Failed Gold Gamble To Burn Down Western Financial System
With gold and silver consolidating, today acclaimed money manager Stephen Leeb told King World News that the West’s now failed gamble in the gold market will only accelerate the destruction of the Western financial system. Leeb believes that China, which has been the primary driver in the gold market, is positioning itself to become the world’s superpower as the West declines. Here is what Leeb had to say in this powerful interview.
Gold
may consolidate some of the recent gains at these levels, but it’s clear
to me that nothing has changed fundamentally in terms of the big
picture for gold.
With gold and silver consolidating, today acclaimed money manager Stephen Leeb told King World News that the West’s now failed gamble in the gold market will only accelerate the destruction of the Western financial system. Leeb believes that China, which has been the primary driver in the gold market, is positioning itself to become the world’s superpower as the West declines. Here is what Leeb had to say in this powerful interview.
Leeb: “Eric,
you have to like the technical action in gold. At one point gold
dipped below $1,200 and that marked the bottom. Gold reversed that day
and despite pauses, it has been in a steady uptrend since then.
“Europe is attempting to recover. Today we got pretty strong manufacturing data from Europe.
When
you look at China, there is a great deal of negative press right now
regarding China, but they will be a superpower long-term. No country
is going to grow at 10% forever, so certainly there have been some
adjustments taking place in China.
The
slowdown in growth in China was to be expected, but I don’t think it
will be serious in the bigger-picture. The reality is that China will
continue to be avid consumers of commodities. Also, the Chinese are on a
path this year to buy virtually all of the world’s production of gold.
Just the Chinese!
Unlike
India, which has been a major importer of gold for many years and now
has the government trying to clamp down on gold buying at the behest of
the West, the Chinese have been stepping up their gold buying. Gold
trading in Shanghai has taken off.
As a
result, China is accumulating massive amounts of gold. Despite all of
the news that China is in some bubble or free fall, they are still
growing, and more importantly they have dramatically increased their
gold buying. China is also making its financial system more
transparent.
As I
mentioned in an earlier interview, places from Zurich, to Frankfurt, to
London, are all competing to become become hubs of yuan trading. So
China’s currency is already well on its way to becoming more recognized
and utilized in international transactions.
Part
of what the Chinese are looking to gain from this increased transparency
is to eventually move the yuan to the forefront of international
currency trading. The Chinese are not buying up all of the gold the
world produces annually just because the Chinese citizens are
accumulating gold.
They
buying massive amounts of gold because, as I’ve said to you for well
over a year, they are going to back the yuan with gold. The Chinese
want the yuan to eventually become the world’s reserve currency, and the
West is playing right into China’s hands by suppressing the price of
gold so the Chinese can buy enormous amounts of it at highly discounted
prices.
So
the Chinese are planning for the next 5-to-10-years, and at the rate
they are accumulating gold there is going to be no way the West can stop
them from achieving their goal. The West has been too busy mortgaging
our children’s futures, trying to keep a collapsing financial system
together and suppressing the price of gold.
The
West, including involving the Bank for International Settlements (BIS),
has thrown everything it can at gold in a desperate attempt to convince
people around the world that gold is not a currency. It is quite clear
at this point that this desperate gamble by the West has failed
miserably.
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