This is China’s secret “financial weapon.” The launch date is closer than you think.
From Matt Badiali, editor, The S&A Resource Report:
China could shock the world this spring…
Of course, the communist government is extremely secretive. But all the evidence I have indicates that they are planning to unveil a massive secret. And this secret could reshape the world’s financial system.
I believe the unveiling will come on or around April 24, 2014… but it’s been in the works for a long time…
• In the early 1990s, the Chinese government began quietly laying the groundwork for their new financial weapon, making a series of dramatic changes to their financial system. The moves were announced in China’s official newspaper, but were barely noticed in the West. I reviewed hundreds of articles, and the only mention was a 148-word item published in the Wall Street Journal on October 1st, 1993.
• In 2000, they made its development official as part of China’s “five-year plan,” the country’s most important policy document. China’s Central Television (CCTV) called it a “pivotal year” and the financial industry hailed the acceleration of the weapon program.
A top private-sector official with close ties to the government program called the developments from 2000 to 2008 “staggering.”
Then came the biggest announcement…
• In April 2009, Chinese officials shocked the world with their announcement of the advancement of this new type of financial weapon, which had essentially doubled its capabilities in six years, taking its place as one of the most powerful weapons of its kind in the world.
• In 2011, the People’s Daily – an official propaganda mouthpiece for the communist government – reported plans for the program to accelerate even further.
• In January 2013, a senior Chinese official was quoted by Bloomberg as saying the already powerful financial weapon was “too small” and should be built up further.
• In October 2013, the Chinese government made its most shocking statement yet. The government used an editorial in its state-run news agency, Xinhua, to call for a “de-Americanized world” – a barely concealed message about its intent to use this new and radical weapon against the United States.
This secret… the amount of gold in China’s coffers, will hit the world like a bomb.
The announcement would be five years after China last revealed the status of this ignored part of its financial system. And these five-year cycles have major significance in China.
Every major Chinese policy is laid out in a series of “five-year” plans.
The date also comes shortly after the Chinese New Year, when the five-year plans are approved, and at an important time for world markets – as “first quarter” news is still streaming in.
China’s National People’s Congress also operates on a five-year cycle, with major meetings – called “plenums” – each year.
As Business Insider reports, “The First Plenum introduces the new leadership, the Second Plenum tends to be personnel- and Party construction-focused, while the third one is usually seen as the first plenary session at which the new leadership has basically consolidated power and can introduce a broader economic and political blueprint.”
That “third plenum” just took place in November. And the big message was economic reform – opening up China’s markets, and popping a possible Chinese housing bubble.
CNBC reports that when millions of Chinese soon shift from real estate to gold, it could send gold prices much higher.
The announcement of China’s new gold hoard will send shockwaves through the financial markets, and make China and the Chinese yuan (their national currency) even bigger players at the international table.
International banking expert James Rickards compared it to a game of Texas Hold ‘Em poker:
“You want a big pile of chips. The U.S. has a big pile of chips, Europe has a big pile of chips. The U.S. has 8,000 tons [metric tons] of gold, 17 members of the euro system have 10,000 tonnes. China at 1,000 tons is not a player, but at 5,000 tons, they are a player.”
We think this move is very likely to happen on or around April 24th this year.
But the truth is, it really doesn’t matter if China makes its big gold announcement BEFORE or AFTER April 24th.
The only thing we as Americans can – and must – do now is to prepare.
Crux note: We’ve long known China and its citizens have been buying up every bit of gold they can get their hands on… And they took advantage of last year’s price weakness to accumulate even more. We’re seeing a massive transfer of wealth and power from West to East.
There’s no doubt China is nervous about the United States’ unsustainable debt load… After all, China holds nearly $4 trillion in reserves. And 60% of that is in U.S. Treasurys. But China can’t simply dump its Treasurys… It would hurt them as much as it would hurt us.
That’s why the country is vacuuming up the world’s gold… We believe they have a secret plan behind their actions (something the Chinese government would never admit). Matt recently explained what he thinks the Chinese are preparing to do with all this gold in a special presentation. Click here to learn more…
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