Mugged off

The Daily Mail /Spivey

 

Around 4 years ago people started buying Gold like it was going out of fashion. There were adverts everywhere, on TV, in the newspapers, in magazines, even on the underground, all promising to give you the best price on your old gold.

Fuck me, I even went to Pitsea bootsale a few years back and there was a tent  there, specifically set up to buy peoples gold.

Certainly, I have never before seen the likes of so many people wanting gold as I have over these past few years.

And now its all gone wrong for those buyers.

But you can bet your last Sovereign ring that it hasn’t gone wrong for some.

The Rothschild’s  dynasty has been manipulating the stock markets since the 18th century. They did in fact make an absolute killing through killing. I am of course referring to the Battle of Waterloo:

Since the Rothschilds were playing both sides of the warring parties, they were the only ones who could get through both sides of the blockades quickly. Their network of banks provided news of major battles to Nathan Rothschild in London before even the British government received it.

The Rothschilds traded on this inside information on the London stock exchange, making vast fortunes in the process. After the final battle of Waterloo, Nathan Rothschild received news that the British were victorious and promptly started to sell British government treasuries.

The market knew by this point that Nathan was getting information before anyone one else and therefore assumed the British had lost the battle and started selling their British government bonds. Once the price had crashed, Nathan used his agents to secretly buy up nearly the entirety of the British government debt. 

Using large amounts of leverage, Nathan Rothschild made many multiples of his money on this one trade. Source

Likewise, the crooked, thieving, arse-wipes walked away from the Wall Street crash millions of dollars richer:

One way of making money during the 1920s was to buy stocks and shares. Prices of these stocks and shares constantly went up and so investors kept them for a short-term period and then sold them at a good profit. As with consumer goods, such as motor cars and washing machines, it was possible to buy stocks and shares on credit. This was called buying on the margin and enabled speculators to sell off shares at a profit before paying what they owed. In this way it was possible to make a considerable amount of money without a great deal of investment…

…On 3rd September 1929 the stock market reached an all-time high. In the weeks that followed prices began to decline. Then on 24th October, over 12,894,650 shares were sold. Prices fell dramatically as sellers tried to find people willing their shares. That evening, five of the country’s bankers, led by Charles Edward Mitchell, chairman of the National City Bank, issued a statement saying that due to the heavy selling of shares, many were now under-priced. This statement failed to halt the reduction in demand for shares. On 29th October, over 16 million shares were sold. The market had lost 47 per cent of its value in twenty-six days…

…It was later discovered that some Wall Street bankers had been partly responsible for the crash. It was pointed out that from September 1929, Albert H. Wiggin had begun selling short his personal shares inChase National Bank at the same time he was committing his bank’s money to buying. He shorted over 42,000 shares, earning him over $4 million. His earning were tax-free since he used a Canadian shell company to buy the stocks. Source

Others – the smaller investors, who had become greedy and complacent – lost everything and either chose to commit suicide or did as the once wealthy businessman Fred Bell did and eked out a living as best they could – In Bell’s case, he sold apples from boxes.

 

So why is the price plummeting, when as little as 6 months ago, everyone was being advised to buy gold?

Well, according to the Daily Mail and many other news outlets, the reason for the crash is because China’s Growth has unexpectedly slowed… Just like it did rapidly in 2008 Source 2009 Source 2010 Source Need I carry on?

No, I didn’t think so.

Price of gold and the stock market plummet on news that Chinese growth unexpectedly slows – prompting fresh fears for global economy

  • Dow Jones has dropped more than 155 points, one per cent, by about noon
  • Nasdaq down 50 points, more than one and a half per cent
  • The London Stock Exchange 100 slumped 72.1 points to 6312.2 in the wake of announcement
  • China’s growth in first first quarter of 2013 was 7.7 per cent – short of 8 per cent target
  • Price of gold dropped six per cent as well, its lowest point in more than two years

By HELEN LAWSONRACHEL RICKARD STRAUSSIMON LAMBERT and ASSOCIATED PRESS

PUBLISHED: 17:54, 15 April 2013 | UPDATED: 19:10, 15 April 2013

 

China’s economic growth slowed unexpectedly in the first three months of the year, causing panic to grip financial traders worldwide and the price of gold to plummet to its lowest point in more than two years.

The world’s second-largest economy grew by 7.7 per cent over a year earlier, down from the previous quarter’s 7.9 per cent, and short of hopes for about 8 per cent.

The Dow Jones Industrial Average dropped more than 155 points, approximately one per cent, by about 1:30 p.m. today. The Nasdaq average was down more than 50 points, more than one and a half per cent.

Traders on Wall Street sold in a panic following news of slower-than-expected growth in China during the first quarterTraders on Wall Street sold in a panic following news of slower-than-expected growth in China during the first quarter

The Standard & Poor’s 500 index slumped 18 points to 1,570, a loss of 1.2 percent. Of the 10 industry groups in the S&P 500, materials and energy stocks fared the worst, sliding 3 percent.

The FTSE 100 Index in London slumped 72.1 points to 6312.3, with fears over Chinese demand causing mining stocks to fall by as much as 13 per cent. By 12.45pm, the index was down 74.08 at 6310.31.

A recovery still is under way but is ‘really very soft – very slow and gradual,’ said Societe Generale economist Wei Yao.

Financial markets around the world dropped after news of China's slower-than-expected growth was announced

Financial markets around the world dropped after news of China’s slower-than-expected growth was announced

Frank Fantozzi, CEO of Planned Financial Services, a wealth management firm, said: ‘I think you’re getting some panic selling right now.

‘People who have been holding on to gold expecting a rebound are now thinking, “I better get out.'”

