In this article I want to clarify why Wall Street's suppression of bullion gold and silver prices with derivative strategies, often as a way to let the USD shine, can and is being used by China to prepare for the 2022 gold-backed Chinese digital Renminbi.
Wall Street and decades of gold price manipulation: how Wall Street helps China!
If you are a monetary history student or fan, just like me, then you are well aware that Wall Street is part of an elite financial club that has the monopoly of printing excessive amounts of USD. This printing press has been busy since 1944, and got into hyperdrive when the gold-ratio was abandoned by President Nixon. By suppressing gold, which has historically been money for millennia, these clowns were able to create the illusion that only fiat USD are to be used as money.
The world went on a diet of reserve currency: USD's. One of the countries that 'had' to follow this diet was China, a 1,400,000,000 people nation that has been working to fill the Wallmart stores that feed the US consumer economy since the seventies. In early stages they reinvested their surplus USD into US treasuries, which US politicians loved of course. That was a bad idea, they were in fact working to enrich the US even further. They smartened up and since 2013 the Chinese surplus USD's have been used to develop the 'One Belt, One Road' project: a massive infrastructure project uniting the Eurasian continent.
All this time, decades, the USA maintained low gold prices to create the illusion that the USD was king and it worked pretty well. Gold is like the anti-dollar and gold had to be outcasted. But is this a smart strategy at all? Or is Wall Street stupid? I believe that this strategy is perfect for China because they understand all to well how gold is being suppressed by naked short and paper ETF's. And they are buyers of gold. And guess who is allowing them to accumulate gold at a huge discount? Brother Sam, yep. I mean, you can't make this shit up can you?
So I conclude that low gold prices, as well as silver prices are helping only one nation on the planet: and in this land they speak Chinese. And Wall Street being Wall Street, their arrogance will soon proof to be their downfall. Because when China rotates to inland production instead of global export production, we won't have their products to consume, which will collapse the US economy more than any other western economy. And China can even demand payment in renminbi, why not? It is a free country.
Where is all this going? Well, all the western institutions, created during the Bretton Woods negotiations, which privileged the US dollar to become the global reserve currency, are at stake here. China has the best hand of cards, and they showed their hand; they control global production, can buy cheap gold, which was the only reason that the USD was given the reserve currency status privilege in the first place (USA had most gold in 1944!). In fact, the suppressed gold and silver prices are essential to China' plan. So who is selling who out here?
Disclaimer: This is my opinion and a reflection of my frustrations. Obviously, I am a western liberal democracy citizen.