Failed Gold Gamble To Burn Down Western Financial System

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.

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.

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.

“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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