China’s Plan For $100 Silver, $2,000 Gold & The Oil Market

kingworldnews.com

Today an acclaimed money manager spoke with King World News about China’s plan for $100 silver, $2,000 gold, and the oil market.  Stephen Leeb also spoke about the big picture for resource wars, fracking, Russia, the United States, and Saudi Arabia.

Leeb:  “There is no doubt that the Saudis were targeting lower oil prices during a time of year which is seasonally very slow.  The Saudis definitely wanted to send a message by lowering oil prices.  Saudi Arabia has become extremely close in recent years to China.  China is one of Saudi Arabia’s leading trading partners....

“Obviously the Saudis send China a great deal of oil, and China sends the Saudis a lot of necessary infrastructure.  This infrastructure is for important alternative energies.  So there is a very close relationship between Saudi Arabia and China.

What does this have to do with the Saudis lowering the energy price?  Who does that pressure?  It pressures the fracking companies in the United States.  Right now fracking uses 2 - 5 percent of the fresh water supply in the United States.  That is not sustainable.  Water is already one of the fastest inflating assets in the U.S. economy and it’s only going to get more expensive.  That is one of the reasons fracking does not face a sustainable future.  So I don’t think the Saudis are concerned about fracking.

But the Saudis are doing their very good friend, China, a major favor.  They are putting pressure on Russia.  Russia is incredibly dependent on oil for their income.  So with the Europeans struggling, who do the Russians turn to?  Answer -- the Chinese.  And the Russians are making deal after deal with the Chinese.  They are sending the Chinese roughly half a trillion dollars of gas.  They are also contemplating building a fast railroad between the two countries.  This will also help the Germans.

So the Saudis are assisting the Chinese in their deal-making with Russia by pressuring prices.  They are also bringing the Russians further into an alliance with the Chinese.  This will eventually lead to a gold backed yuan.  A Chinese official has already stated that the Chinese intend to accumulate at least 8,500 tons of gold.  But it probably means they will accumulate a great deal more than that.  And it has also been revealed that they are accumulating this physical gold to back their currency.

So everything you are seeing today with oil prices, it’s all part of a move from West to East.  So the Chinese are already a closer ally of the Saudis than the United States.  It is also China that has Russia’s ear, not Europe.  And don’t be surprised all the sudden if China and Japan quit bickering and come to some sort of solution.  Also, India’s Prime Minister, Modi, and Chinese leader, Xi, have already started talking about infrastructure spending in India of half a trillion dollars.  So, Eric, everything is shifting to the East.

While the West argues over its ridiculous and destructive policies, China is running away with the lead.  This does not mean absolute collapse for the U.S. economy, but it’s not going to be easy printing another $4 trillion worth of U.S. currency if the U.S. continues to lose the race to China at the current pace.

In the midst of all this turbulence, gold has been acting remarkably well.  This has been in the face of a very strong stock market.  Regardless, KWN readers around the world should not be afraid if there is another shakedown in gold and silver markets.  It won’t matter.  Any downdraft in gold and silver will be a gift from current levels.  Gold and silver have massive room to run on the upside and they will.  People need to be positioned ahead of the next major leg that will take gold through $2,000 an ounce and silver over $100.”