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... the price is being suppressed until China gets the gold that they need. Once China gets the right amount of gold, then you can take the cap off. If it doesn’t matter where gold is because all the countries will be in the same boat. But, right now, they’re not, so Chinese has this catch-up.
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... out of goodness of their hearts ...
China is the biggest foreign holder of US debt and they have bailed out parts of Southern Europe. That's why the West owes to them. It's a quid pro quo, no altruism involved. A high gold price is not in the interest of Western central banks and their shareholders (the tbtfb) either. Surging gold is a sign of crisis and dollar weakness. They don't want that.As much as I admire Rickards, it kind of doesn't make sense- what, everybody is making the coordinated effort, and manipulate prices down, out of goodness of their hearts, to help China catch up? Seriously? And on the other hand, somehow, they couldn't do the same (or equivalent) cooperation, after the balloon goes up, and work with China, for them to have a fair say? Cannot square that circle.
I think that different countries have conflicting interests, and if someone is helping China to suppress gold, the reasons behind it are quite different.
FOFOA said, somewhere along the way, that the Central Banks trust each other much more than we might think(...)
It is also interesting how Rickards now regards gold price manipulation as a foregone conclusion; I remember back in the days of his first "Currency wars" book, he was very reluctant to say anything about price manipulation, and the downward manipulation in particular. He would rather dismiss it, or play it down, back then, if someone asked him about it. He is not a conspiracy theory kind of a guy.
I sincerely doubt that the gold is still there. There may be some gold that's been leased, but it is titled to someone else through their claim.
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The price is being suppressed until China gets the gold that they need. Once China gets the right amount of gold, then the cap on gold’s price can come off. At that point, it doesn’t matter where gold goes because all the major countries will be in the same boat. As of right now, however, they’re not, so China has though to catch-up.
There is statistical, anecdotal and forensic evidence piling up for this. All of it is very clear. I’ve also spoken to members of Congress, the intelligence community, the defense community and very senior people at the IMF about it.
China is our largest trading partner. It’s the second largest economy in the world. The US would like to maintain the dollar standard.
I’ve described some catastrophic scenarios where the world switches to SDRs or goes to a gold scenario, but at least for the time being, the US would like to maintain a dollar standard. Meanwhile, China feels extremely vulnerable to the dollar. If we devalue the dollar, that’s an enormous loss to them.
That’s why, behind the scenes, the U.S. needs to keep China happy. One way to do that is to let China get the gold. That way, China feels comfortable.
If China has all paper and no gold, and we inflate the paper, they lose. But if they have a mix of paper and gold, and we inflate the paper, they’ll make it up on the gold. So they have to get to that hedged position.
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The evidence is there. China is saying, in effect, “We’re not comfortable holding all these dollars unless we can have gold. But if we are transparent about the gold acquisition, the price will go up too quickly. So we need the western powers to keep the lid on the price and help us get the gold, until we reach a hedged position. At that point, maybe we’ll still have a stable dollar.”
The point is that is that there is so much instability in the system with derivatives and leverage that we’re not going to get from here to there. We’re not going to have a happy ending. The system’s going to collapse before we get from here to there. At that point, it’s going to be a mad scramble to get gold.
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