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China, Gold and the Demise of the Dollar

Updated on December 3, 2012

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.


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    • alanlsg profile image

      Alan Bowman 5 years ago from The World

      Hi Junko

      Many thanks for your comment and for sure survivalism by gathering food, water, guns and ammo and finding a place to survive in is all the rage and a very wise precaution should the proverbial hit the fan early next year.

      The Gold Standard is not what I am suggesting will occur as it once was, only Switzerland has all its currency backed by Gold.

      It is just that those in control in the Banking and Political spheres are changing the rules of the game by what is currently going on surreptitiously and once more thanks.

    • junko profile image

      junko 5 years ago

      alanisq, gold is precious and always has been, for Kings and Kingdoms. The common man don't have the strenth or protection to gather gold, only the certificate. There are people who are gathering food, water, guns and ammo all to be taken eventually if money deflates worldwide. Capitalism is more liquid in cash and papers than gold. This world economy is based on Capitalism more then gold. Those who control Capitalism will change the rules before returning to the Gold Standard.