China to launch gold backed currnecy?

[Sheikh_yer_Bu'Tay]

I read this article on Before It's News.com. You have to take their stuff with a grain of salt because they publish lots of things in the "gossip tabloid realm" category. Sometimes, however, they "scoop" the competition with real news!

I tried to run down the veracity of this story and very quickly found myself in a feed back loop. The "source" is a prophesy newsletter, maybe? The theme of this story pops up often now. Take it for what it is.

http://beforeitsnews.com/alternative/20 ... 51114.html

[TwoPenniesEarned]

At some point China will back the Yuan with Gold, but not before converting as many USD's as they can for real assets. Read up on the "Special Economic Zones" they want to set up in Idaho etc.. Basically they want to trade their USD bond holdings for equity in America, things like farmland and ports. The recent transfer of ownership of the Panama Canal to them is an example of this in action.

If China were to announce gold backing too soon, it would hurt them economically. Read Jim Rickards' "Currency Wars" for a good primer.

Gerald Celente forecasts that the system will formally break down when one of the big five economies breaks rank with the others and starts printing money to buy gold instead of printing money to buy debt from each other. This makes sense to me. With the UK, US, Japan, and Eurozone all printing like there's no tomorrow, and China printing in lockstep with the US in order to maintain the peg and to buy all those USD's from their exporters and convert them back to Yuan, that means that all five of the major currencies are printing like there's no tomorrow. It in turn stands to reason that these five nations expect Russia, India, Brazil and a bunch of Banana Republics to somehow manage to buy all of their economic exports. Which obviously doesn't work.

As soon as one of these countries prints money to buy gold, the game is up.

[Hawkeye]

I wish I could print money to buy gold. Hmmm...

It's a sad position to be in when you know that your entire economic system is dependent on the whims of other nations. But, as it says in the Bible, "the borrower is servant to the lender." Too bad our idiot politicians don't understand that.

[neilgin1]

I read this article on Before It's News.com. You have to take their stuff with a grain of salt because they publish lots of things in the "gossip tabloid realm" category. Sometimes, however, they "scoop" the competition with real news!

I tried to run down the veracity of this story and very quickly found myself in a feed back loop. The "source" is a prophesy newsletter, maybe? The theme of this story pops up often now. Take it for what it is.

http://beforeitsnews.com/alternative/20 ... 51114.html

You know Sheikh, when i read the header to this post, the first thing that came to my mind was Khaddafi.

"what?!....what the heck you talking about neil?"

lemme explain, remember how it seemed that Khadaffi suddenly seemed to turn into a model citizen?...he renounces terrorism, gives up all his nuclear goodies, made the Lockerbie victims families whole, etc etc etc.

But then he made the fatal error. he proposed a gold backed African "dinar"....some time goes by, and then all of a sudden, seemingly out of nowhere, this WELL equipped, well motivated "rebel force" bent on regime change, appears and we know the rest of that story.

Even among China experts, it is so hard to discern, predict their long term objectives, or moves on the global stage. They are not car crazies like the muslim world, nor are they greedy, myopic and venal like the Russians, whose idea of dynamic capitalism is 'hooray for me and eff you". No, China is a cypher, its a culture, that is thousands of years old, mature sober and disciplined, given to the looking at the long term....patient. and did you ever notice, they dont embrace the idea WE hold so dear, the rugged individualist, the Teddy Roosevelt role model...a "vigorous life".....that, in China, is frowned upon, look what their leadership did to those kids in Tianamen Square. They didnt even bat an eye, when it came down to squashing those kids, mowed them down by the thousands, we'll never know the real death toll that night.

and they didnt bat an eye, when they discerned that MacArthur wanted to park on the Yalu and Tumen rivers, up on their border with Korea. Thanksgiving 1950, and they came by the hundreds of thousands, dealing our boys a mind boggling defeat. It was only by the inner grit of the Marine Corps rifleman, led by great men like General Smith and Chesty Puller, that allowed the 1st MarDiv to get out of that hellhole. One of my personal heroes was the theater commander Matt Ridgway, who had to deal with the disaster that MacArthur, in his arrogance, had set in motion. as has been written, "Several historians have credited Ridgway for turning the war around in favor of the UN side. " Ridgway was a giant, a great miltary leader. (http://en.wikipedia.org/wiki/Matt_Ridgeway) i sure hope we have the likes of him currently leading our boys.

If i was an American policy leader, my counsel would be a very determined course, that SHORT of weak kneed apeasement, we MUST avoid armed conflict with the Chinese. Ir would be the greatest of folly to seek armed conflict with them, and believe me, THEY dont want war with us. They don't, so i pray any "China hawks" in our ranks are exposed as the fools they are.

great post Sheikh, thanks for the heads up, neil

[TwoPenniesEarned]

Tibet was invaded by China only after it was visited by a British & US Envoy looking to set up a military base on the plateau. It would have given the west air superiority over all of China. Tibet will never be free. And neither are the Chinese really prospering. At least not most of them. Mau Tse Tung was funded by US banks while the KMT were provided bullets with no powder in them. The relationship between the big banks and "The Party" runs deep. Ultimately the Chinese ruling class want to double cross the white bankers and the white bankers want to double cross the Chinese ruling class. Opium won't work again though, so they are pretending to play nice and doing things like Shipping GM Volt Factories to China using US Bailout money. The only thing holding the whole thing together is mutual distrust. And all the while the Chinese slaves continue to produce goods bought with worthless dollars by US Debt slaves. The banks think they own the Chinese slaves, and they do own American's houses, or soon will, care of the privately owned Federal Reserve Bank, which is busy buying up everyone's mortgages with money printed from thin air.

