Last week, China moved itself closer to gold. As the United States debated the $20 banknote, as the European Central Bank (ECB) ramped up its quantitative easing and as the New Zealand central bank announced the end of media embargoes, China’s top banks and gold miners launched a yuan gold benchmark with 18 members.
The 18-member group, which will include the world’s largest jewelry retailer and two foreign banks, will participate in China’s new yuan-denominated gold benchmark. This will help the Asian economic powerhouse inch towards becoming a price-setter for the yellow metal.
It should be noted that a yuan gold fix does not threaten England or America’s gold pricing. However, it enables Asia to have more power in this realm.
China no longer wants to rely on the U.S. dollar for global transactions, and thinks its market weight should allow it to set the price of the precious metal. China is currently the world’s biggest producer, importer and consumer of gold.
Although it doesn’t pose an immediate threat to the West, China is depending on fewer greenback notes. Hao Hong, managing director and chief China strategist with Bocom International, one of the nation’s biggest banks, said it best in an interview with Bloomberg News:
“By trading physical gold in renminbi, China is slowly chipping away at the dominance of US dollars…The gold reserve on the China balance sheet has almost doubled since 2009. By holding gold, and moving away from a US-dollar centric system, we actually require less US dollars.”
The People’s Bank of China (PBOC) has been rather quiet about hold much gold it’s hoarding. It published figures last year that said its gold reserves stood at 53.3 million. But some believe that China is understating that number, and it’s actually a lot higher than the reported sum.
Despite the establishment ridiculing Ted Cruz’s allusion to the gold standard and the likes of Paul Krugman and Ben Bernanke chastizing those who view gold as money, it appears China holds this same view: gold is money.
–AM
Yes, Gold is money, and in the not too distant future the toilet paper “Greenback” will be worthless.
China is positioning itself to eventually control all forms of currency by its gold holdings, and that will be catastrophic to all economies.
But I am sure , thats the plan.
The People need to understand that only gold and silver have intrinsic value (have true value), and follow this example by procuring some for the not too distant future when the “almighty dollar” is absolutly worthless.
Another form of currency, that has value, is the barter system; this is one that can not be controlled by any outside forces.
Place yourself in a better position than being a paper tiger, you will survive the coming collapse in a manner that keeps you from becoming an:
Empty Stomach that makes for a Willing Slave.