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The Great Asset Grab is Almost Over

I have spoken before about the $210 trillion in paper money circling the $45 trillion in worldwide investable assets (PMs, real estate, equities).  The situation is much like the scene from the movie Far and Away, which depicted the Oklahoma Land Rush of 1893, where thousands of people lined up to race against each other to get a piece of land for free.  Then, as now, the unscrupulous found a way to beat out their competition, thus earning the nickname “Sooners”.

Where are we in the Great Asset Grab of 2008-2012 and who owns anything that matters?  If you haven’t had a chance to listen to Michael Hudson speak on the subject of neo-feudalism, you should.  It is the key to discerning the goal, the end game, of what is happening to the world’s economy.   (See Hudson’s interview with Max Keiser here:  http://youtu.be/RD3O8OJuKWk)  Many people have it wrong.  They are too far down on their own level and fail to see the forest for the trees.  The real economic war currently being waged is not about the 1% vs the 99%.  It is about concentrating asset holdings and forming alliances, West vs East.  It’s about who gets stiffed for the bill of the West’s profligacy for the past 40 years and whether the West can hold onto enough assets to reconstitute itself powerfully enough to remain a force to be reckoned with after the global currency reset.

The fact the China has abandoned all patience in its recent purchases of physical gold (http://www.zerohedge.com/news/hoarding-continues-china-purchases-record-100-tons-gold-april-hong-kong), that they are purchasing not only hard assets but also miners geographically situated in the Eastern hemisphere (http://www.zerohedge.com/news/are-chinese-buying-dips-gold), that they are buying farmland in New Zealand  (http://www.aljazeera.com/video/asia-pacific/2012/04/2012420141723456740.html), that they creating trade alliances that don’t require USD to settle, even with JAPAN (http://news.in.msn.com/exclusives/it/article.aspx?cp-documentid=250160300) all stand as proof of intention and the rapidity with which events are unfolding.

Likewise, in Europe, on Thursday we saw Germany tip its hand.  Simon Hobbs of CNBC reported that the structure of any new bailout packages for Spain and Italy will include a pledge of their gold reserves as security for the 25 year loans.  Greece has sold or pledged all of its productive assets, not to get more money to assuage the plight of its people, but simply to make the most recent payment due to its loan sharks.

Yes, I understand that the main thrust of this site is about buying physical silver and forgetting about the rest.  But it is important to understand that the real game isn’t even about us, the small fry.  In all likelihood most of us will get flushed out of whatever silver we do have long before we can actually use it to invest with once the new paradigm comes into play.  The real game is not about us.  It’s about aligning massive amounts of real, investable wealth, East vs West, until all there is no more real wealth to be gotten at any fiat price, even by hook and by crook.

There is no country on earth where the poor (those who live paycheck to paycheck and have no savings) are not mere pawns in this grand global chess game.  The poor aren’t even direct serfs, they are merely the serfs of serfs and as such are completely irrelevant.  But now the middle class is rapidly also being diminished to pawn status.  There is just one event left to secure global neo-feudalism and that is….drumroll please….letting the system collapse.

Dollars to donuts, your parents and grandparents are afraid of holding any real asset whatsoever (other than maybe their house).  They have heard the term “return OF capital, not return ON capital” so many times that they now sit on piles and piles of bonds.  “But I have cash in the bank!” they say.  Guess again.  What do you think the banks have done with all that idle cash?  They’ve been buying bonds and lending it to themselves and their friends to buy real investable assets, that’s what.

I don’t normally like to predict timing events but I must say I see little point left in delaying this game past the election in November.  Whatever title the banks needed to perfect (and could) in the aftermath of the 2008 debacle has been perfected though low interest rate refinancings.  There is no significant wealth left to grab.  All that is left is the final chapter in the game, the one in which the paper wealth of the elder middle class evaporates as a casualty of the move in which the knights, rooks, and bishops take the board and inflate away China’s FX holdings which form the backbone of its economic might.

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