Analysts have warned that China’s recovery from its deepest slump since the 2008 global crisis is weak and is being supported by bank lending and government-led investment, while growth in consumer spending is subdued.

 

 

A slowdown in Chinese growth and demand for goods ranging from iron ore to factory technology and consumer goods could send out ripples in the global economy.

The price of gold dropped by more than $30 in a matter of minutes at one point this morning. Shortly before noon, the gold spot price was down almost 9 per cent today, at $1,370 per ounce.

Besides the disappointing news in China, Gold is already under pressure from a variety of factors including a proposed sale of Cypriot gold holdings and disappointing U.S. numbers last week.

Investors slashed their exposure to commodities, with oil, copper and silver falling hard and fast. Oil fell nearly three per cent, silver dropped 10 per cent, and industrial metals plummeted, with copper hitting its lowest in over a year. In the grains market, wheat, corn and soybeans were all down.

The Dow Jones Industrial Average had dropped more than 177 points by 2 p.m. today, more than a full per cent point The Dow Jones Industrial Average had dropped more than 177 points by 2 p.m. today, more than a full per cent point

In gold, ‘what we now see is panic selling, perhaps triggered by the Fed’s stimulus view.

‘The Fed has given the signal that there’s a possibility to reduce QE (quantitative easing), and that took a lot of trust out of gold,’ said Dominic Schnider, an analyst at UBS Wealth Management.

‘And people recognise that an environment where you have no inflation is a powerful driver to get out of the metal.’

Investment bank Goldman Sachs said last week that the price of gold could weaken further. 

The warning came days after French bank Societe Generale put out a report called The End Of The Gold Era, predicting gold would keep sliding this year and next.

‘If you want to be worried about China, there’s plenty to keep you awake at night,’ said Sean Corrigan, chief investment strategist at Diapason Commodities Management in Switzerland.

They are trying to avoid job losses while they pursue more self-sustaining growth based on domestic consumption instead of exports and investment.

Falling value: Investors are selling commodities - including gold, silver and copper - today on fears over China's growth. Gold dropped to its lowest price in more than two years as it dropped below $1,400Falling value: Investors are selling commodities – including gold, silver and copper – today on fears over China’s growth. Gold dropped to its lowest price in more than two years as it dropped below $1,400

The latest quarterly growth was above Beijing’s official target of 7.5 per cent for the year.

That is well above forecasts in the low single digits for Western economies and Japan but far from China’s blistering growth of the past decade.

Recent economic data in China has given mixed signals, raising questions about whether a full-fledged recovery was gaining traction.

The Chinese government had hoped for 8 per cent growth in the first quarter of 2013The Chinese government had hoped for 8 per cent growth in the first quarter of 2013

Inflation fell in March, indicating consumer demand might not be as strong as Beijing hoped.

Import growth accelerated, suggesting companies and consumers were buying more, but some analysts said those figures might be distorted and unreliable.

Also in March, growth in factory output weakened to 8.9 per cent, down 1 percentage point from the first two months of the year, according to the National Bureau of Statistics.

That was the lowest growth since August 2012, when fears of an abrupt ‘hard landing’ of plunging growth were strong. Beijing responded by boosting lending and government spending.

Chinese leaders are unlikely to repeat that strategy after a 60 per cent surge in credit in the first quarter produced a lackluster response, said IHS Global Insight analysts Xianfang Ren and Alistair Thornton in a report.

‘We have lost confidence in a robust recovery,’ they said.

The rise in credit prompted ratings agency Fitch to cut its rating on China’s long-term local currency sovereign debt last week, warning of potential financial risks.

Fitch said China’s total credit, including informal lending among private entrepreneurs, may have risen to the equivalent of 198 per cent of gross domestic product in 2012 from 125 per cent in 2008.

Forecasters who expected growth to accelerate might have been misled by inaccurate trade data due to companies falsely reporting higher exports as a way to evade capital controls and bring money into China, said Moody’s Analytics economist Alaistair Chan.

The price of gold has plunged to a two-year low today as investors dump commodities (Source: Gold Made Simple)The price of gold has plunged to a two-year low today as investors dump commodities (Source: Gold Made Simple)

Despite the surge in lending, Monday’s data showed a slowdown in investment growth that is driving the latest recovery.

First-quarter growth in spending on factories, real estate and other fixed assets declined to 20.9 per cent from the 21.1 per cent rate for the first two months of the year.

That shows the economy suffers from structural problems including excess production capacity in some industries that makes more investment unprofitable, said Yao.

Beijing's central business district. By 12.45pm the FTSE 100 index was down 74.08 at 6310.31 in response to the Chinese growth announcementBeijing’s central business district. By 12.45pm the FTSE 100 index was down 74.08 at 6310.31 in response to the Chinese growth announcement

‘Given all this credit injected into the system, the future should look better,’ said Yao.

‘Nevertheless, the level of efficiency in the economy has declined. The same amount of money will no longer produce the same amount of growth.’

In a positive sign, growth in retail sales edged up to 12.6 per cent in March from 12.3 per cent for the first two months of the year.

Recent increases in required minimum wages and an improved housing market should help to boost household spending, said Moody’s Analytics economist Fred Gibson in a report.

Still, he cautioned, consumer confidence could be hurt if China’s export weakness persists.

Also Monday, the World Bank trimmed its growth forecast for China this year by 0.1 percentage point to a still-robust 8.3 per cent.

Read more: http://www.dailymail.co.uk/news/article-2309492/Stock-market-price-gold-plummet-news-Chinese-growth-unexpectedly-slows-prompting-fresh-fears-global-economy.html#ixzz2QbEzsvxI
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