WikiLeaks’ release of a U.S. State Department internal embassy cable on the subject of Beijing’s plan for undermining the U.S. dollar’s reserve status through the gold market clearly exposes both the clandestine operations at the Fed/Treasury as well as reveals who’s been sleeping with the enemy. [Here are the details.] Words: 539
So says Dominique de Kevelioc de Bailleul (www.beaconequityresearch.com) in an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included so as to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
The author goes on to say, in part:
[In addition, you might be interested in reading an article*** by Julian D. W. Phillips (www.GoldForecaster.com) entitled “China Confirms Gold Price Suppression – Part 1” on the subject of China’s interest in accumulating gold and the U.S. and Europe’s interest in suppressing its price.]
In a piece of news that certainly delights GATA, Wikileaks published a cable going back to 2009, the year that European central banks halted their sales of gold. The confidential cable (09BEIJING1134) reads, in part, as follows:
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 [renminbi].”
Now that we all know that Beijing knows of the gold suppression scheme, and that Washington knows that Beijing knows of the scheme, 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 leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar’s reserve status…
We have a suspicion that the 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.
To gain insight into the core issues surrounding gold (and silver) and the reasons why its price must be suppressed by the Fed, GATA’s Web site**offers the explanations as well as provides a treasure trove of information to help you navigate the ongoing collapse of the West’s fiat currencies.
*http://www.beaconequity.com/wikileaks-drops-bombshell-on-gold-market-gata-right-again-2011-09-06/#ixzz1XL2MofPF; **www.gata.org; *** http://news.goldseek.com/GoldForecaster/1315530000.php