As Western central banks continue their manipulation of the gold price in order to prop up flagging fiat currencies, two of the world’s largest bullion hoarders are fashioning their own gold market which will function outside the dollar system.
This according to American-German historian and researcher F. William Engdahl, quoted in a piece this weekend on Sputnik, a politics and business blog.
On clandestine gold price manipulation by central bankers aimed at preserving the US dollar as the world’s reserve currency, Engdahl states:
The COMEX gold futures market in New York and the Over-the-Counter (OTC) trades cleared through the London Bullion Market Association do set prices which are followed most widely in the world. They are also markets dominated by a handful of huge players, the six London Bullion Market Association gold clearing banks — the corrupt JP MorganChase bank; the scandal-ridden UBS bank of Zurich; The Bank of Nova Scotia — ScotiaMocatta, the world’s oldest bullion bank which began as banker to the British East India Company, the group that ran the China Opium Wars; the scandal-ridden Deutsche Bank; the scandal-ridden Barclays Bank of London; HSBC of London, the house bank of the Mexican drug cartels; and the scandal and fraud-ridden Societe Generale of Paris,” Engdahl narrated.
On how China, Russia and other emerging powers are fed up with the current gold market and are going their own way:
However, “[r]ather than scream and cry ‘fraud’ at the owners of the COMEX/CME or the London Bullion Market Association Big Six clearing banks, these countries are involved in the genial move to create an entirely different gold market, one that not JP MorganChase or HSBC or Deutsche Bank control, but one that China, Russia and others of a like mind control,” Engdahl stressed.
According to Engdahl, China’s new “Silk Road” economic development plan and the $16 billion gold investment fund launched in May, are all part of the plan to increase China’s gold holdings at the expense of the US dollar:
“As China has expressed it, the aim is to enable the Eurasian countries along the Silk Road to increase the gold backing of their currencies. That sounds very much like some clear-thinking and far-sighted governments are thinking of creating a stable group of gold backed currencies that would facilitate orderly trade free from Washington currency wars,” the economic researcher elaborated.
Engdahl names Russia, the world’s third largest gold producer, and South Africa, a major bullion miner and fellow BRICS member to China and Russia, as the two other countries most likely to benefit from the arrangement.
China shocked the gold market a month ago by revealing its official reserves for the first time since 2009. It put to an end to years of speculation and rumours of Beijing quietly buying massive amounts of bullion.
The People’s Bank of China said China’s gold reserves stood at 1,658 tonnes at the end of June, a rise of more than 600 tonnes over the six year period.
On Friday China’s central bank – which is battling credibility issues after its surprise devaluation of the renminbi turned out not to be a “once-off” – updated the figures again saying gold reserves increased 1.1% or 19 tonnes during the month of July to 1,677 tonnes.
7 Comments
kef long
“China’s central bank – which is battling credibility issues after its surprise devaluation of the renminbi ” – Perhaps China should have gone for QE instead .. since the practice must, logically, speaking be credible ….
… or do we just have a daft comment.
Truth-B-Told
As the BRICS accumulate partners in the escape from worthless fiat currencies they will also gain credibility for their “Gold Backed” financial trade. It is time to end the worthless fiat U$ dollar PONZI scheme which has saturated the global economy based on debt and not true production of value. It must also becoming more clear to the casual reader that the present fiat banking system must use illegal methods to maintain the present World Reserve Currency. As the U$ dollar collapses it will be interesting to see the increase in fiat banking Fraud as the new Gold Backed economy finances greater proportions of global trade. I can almost hear the sucking sound as the worthless fiat dollars implode America.
Gene Byrge
Russia, China, come on in, India, Brazil, Middle East Biggies. Leave the fiat currency countries in the economic dust where they belong. You cannot finance socialism with FIAT currency. People want and deserve something REAL.
Gene Byrge
TRUTH-B-TOLD: great comment. Keep talking Some will hear.Let the vested interests retreat!
Wayne Waters
What can anyone believe what these Countries really say? Any new News seem to contradict what had previously been said!
Gene Byrge
First, we agree all politicians and bankers, money purveyors of all stripes are crooks who would steal the gold teeth from a corpse. After subscribing to that truism,it becomes a chess game between the aforesaid crooks. In the old days, these people were hung or beheaded. Today we are very civilized and understand that the reason that they want to amass billions of OUR dollars in THEIR accounts is that their childhoods were difficult. HOGWASH ! So for lack of any true support for punitive measures for the various violators, I am merely hoping that as a diversionary maneuver, some of the contestants will accidentally go back to some version of the gold standard.
And one more thing. Just because someone is a crook DOES NOT mean its OK for others to be crooks also !
Gene Byrge
Thanks to everyone for the exhibited interest. As long as we are involved it is (A BIT) more difficult for the crooks to succeed. Lets see how reality works out.
My support for gold based transactions is based on the fact that it eliminates the ability of Governments to CREATE credit by decree, as in imaginary money/credit.
As in I hit my 2000.00 limit yesterday so now its 10,000.00, BECAUSE I SAY SO.
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REALITY==REALITY==REALITY======== PLEASE