Officials say that China will back currency with Gold along with Russia in the near future, triggering a “Major Crisis” in the West as this happens. John Ing was recently asked by the Chinese Government to give a speech to its Government Officials on how China will back its currency with Gold, and he has no doubt this will trigger a major crisis in the West. Chinese demand for Gold in the first quarter of this year alone has been more than 327 tonnes.
Ing told King World News that the Chinese have been buying more than 100 tonnes of Gold each month, and the numbers noted above now confirm that insatiable appetite to purchase Gold on a massive scale. “We have also seen other Central Banks buying Gold. Turkey, Belarus, Kazakhstan and Russia have all been major buyers of Gold. We also saw Venezuela use their Gold in order to get liquidity for the foreign exchange market.
Russia is buying up Big Too
The Central Bank of the Russian Federation announced this week that in March, Russia bought approximately 30 tons of Gold, bringing its reported total reserves up to 1,238 metric tons. Russia is now the fifth-largest holder of Gold reserves, according to the IMF. And this is only the Gold that Russia wants the world to know about! As with China, Russia may not be fully reporting its Gold reserves to the IMF, which is dominated by the United States.
Russia, in spite of all its xenophobia and authoritarianism, has one bright, shining characteristic — Russia does what it thinks is good for Russia. It does things that the Kremlin believes will enhance its national power. It doesn’t do things to appeal to some Western, idealistic, feel-good, politically correct agenda. They’ve been there, done that, and it just didn’t work. It was called the Union of Soviet Socialist Republics.
Moscow is hoarding Gold because it too believes this will enhance the Ruble’s value and stability, and just like China, these two countries are playing the long game. Both China & Russia sees the decline of the economic power of the West is soon coming, and they are both preparing for the day when the tables will turn in both their Countries Economic favor.
China & Russia both await the day when they have the Economic thumb to wield over the United States, and with America on a current trajectory towards Economic Doom, it’s not a matter of if, but how soon could this occur? Russia has little Debt to speak of, yet in the United States, the Government is paying basically nothing on a Debt quickly approaching $20 trillion, and this is very good reason to assume interest rates in the U.S to not rise at all in 2015.
U.S Dollar Flirting With Key Support Levels
It’s interesting to note that the U.S Dollar dropped in value, once the Dollar Index hit par. Now the Dollar is flirting with important support levels, and a strong Dollar is really hurting corporate earnings in the United States. It is speculated that they are probably now engineering the U.S Dollar lower in order to stop the bleeding to the economy any further.
Crisis For The West
From a bigger picture perspective, there is a lot of speculation that the West is running out of Physical Gold because all of their Gold has been steadily flowing into Chinese and in some part Russian vaults, and this clearly appears to be a developing Crisis Looming for the West. Ing said “This week I’ve had a number of conference calls with key officials in China. They are laughing at the Western propaganda because the Chinese feel if 7 percent growth is deemed as a slowdown, they will take it anyday.
Shanghai Gold Exchange Withdrawals Running 3-Times The Rate Of Comex
There is not only anecdotal evidence of a looming Gold shortage, but there is also evidence on the Shanghai Gold Exchange that there has been significant drawdown of Physical Inventories in the near-month. They have been running Physical Gold withdrawals at more than 3-times the rate of the Comex. That massive physical demand is coming not only from the Chinese public, but also from China’s Central Bank. The Chinese are vacuuming up all of the available Physical Gold at these discounted price levels.
Yuan/Dollar unpegging to SDR to PBOC’s Gold
China appears to be seeking to have the yuan included in the basket of currencies that make up the IMF’s Special Drawing Right. Currently the U.S Dollar, the Euro, The British Pound Sterling and the Japanese yen in varying percentages form the current SDR basket, but this is due for review this year with initial meetings to be held next month and a final decision on any changes to the basket should be made by October.
China has already had some considerable success in internationalising the use of the Yuan through bilateral deals but the general consensus is that it would like it to be recognised as A Global Reserve Currency. Perhaps not THE global reserve currency – Yet – but to rank alongside the U.S Dollar as a viable alternative. China sees its inclusion in the SDR currency basket as being a key factor en route to this ultimate goal.
Gold To Back China’s Currency – Move Will Trigger Major Crisis In The West
I’ve been saying for some time now, that Gold will be a key part of the Chinese Renminbi as that currency is systematically internationalized. Now we have the IMF considering using Gold as a reserve in the SDRs (Special Drawing Rights). Once that happens, that is yet another foundation for the reemergence of Gold as a first-tier Global Currency.
That will also mark the point at which China will disclose how much physical gold it actually has in its massive reserves. We already know that in 2009 the Chinese reported a little over 1,000 tonnes. There is a great deal of speculation about how large Chinese reserves are at the current time. All I can tell you is China will eventually be backing their currency with Gold and that’s when a Major Crisis will be triggered in the West.”