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- They love the junk —
Smythe, 4:03:57 10/07/16 Fri
Here¡¯s the problem: If you took the lid off of gold, ended the price manipulation and let gold find its level, China would be left in the dust. It wouldn¡¯t have enough gold relative to the other countries, and because the price of gold would be skyrocketing, they could never acquire it fast enough. They could never catch up. All the other countries would be on the bus while the Chinese would be off.
When you have this reset, and when everyone sits down around the table, China¡¯s the second largest economy in the world. They have to be on the bus. That¡¯s why the global effort has been to keep the lid on the price of gold through manipulation. I tell people, if I were running the manipulation, I¡¯d be embarrassed because it¡¯s so obvious at this point.
The price is being suppressed until China gets the gold that they need. Once China gets the right amount of gold, then the cap on gold¡¯s price can come off. At that point, it doesn¡¯t matter where gold goes because all the major countries will be in the same boat. As of right now, however, they¡¯re not, so China has though
[ Edit | View ] - Texas hold ’em — Smythe, 4:00:28 10/07/16 Fri
China¡¯s Hidden Plan to Accumulate Gold
China wants to do what the U.S. has done, which is to remain on a paper currency standard but make that currency important enough in world finance and trade to give China leverage over the behavior of other countries.
The best way to do that is to increase its voting power at the IMF and have the yuan included in the IMF basket for determining the value of the special drawing right. Getting those two things required the approval of the United States because the U.S. has veto power over important changes at the IMF. The U.S. can stand in the way of Chinese ambitions.
China accomplished that last November when the IMF agreed to include the yuan in its basket of currencies. That officially happened just a few days ago, Sept. 30.
The rules of the game also say you need a lot of gold to play, but you don¡¯t recognize the gold or discuss it publicly. Above all, you do not treat gold as money, even though gold has always been money.
The members of the club keep their gold handy just in case, but otherwise, they publicly disparage it and pretend it has no role in the international monetary system. China is expected to do the same. It¡¯s important to note that China will not act in the best interests of gold investors; it will act in the best interests of China.
Right now, China officially does not have enough gold to have a ¡°seat at the table¡± with other world leaders. Think of global politics as a game of Texas Hold¡¯em.
What do want in a poker game? You want a big pile of chips.
Gold serves as political chips on the world¡¯s financial stage. It doesn¡¯t mean that you automatically have a gold standard, but that the gold you have will give you a voice among major national players sitting at the table.http://dailyreckoning.com/chinas-hidden-plan-accumulate-gold-2/