China Maneuvers To Take Away US’ Dominant Reserve Currency Status
In 2009, a Chinese state council adviser known simply as “Ji” said that a team of experts from Shanghai and Beijing had set up a task force to consider expanding China’s gold reserves. Ji was quoted as saying, “We suggested that China’s gold reserves should reach 6,000 tons in the next three to five years and perhaps 10,000 tons in eight to 10 years.”
The numbers I’ve cited are consistent with China easily reaching the Ji gold holding of 6,000 tonnes this year. The kind of withdrawal numbers being reported out of the LBMA, Comex and GLD (418 tonnes YTD) suggest that the PBOC through it’s proxy, the State Administration of Foreign Exchange (SAFE), is involved in a physical gold raid of such magnitude that the 6,000-tonne target has been left in the dust. The great gold sale has facilitated a push heading closer to 10,000 tonnes.
More importantly, as long as gold prices remain suppressed, China will continue to be a large-scale buyer. Perversely, if gold prices remain low, it will serve to accelerate the timeline for China to take down USD reserve currency hegemony. The U.S. can ill afford a China gold reserve buildup of 1,000 tonnes or more a year, let alone raid 2,000 tonnes and at cheap prices.
Meanwhile, China reportedly is progressing well on its ambitious plan to recast large gold bars into smaller, 1-kilogram bars on a massive scale. The big gold recast project points to the Chinese preparing for a new system of trade settlement. In the process, they are constructing a foundation for a new gold-supported monetary system that will give them advantages to their trade payments.
Finally, higher gold prices are necessary if the U.S. wants to curb China demand and prevent an emperor-wears-no-clothes scenario on the home front. You see, once yuan becomes a currency fully backed by gold, the next logical step will be not just domestic but international pressure on the U.S. and others, like Germany, to lift the iron curtain and reveal whether the gold they claim backs their currency really exists. Then get ready for all hell to break loose.
Bix Weir: “We’re at a point in our system and in the manipulation where people within the Fed and within our government are ready to pull the plug on the game and basically crash the system.”
http://usawatchdog.com/complete-wipeo… – Bix Weir of RoadtoRoota.com predicts, “We are the biggest debtor nation in the world. If we collapse the debt now and erase all debt, we win.” When could it all start to fall apart? Weir predicts “the August-September time frame.” Join Greg Hunter of USAWatchdog.com for this controversial interview with gold and silver advocate Bix Weir.
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Gold broke below a 9-year support line of late and is now attempting to jump back above this key line as well as another falling resistance line at the same time at (3) in the above chart.
BIG WITHDRAWALS OF GOLD & SILVER FROM THE COMEX
The depletion of Comex Gold Warehouse stocks continues with another big withdrawal today. Furthermore, this was met with a huge draw-down of silver stocks as well. In less than one month, a staggering 640,000 ounces of gold have been removed from the Comex….
David Stockman – Expect Financial Collapse & Flight To Gold
Today David Stockman warned that there is a great “unwind” ahead that will “ricochet” violently through all global financial markets. He also predicted there will be a worldwide flight to gold during the coming panic which will eclipse the mania seen…
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