Tuesday, April 19, 2016

Koos Jansen: 
China Is Embracing Gold In Advance
Of The Post U.S.$ Era
BullionStar's Koos Jansen sees China as having a potent gold strategy in its effort to challenge U.S.$ hegemony & increase its power in global finance .. he quotes the Governor of the PBOC Zhou Xiaochuan - "The outbreak of the crisis and its spillover to the entire world reflect the inherent vulnerabilities and systemic risks in the existing international monetary system…. The desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run." .. Jansen sees a shift in the global monetary order, as the world becomes increasingly concerned about the U.S. & its finances .. in this regard, China is positioning itself strategically: "Being the second largest economy of the world but relatively in arrears regarding physical gold reserves, China has a strong motive to surreptitiously work on its gold program until completion. For, if it would be candid in its gold ambitions, the price would significantly run higher3, potentially disturbing financial markets and narrowing its window of opportunity to prepare for the next phase. We must conclude that the State Council views gold as part of the coming international monetary system. Why else does it quickly develop the domestic gold market to be embedded in financial markets, surreptitiously accumulate vast gold reserves and establish a framework to boost gold business on the Eurasian continent? In my view, China contributes significant value to its gold strategy in the shadow of the apparent failure of the current fiat monetary system. And if true, China’s central bank having nearly 4,000 tonnes of gold is well on its way to introduce the next phase."
LINK HERE to the essay

1 comment:

Anonymous said...

Naar ... is the author suggesting that the goods and the services of the USA, which features as producing about 27 per cent of the world's economy can be written off as irrelevant ?

Time for a reality check.