China, Iran, and Russia - Scrambling to back their currencies with gold?

macedoniaonline.eu...

This article, if it's information and conclusion is true, has just blown the lid off of the current situation in SCO countries.

Have the nations of Russia and China found their way back to basic economics of hard currency and forms of Liassez-faire economics while Europe and the US race to save fiat currency, imperialism, and bureaucracy?

Are the SCO member states buying up gold with their dollars so they can soon ditch the dollar and back their currencies by gold?

I strongly recommend you read the article and come to your own conclusion.

Some of the members are large oil producers and some, like China, are large oil users. Some have very large US dollar surpluses. As well, some are large commodity and gold and silver buyers. In fact, members are in a great part responsible for driving these prices higher. It is debatable, but we believe there is a conscious effort to accumulate gold and silver, dump dollars and to back their currencies with gold.

China and Russia are both large gold producers and for a number of years have been buying up domestic gold and silver production, so that it never reaches the market and does not affect prices. If anything the absence of sales tends to push the markets higher. As a matter of fact Russia and India are visible buyers. Even Iran with its oil surplus recently announced that they had purchased 340 tons of gold. Their recent gold purchases are very significant as affiliate members, which have access to the present and ultimate direction of the group. You might say buying gold has been a protective effort to shield members and close observers from the problems generated by dollar policies. They are accumulating gold, as many have been worldwide, for the past ten years, but particularly over the past few years.

BUMP

Originally posted by Misoir
Are the SCO member states buying up gold with their dollars so they can soon ditch the dollar and back their currencies by gold?

Of course they are. That has always been the goal of SCO. The backstory of the SCO, if properly understood, tells us this:

SCO

When foreign military spending forced the US balance of payments into deficit and drove the United States off gold in 1971, central banks were left without the traditional asset used to settle payments imbalances. The alternative by default was to invest their subsequent payments inflows in US Treasury bonds, as if these still were “as good as gold.” Central banks now hold $4 trillion of these bonds in their international reserves – and these loans have financed most of the US Government’s domestic budget deficits for over three decades now! Given the fact that about half of US Government discretionary spending is for military operations – including more than 750 foreign military bases and increasingly expensive operations in the oil-producing and transporting countries – the international financial system is organized in a way that finances the Pentagon, along with US buyouts of foreign assets expected to yield much more than the Treasury bonds that foreign central banks hold.

The main political issue confronting the world’s central banks is therefore how to avoid adding yet more dollars to their reserves and thereby financing yet further US deficit spending – including military spending on their borders?

SCO members have long been aware of the fact that they, themselves, have financed US military aggression on their own borders. Obviously, they haven't liked this situation and have been working to reverse it. The time draws near now where their goal will be realized.

Their goal:

If China, Russia and their non-aligned allies have their way, the United States will no longer live off the savings of others (in the form of its own recycled dollars) nor have the money for unlimited military expenditures and adventures.

ETA: Good luck on getting ATS awareness of this. I've been harping on it since 2009 to no avail. Seems people are just not interested in the one organization (SCO), in my opinion, that could quite literally bring the US to their knees peacefully (meaning not militarily).

This is going to happen. The only question is when and it looks like it's getting closer by the day.

reply to post by Misoir


Well China did make a rather large purchase of Gold a year or two ago that moved them into second [or third place depending on how you look at it] from the IMF. Leap Frogging over France, Italy and Germany.