CHINA, RUSSIA, AND THE US DOLLAR
Well folks, what I and others have been warning about - the inevitable backlash from the rest of the world to US-led attempts by the West to create a "unipolar" world - have reached a new pitch it seems, and it is being noticed by others:
What is notable here is something I have mentioned before: Germany, and the recent decision by both Germany and China to conduct their bilateral trade in euros and yuan, and to bypass the dollar completely. This accompanies growing concerns in Germany between members of their government, who are calling not only for an audit of Germany's gold reserves held by the US Federal Reserve System, but in some cases, for actual physical repatriation of their gold to that country. This has led, as I have noted previously, to growing tensions between the agencies responsible for accounting German government transactions, and the Bundesbank itself.
But note here the key point the article makes: if you expect the end to the dollar's reserve currency status, what do you do? You hoard gold, and, as the article notes, this is what Russia and China - and particularly China - have been doing. China, as I and regular readers on this site have been tracking, has been buying gold bullion at an enormous rate.
However, there's a problem, and I spoke to it in my last News and Views From the Nefarium: just how much gold is there, really? This is an answer that no one - at least as far as I can tell - seems to know. And as I have suggested in my numerous articles and videos on this site, the whole Bearer Bonds scandals suggest or imply something very significant: (1) one does not counterfeit what does not exist, and (2) this in turn suggests much more bullion exists than is publicly or officially acknowledged.
And if that be the case, the the strategy of hoarding may backfire, for if a large amount were suddenly released on the market, the price, of course, would fall...
The response to this, of course, is unthinkable...
See you on the flip side...
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