Will China’s 2016 Gold Strategy Collapse Anglo-American Capitalism?
TMR Editor’s Note:
The world community of nations can no longer withstand the utter ruin that the Anglo-American Axis (AAA) has wrought upon the planet in the interest of maintaining its longstanding hegemony.
Both Russia and China have been on a very serious mission to decouple the BRICS economic structure and financial markets from the petrodollar. They know that as long as the once Almighty Dollar is utilized as the world reserve currency, there will never be peace … ANYWHERE. Hence, the BRICS-aligned nations have been very busy creating a new financial system (most of the important developments are occurring under the radar) that will render the post-WWII Bretton Woods Agreement virtually obsolete. This is the primary reason for the unfolding WWIII scenario throughout the Middle East.
The financial engineers and economic hitmen of the Anglo-American Empire have sufficiently infiltrated every nation on Earth so as to wreak havoc at will. This stealthy institutional interpenetration by the AAA took place insidiously over centuries so that covert blackops could be forever conducted in a clandestine manner. Even Russia and China are not immune to such financial terrorism and economic sabotage as only the AAA can perpetrate.
However, both China and Russia have been systematically executing their own “Gold Strategy”. The following article posted in its entirety below well explains the basics of this initiative to terminate gold price manipulation implemented daily by New York City’s COMEX and The London Bullion Market Association in the City of London. Their patently illegal suppression of the global gold price has been carried out through a massive Gold EFT* trading system in paper gold instruments. That paper gold will be left worthless, with no deliveries to back it up, once China moves forward in earnest with their new gold exchange.
*A Gold EFT is an exchange traded fund with gold being the principle and only commodity being traded.
Why is GOLD so very important? There are multiple reasons but the most important is that it represents a safe haven during times of great economic turmoil and financial chaos. In this way it functions as the great barometer of the real financial condition of the world as well as the true state of the economy. Whenever investors flock to gold, they know the markets are ready for an anticipated crash, a periodic correction or a serious collapse. Incidentally, there is an interesting story that goes like this: In some ancient cultures Gold was believed to be the congealed blood of the gods (it appears in veins) who came down to Earth to defend humanity from their oppressors (aka the antigods). The bottom line is that, given the extraordinary instability of the markets and unrelenting economic insecurity worldwide, Gold is soon to be King; Silver is Queen, and Platinum and Palladium are Prince and Princess.
This ongoing development within China and the other BRICS is as BIG as it gets. 2016 is destined to be the year that the Global Economic and Financial System will undergo massive unparalleled change, once and for all. Gold has always been the foundation for national economies for good reason, as it also functions as a store of wealth for householders, especially in China, India and Russia.
There’s a very good reason why this past Chinese New Year celebrated the Year of the Fire Monkey. This particular year always brings about radical changes as it did when it occurred in 1776. The Fire Monkey ensures that the whole place will experience the most profound and fundamental transformation of a lifetime.
Simply put, when the reset button is hit in 2016, the methodical wealth accumulation of gold performed throughout the East over many years will prove to be the greatest gamechanger of all time.
The global geopolitical chessboard is in the continual state of rearrangement; however, only the astute observer will correctly perceive that the true locus of worldly power always shifts from the East to the West, and then to the East again … with the movement of the golden Sun.
*Anglo-American Axis (AAA)
The Anglo-American Axis is represented, first and foremost, by the major English-speaking countries of the world: USA, UK, Canada, Australia, New Zealand and Israel. The European member nations of NATO, such as Germany, France, Italy, Spain, Portugal, Belgium, Luxembourg and the Netherlands are also closely aligned with the AAA as are all the Scandinavian countries. So are the Asian Pacific Rim nations of Japan, South Korea, Taiwan and the Philippines. Saudi Arabia, Turkey, Egypt, Pakistan, Kuwait, Jordan, Bahrain, United Arab Emirates, and Qatar also owe their allegiance to the AAA but some of these may be changing. The World Shadow Government is an ultra-secret, supranational organization which completely controls the Anglo-American Axis, as well as the European Union, NATO, among many other institutional entities which constitute the Global Control Matrix.
