Shanghai Shock April 2016: Yuan Based Gold Standard.

A repeat of a similar article I posted earlier, but with some different, interesting information. When I look at this article and the one from Eric Zuesse about the West’s preparations for nuclear war,  I see that there is definitely a disconnect with reality going on. I think Obama/D.C. is making a huge effort to frighten us. Other articles tell me there is no way they will ever get to war in 2017. What do you think? ~J

http://politicalvelcraft.org/2016/02/01/shanghai-shock-april-2016-yuan-based-gold-standard/

Switzerland plays a key role in the gold market because it is home to many big gold refiners, so its report confirms what we’ve been saying about gold’s move out of the West to the strong hands of the East. Swiss report showed an incredible 80 percent of gold shipments went to Asia.

  1. Bloomberg states that “there’s no evidence” that China seeks to adopt a traditional gold standard. 6/5/2015
  2. China is warning foreign banks that they must participate in Yuan-based gold price fixing. The first-ever Chinese benchmark is set to launch in April of this year. 1/5/2016

If China were to partially back its yuan with gold it would require a gold price of $64,000 per ounce, 50 times gold bullion’s price today, according to a recent article from respected Bloomberg Intelligence.

China has been quietly accumulating a significant amount of gold bullion in recent years. They are now the top producer and top consumer of gold in the world. They are believed to keep all of their domestic production, plus import significant amounts from other nations. In addition, they have been buying up gold mines around the globe at steep discounts and bringing home gold they had stored in London, New York and Switzerland.

After accumulating all of this gold, along with their close ally Russia, many believe they will eventually break the metal free from the price manipulation undertaken by the banks/governments in the United States and United Kingdom. Once price discovery moves from West to East, they will allow the price to float to free-market levels and the value of all the gold they have been accumulating will skyrocket.

Removing the gold price suppression will be accompanied by wholesale dumping of U.S. treasury bonds and test the world’s faith in the US dollar debt-based fiat currency system.

This will give China, Russia and others a greater influence in world financial markets and better stability in their currencies. It may give them a considerable strategic advantage over the United States, a nation that many believe no longer has the gold that they claim. Indeed, with a lack of a comprehensive audit and unwillingness of officials to allow one, many believe the gold is no longer in Fort Knox.

Now we move to the really interesting part of this story. Not only has China been accumulating huge amounts of gold (on and off record), but they also launched their own international gold trading platform on the SGE. It has become the largest physical gold exchange in the world, with an estimated 52 times more physical gold withdrawals versus the predominantly paper exchange of the COMEX.

 

Nixon announces the end of gold convertability

  1. NWO Parasite Regime vs Silver The Achilles Heel
  2. The Comex aka; Crimex Is One Big Lie: Precious Metals
  3. Russia And China Underway In Pricing Of Precious Metals: End Of The COMEX And London Mafia Markets.
  4. Banking Cartel Struck Again On Friday September 21, 2012: They Sold 62.5 Million Ounces Of FAKE Paper Silver To The Comex aka; Auction House! Million Ounces Of FAKE Paper Silver To The Comex aka; Auction House!

Fast forward to the first week of 2016 and China is warning foreign banks that they must participate in Yuan-based gold price fixing or lose their Chinese gold import rights. This first-ever Chinese benchmark is set to launch in April of this year and could be a game-changer for gold prices moving forward.

Reuters reported today that:

China has warned foreign banks it could curb their operations in the world’s biggest bullion market if they refuse to participate in the planned launch of a yuan-denominated benchmark price for the metal, sources said.

The world’s top producer and consumer of gold has been pushing to be a price-setter for bullion as part of a broader drive to boost its influence on global markets.

Derived from a contract to be traded on the state-run Shanghai Gold Exchange, the Chinese benchmark is set to launch in April, potentially denting the relevance of the current global standard, the U.S. dollar-denominated London price.

In a trial run for the fix in April 2015, some foreign banks participated along with many major Chinese banks. Traders at those banks said earlier that while they were interested in the benchmarking process, their legal and compliance teams may be reluctant.

Perhaps a little sensationalized, but Jim Willie recently commented:

The Gold market cannot be fixed by paper gold on a repeated basis, surely not in perpuity. When the Shanghai shock comes, all the Paper Gold structures will fall, all the FOREX derivatives will collapse, all the control rooms will go into panic mode.

The Shanghai shock is not likely to materialize all at once and cause an immediate collapse of the dollar, the COMEX or our fiat monetary system. However, it is another nail in the proverbial coffin and significantly increases the odds of more honest price discovery in precious metals as it moves from West to East.

The red line in the chart below shows Asian gold reserves as a percentage of total gold reserves. The percentage has been rising steadily for decades, but the pace of the increase has picked up significantly since the 2008/09 financial crisis.

If you believe that the gold price has been suppressed in order to maintain faith in fiat money and allow governments to continue deficit spending to secure their power, it is logical to conclude that gold prices may rise sharply as the disconnect between paper and physical pricing intensifies.

And it would make sense for China, Russia and other BRICS nations to push for such a transition, as it would diminish the dominance of the United States in global trade and finance, leveling the playing field.

In any event, it will be an interesting development to watch during 2016. I believe it could be another catalyst in a long list that could cause a spike in gold and silver prices.

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10 Responses to Shanghai Shock April 2016: Yuan Based Gold Standard.