Chinas slaves are revolting. There are hundreds of riots every year. The US' turn for riots will come after the IMF is finished with Greece and France, and after the bond market feeds on the Japanese Yen through coordinated short-selling. Then it will be the US' turn, both for its bonds (where the middle class thinks their assets are safe....at their great peril) and for its people, who think their way of life is sustainable. The American dream was sustainable when people were producing wealth and savings, which is the essence of capitalism. Now there is far more takers than producers, from the top down. Dianne Feinstein enters her government career with $1M in net worth, and while earning a $170K/year salary, manages to wratchet her wealth to over $100M. She carries a gun while campaigning to take away yours. She profits from insider trading and supports arming the government buying 7,000 fully automatic weapons for "personal defence" and buying 1,650,000,000 bullets for the Department of Homeland Security, while simultaneously trying to disarm Joe Public by standing on the graves of Children and telling lies. For all of them it's the same. The same hypocrisy. The same fraudulent wealth transfer. They treat themselves like Royalty. And everyone sees the greed and justifies that it is OK for them to do the same. Jon Corzine is a good example. And now the entire infrastructure is rotted out, and the rich, who exempt themselves from taxation by writing their own personal loopholes into the bills that Congress passes and doesn't read, continue to feed off everyone who actually works for a living, using the brainwashed welfare class who earns less than $30K as a voting block to get the job done under the name of "The Collective Good". The welfare class, however, doesn't understand that for every million in taxes taken in, only ten percent comes back out the bottom of a government wealth redistribution system which has been completely eaten out by the inevitable decay that results from complicity to criminality.

It's like watching Atlas Shrugged play out in slow motion. It's terrifying and so very sad. And all the while the police state continues to clamp down on those few people left with assets upon which to feed.

Hoard and hold on. It will get worse before it gets better.

[neilgin1]

Tibet was invaded by China only after it was visited by a British & US Envoy looking to set up a military base on the plateau. It would have given the west air superiority over all of China. Tibet will never be free. And neither are the Chinese really prospering. At least not most of them. Mau Tse Tung was funded by US banks while the KMT were provided bullets with no powder in them. The relationship between the big banks and "The Party" runs deep. Ultimately the Chinese ruling class want to double cross the white bankers and the white bankers want to double cross the Chinese ruling class. Opium won't work again though, so they are pretending to play nice and doing things like Shipping GM Volt Factories to China using US Bailout money. The only thing holding the whole thing together is mutual distrust. And all the while the Chinese slaves continue to produce goods bought with worthless dollars by US Debt slaves. The banks think they own the Chinese slaves, and they do own American's houses, or soon will, care of the privately owned Federal Reserve Bank, which is busy buying up everyone's mortgages with money printed from thin air.

Chinas slaves are revolting. There are hundreds of riots every year. The US' turn for riots will come after the IMF is finished with Greece and France, and after the bond market feeds on the Japanese Yen through coordinated short-selling. Then it will be the US' turn, both for its bonds (where the middle class thinks their assets are safe....at their great peril) and for its people, who think their way of life is sustainable. The American dream was sustainable when people were producing wealth and savings, which is the essence of capitalism. Now there is far more takers than producers, from the top down. Dianne Feinstein enters her government career with $1M in net worth, and while earning a $170K/year salary, manages to wratchet her wealth to over $100M. She carries a gun while campaigning to take away yours. She profits from insider trading and supports arming the government buying 7,000 fully automatic weapons for "personal defence" and buying 1,650,000,000 bullets for the Department of Homeland Security, while simultaneously trying to disarm Joe Public by standing on the graves of Children and telling lies. For all of them it's the same. The same hypocrisy. The same fraudulent wealth transfer. They treat themselves like Royalty. And everyone sees the greed and justifies that it is OK for them to do the same. Jon Corzine is a good example. And now the entire infrastructure is rotted out, and the rich, who exempt themselves from taxation by writing their own personal loopholes into the bills that Congress passes and doesn't read, continue to feed off everyone who actually works for a living, using the brainwashed welfare class who earns less than $30K as a voting block to get the job done under the name of "The Collective Good". The welfare class, however, doesn't understand that for every million in taxes taken in, only ten percent comes back out the bottom of a government wealth redistribution system which has been completely eaten out by the inevitable decay that results from complicity to criminality.

It's like watching Atlas Shrugged play out in slow motion. It's terrifying and so very sad. And all the while the police state continues to clamp down on those few people left with assets upon which to feed.

Hoard and hold on. It will get worse before it gets better.

Two, that was one of the most cogent and powerful posts i've read in a long time, your pen is strong brother.