The Chinese are preparing for a currency crisis by quietly acquiring all the gold they can get. It holds about 1.3 trillion U.S. dollars, and it is steadily buying up as much of the world’s available gold. Actually last year they produced, imported and consumed more gold than any other country in the world. They too know that in a time when nearly all governments around the globe are printing massive amounts of currency, backed by nothing but an empty promise, China can gain a huge advantage by backing their currency with a precious metal.
A century ago, China used silver to back their currency. Today, it appears they have chosen gold. As a result, they are buying up the world’s gold supply. It is one of the fastest growing economies on Earth, with the largest cash reserves on the planet, putting their currency on a bearing to being backed by gold. They desperately want to return to the status as one of the world’s great powers – and they recognize the enormous power of having a dominant world currency. They understand the power of having a gold-backed currency, which could ultimately become the world’s new reserve currency.
China is attempting to “corner” the gold market.As financial historian Richard Russell wrote: “China wants the renminbi to be backed with a huge percentage of gold, thereby making the renminbi the world’s best and most trusted currency.”Hence they want to control the world’s gold markets. And if they can get Chinese citizens to purchase large amounts of gold in the coming years, it gives the government the potential for easy access to several hundred more tons. Remember, this is a Communist country. They could ask their citizens to sell all the gold to the government, or could even confiscate it if necessary.
In their drive for gold they bought on June 15, 2012, the London Metals Exchange for $2.1 billion. And also the iconic Chase Manhattan Tower, built in the 1950s by David Rockefeller. What probably many do not know that building houses the world’s largest gold vault – longer than a football field and five stories beneath the city’s streets. The building’s architects stated it was built to withstand the effects of a nuclear bomb. Ironically it is located next to the vault owned by the New York Fed.
The Chinese know that nearly every major country around the globe is in massive debt – and nearly every country in debt prints money, going deeper into debt, and consequently debasing its currency. Contrary the
Chinese understand the power of having a gold-backed currency, that’s why they’re buying up as much of the world’s gold as is possible. Few people saw this coming since China bought its gold outside the traditional markets. Accumulating such a massive amount of gold in such a short time would send the price soaring. So China went about it in an admirably sneaky way, by investing in mining.
Today China by far produces the most gold in the world each year. And every single ounce that gets produced in China – whether it’s dug out of the ground by the government or a foreign company – must by law be sold directly back to the government. In addition, gold mined at Chinese-owned mines around the world ends up back in China, too. That’s why it invested in gold refineries in Australia, South Africa, and Switzerland and at home. All that gold becomes one-kilogram bars stored in Shanghai vaults.
The Chinese came to the simple logical conclusion owning gold is the best way to protect their current reserves, as almost every other currency gets printed to the point of worthlessness.
Doing so, China is on a secret mission to corner as much of the world’s gold market as possible.The Chinese will increasingly hedge their exposure to the dollar as the world’s leading gold investors. By taking over the world’s gold markets and building a huge stockpile of gold, they would be able to back their currency with the world’s traditional form of money. Once they are ready to make the Yuan freely convertible, they will have created tremendous demand for their bonds and bills by making their currency the world’s most reliable – and the only one backed with gold.
The impact on most other currencies could be catastrophic. And every day paper currencies fall, China’s gold stockpile will grow more valuable and powerful. How will you know when to sell your gold? “The end game for this gold bull market will likely be a situation where you can exchange gold for currency that is convertible into gold at some official price.”
It doesn’t matter whether the rest of the world likes what’s happening or not – it’s just basic economics. “China is going after all the gold it can obtain. Clearly, gold is going to be much more important to the financial system – and much more valuable – in five years than it is today.” Knowledgeable sources estimate China could have accumulated over 20.000 tons of gold, outstripping any other country on the globe.
