Imagine you were part of the China elite ruling class watching U.S. elections and the ridiculous commercials politicians were running. They’ve seen us handling the CoronaVirus as if it were a PR campaign for how great our Federal Government handles a crisis. (Gov’t never handles a crisis well.)
We all watched rioting and looting in the streets and calls to defund the police. It must seem like insanity to Asians because it seems exactly that way to many Americans too.
As the election winners and losers are announced in America, China has already placed a Trillion Dollar bet that Trump will lose, Trump must lose if China is to thrive again.
Very quietly, China has placed numerous bets on their future. They are betting on Gold returning to the center of a coming monetary system.
- China has quietly become the world’s largest producer of gold.
- China is believed to have accumulated 22,000 tonnes of gold.
- If correct, China has nearly triple the official U.S. gold reserves.
- China wants a yuan-denominated world, not a U.S. Dollar world.
While the Federal Reserve and the Euro Central Bankers are busy fighting the COVID 19 Pandemic with massive waves of newly printed money, China watches and waits. They know inflation is coming— and soon. China is playing defense now by hoarding Gold.
Many people believe the China Gold hoarding has been carefully planned to back the Yuan with Gold. Their long-term plan is to make their currency convertible with other currencies.
Historic Debt Exploding
We watch Washington rushing past $27 Trillion Dollars of National Debt. We see the Federal Reserve printing Trillions of new Dollars in a mad rush to have a printing press replace a free market economy. It won’t work to solve the problem
- You can’t borrow your way out of debt.
- You can’t spend your way out of debt.
- You can’t zero-interest rate your way out of debt.
- You can’t inflate your way out of debt.
What we will do (or have already done) is undermine the world’s confidence in the Dollar and reduce the willingness of anyone to loan us money. The Federal Reserve can put a bandaid on a bleeding economy, but it won’t work for long.
Whether Trump or Biden, Republicans or Democrats control the borrowing and spending— the end result always is the same.
This is exactly the reason why we’re depending on Gold to take us through the monetary transitions we fear lie just ahead. We’re betting on Gold (and Silver) to be very rewarding investments.
We urge you to consider adding precious metals to your portfolio now.