Link: Derivatives Collapse and the China Gold and Silver Markets

http://www.globalresearch.ca/PrintArticle.php?articleId=15126

“In 2009, China opened up various exchanges for investment in both gold and silver to the Chinese public, which previously was not allowed to invest in gold and silver. The opening of silver exchanges to the Chinese public is the most recent development and was accompanied by a ban on silver exports. The Chinese government is actively touting both gold and silver as an investment to the Chinese public, and with good reason. The yuan, like the dollar and virtually all other paper currencies, with the exception of the euro, are one hundred percent fiat currencies backed by absolutely nothing but government promises which aren’t worth the powder to blow them to hell. Even the euro’s gold backing is pathetic at best. Initially it was a respectable 15%, but the backing is probably now about half of that due to Washington Agreement gold sales and surreptitious gold leasing.

The Chinese government knows that if they do not allow the public to protect their new wealth with gold and silver, a decline in the yuan due to hyperinflation caused by massive government stimulus and an ongoing bailout and subsidization of mass failure in their banking and corporate sectors due to declining exports and trillions of dollars worth of spurious loans undergoing increasing rates of default, loans which often were given to Chinese communist party members, could very well lead to revolution. Chinese government officials are now attempting to protect themselves by dumping large portions of their dollar denominated reserves for gold and silver, as well as for commodities such as copper and oil, and they want the Chinese public to be able to do the same with gold and silver, for maximum possible protection - and, more importantly, for avoidance of revolution. We believe that the Chinese government has acted far too late, but it’s better than doing nothing. We also applaud their attempt to protect the wealth of their people, even though it is self-serving.”

Related Posts:

• It doesn’t matter whether we owe China 2 trillion or 200 trillion.
• Be Prepared for the Worst (Ron Paul)
• Do you realize that on a global scale all the bailouts, not just the US, amounts to 1/6 of the world’s wealth?
• The U.S. government will never “legally” default on its bonds, contrary to the repeated statements of so many commentators.
• In the absence of any substance behind the paper currencies, it is no wonder that people seek refuge in Gold!

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