Tuesday, October 18, 2016

China’s Stunning Move To Dominate The World 
& The Real Reason 
Why China Is Buying So Much Gold
Article highlights how exports from China to countries along the Silk Road have exploded this year .. On an unweighted basis, exports to Pakistan, Russia, Poland, Bangladesh, and India increased by over 11%, a remarkable number, especially in a world with barely 3% growth .. "Moreover, barring a massive economic accident, China’s trade with Silk Road countries will amount to more than $1 trillion in 2016, accounting for more than 25 percent of its total trade compared with less than 20% conducted with the U.S. ..  The undeveloped Silk Road encompasses nearly 4.5 billion inhabitants when you include China. By steadily creating land and maritime routes linking those vast populations, China is laying the groundwork for burgeoning trade. Through its policy banks and several dedicated development banks, including the AIIB, China will be front and center in developing infrastructure within this enormous region. According to Oxford Economics, infrastructure spending in the East will amount to over $5 trillion a year. Such spending will hand China a key lever for controlling what are still the building blocks of world growth: commodities, ranging from the very scarce, like heavy rare earths, to ones that are seemingly more plentiful, such as iron ore." .. on gold: "China will then bring gold into the equation, either by backing the yuan directly with gold or by backing the SDR with gold and establishing the SDR as the currency for trading commodities. Or – and this would be the most complicated but perhaps the best solution – gold might become the sixth component of the SDR."
LINK HERE to the article

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