China Launching Gold Backed Worldwide Currency

[Ares]

China Launching Gold Backed Worldwide Currency - Now the Americans will have to find a reason to go to war against China !!

http://www.indiavision.com/news/images/articles/2012_08/339477/u8_China-Launching-Gold-Backed-Global-Currency.jpg

According to an article, China is recasting all of their gold reserves into small one kilo bars in order to issue a new gold-backed currency. Many say this will disrupt global trade and will eventually cause a collapse of the US dollar.

There can be no doubt that the US dollar will soon be history. China is recasting all of their gold reserves into small one kilo bars in order to issue a new gold backed global currency. This is surely a strategic part of their recent push to sign new trade agreements with Russia, Japan, Chile, Brazil, India, and Iran. The cat is now out of the bag, the US will be given the bums rushby the largest trading nations in the world and the dollar will go down in flames. GATA now estimates that 80% of the gold that investors believe they have in allocated accounts is long gone, the majority of it probably wound up in China.

China is well along an ambitious plan to recast large gold bars into smaller 1-kg bars on a massive scale. A major event is brewing that will disrupt global trade and assuredly the global banking system. The big gold recast project points to the Chinese preparing for a new system of trade settlement. In the process they must be constructing a foundation for a possible new monetary system based in gold that supports the trade payments. Initially used for trade, it will later be used in banking. The USTBond will be shucked aside. Regard the Chinese project as preliminary to a collapse in the debt-based US Dollar system. The Chinese are removing thousands of metric tons of gold bars from London, New York, and Switzerland. They are recasting the bars, no longer to bear weights in ounces, but rather kilograms. The larger Good Delivery bars are being reduced into 1-kg bars and stored in China. It is not clear whether the recast project is being done entirely in China, as some indication has come that Swiss foundries might be involved, since they have so much experience and capacity.

The story of recasting in London is confirmed by my best source. It seems patently clear that the Chinese are preparing for a new system for trade settlement system, to coincide with a new banking reserve system. They might make a sizable portion of the new 1-kg bars available for retail investors and wealthy individuals in China. They will discard the toxic US Treasury Bond basis for banking. Two messages are unmistakable. A grand flipped bird (aka FU) is being given to the Western and British system of pounds and ounces and other queer ton measures. But perhaps something bigger is involved. Maybe a formal investigation of tungsten laced bars is being conducted in hidden manner. In early 2010, the issue of tungsten salted bars became a big story, obviously kept hush hush. The trails emanated from Fort Knox, as in pilferage of its inventory. The pathways extended through Panama in other routes known to the contraband crowd, that perverse trade of white powder known on the street as Horse & Blow, or Boy & Girl.

http://www.indiavision.com/news/article/business/339477/china-launching-gold-backed-worldwide-currency--now-the-americans-will-have-to-find-a-reason-to-go-to-war-against-china-/

[Uncle Salty]

It will be interesting to see how the Chinese will price their gold if in fact it happens. The Euro already marks their gold to market prices every quarter.

Freegold may be upon us soon!

[palani]

Invest in tungsten. Prices should skyrocket with the increased demand.

[singular_me]

cant wait to see how the US and the EU will respond to that... amazing news but Id like to see it confirmed by more outlets

[mamboni]

The article is pure speculation without any corroboration.

[osoab]

What are they taking in exchange for their kilo bars? FRNs?

[Golden]

Does not pass sniffer test.
At best its a global rehypothecation scheme to kick the can down the road.

[Hatha Sunahara]

It makes perfect sense to me. If they have been burned by tungsten 400 oz bars, then the way to determine the extent of how badly they have been burned is to melt it all down and recast it.

I would like to hear some speculation on what happened to the huge stash of gold that the US Army found in the Philippines after WW II. It was called Yamashita's Gold. Here's a link to one version of that story.

http://rense.com/general13/treasure.htm

I can't imagine why so much skepticism about this story in the OP. It's the money that's left after this whole global fiat system self destructs. The Chinese are planning for the post-fiat world.


Hatha

[Uncle Salty]

cant wait to see how the US and the EU will respond to that... amazing news but Id like to see it confirmed by more outlets

The Euro will be fine. It has gold on its balance sheet. The EU will dump the dead weight southern countries and end up as a Nordic/German gold backed currency.

[Golden]

The first country that backs their currency with gold is the loser.

