The “Financial Times” (the sister publication of the Economist magazine – but even worse) had a good-news story on its front page today (below the fold – and behind some paywall) – “British gold exports at a new high”.
The little problem is that the United Kingdom of Great Britain and Northern Ireland is not actually a major gold producer – this is not an “export” industry, this is flight of wealth. Those fools who “sold gold” (meaning, they thought, sold paper promises of gold – which they would never have to honour) have been surprised to learn that the buyers (mostly in Asia) want PHYSICAL gold – so gold bars (I wonder where they come from?) are being taken from Britain to Switzerland (in numbers never before seen) to be melted down by Swiss (oh yes the factories are not even in Britain) factories working round the clock – on a three shift system, for the buyers in Asia.
This is start of de facto BANRUPTCY – the selling off of what wealth Britain (and the West) still has, to finance CONSUMPTION for just a bit longer….
Of course Asia has its own problems – Japan is locked in ever worse “stimulus” folly (like a snake eating its own tail), India is going down the plughole (due to adopting unaffordable Welfare State policies – at the advice of the “international community” ) and China has a vast property bubble (caused by its monetary bubble) which may well be about to burst…
However, the fact remains that the West is in such a terrible condition that gold is flooding out at a rate not seen since the time of the collapse of the Roman Empire, or the Viking raids – accept that this time it is not being done by armed attack, but by insane “keep up consumption – down with saving” policies.
And the establishment elite are spinning this is as a good news story about “exports” caused by “investors losing interest in gold” (yes “losing” interest).
In the words of Charlton Heston as he collapses to his knees in rage and despair at the sight of the ruins of the Statute of Liberty…..
“Damn them – damn them to Hell”.