Posted on 01/15/2014 7:33:03 PM PST by Publius
China National Gold Group Corporation General Manager Sun Zhaoxue has come out and told the world media that the US is suppressing the gold price. The reason for America’s manipulation of gold is to ensure US Dollar dominance on the world stage. America has by default ended up with the world’s reserve currency and therefore gets the world to work for them in exchange for an ever increasing supply of printed greenbacks. He also went on with an excellent analysis of America’s war against Europe and the Euro using their investment banks. Another good insight from Sun Zhaoxue is that while major players like Warren Buffet and Goldman Sachs talk about how they hate gold and forecast price declines, they have made large bets on gold and gold companies.
His comments from the Liujiazui economic forum were as follows:
“The hottest topic at the moment is oil and gold. The ground war we are seeing around the world is, I think, war for oil, whereas gold is the currency war. Why? We observe that integrity was the driver for the US Dollar to become the world reserve currency. The US Dollar and gold decoupling from 1971 caused the US Dollar to depreciate massively. From 1990 onwards, the Eurozone was in consultation to form a strong Euro to counter the US Dollar in order to prevent the latter from stripping Europe of its wealth. The Euro was born in 1999, supported by its strong economy and 11,000 tons of gold.
"With the birth of the Euro, a competitor to the US Dollar was created, and so the US decided to lay a trap for the Eurozone as part of the currency war. Some countries in the Eurozone violated the Eurozone’s norms by issuing bonds. Which entities participated in the issuance? US investment banks. After the debt was issued, it was US ratings agencies that struck a blow to the Eurozone by saying that its economies had problems.
"Only gold remains on par with the US Dollar to benefit from the Eurozone and Euro's collapse. This is why the US began to suppress gold by issuing a statement two months ago that the Eurozone will sell its gold when it is unable to service its debt, then stating three days later that the news was false. Furthermore, Goldman Sachs made a forecast for the gold price at the beginning of the year but suddenly changed its course saying the gold price will fall to $1300. Buffet said that he would not buy gold even if its price fell to 800USD. Our research indicates that Buffet made a lot of money from four gold companies. So his statement is inconsistent with his personal action.
"Bernanke’s speech followed, saying that monetary easing will end, that the US economy is improving. This series of examples shows that the fall of the gold price is premeditated. So I say that this process is a genuine currency war.
"Many people say that gold is just a beautiful thing. Then we have to ask the US why they store so much gold, but instead of selling gold, they issue debt to other countries to rescue the financial market.
"The US owes Germany so much gold but instead of repaying immediately sets a 2020 deadline to return the gold. From this example and process as well as some typical factors, this is a downright currency war to maintain US Dollar hegemony by defeating all other currencies.
"I shall stop here."
Something is up.
Yeah, it seems they were hinting at that...
“Then we have to ask the US why they store so much gold, but instead of selling gold, they issue debt to other countries to rescue the financial market.”
There is a difference between a weak dollar, which is good in a world of fiat currencies, and a collapsed dollar, which would be refused in trade.
Everybody is preparing for a mess. Why else would the government buy billions of bullets and militarize their regulatory agencies? As to timing, I don’t know.
Thanks, looks like it’s still a good idea to have some old coins stuck away for a rainy day. :)
The long term value of gold is the cost to produce it, plus net profit (which should factor in the risk for market volatility), and overhead.
Even at $1300/oz or even less, there is plenty available in the long term.
How does this hurt us?
Why would I care about a collapse of foreign trade?
Such a sentiment, even if I had it, wouldn’t save the premise of the idiotic article.
If China mines a lot of gold, and buys a lot of gold, they are going to get killed financially on that investment at some point.
It helps us by making the dollar look better than it really is, which is why we’re doing it. As long as the game can go on. But if it ends, the price of gold skyrockets, and because gold is the inverse of the dollar, the dollar takes a big hit. That could destabilize the world’s financial markets.
One fact is that the US is printing more and more dollars while increasing the national debt; and the other is that the price of gold is essentially going down when that price should be going up thanks to the printing of more and more unbacked - by gold or silver - dollars.
One good indicator is that the price of gold stocks are not going up, and it's my opinion that the US government is actively selling gold stocks to prevent their stock prices from rising as they should be given the coverall price inflation we are seeing month after month.
The bubble will have to burst, and I don't think the market crash is far off.
Unless they work with the BRICS nations to issue a gold-backed yuan, which is the current plan. If there is a question to the stability of the dollar, this would become an alternative to the dollar for trade.
You aren’t grasping what a cheap Dollar means to foreign trade on the one hand, and to our domestic economy on the other.
No wonder you liked the idiotic article.
I think they are planning to kill off a ton of Americans. Remember that one home grown terrorist said 25 million Americans need to be killed off. They are awaiting their marching orders.
The investment banks that execute the policy of the Fed and Treasury have been naked shorting gold mining stocks so that certain privileged companies can acquire these gold companies at bargain basement prices, something called a “stink bid”. Yesterday a Chinese company acquired a significant junior gold miner with a stink bid.
Good.
The current strong Dollar harms the U.S. economy.
A weak Dollar will improve the economy by making domestic goods seem cheap while making imported goods look expensive.
We don't *want* the Dollar to be the world's reserve currency.
A strong Dollar props up the rest of the world at U.S. expense.
The fact that we have the reserve currency of the world permits us to behave in a profligate manner with respect to entitlements and war. To lose that status would mean that we would have to finally accept economic reality, something of which I approve. The problem is how people would react to strict financial discipline. It won’t be pretty.
Careful what you wish for, you just might get it!
Are you ready to wake up one morning soon in the future, stop to get gas on the way to work, and pay $14.00 a gallon?
Because that’s what it means!
http://www.youtube.com/watch?v=2N8gJSMoOJc
You don’t understand the price mechanisms for fuel, then.
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