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China, Gold and the Demise of the Dollar
What money bought
China and Gold
China is certain that its 16 largest banks will meet the Basel III deadline on January 1, 2013.
One must wonder if there is any connection between that and China’s recent increase in physical gold imports and the very important fact that China retains all the Gold it mines and never puts Gold into the market.
Bearing in mind that the great thing about the Chinese is their long term generational thinking which always sees way beyond the horizon, one thing others would do well to emulate.
Could China be positioning itself for the day Western banks finally realize they’d prefer gold rather than other asset classes, i.e. Treasuries or Cash or whatever!! ?
Consequently by the time Western banks figure it out, China may have already cornered most of the world’s physical gold supply and thus real value.
Meanwhile the response from Ben Bernanke, Federal Reserve Chairman is that he has decided it is to be QE3 to infinity and beyond in the USA.
This will inevitably hasten the demise of the dollar, (watch the prices of gold and silver for confirmation), but short term it will prop up the Banks and Establishment.
This action represents out-and-out theft from the workers, savers and retirees and when we see hyper- inflation kicks in all bets will be off.
Just some thoughts to ponder as we head towards what one hopes will be a Merry Christmas before an uncertain New Year on many fronts.