(Source: Vladimir Putin’s Russia: Perfect Foil To The Anglo-American Axis And Their New World ‘Order’)
China to Start Yuan-Based Gold Price Fix in April: Game Changer?
By Jason Hamlin
China has been quietly accumulating a significant amount of gold bullion in recent years. They are now the top producer and top consumer of gold in the world. They are believed to keep all of their domestic production, plus import significant amounts from other nations. In addition, they have been buying up gold mines around the globe at steep discounts and bringing home gold they had stored in London, New York and Switzerland.
After accumulating all of this gold, along with their close ally Russia, many believe they will eventually break the metal free from the price manipulation undertaken by the banks/governments in the United States and United Kingdom. Once price discovery moves from West to East, they will allow the price to float to free-market levels and the value of all the gold they have been accumulating will skyrocket.
Removing the gold price suppression will be accompanied by wholesale dumping of U.S. treasury bonds and test the world’s faith in the US dollar debt-based fiat currency system. This will give China, Russia and others a greater influence in world financial markets and better stability in their currencies. It may give them a considerable strategic advantage over the United States, a nation that many believe no longer has the gold that they claim. Indeed, with a lack of a comprehensive audit and unwillingness of officials to allow one, many believe the gold is no longer in Fort Knox.
Now we move to the really interesting part of this story. Not only has China been accumulating huge amounts of gold (on and off record), but they also launched their own international gold trading platform on the SGE. It has become the largest physical gold exchange in the world, with an estimated 52 times more physical gold withdrawals versus the predominantly paper exchange of the COMEX.
Fast forward to the first week of 2016 and China is warning foreign banks that they must participate in Yuan-based gold price fixing or lose their Chinese gold import rights. This first-ever Chinese benchmark is set to launch in April of this year and could be a game-changer for gold prices moving forward.
Reuters reported today that:
China has warned foreign banks it could curb their operations in the world’s biggest bullion market if they refuse to participate in the planned launch of a yuan-denominated benchmark price for the metal, sources said.
The world’s top producer and consumer of gold has been pushing to be a price-setter for bullion as part of a broader drive to boost its influence on global markets.
Derived from a contract to be traded on the state-run Shanghai Gold Exchange, the Chinese benchmark is set to launch in April, potentially denting the relevance of the current global standard, the U.S. dollar-denominated London price.
In a trial run for the fix in April 2015, some foreign banks participated along with many major Chinese banks. Traders at those banks said earlier that while they were interested in the benchmarking process, their legal and compliance teams may be reluctant.
Perhaps a little sensationalized, but Jim Willie recently commented:
The Gold market cannot be fixed by paper gold on a repeated basis, surely not in perpuity. When the Shanghai shock comes, all the Paper Gold structures will fall, all the FOREX derivatives will collapse, all the control rooms will go into panic mode.
The Shanghai shock is not likely to materialize all at once and cause an immediate collapse of the dollar, the COMEX or our fiat monetary system. However, it is another nail in the proverbial coffin and significantly increases the odds of more honest price discovery in precious metals as it moves from West to East.
The red line in the chart below shows Asian gold reserves as a percentage of total gold reserves. The percentage has been rising steadily for decades, but the pace of the increase has picked up significantly since the 2008/09 financial crisis.
If you believe that the gold price has been suppressed in order to maintain faith in fiat money and allow governments to continue deficit spending to secure their power, it is logical to conclude that gold prices may rise sharply as the disconnect between paper and physical pricing intensifies. And it would make sense for China, Russia and other BRICS nations to push for such a transition, as it would diminish the dominance of the United States in global trade and finance, leveling the playing field.
In any event, it will be an interesting development to watch during 2016. I believe it could be another catalyst in a long list that could cause a spike in gold and silver prices.