What should you do about this situation?Protect What You’ve Got.The first thing you need to realize is that what is happening between China and the west could be incredibly damaging to people who have the majority of their assets in U.S. dollars and euro denominated investments – like stocks and bonds. This is probably the most important story in the world for any westerner, as far as your finances, your future, and your retirement go.
China is accumulating gold for two simple purposes: First, they want to diversify as much of their foreign reserves as possible away from U.S. dollars and other devaluing currencies, which are backed by nothing but a foreign government promise.
How will China shake the gold markets in the next year? “All the evidence studied indicates that China 
could likely complete its gold hoard within the next year with a gold hoard of over 20.000 ton. The announcement of China’s new gold hoard could send shockwaves through the financial markets, and eventually make China and the Yuan a big players at the international table.”
They also have got the mining stakes and infrastructure to control a huge chunk of the world’s future gold supply. So that’s a serious shrunk of the floating supply of gold available to the rest of the world.
Second, “China wants to establish a world-class currency, backed by as much gold as possible, and perhaps even become the world’s top “reserve currency”. By taking over the world’s gold markets and building a huge stockpile of gold, they would be able to back their currency with the world’s traditional form of money. Once they are ready to make the Yuan freely convertible, they will have created tremendous demand for their bonds and bills by making their currency the world’s most reliable… and the only one backed with gold.”
This is going to affect everyone, as it’s going to drive gold prices higher – much higher in the years to come. Which make gold investments extremely lucrative over the next few years. The impact on the dollar and euro could be catastrophic. And every day the dollar falls, China’s gold stockpile will grow more valuable, and more powerful. Simultaneously most other paper currencies will become worthless too.
Who sold gold to China? “Some of the biggest suppliers have been the (Western) central banks to the market.” – “The vaults must be getting pretty empty because the gold they are now sending is scrap from the back of the vaults. It’s things like old gold coins, so literally are having to refine this scrap gold into .9999 purity bars before it is sold into market.” Admitted Ian MacDonald, Executive Director of the Dubai Multi Commodities Centre in 2008.
“The implication is when there is a run on gold, the Western central banks in London and at the New York Fed, which are supposed to be storing large amounts of gold for foreign nations, will already have sold that gold into the market.” The excuse will be, “We trusted these bullion banks and it turns out they leased this gold and they can’t pay it back. There is a problem here but it wasn’t our fault.”
So, most of the west gold hoard is meanwhile sold off. “And so they (the U.S.) have told their puppet state (Germany) to shut up and come up with a different statement that they are content to leave it (their gold) with the Fed. Perhaps they had to bribe them or give them other advantage. But, essentially, they have stopped any German agitation for the return of their gold because it can’t be returned.” Said Dr. Paul Craig Roberts.
Consequently, Germany’s plan to bring back the nation’s gold reserves to Frankfurt by 2020 has ended, instead has for now decided to leave $635 billion of gold in US vaults. The Germans own or owned the second largest gold reserves on the globe, worth over € 1000 billion, it holds about 31% in the Bundesbank in Frankfurt, the rest is stored abroad 45% by the US FED, 13% in London, 11% in Paris.
“The Americans are taking good care of our gold, we have no reasons for mistrust,” Declared Nobert Barthle, the German Parliament Budget spokesman to RT. Transporting the gold will be a high security operation. When France transferred its reserves in 1966 it used a submarine.
http://rt.com/business/170940-gold-germany-us-federal-reserve/
Germany’s failed attempts to get its gold back from the US ‘opens question of its sovereignty’.
http://rt.com/op-edge/170948-germany-gold-us-sovereignty/
“The bullion banks could provide a scapegoat for the central banks’ failure to maintain competent custody of the gold. Everyone is suspicious of the banks and it might be very easy for the Western central banks to blame them for the losses, the corruption, and the disappearance of the gold. But the citizens of countries such as Germany will still be outraged that the gold was not held passively by the US Fed, and was instead used in a price suppression scheme.” Chris Powell.
