Chinese to Gold Back YUAN?

[Arklatex]

http://kingworldnews.com/kingworldne...cked_Yuan.html

“This is actually a hedge fund named Pacific Group, which is converting 1/3 of its hedge fund assets into physical gold. They have already taken delivery of $35 million worth of gold bars. The head of the fund was quoted by Bloomberg as saying, “In our judgment we are in the early stages of what would likely be the world's largest short squeeze in any instrument.”


I believe the world will see that short squeeze in gold. The Germans have given the U.S. 7 years for a small portion of their gold, which is supposedly stored at the Fed, to be repatriated. But I'm sure that if it starts to look difficult to get it back the Germans will accelerate the process. This will simply add fuel to the massive squeeze which lies in front of us. This will literally cause a feeding frenzy as the gold market explodes higher.

The second thing I want to make KWN readers aware of is the report which was commissioned by the World Gold Council. This is an incredible document, especially coming from the World Gold Council because it's basically saying that the Chinese are going to back their currency with gold. This would, in turn, displace the US dollar and make the Chinese yuan the world's reserve currency.

The Chinese are sitting on piles of dollars right now, and while the US continues its decline, the reality is that all of the fiat currencies are in a race to the bottom. We just saw the Bank of Japan yesterday talk about opening up QE and printing vast sums of money. This will be an attempt to reverse their deflation with inflation. This move by the Japanese is very, very bullish for gold.

But between what is happening with the set up for the coming short squeeze in gold, coupled with the Chinese moving to back the yuan with gold, and the shortages we are seeing in the silver market, the outlook for gold and silver going forward are spectacular. Quite frankly, the gold and silver bulls are going to begin to trample the bears at some point in the near future.”

[heavenlyboy34]

Interesting....Cui bono?

[Seraphim]

The article claims this is a confirmed intention...if so WOW...here comes WW3.

[Arklatex]

http://kingworldnews.com/kingworldne...y_Be_Gone.html

[loveableteddybear]

Wow, China might pull of world domination in the next 50 years if they have half of the world's manufacturing base and the world reserve currency. Being that their gov't doesn't even pretend to govern for the people, they can afford to buy gold with no reprucussions from the populace. Ironically, if their currency becomes the world reserve currency, it will guarantee them prosperity.

[SpreadOfLiberty]

China's current practice is currency devaluation to boost exports.

A gold standard would put that into reverse, and halt China's easy money high.

[Zippyjuan]

China's current practice is currency devaluation to boost exports.

A gold standard would put that into reverse, and halt China's easy money high.

Which would have a very negative impact on their economy since it is still highly export based. I doubt they would want to do that.

[Seraphim]

All savings based economies convert to consuption based at some point.

Capital flows.

Which would have a very negative impact on their economy since it is still highly export based. I doubt they would want to do that.

[KrokHead]

At this rate China will pave the streets of their ghost cities in gold.

[Johnnybags]

So will the price of eggs double before GOLD? In a SHTF scenario you sell GOLD to eat.
Buy a farm.