- Man Asked To Speak To Chinese Officials Warns China’s Insatiable Gold Demand Being Fueled By Worries That The Global Financial System May Crash
Today a legend who was recently asked by the Chinese government to give a speech to government officials in China warned King World News that China’s insatiable gold demand is being fueled by fears that the global financial system may crash.
Eric King: “John, you are connected to China at the highest levels of government. I know you have seen several key charts that KWN featured, one of them was the Gold vs Monetary Base Ratio and another was the Fed’s Balance Sheet vs Gold Price. Obviously China is aware of the massive distortions in these ratios and they have responded by buying up all the physical gold they can. They are trading in dollars for gold as fast as possible. What is China’s perspective based on your conversations with high level officials in China?”
John Ing: “China is awash in dollars as a result of the massive money creation. China knows that the Fed’s balance sheet has grown to almost $5 trillion and they also know that the price of gold is radically undervalued when compared to the Fed’s bloated balance sheet. Both the Chinese and the Russians know that the United States can’t pay back its staggering debt without massively debasing its currency, so they have both been huge buyers of gold because a day of reckoning is near.