[undgrd]

The first country that backs their currency with gold is the loser.

So, China would lose by dumping all their FRN's for Gold and then ONLY settle in Gold?

I doubt it.

[Half Sense]

Maybe the Chinese will price the gold at 1000 renminbi to the gram. That would make the kilo bars worth 1M renminbi each.

[Neuro]

The article is pure speculation without any corroboration.
Indeed it is, yes China may for good reason (Tungsten) want to remelt their newly purchased bars, but it really doesn't amount to them wanting a gold backed currency. As I remember it trading at their gold exchange is in kilo's. Here in Turkey all gold bars retailed are in grams or kilo's. You can buy 1, 2.5, 5, 10, 20, 50, 100, 250, 500 and 1000 gram bars. I am sure there are a few ounce bars around, but I haven't seen any...

[Ponce]

Is not what China is doing but rather those who will follow China......and there will be many for the green back is kaput.

[Golden]

So, China would lose by dumping all their FRN's for Gold and then ONLY settle in Gold?

I doubt it.

I too doubt that scenario. The idea is to keep the game going.

[madfranks]

I can't imagine why so much skepticism about this story in the OP. It's the money that's left after this whole global fiat system self destructs. The Chinese are planning for the post-fiat world.


Hatha

I totally agree. Who better than the Chinese (who have hundreds of billions invested in T-bills) to see the writing on the wall that the FRN is toast? They are building a gold foundation that will remain once the fiat house of cards has collapsed.

[singular_me]

The Euro will be fine. It has gold on its balance sheet. The EU will dump the dead weight southern countries and end up as a Nordic/German gold backed currency.
I watch max keiser every week and he doesnt seem to agree with such an optimistic outcome. So am I. :(

from what I have read on the net china and india seem have plenty of gold too. It remains to be seen as to whether the US/EU have enough gold to avert a reversal. I dont think the western PTB want EU/US to survive this. They already have decided the shift of power to Asia. IMHO

[Uncle Salty]

I watch max keiser every week and he doesnt seem to agree with such an optimistic outcome. So am I. :(

from what I have read on the net china and india seem have plenty of gold too. It remains to be seen as to whether the US/EU have enough gold to avert a reversal. I dont think the western PTB want EU/US to survive this. They already have decided the shift of power to Asia. IMHO

Germany has enough gold and that is all that matters. They could partner with Russia and the Nordic nations for a gold backed currency that would be a new Euro. The lazy fucks in the South of Europe and the French are toast. No way to avoid that. It will be ugly, but life will go on.

[osoab]

Germany has enough gold and that is all that matters. They could partner with Russia and the Nordic nations for a gold backed currency that would be a new Euro. The lazy fucks in the South of Europe and the French are toast. No way to avoid that. It will be ugly, but life will go on.


Is Germany's gold still held at the NY Fed?

[Golden]

We are post fiat collapse. Recognize Frankenstein lives. Meanwhile China is launching their own space station.

[sirgonzo420]

Germany has enough gold and that is all that matters. They could partner with Russia and the Nordic nations for a gold backed currency that would be a new Euro. The lazy fucks in the South of Europe and the French are toast. No way to avoid that. It will be ugly, but life will go on.


World official gold holding (December 2010)[12] (http://en.wikipedia.org/wiki/Gold_reserve#cite_note-reserve_stat-12)
Rank
Country/Organization
Gold
(tonnes (http://en.wikipedia.org/wiki/Tonne))
Gold's share
of national
forex reserves (http://en.wikipedia.org/wiki/Foreign_exchange_reserves) (%)[12] (http://en.wikipedia.org/wiki/Gold_reserve#cite_note-reserve_stat-12)


-
http://upload.wikimedia.org/wikipedia/commons/thumb/b/b7/Flag_of_Europe.svg/22px-Flag_of_Europe.svg.png (http://en.wikipedia.org/wiki/European_Union) European Union (http://en.wikipedia.org/wiki/European_Union)
15,784.1
N.A.


