Saturday, September 03, 2011

China Exposes US Gold Suppression

Perhaps inadvertently China has exposed the Gold Suppression practiced by the US government and Federal Reserve and may go a long way to explaining the increased focus on China's increasing its gold reserves.

According to a recently leaked WikiLeaks Document:

"China increases its gold reserves in order to kill two birds with one stone"

The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao) (04/28): "According to China's National Foreign Exchanges administration China’s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's Function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB."

The only people that do not seem to be aware of this it seems is the mainstream media, or perhaps that is just an induced coma on the subject to assist bolstering the US dollar. Never the less the cat is certainly out of the bag and with a shortage of gold to meet demand, the failing US dollar, mounting debt and an impending QE3, all contributing to the ever increasing demand for gold, the increasing value of solid gold as set against unbacked paper currencies is certain to continue its climb.

China's Exposure of US Gold Suppression just goes to show. Truth will out.

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