Last calendar week spell China's fiscal infrastructure was primarily unopen for their annual Golden Week holiday, 1 or to a greater extent than entities slammed the aureate cost downwardly yesteryear dumping billions of dollars worth of contracts on at to the lowest degree 3 split occasions. And without opposing purchase line per unit of measurement area from the green counter-parties inwards Asia, the cost was pushed downwardly from a high of $1317 on Oct. 3 to an inter-day depression of $1246 on Friday.
However, most of the trades that created the drib of $70 over the course of didactics of 4 days occurred well-nigh instantaneously, amongst billions inwards contracts beingness dumped onto the marketplace inwards less than a infinitesimal each time.
So what was the crusade together with argue for this assail on the aureate price, specially since at that spot was no tidings or events at all during the calendar week that would spur traders to divest their holdings inwards such quantities? Speculation has been rampant inwards the choice media, but goose egg conclusive equally to why...
until now.
On Oct. 6, good known together with respected statistician together with analyst medico Jim Willie gave an interview amongst Perpetual Assets to hash out the electrical current acre of the economy, together with inwards item events such equally Deutsche Bank's insolvency together with the recent takedown inwards gold. And during his over 2 hr interview, medico Willie set out a scenario regarding China's wishing to purchase Deutsche Bank's aureate derivative book, together with the line per unit of measurement area seat on the High German banking concern yesteryear London together with the U.S. to counter the motility yesteryear forcing them to sell their contracts onto the market, fifty-fifty at a loss.
Dr, Jim Willie: What is Deutsche Bank's biggest occupation correct now, exterior the law?
Will Lehr: Their derivatives book?
JW: It's cash. I don't hateful where they are inwards trouble, but rather what is their challenge. Cash. They are having liquidity nightmares.
So what I am hearing is that the Chinese are coming forward, together with recollect they are off all calendar week for approximately holiday, together with that's 1 argue that aureate got slammed. But the Chinese conduct maintain offered cash... I've heard they've offered something on the social club of $100 billion.
And I instruct WHAT? Just for Deutsche Bank? And my root said no, no no, they aren't interested inwards the whole bank... they are interested inwards their aureate derivatives book.
Because what we're hearing inwards the buzz amid bankers... you lot know, New York, London, together with European centers is that indeed Red People's Republic of China is looking to purchase their aureate derivative book, together with the discussion has it that the derivative mass involves to a greater extent than aureate than is inwards the Comex.
More than what's traded inwards the Comex inwards a year.
It's bigger than the Comex yesteryear an social club of magnitude.
Ok, together with then Deutsche Bank is interested inwards the Chinese deal, but what they're experiencing from what I'm hearing, is that the Deutsche Bank officials are beingness forced yesteryear London together with Wall Street, to dump their derivative book. And I don't know if it's at a loss, together with I conduct maintain the feeling the Wall Street together with Londoners don't assist whether it's at a loss, they merely wishing this derivative mass to slow hold upwardly dissolved together with sold off together with then that the Chinese don't instruct it.
Fast forrard to 31:20 inwards the video below to need heed the entire storey behind the Chinese gambit, together with the line per unit of measurement area yesteryear the Western aureate consortium to forcefulness Deutsche Bank to dump their derivatives onto the marketplace to continue it out of China's hands.