Is This The Big One? China Finally Admitting They Are Launching A Gold Backed Currency For World Trade?!?!?

They are getting the Land here in the US and the Ports that's the chatter I heard, the chinese have been here looking around at their new assets but they need us disarmed to collect

Feds grant eminent domain as collateral to China for US debts.

060
February 26, 2009
FEDS GRANT EMINENT DOMAIN AS COLLATERAL TO CHINA FOR U.S. DEBTS!
Beijing, China -- Sources at the United States Embassy in Beijing China have just CONFIRMED to me that the United States of America has tendered to China a written agreement which grants to the People's Republic of China, an option to exercise Eminent Domain within the USA, as collateral for China's continued purchase of US Treasury Notes and existing US Currency reserves!

The written agreement was brought to Beijing by Secretary of State Hillary Clinton and was formalized and agreed-to during her recent trip to China.

[link to www.liveleak.com]

Unless...........


The U.S. is still the largest (on paper at least) holder of Gold Bullion. It may just force the U.S. to go back to the gold standard in order to compete (dominate). There is still the item of no official accounting of our gold supply.
But, as long as we can say that we have more gold backing our dollar than anyone else, we still remain the fiat currency of the world.

This brings up a whole plethora of questions about what happens next in PM markets, stock market, and the economy.

I'm not smart enough to know how the shock waves would affect everyting, but, people should start thinking about what the net effect(s) will be, because that is the first response the U.S. will make.
[/quote

The U.S. Has no gold

The source of this information is Jim Willie, and though an admitted doomer, he is still a respected source of economic information. The timing of this information also coincides with Jim Sinclair's recent announcement that gold and silver are set for a moonshot after "this last takedown" by Central Banks ends.

Combine the information that China is now admitting they are launching a gold backed currency for world trade, with upcoming Basel III regs, and many other economic pitfalls, such as the fiscal cliff and debt ceiling negotiations, all pointing to this Spring as a date of severe stress on the dollar.

Right now everything is pointing at a window of March thru June, however that could be pushed back, depending on circumstances and Central Bank intervention. People around here know that I have a gloomy outlook on future economic conditions, but I don't do a lot of prognostication because there are so many measures they can do to intervene if the timing of a collapse isn't on their schedule, but that said... Keep a close eye on the proposed circulation date for China's gold backed currency! You won't have a lot of time after that...

The admission by China is however one of the signals I was waiting for...Keep your shit screwed tight this Spring, it could get Western around here...

The typical human reaction to any infection, vermin, danger, or toxicity is to stand back, to isolate the agent, to trap it, to prevent its further spread or release, then to remove it in a safe secure way if possible using trained professionals. Eventually decisions must be made on the level of acceptable risk on the removal, like what is willing to be lost or damaged or killed in the process. Risk analysis, cost trade-offs, and minimization decisions must be evaluated and executed. The toxic agent in global trade, global banking, and global bond market is the USDollar. In 2009, the Jackass began making a certain firm point. Those nations that depart from the entire USDollar system early will be the leading nations in the next chapter, with stronger foundations, richer solvency, emerging economies, healthier financial markets, efficient credit engines, growing wealth, stronger political helm activity, and better functioning systems generally. Imagine a contaminated blood system that infects, corrupts, and destroys all interior organs from the spread of the toxin. Those nations that stick with the crumbling USDollar system stubbornly will find a horrible fate with devastating effects, rampant economic damage, broken financial markets, sputtering credit engines, tremendous loss of wealth, wrecked supply lines, poverty spreading like wildfire, ruined political structures, social disorder, isolation from the rest of the world, and a fast ticket to the Third World. That is EXACTLY what is happening in the last several months. A division has begun, as the East has been busily installing the next generation platforms, as related to trade, banking, and commercial integration...

[link to news.goldseek.com]

Wont work. You cannot store infinite labour surplus value in a finite value store. Capitalism (the globalisation of capital) is marked by the rise of fiat currencies whereas mercantilsm (parochial trade) utilised this particular form of value store due to its rudimentary capital exchange mechanisms. The Chinese like all exporters are dependant on capital as are all the world's nations.

The Chinese leadership know this having read Marx's Capital and are either setting up goldbugs for a major rip off or someone has their wires crossed.

In that scenario you would need to trade the gold for something other than dollars, since dollars would have no significant value. If an ounce of gold is worth 1600 dollars or 10,000 yuan one day, it might be worth 160,000 dollars the next day but only 8,000 yuan. In effect, the gold could lose value as it cannot be recovered in dollar amounts.

Back when people were using Rubles for wallpaper, nobody cared how many Rubles anything was worth. You had to trade for the new currency, or for some other currency, in which case your gold was worth about the same if not less than it was the week before.

Buy irrigation! To hell with gold.

Well, water will be the MOST valuable commodity, followed by food, and then weapons and then ammo. Hard to argue that.

If china does that before their currency goes down the toilet like the ar they will become leagues ahead of everyone.