the swift and violent type.

Back to the main first point:

While theoretically possible to just “take those dollars and buy gold”, in practice this does not happen.

Between the levered-up, fractionally reserved “paper gold” which the bullion banks can naked short with a supply of unlimited paper, what company/country is going to want to get a futures contract and jump into that firefight, with the full brunt of market manipulation and precious metals price suppression bearing down on them, and backed-up by the war machine when all else fails?

To say “anybody can buy gold now” with their dollars misses the point.

And that’s the point.

Theoretically I can build a vast array of underground cities connected by public transporton submarines, or I can build an office building 39,000 feet tall, with a rotating restaurant on top for a 360 degree view of the clouds, but in coming down to earth a bit, we all know that in both practice and for all intents and purposes, neither of those things are possible. Much less just converting massive oil revenues into physical delivery from the COMEX, which is probably the least possible of all the scenarios I just mentioned.

The second point is even simpler:

The bigger picture that everybody keeps missing has to do with one of the principle reasons that people will use an un-backed, debt based fiat currency:

Read More @ SilverDoctors.com


Source: https://www.sgtreport.com/articles/2017/10/16/about-that-oil-for-gold-backed-yuan-contract-two-points-everybody-has-missed


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