Are you still shilling for investments in Chinese gold plated tungsten bars?
Question: Where does China get all those dollars to buy the gold? Answer: From their trillion-dollar trade surplus with the West, and especially the US.
But, shouldn’t those dollars go to the companies and workers that produce the products that are sold for dollars? Not in China.
You see, the CCP exploits cheap Chinese slave labor to make all the products the West buys, and then converts the excess dollars, not into US Treasurys, but into gold.
Once they have sufficient gold reserves, they can offer renminbi backed by gold as a reserve currency for world trade, replacing the dollar, which is only backed by the full faith and credit of the US.
All those people on CNBC and cable channels selling you gold as a secure retirement investment are actually selling you stock in Chinese slave labor.
If Chinese workers were paid wages comparable to Western workers, and if Chinese were not banned from exchanging yuan for dollars in a legitimate foreign exchange market, Chinese exports would increase in cost, and the CCP would no longer be able to steal market share and destroy manufacturing jobs in the US and Europe.
Unfortunately, the West still thinks the CCP wants fair trade deal and low tariffs. The CCP bypasses the nominal tariffs by transshipping goods to other low-tariff countries for shipment to the US and Europe. Their trade surplus is with these countries, part of an illegal scheme to fool Trump’s trade negotiators.
The CCP is a criminal organization that has enslaved its people to suck wealth from the West and build a global empire that will rule the economic world from the shadows.
And nobody here gets it yet.
Merely pointing out facts. The world’s pecking order is changing, drastically. The entire world’s Central Banks are buying Gold in historic amounts, and China has the largest stash, adding up “ reported” and unreported, amounts held by the PLA.
The U.S. is silent on Gold holdings and possible recent purchases. China , our competitor, and Brics are rising and have already established international trade settlement to be in both local currencies and Gold. Unless we can integrate some sort of Gold settlement plan to compete, the USD debt notes ( Treasuries) will collapse....as we are starting to witness.
China’s SGE is building Gold depositories ( five) across the world presumably to facilitate Trade settlements in Gold, redeemable. That will blow away the demand for US debt instruments.
Like it or not, China and Brics are outsmarting the US.