The American empire accumulates debt and bullies the rest of the planet into retaining the petro-dollar as the only source of currency. The Chinese and Russians accumulate gold for when the American Empire crumbles under the weight of the debt and the world abandons the petro-dollar.
The Chinese accumulated 73.7 million ounces of gold in 2014. For the mathematically challenged that is over $88 billion of gold in one year. Guess where it came from? The crumbling western democracies.
Change is in the air. You can feel it. Batten down the hatches. 2015 will be a rocky ride.
Guest Post by Jesse
China Takes 57.6 Tonnes of Gold In the Week Ending December 26th.
2015 will be a very interesting year, with a strong touch of the surreal.
As you know I think in 2016, or perhaps a little earlier, there will be a significant amount of turmoil and a stretching of the social fabric, unless cooler heads prevail. I really don’t see that happening.
The moral hazard is so thick you can cut it with a knife. And nothing succeeds in destroying itself like arrogance.
Are we really doing this gold thing again? It appears to be a perspective that considers gold to be a unified field theory of economics. For obvious reasons that doesn’t work very well, but I suppose you can give points to the gold bugs for trying, but $88 billion dollars is meaningful? In the US, an equivalent sized economy as China nowadays, we spend nearly $20 billion… ON VALENTINES DAY.
And someone wants to pretend that the equivalent of 4+ Valentines Day is some global takeover move by China? Please.
Re: John,
The size of the purchase isn’t relevant since the universe we’re living in is well outside price discovery. In other words, add about five zeroes to that $88 Billion when the shit finally hits the fan. Maybe even more, since PMs will be the ONLY measure of wealth after the meltdown, coming soon to a paradigm near you.