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发帖数: 38600 | 1 CHINA EMBRACING GOLD IN ADVANCE OF POST DOLLAR ERA
http://www.allchinareview.com/china-embracing-gold-in-advance-o
To challenge the US dollar hegemony and increase its power in the global
realm of finance, China has a potent gold strategy. Whilst the State Council
is preparing itself for the inevitable decay of the current international
monetary system, it has firmly embraced gold in its economy. With a
staggering pace the government has developed the Chinese domestic gold
market, stimulated private gold accumulation and increased its official gold
reserves in order to ensure financial stability and support the
internationalisation of the renminbi.
“The outbreak of the crisis and its spillover to the entire world reflect
the inherent vulnerabilities and systemic risks in the existing
international monetary system…. The desirable goal of reforming the
international monetary system, therefore, is to create an international
reserve currency that is disconnected from individual nations and is able to
remain stable in the long run…”
Quote from Governor of the PBOC Zhou Xiaochuan 20091.
In the present zeitgeist we find ourselves on the verge of a shift in the
global monetary order. The shocks through the financial complex in 2008 that
reaffirmed the innate fragility of the US dollar as the world reserve
currency have sparked China to become a vocal proponent of de-
Americanization2, although its end goal is communicated less clearly. Being
the second largest economy of the world but relatively in arrears regarding
physical gold reserves, China has a strong motive to surreptitiously work on
its gold program until completion. For, if it would be candid in its gold
ambitions, the price would significantly run higher3, potentially disturbing
financial markets and narrowing its window of opportunity to prepare for
the next phase. | b********n
发帖数: 38600 | 2 China consistently shows they are doing the solid, core foundational moves
to position their economy for the long term rather than shooting themselves
in the foot with continual short term, financial engineering machinations
like the U.S. and many of its western compatriots. China understands that
relying on paper, fiat currencies is the road to perdition. The U.S.
government refuses to recognize the errors of its ways, not the least is
relying solely on the strength of its paper curency for any semblance of
economic strength in a vain effort to continue its self-appointed role as
the world hegemon. The U.S. government probably has about as much gold as
Canada. The Anglo-American empire is doing whatever they can, including
selling or re-hypothecating all their gold reserves in an effort to prop up
the almighty dollar and the other paper, fiat currencies. The end is near
for the uni-polar, U.S. dollar dominated world and those with gold will
benefit at the expense of the once mighty paper kings. For market analysis,
http://marketscope.ca/ | b********n
发帖数: 38600 | 3 http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fiida
It's 1790 All Over Again
Hugo Salinas Price
It was 1790 and the revolutionary National Assembly in Paris was worried.
Complaints were reaching the Assembly from all over France, that business
was stagnant, sales were down, people were without work, and there was a
great scarcity of money.
This was quite natural, because all business slows down when the prevailing
source of Authority is under question. The Bastille prison had been taken
the prior year by a revolutionary crowd and all sorts of ugly things were
being said about King Louis XVI and his pretty young Queen, Marie Antoinette.
But this was the "Age of Reason" and the most educated, intelligent and
reasonable people in France were members of the revolutionary National
Assembly, which gathered daily in Paris.
The Assembly put their highly educated heads together and came to the
conclusion that a scarcity of money was quite intolerable and that the
Assembly must really do something about it.
"What do we have highly educated brains for, if we can't solve the problem
of a scarcity of money? Without a doubt, Reason can overcome this problem."
So the members of the National Assembly thought about the problem of the
scarcity of money, and came up with a splendid idea: "Let us create the
necessary money, and things will go swimmingly."
Thus was born the "Assignat". Out of the collective wisdom of the Assembly,
the Assignat was born as a claim upon the vast extension of lands recently
taken by the State of France, from the Catholic Church. What could be more
solid than a claim upon the lovely lands of dear France?
The Assignats were soon printed up, with various denominations of monetary
value in gold Francs.
