More Wikileaks are being released and I will once again quote Gold Anti-Trust Committee. Gold is at new record highs $1909.70 up $35. The Dow Futures are down for tomorrows opening at 283 pts south.
"More news media-monitoring cables from the U.S. Embassy in Beijing to the State Department in Washington show that both China's government and the nation's financial press, tightly controlled by the government, consider gold to be the main weapon in a world currency war that is under way.
The additional cables, published a few days ago by Wikileaks and located by GATA's Irish friend R.M., disclose that China thinks that the United States is trying to prevent China's foreign exchange surplus from being converted into gold because the U.S. and its European allies plan a return to a gold standard that will favor them because they hold most of the world's gold reserves.
China itself has acknowledged that it is rapidly building its own gold reserves to facilitate international use of its currency, the renminbi. (China's currency)
The citation of the gold-related commentaries by the U.S. embassy cables suggests that China's acquisition of gold is of great concern to the U.S. government as well."
"This time the quick change of the U.S. policy (toward China) has surprised quite a few people. The U.S. has almost used all deterring means, besides military means, against China. China must be clear on discovering what the U.S. goals are behind its tough stances against China. In fact, a fierce competition between the currencies of big countries has just started. A crucial move for the U.S. is to shift its crisis to other countries -- by coercing China to buy U.S. treasury bonds with foreign exchange reserves and doing everything possible to prevent China's foreign reserve from buying gold. The nature of such behavior is a rogue lawyer's behavior of 'ripping off both sides': taking advantage of cross-strait divergences, blackmailing the Taiwan people's wealth by selling arms to Taiwan, and meanwhile coercing China to buy U.S. treasury bonds with foreign exchange reserves and extorting wealth from the mainland's people. If we [China] use all of our foreign exchange reserves to buy U.S. Treasury bonds, then when someday the U.S. Federal Reserve suddenly announces that the original 10 old U.S. dollars are now worth only one new U.S. dollar and the new U.S. dollar is pegged to the gold, we will be dumbfounded. Today when the United States is determined to beggar thy neighbor, shifting its crisis to China, the Chinese must be very clear what the key to victory is. It is by no means to use new foreign exchange reserves to buy U.S. Treasury bonds. The issues of Taiwan, Tibet, Xinjiang, trade, and so on are all false tricks, while forcing China to buy U.S. bonds is the U.S.'s real intention." (gata.org, 9-5-2011)
In my studies regarding the fall of the Ming Dynasty and the beginning of the Qing (Ch'ing) Dynasty which was the rule of a foreign power, the Manchu, there were 5 key things that contributed to the decline:
1. The cost of defending Korea against Japan.
2. China paid large amounts of money to the Mongols to keep them from attacking (again).
3. The expense of Grand Construction Projects to repel Japan. (The Great Wall is really many Great Walls not just one)
4. The Ming Dynasty was dependent on International commercial trade. It traded porcelain and silk for silver. When the silver dried up so did China's money.
5. China had no monetary reserves to fall back on causing a severe financial crisis that undermined their defense.
Can similarities be drawn from the decline and fall of a great empire and our own empire of today? Are we making the same mistakes today that have caused failures in the past? Is China wiser today because of its history? Read the article above from GATA and make your own conclusions. Go to GATA and read more. http://www.gata.org
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