LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Jeff Brown (in Beijing): China Confronts Western Thieves Led By Soros


 -- Published: Monday, 15 February 2016 | Print  | Disqus 

By Shadow of Truth, The Daily Coin

In 1979 the European Exchange Rate Mechanism (ERM) – a precursor to the euro – was established. The ERM created a semi-fixed currency exchange rate mechanism among the European members of the system which was anchored to the Deutsche Mark. By 1992, less than two years after England joined the ERM, it was obvious to interested observers that the British pound had become significantly overvalued relative to the Deutsche Mark.

At the time, England had a large current account deficit and was experiencing a nasty recession. Although he British Government was committed to maintaining the BP’s peg to the Deutsche Mark, George Soros, in what became billed as “the trade of the century,” began to accumulate a large bet against the pound. After wasting billions in taxpayer funds trying to support the pound, the British Government eventually capitulated by exiting the ERM and the market forced a nasty revaluation of the pound. Soros ended up netting over a billion dollars in profits. (For the record, it has been speculated with valid source documentation that the Rothschild family was behind Soros’ attack on the British Government/Bank of England).

Let this be a lesson in price-fixing, as the only thing accomplished by the British Government’s endeavor was a massive transfer of wealth from taxpayers to George Soros & Co. and likely even more to the Rothschild family. Price fixing markets always fails eventually.

Fast-forward to the present and we find Soros now attempting to profit from what looks like a methodical, strategic devaluation of the Chinese renminbi (yuan) by the Chinese Government.

But there’s a big difference between England circa 1992 and China 2016. China is running a massive trade surplus, it’s the world’s largest importer/exporter and likely sports the world’s biggest GDP. It’s financial condition is reinforced by $3.3 trillion in foreign currency reserves. It can be argued that China is on the ascent to become the next world superpower.

Perhaps the most interesting “wild card” held by China is its Central Bank hoard of gold. The $3.3 trillion in forex reserves does not include the market value of the China’s State-owned gold. Alasdair Macleod has produced compelling arguments which suggest that China could hold well in excess of 20,000 tonnes of gold, nothwithstanding the current amount to which China publicly admits.

Most analysts who have been observing China for at least over a decade have been wondering how it would be able to unload its massive Treasury holdings, which at one point were around $1.4 trillion. The market turmoil surrounding China’s intermittent currency devaluations has stirred up a flight to safety bid for Treasuries in the global markets into which China has already unloaded a couple hundred billion dollars worth of Treasuries. Is China selling dollars to support its currency or is there a more clever strategy at work?

China likely is not going to wait around to be a bagholder of a trillion dollars in eventually worthless Treasuries. Enter George Soros who announced recently with much bravado that he was betting big against the yuan. The Chinese Government, via the State-owned People’s Daily newspaper issued a frank warning to those who are openly speculating against the yuan. Clear it was a shot across the bow back at Soros.

The Shadow of Truth hosted Jeff Brown (China Rising blog) – who has been living in Beijing for the 5 years and is working on Xi Jinping’s diaries – for an interesting discussion about China’s current affairs as they relate to the attack on its currency by Soros. At the very least there is a lot more going on behind the scenes with China’s moves in the markets than meets the eye and Jeff helps shine a light some of China’s motives.


| Digg This Article
 -- Published: Monday, 15 February 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.