At first, the Assignats circulated alongside gold coin at par value. But
soon enough, the exchange value of the Assignats against gold began to fall.
Thus began a nightmare episode that lasted seven years.
The first issue of Assignats did not relieve the problem of business being
in a funk. So a second issue followed the first; and then another, and then
more, and thick and fast they came at last, and more and more and more,
falling, falling, always falling in value against gold.
The highly intelligent gentlemen of the Assembly decided that this fall in
value of their Assignat must be the work of wicked, unpatriotic people who
should be severely punished.
The Assembly decreed that a merchant should be punished by being sent to the
galleys or to the guillotine, if he should venture to ask a customer who
wanted to know the price of bread, with what money he planned to pay for the
bread - whether it was with gold coin or with Assignats?
The Assembly created a national net of spies to hunt down the wicked
hoarders of gold, confiscate their gold and have them part with their heads
with a short, sharp shock on a big, black block.
In the meantime, the more intelligent of the citizenry took out enormous
debts in Assignats, with the certainty that their value would soon plummet;
with borrowed Assignats they purchased all sorts of things of lasting value,
such as real estate, art and jewelry. In due course, the value of the
Assignat fell to next to nothing and the debts were wiped out. Enormous
wealth was transferred from the mass of the ignorant to the few who were
able to see what was going on.
Eventually, the common people of Paris found that bread was hard to come by.
Starvation set in, and the Parisian government had to provide rations of
bread for the multitude - rotting, wormy bread.
In 1797 Napoleon came to power in France. He put a stop to the very
reasonable plans of the highly educated men of the National Assembly, and
declared that henceforth, only gold would be money.
In the center of the Place Vendome, where today there stands a great column
surmounted by a statue of Napoleon, a huge bonfire consumed piles of freshly
printed Assignats and the wooden printing machinery which fabricated them.
The highly educated and eminently reasonable men of the National Assembly
had succeeded - in the mighty work of bringing France to its knees. But not
one of those men, responsible for the colossal disaster, was ever known to
have said about it: "We were mistaken".
2016: Why is it 1790 all over again? Because just as in France in 1790,
today we have a set of conceited men running the world's economic policy on
the basis of a flawed intellectual construct. In 1790, the flawed construct
was the Assignat. Today, the flawed intellectual construct is the
irredeemable dollar and its derivative currencies.
In 1790, gold was the enemy of those conceited men, because the depreciation
of the Assignat against gold revealed the falsity of the Assignat; so the
National Assembly did their best to suppress the use of gold by violence
against its owners. Today, gold is once again the enemy of our conceited
masters: gold, whose value threatens to expose the falsity of the
irredeemable dollar.
In 1933, the value of the dollar in gold was 1 1/2 grams. Today, the value
of the dollar is only about 2 1/2 hundredths of a gram of gold. Our
conceited masters are struggling to keep their intellectual construct, the
irredeemable currency which is the dollar, from plunging in value to
thousandths and ten-thousandths of a gram.
Like the Assignat, which in 1797 fell to a value of zero grams of gold, the
dollar faces the same inevitable fate. And since the rest-of-the-world's
currencies are derivatives of the dollar, they too will become worthless.
The fundamental flaw in the thinking of the conceited members of the
National Assembly of France in 1790 was their mistaken idea that they could
invent a money more suitable than gold to achieve the prosperity of France.
Today, the fundamental flaw in the thinking of our conceited Masters of the
Universe is the same as that which blinded the members of the National
Assembly in France, in 1790: they are convinced that their intellectual
construct, the irredeemable dollar, is far more suitable than gold for use
as money.
The conceit of the majority of the members of the National Assembly in
France in 1790 led to the total prostration of the economy of France in the
course of seven years. The conceited Central Bankers of today will without a
doubt achieve a world sunk in economic prostration. But don't expect any
one of them to ever say "We were mistaken".
So that's why It's 1790 All Over Again. |
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