Originally posted by ollncasino
Originally posted by jimmiec
I second the opinion of the Chinese using the ancient book from Sun Tzu on the Art of War. Say one thing, do another.
They have also been buying in large quantities of gold. A gold backed RMB is not a realistic option. There just isn't enough gold in the world to
gold back a reserve currency.
But what are they planning with the gold?
Good question. Seems to me that, thanks to these "currency wars" we have going on, there will eventually be a currency "reset". Plus, they use
fractional reserves of gold to back currency, it's not a one-to-one ratio.
Our Fort Knox is mostly empty. When Germany asked for a bunch of its gold back, they had to give the fed 7 years to give back 150 tons. The obvious
reason is because the fed doesn't have it!
They have to try and get it back anyway they can, hence the current market squeeze on the precious
metals I'm currently seeing.
If they let gold and silver go in a true free market, both would be a great deal higher. But in order to buy what they need, they have to keep the
price down. When they get what they need, they'll stop manipulating the price and it'll shoot up like it's rocket powered. Another reason why the
stock market is kept artificially high right now. High stock market usually entices people to get out of precious metals and into other things.
However, the proof is in the pudding. China and India are buying it up, as much as they can, every day. We are bankrupt in terms of gold. All we
have is oil and natural gas.....hence the aggressive drilling, deeper exploration of existing oil fields, and fracking the hell out of the land.
It's all we've got.