- China Is Getting Ready To Unleash Its Plan For A Gold-Centric Monetary System
One of the smartest policymakers in the world is getting ready to unleash China’s plan for a gold-centric monetary system. This will be a game-changer for the global monetary system and it will also unleash the price of gold.
One Of The World’s Smartest Policymakers
Stephen Leeb: “Zhou Xiaochuan, who has headed the People’s Bank of China for the past 15 years, is one of the world’s smartest policymakers and has been a key figure in the Middle Kingdom’s ascendancy this century. Zhou’s shrewdness and exceptional intellect have been on display during the 19th Communist Party congress now taking place in Beijing…
China’s Plan: A Gold-Centric Monetary System
A couple of days ago, Zhou showed the complexity of Chinese messaging. In a few words he warned his compatriots against complacency while subtly signaling to the West that major currency changes are necessary. As I see it, his remarks, while not saying so explicitly, set the scene for what I’ve long seen as China’s plan for a gold-centric monetary system, with the first step the launching of an Eastern oil benchmark denominated and traded in yuan, backed by gold. As I pointed out in a recent KWN interview, to a large extent the yuan already is backed by gold in that more than 90 percent of trades on the Shanghai Gold Exchange are settled in gold. I also have argued that the intense efforts by Russia and Saudi Arabia to export the most oil to China wasn’t an effort to shut down U.S. oil production from shale. Rather, I saw it as each country furiously competing to have as much of its own oil as possible represented in the forthcoming new Eastern benchmark.