Here we go this may explain why
China purchased the Chase Bank building in NewYork City not long ago,with
an under ground vault the size of a football field !!! next door to the New
York Federal Bank building !!
China Looks Set To Introduce Gold-Backed New World Reserve
Currency. The US dollar has been the world’s reserve currency for
many decades now, but the trends seems to indicate that China is preparing to
overtake the US in regards to being the “standard”
currency. The world’s monetary system has not had any
direct involvement with gold since 1971, when U.S. president Richard
Nixon ended the conversion of the dollar into gold.
China seems to be preparing itself
for a big involvement in gold, potentially backing their currency with
gold. This simple graph below shows that world reserve currencies come
and go, and they change on average every 95 years.
It is impossible to know exactly how much gold China has, as their
central bank is more secretive in this regard compared to other countries.
The last “official” announcement of their gold holdings
was in 2009, and it was reported as 1,054 tons. Those figures
would currently put China in the number 6 spot on the list of countries
who hold the most gold. However, Matt Insley at Agora Financial put
together an estimate based on import figures, mining production figures, as
well as more stealthy forms such as black-market gold from Africa and the fact
that China urges it’s citizens to own physical gold. The mining
and import numbers alone would mean that China has at least 3927 tons, but with
the other additions, it brings the number
up to potentially 7000 tons!
Either of those two numbers would
currently place China at the number two spot on the world rankings of
gold holdings. The number one spot goes to the US, who supposedly
holds 8133.5 tons supposedly. Keep in mind that the US has not had their
gold audited since 1953, despite former congressman Ron Paul’s efforts in introducing a bill that would audit Fort Knox in
2011.
Last year saw a new international
debacle when Germany asked for it’s gold to be repatriated by
the Fed who had been storing it. The Fed claimed it would only
deliver 300 tons, out of the 1500 tons of gold that was originally
stored. They also added the provision that it would be paid back over a
seven-year time. So far, only 5 tons have been delivered from the
Fed’s vaults. What this could mean is that the US has almost no
gold at all. So if it’s true, then China already has more gold
than any other country in the world.
So why are they doing this? The obvious answer is that they
are preparing to dethrone the US dollar of it’s reserve currency
status, and replace it with a gold-back Yuan(Chinese currency). China is
either number 2 or 1 in it’s gold holdings, and they also import more
gold than any other country, they are also the world’s largest producer of gold, and they export ZERO of what they
produce. The Chinese government encourages it’s citizens to buy gold and save in gold, and the nation has already been making bilateral
trade agreements with other countries, that specifically do not use the
US dollar in the exchanges.
The Chinese save over 35% of their incomes, compared to about 2-3%
in the US, and they have the world’s largest manufacturing sector. Impressively, their middle class seems to continues to
increase while the US middle class dwindles. China is one of the largest creditor nations in the world, while the US on the other hand is the biggest debtor
nation. All signs point to a new world reserve currency, and the balance
of power may change with it.