1
http://upload.wikimedia.org/wikipedia/en/thumb/a/a4/Flag_of_the_United_States.svg/22px-Flag_of_the_United_States.svg.png (http://en.wikipedia.org/wiki/United_States) United States of America (http://en.wikipedia.org/wiki/United_States_of_America)
8,133.5
76.6%


2
http://upload.wikimedia.org/wikipedia/en/thumb/b/ba/Flag_of_Germany.svg/22px-Flag_of_Germany.svg.png (http://en.wikipedia.org/wiki/Germany) Federal Republic of Germany (http://en.wikipedia.org/wiki/Federal_Republic_of_Germany)
3,396.3
73.7%


3
International Monetary Fund (http://en.wikipedia.org/wiki/International_Monetary_Fund)
2,814.0
N.A.


4
http://upload.wikimedia.org/wikipedia/en/thumb/0/03/Flag_of_Italy.svg/22px-Flag_of_Italy.svg.png (http://en.wikipedia.org/wiki/Italy) Italian Republic (http://en.wikipedia.org/wiki/Italian_Republic)
2,451.8
73.4%


5
http://upload.wikimedia.org/wikipedia/en/thumb/c/c3/Flag_of_France.svg/22px-Flag_of_France.svg.png (http://en.wikipedia.org/wiki/France) French Republic (http://en.wikipedia.org/wiki/Banque_de_France)
2,435.4
71.8%


6
http://upload.wikimedia.org/wikipedia/commons/thumb/f/fa/Flag_of_the_People%27s_Republic_of_China.svg/22px-Flag_of_the_People%27s_Republic_of_China.svg.png (http://en.wikipedia.org/wiki/China) People's Republic of China (http://en.wikipedia.org/wiki/People%27s_Bank_of_China)
1,054.1
1.8%


7
http://upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Flag_of_Switzerland.svg/20px-Flag_of_Switzerland.svg.png (http://en.wikipedia.org/wiki/Switzerland) Swiss Confederation (http://en.wikipedia.org/wiki/Swiss_National_Bank)
1,040.1
15.3%


8
http://upload.wikimedia.org/wikipedia/en/thumb/f/f3/Flag_of_Russia.svg/22px-Flag_of_Russia.svg.png (http://en.wikipedia.org/wiki/Russia) Russian Federation (http://en.wikipedia.org/wiki/Bank_of_Russia)
883.2
9.2%


9
http://upload.wikimedia.org/wikipedia/en/thumb/9/9e/Flag_of_Japan.svg/22px-Flag_of_Japan.svg.png (http://en.wikipedia.org/wiki/Japan) Japan (http://en.wikipedia.org/wiki/Bank_of_Japan)
765.2
3.5%


10
http://upload.wikimedia.org/wikipedia/commons/thumb/2/20/Flag_of_the_Netherlands.svg/22px-Flag_of_the_Netherlands.svg.png (http://en.wikipedia.org/wiki/Netherlands) Kingdom of the Netherlands (http://en.wikipedia.org/wiki/De_Nederlandsche_Bank)
612.5
61.9%




I was a bit surprised to find Japan higher on the list than India (11th).

from: http://en.wikipedia.org/wiki/Gold_reserve#Officially_reported_gold_holdings

[singular_me]

Interesting but I still think that European/american PTBs will let both currencies go trash before implementing a gold/silver standard. And many will lose everything. And when gold comes into play, people in the west will be working for chinese wages. So, that will not solve populaces' liquidity problems. The PTB may not decide to use gold/silver to back up all the paper money in circulation after the crash. Something to chew on.

However, like I have said before a gazillion times on here, the Tulip Mania occurred under a strict gold standard and the bust happened anyway.

it is "speculation mindset" the culprit, as long as people want t to bet on their future, by borrowing or investing their nest savings, booms and busts wont go away, ever - never. How many do this right now, speculating on metals, commodities, etc... right, they may win also help the banskters doom the planet 99% . There is no such thing as securing one's future as everything will always happen in the "now". TPTB know this and wait for sound currency advocates around the corner. Buying time with money is the problem.

There is no future, no past... just the eternal present... trust randomness and serendipity.... I know this for a fact. As long as I could travel with a $afety net I felt fine, then savings went down and I panicked. We are very low on cash now and when an obstacle occurs, we surrender to it, stay calm and eventually many solutions surface. When the mind is is caught in this "fear of tomorrow game" we ultimately limit ourselves. The PTB/banksters literally bank on our fears. Money is not evil but speculation.

[DMac]

Is Germany's gold still held at the NY Fed?

Yes. They asked for it back in the 3rd Q 2011 IIRC. They did not publish whether or not they got the gold (all from memory so sorry if wrong).