1882 $10,000 US Gold Certificate_________________________________________________________________________
WikiLeaks drops Bombshell on Gold Market; GATA right again!September 10, 2011
by Dominique de Kevelioc de Bailleul
Though the European financial crisis soap opera moves from Greece and Portugal to, now, Italy and Germany, shifting temporarily away from France, with Belgium’s dirty laundry on deck in case there’s a lull in the action, the WikiLeaks release of a U.S. State Department internal cables on the subject of Beijing’s plan for undermining the U.S. dollar through the gold market even trumps the Israel/Turkey potential gray-swan military conflict brewing in the Mediterranean (could ex-CIA operative Robert Baer be right about an Israeli attack in the region by the fall?).
The leaked State Department U.S. embassy cable – 09BEIJING1134, published by WikiLeaks exposes both the clandestine operations at the Fed/Treasury as well as reveals who’s been sleeping with the enemy.
According to China’s National Foreign Exchanges Administration, China’s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the United States and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi.
And now we all know that Beijing knows of the gold suppression scheme, and that Washington knows that Beijing knows of the scheme. So what does that mean for the gold price?
Wondering why gold at $1,850 is cheap, or why gold at double that price will also be cheap, or, frankly, at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar’s reserve status. Putting that into dollar terms is, therefore, impractical at best and illogical at worst. We have a suspicion that the following cable from the U.S. embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24-karat pool.
So, out of the raft of news coming out from across the globe, the WikiLeaks story trumps them all. And, of course, you won’t see this breaking story run on CNBC.
Click Here to Read More.
THE DOCUMENT: LINK: 09BEIJING1134
US embassy cable - 09BEIJING1134
MEDIA REACTION: U.S.-CHINA-JAPAN RELATIONS, U.S. POLICY, CHINA'S GOLD RESERVES
|Tags:||OPRC KMDR CH PREL ECON|
|Redacted:||This cable was not redacted by Wikileaks.|
VZCZCXYZ0000 RR RUEHWEB DE RUEHBJ #1134 1180823 ZNR UUUUU ZZH R 280823Z APR 09 FM AMEMBASSY BEIJING TO RUEHC/SECSTATE WASHDC 3690 INFO RUEHOO/CHINA POSTS COLLECTIVE RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS BEIJING 001134 DEPARTMENT FOR INR/R/MR, EAP/CM, EAP/PA, EAP/PD, C HQ PACOM FOR PUBLIC DIPLOMACY ADVISOR (J007) SIPDIS E.O. 12958: N/A TAGS: OPRC, KMDR, CH, PREL, ECON SUBJECT: MEDIA REACTION: U.S.-CHINA-JAPAN RELATIONS, U.S. POLICY, CHINA'S GOLD RESERVES -------------------- Editorial Quotes -------------------- 1. U.S.-CHINA-JAPAN RELATIONS "China and Japan should alleviate the U.S. influence in their countries' future development" The official Communist Party international news publication Global Times (Huanqiu Shibao)(04/28): "The Japanese Prime Minister will visit China soon. This brings attention to the development of the bilateral relationship between the two countries. The two countries have both developed independently. China is gradually moving past the 'American conceptual restrictions' that exist in the country, especially after the results of the financial crisis. China's de-Americanization is gaining speed. Japan's de- Japan's de-Americanization is speeding up as well. Japan is likely to discard the U.S. completely and take steps closer to its East Asian neighbor countries. The U.S. should not encourage Japan to develop its military strength. U.S. interference will be an important factor to overcome if China-Japan relations intend to develop maturely. China should change their old thinking that U.S.-China relations are more important than China-Japan relations. In fact, the significance of the China-Japan relationship has also globalized, and is not limited to Asia. China and Japan should seek more breakthroughs in global cooperation. The two countries should contribute more in the development of the world." 2. U.S. POLICY "Obamaism is not yet fully formed" The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): "Obama has just become president. During his first 100 days in office, the concepts of Obamaism have frequently appeared. Obamaism is characterized by the fact that the Obama administration is aware that the U.S. cannot solve so many international issues by itself. It is very different from Bush's cowboy diplomacy. However, Obamaism hasn't fully formed and it is facing challenges. People doubt that Obama will make any breakthroughs in the core strategic interests and values of the U.S. It is doubtful that he will give up the country's long-term pursuit of hegemony. Obama once stated that he would reshape the global leadership of the U.S. This shows that the U.S. does not intend to be an equal partner in international communications. The U.S. also struggles with the variant nature of its policies. One can gain insight from the U.S. Cuba policy. However, people can still be hopeful." 3. CHINA'S GOLD RESERVES "China increases its gold reserves in order to kill two birds with one stone" The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): "According to China's National Foreign Exchanges Administration China 's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB." PICCUTA
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