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Gold Game Between China and USA
Recently ChiComs (Chinese Communists) have made the announcement to buy an African gold mine, from one of the largest gold companies worldwide. Then there are many other reports, saying that China is importing gold via Hong Kong by the hundreds of tons and this gold (and silver also) is being stored (hoarded) for the next hundred years or more. What makes this a bit disturbing is that much of the gold that China is gobbling up is mostly coming from the Western world.
This gold accumulation policy by the Chinese is for a specific and planned purpose. It is part of the Chinese future strategy in which they are planning to rule the world. According to Chinese, the real money is gold not paper like the American public have been taught to think.. This is interesting for the American survivalist minded persons. In some official news from the Chinese government, they believe that the US officials are persuading people against gold. The Investor’s Chronicles published in the Financial Times, US is promoting the theory that gold is useless and the people should focus rather on protecting the dollar.
Why gold and the Chinese? The Chinese are very practical in their use of gold and currency. Unlike the US the Chinese has no retirement plans. However the Chinese people are encouraged by their government to be buyers and sellers of gold. The Chinese government in lieu of retirement plans for the over 1 billion retirees instead encourages their citizens to invest in gold as a way to take care of themselves in their retirement years. The Chinese government has been a gold seller at about 1600 shops at the local level in order to make gold and silver available to the common people.
Now the question arises that what the ChiComs going to use to are using to pay for this new shiny gold mine? Obviously, they are not spending their accumulated gold for this purpose. THe Chinese will be paying for this gold mine just like they pay for other global natural s such as shipping firsk, real estate, timber forest, seaports, farms, etc. They use their tons of unwanted US treasury bonds which they have gotten as debt payment from the US government. So they are smart, trade worthless currency for something of mort lasting value. Then to “sweeten the deal”the Chinese are running their purchases through American banks so right now the banks are happy to get the cash.
Now this strategy in not only being used in China. There are other countries doing the exact same thing unload virtually worthless American dollars for things of more lasting value. They are not the only ones who want to get rid of these unwanted treasury bonds by US, many other countries are also doing this. However, the China is on top of the list. They want to get rid of these bonds because they are stuck with such a big hoard of worthless greenbacks.
For years the American people have not talked about gold. Schools don’t teach the value of purchasing and using gold. China however is vastly different since they both use gold in massive amounts and teach their people the value if investing in precious metals. China seems to rule in this. Perhaps as Americans we need to observe and take some some financial lessons from the actions of other countries who unfortunately despises our common mode of finances.
Guy Christopher writes about economic Disaster Preparedness for Dan’s Depot.com.