  1. lecox says:

    I don’t totally understand this fixation on gold. It IS a very nice metal. It stores well, has a lot of interesting uses, and is apparently a bit scarce on Earth. But using it as a pricing standard seems odd to me. What if we suddenly found a very important use for it here? Its value would skyrocket, leaving all currencies – where?
    What I do know about gold is that China used to have a LOT of it. I mean huge amounts. And then someone sent the Japanese in to steal it. And reportedly, they did. There were other schemes to obtain it, too. And now, China is is taking it back. That’s all I see. They’re just buying it back. For me, that’s the end of the story. I don’t understand all this added significance. It doesn’t really seem that important to me.
    The big question with wealth in any form – and that includes human life – is whether someone will try to steal it all and hoard it, or act to make it broadly available and shared. Will we suffer from the scarcities fostered by the criminal mind, or enjoy the abundances produces by real sanity?
    For me the question is, how do the relatively sane get saner to the point where they can take this game called “Earth” away from the totally insane? That’s what I’m most uneasy about, because I’m not doing that well at this myself.

    • Jean says:

      I think in the past on another planet (?) gold was used in the same way chemtrails are being used today. We were created as slaves to mine it. Others suggest our gold has disappeared in order to pay tribute off planet. While this may have been true in the past, I’ve also read that those on this planet have been cut off from their leaders on other planets. I don’t know if any of this is true. The huge funeral of Mandela in South Africa had a lot to do with paying tribute (don’t remember in what way) to Marduk. You see, Mandela was a member of the Knights of Malta, an Illuminati organization. As someone said about his elevation to the Presidency – how would he ever get there without the blessing of the Illuminati?

      Just something to think about . . .

      Hugs,
      ~Jean

      • jujubeansite says:

        Yes Jean, I agree with you. It seems that in the past gold was consumed internally but also used technologically. Apparently it builds up in the pineal gland and does some interesting work there. I guess it had its drawbacks but the mining never stopped. I believe the news that tells me that the Chinese are stockpiling gold. I believe that the Chinese are in trouble with their workers because they are not shipping goods and therefore money isn’t coming in to pay workers while they refuse to accept payment for any goods in US dollars. I believe that the US government at some point about 10 years ago signed over the state of California in case we ever defaulted on all the loans they’ve given us and since that is now a foregone conclusion, the Money Power cabal is busy desertifying and destroying California so the Chinese won’t get much, hence the droughts, gas leaks, you name. I do NOT think they planned Fukushima, they were double-crossed by the Israelis and not the first time. We cannot give up our guns, permit depression testing, or give in to vaccinations. This will get uglier because the Money Power Cabal will try to take us as many of us with them when they go down, and that might include the whole planet. From the Off-World perspective, it seems that the evil ones were planning to damage the planet and leave, but they have been stranded here and cannot escape.

        • Jean says:

          It looks like you are our go-to person for this sort of info. Thanks so much and hugs, ~Jean

          • enki says:

            Does this mean the “cabal” were fraudulently duped into STEALING all the gold on Earth.
            The STOLEN GOLD was then handed to “off-worlders” as payment for travel to another realm ?

            Tsk tsk tsk….they have been stitched up like kippers ?

            There are indications RAT-child & Co: plan to retain….. OTHER…. STOLEN LOOT regardless of the extortion used to acquire it.

            http://www.geopolitics.co/2016/02/05/the-articles-of-agreement-that-should-boil-everyones-blood/

            The IMF has made a grandiose and worthless/UNLAWFUL announcement declaring themsELVES immune from all jurisdictions ?

            I believe under Common Law if ones STUFF has been STOLEN and the thief fails to respond to requests for its return, the victim can take steps to effect a personal recovery.
            I understand, the victim can visit the home of the thief, regardless of whether anyone is home, and simply take back the goods

      • lecox says:

        Yes, I’ve heard these stories. They are something to think about.

  2. Reblogged this on UZA – people's courts, forums, & tribunals and commented:
    That gold that China fetched from London and Switzerland was the gold stolen by the Anglo-Saxons from South Africa; 1 000s of tons; luckily it has a signature; they are going to have to cough up; in peace

    • enki says:

      UZA

      “…..the gold stolen by the Anglo-Saxons from South Africa……”

      Anglo-Saxons or….. a$hkeNAZI ……suffering an extreme case of….. IDENTITY THEFT……and POSING as …ANGLOs ? ?

      The British Isles has been under the…. UNLAWFUL….. foot of the ILLEGAL ALIEN khazars for more than 750 years.

      ILLEGAL ALIEN……..the khazars were evicted in 1290 under the ‘Edict of Expulsion’.
      EVERYTHING the khazars have done in, and FROM the British Isles since 1290 is, and WAS UNLAWFUL.

      http://www.ynet news.com/articles/0,7340,L-3302296,00.html

      I beLIEve the South African diamond mines are “OWNED” by Oppenheimer ?
      Oppenheimer is not British, my understanding is the family are khazars.

  3. TONY LANE says:

    yes jean, there is a big problem here, At times you think that people are giving way to this insanity that is perpetrated by these creatures like Ashton carter and John Macain who are not the brightest stars on the horizon, but people are beginning to buy into these fantasy movies that are being made about the Russians attacking the smaller countries around them like Latvia, and there is a lot of money being spent on these movies, and who knows if you make enough of them maybe the message will get through, like many years ago maybe 50 or more young apprentices were educated in the hairdressing trade when wages were poor, and there very Lively hood depended on the amount of tips that they made, so many of these young boys were taught by the elder statesmen in the trade, is to try to remember the three B’S, that is why a barber is like a politician he uses the three B’s all the time, it means quite literally means Bullshit Baffles Brains, and this is absolutely true, because Some time’s the joke afterwards, is you may get a lousy haircut but you got a good line of patter. so what I think that we need to do is for all of us to be Whistle Blowers, because although most of it we already knew , and it only came about because someone else highlighted it, so we should do the same there are plenty of stories out there that if spoken about enough will soon embarrass them, so what I am really saying is, fight them with their own weapon’s.

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