The fact that the Asian economies are rising much more rapidly when compared to that of the western economies is something that should not be taken lightly or regarded as a phase that will pass.
Countries such as China, India, Indonesia, Singapore and Japan are seemingly bound together on a tangent that are slowly making them economic powerhouses and coupled with the fact that China has been actively recruiting smaller economies from Asia such as Malaysia, Singapore, The Philippines and other rising South East Asian economic stars such as Indonesia, Korea and Japan to join forces with them towards creating a ‘contained economy’ has been effectively moving them towards secure financial states through accumulated reserves from foreign trade and placing them in a strategic position to buy precious metals (especially gold) for investment purposes.
Most of the Asian population consist of serious savers who live within their means and most of these governments do not intend to change that trend which is evident in their ignorance of signals emanating from western governments and financial institutions to boost the consumer spending levels of these Asian countries who are closer to real economies that are stable in comparison to their Western counterparts.
Another factor that cannot be ignored is the association between these governments and the Russians lead by the popular Vladimir Putin who is an economic realist that follow the traditional economic regime of ‘the more their populations saves, the more money their banks are filled with to support infrastructure that subsequently attract Foreign Direct Investments creating an influx of foreign currencies that flow and into these robust economies allowing them to buy more gold and other precious metals to ensure that their currencies are supported.
The governments of Asia are encouraging saving based on the positivity that lies behind saving in the form of precious metals that is being coordinated by the Shanghai Cooperation Organization which is related to Russian financial institutions that are helping these Asian countries to regain and secure Asian assets that were actually theirs to begin with a few hundred years ago through the purchase of precious metals from the west. The total purchase of physical gold from Asia when prices are attractive is massive with India, China and Russia paving the way getting the other Asian countries such as Malaysia, Singapore, Indonesia and Taiwan following close behind.
These countries have balanced trade deficits and their exports are almost at balance with national debts being stabilized with each passing year. As the EU heads towards a total breakup and Trump leaves the US financial system in disarray, confidence in trading with the EU and the US has diminished and due to the potential these fast growing economies are showing, investors prefer to put their money where the economic fire will burn longer and brighter.
These events are evident and based on the amount of cash for gold bullion being spent, essentially returning foreign cash to the host country in exchange for their gold bullion, a growing trend with the majority of available gold flowing out of the US and the EU; it won’t be long before the US and EU have nothing substantial to back their currencies with as gold is the only real money that will retain the power to buy in the final chapter of the money story.