“I’ve always believed this was the plan by the Western central banks. I’ll give you an example: The Bank of Portugal leased 17 tons of gold to Drexel Burnham. When Drexel failed in 1990, the Bank of Portugal never got its gold back. Its claim evaporated when Drexel evaporated. So it now appears that the Fed and everyone else involved in this gold price suppression scheme is setting up the banks to take the fall. This will of course involve bankrupting some of these banks so the claims on the gold are forfeited, just like they were for Portugal when Drexel failed.” Eric King.
“There will be hell to pay if that is the case. The central banks will have to answer the question, ‘Why were you engaging in this?’ Well, they were engaging in it as a general scheme of currency market manipulation. So, yes, things are very suspicious right now. Deutsche Bank decided to withdraw from the London Gold fix after the German financial regulatory agency decided to investigate gold market rigging. There is a tremendous amount of stress in the gold market now, and so there is great stress at the official level. I am trying to do what I can to increase that stress.” SaysPowell.
“Regardless of what laws are on the books, it is an international crime. If you look at the Nuremberg Trials, they were about ‘crimes against humanity.’ This Western policy of gold price suppression has caused a great deal of unnecessary disease, famine, and death in places like South Africa as well as many other third world countries. Therefore, that is a crime against humanity.” Eric King.
“Certainly it is. I just came back from the developing country of Suriname, and the people in the government communicated to me that they were practically terrified by what the gold price plunge of the last year was doing to the government’s revenue. Gold is the biggest export product in that country. Powell.
All the trillions of dollars in fake fiat paper money around the world will rush to buy the physical metal and ALL of it will be gone in a single hour, all around the world. The worldwide physical silver and gold market is very tiny. Once the signs of worldwide economic collapse become apparent, just hours before the crash that devastates ALL the economies of the world IN ONE SINGLE HOUR as the derivatives domino game comes crashing to a halt and massive fear instantly spreads around the world, all the fiat paper money will seek hard assets as a safe haven for maintaining their value.
The precious metals dealers will literally shut down their phone lines, and trillions of dollars in paper fiat capital is going to roar into the precious metals paper fiat fiasco better known as the New York Commodities Exchange and other fiat futures casinos around the world.
And here the next step on the road to our serfdom: Gold reporter obtained information that the Federal Financial Supervisory Authority (BaFin) has asked German banks and investment intermediaries in a letter, to hand over data about their clients investments in precious metals until mid-July. The government wants to know how much money Germans have invested in gold.
Those who think that $100,000/oz. silver is impossible need to change their frame of reference. 100+ years of silver price suppression has so distorted the true value of this majestic metal that NOBODY knows where the price should be now.The very moment the silver rigging ends you will understand much better the true value of silver…. AND IT WILL BLOW YOUR MIND!!
http://www.roadtoroota.com/public/998.cfm?awt_l=MCzoc&awt_m=3XyZQr1QGyAZ85B
THE COMING TWO-STAGE RALLY IN SILVER
The majority of the precious metals analysts discuss the revaluation of silver as it pertains to the amount of fiat currency in the system. While this is a good determination – from past historical guidelines – it only deals with one part of the overall equation. The second and maybe the more important factor… is the destruction of “PAPER CLAIM CHECKS” on physical assets.
http://www.silverdoctors.com/coming-silver-rally/
The end of the US Dollar’s reserve status:
The more the US antagonizes the world with spying or huge fines on foreign banks, the quicker the process of abandoning the dollar as a reserve currency will be unraveled, watch this 3 min. interview between Peter Schiff and RT.
http://rt.com/op-edge/171144-dollar-reserve-currency-usa/
Now Germany Will Never Get Its Gold Back From The U.S. Fed
Stephen Leeb an acclaimed money manager stunned King World News when he said that Germany will never get its gold back from the U.S. Fed, and the reason will surprise KWN readers around the world. He went on to elaborate about what is happening behind the scenes that has caused this rift between the U.S. and Germany.
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