Is anyone noticing that China is buying up huge amounts of the world’s gold?
In 2010 China has imported 209 metric tons of gold. This is a five hundred percent increase over last year. This does not include the gold that China mines every year, currently China is the number one producer of gold in the world.
With gold and silver prices reaching record levels, this move is seen as a way for China to protect itself against a massive devaluation of the dollar. The World Gold Council estimates that China’s demand for gold could double in ten years.
The United States should be extremely concerned about this. Not only does China hold an enormous amount of U.S. debt, but China is now sand bagging against a devaluation of the dollar. It would seem to some that China may actually be positioning itself to create the chaos that it ia protecting itself from.
There is the real possibility that China could call in some or all of its markers that it holds on the U.S.. What would the U.S. response be to this? Well really, what could the U.S. do? We have allowed ourselves to descend into this situation due to our reckless spending .
I guess that the U.S. could try to sell its debt around the world, but who other than China could afford it? We could print more money, but either of these would have the effect of devaluing the dollar.
The first effect of a devalued dollar would most likely be oil prices soaring out of sight, since oil is traded in dollars. This coupled with other economic backlash would send the world’s economy into a downward spiral. Who would the world turn to? Well there was a time when the U.S. would have been the light of reason and reliability. Those days are gone for now. We have allowed our leaders to position us on the world economic stage as little more than a beggar with a bowl.
So if the dollar does crash, who will be left standing to pick up the pieces? Well it seems as if China is preparing to weather the storm. And let us not forget that the communist model for victory is to divide and conquer. The Chinese have been buying up U.S. debt, this puts us at their beck and call. Now the Chinese are buying up gold, this could allow them to survive a world economic crash. They have been using their new-found wealth to build up their military, this gives them the force to impose their will on anyone who would dare to challenge them.
The U.S. government has been asleep at the wheel for far too long. While we have been focussed on health care plans, the Chinese have been moving the pieces around on the board. And would anyone really be surprised that it is China who is behind N. Korea’s aggression in recent days? It would not be the first time that China had used N. Korea in a proxy war. All the while we are hearing from the Obama administration that they are working with China to end the conflict.
The question must be asked. When it comes to China, is the U.S. blind or stupid?