Why China's Gold Should Matter To Us
The last time we heard an official number for China’s gold reserves was in April 2009. Back then China held 1,054 tons of gold, which translates to about $45 billion. Today, that number is frightfully higher.
Our American dollar is only valuable as long as it holds its position as the world’s primary reserve currency. Right now, China is dependent on our currency, but with a hefty gold reserve, that could change. Gold trade expert Alasdair Macleod says that “China, by having control of a large amount of gold, has leverage in the financial relationship with the West. Owning gold gives power to China over America.”
Furthermore, out of all the United States’ foreign debt holders, China is the largest. She holds more of our foreign debt than any other nation, and she could potentially cause some serious havoc with that debt. In the event that China formed an alliance with major U.S. Debt holders and then decided to call the debt on the United States, we could not afford it. Theoretically, this "International Economic Alliance or I.E.A." could “foreclose” on us and take ownership of all government properties. But that will never happen, and the reason may scare you.
As I am writing this, the U.S. national debt is $17.9 trillion. If that debt were called, accrued interest not visible in the live debt price would be due immediately. This is much like a mortgage on your home. You know what you owe, but when you call for a pay off balance, the accrued interest is then added to your balance, and it changes daily. Likewise, if the US Government called for a "payoff balance" today, the debt would be closer to $20 trillion. Coincidentally, that number is the total, combined amount of money held in U.S. citizens’ retirement funds: nearly $20 trillion. Or is it a coincidence?
So what does this mean? It means that when the China led I.E.A. (International Economic Alliance) calls the United States to the floor and demands the debt be paid in full, the Treasury Secretary calls the President and says, “Sir, we have a huge problem.” Now, what true, patriotic American would be in favor of letting China and her allies foreclose on the United States of America? That is exactly the point the President will make to convince us that the only option is the following:
I come to you today to tell you that your Federal Government will never back down to intimidation from foreign Economic Terrorists. In order to save America from our evil foreign threat, I, by executive order effective immediately, seize all United States citizens’ domestic retirement assets, foreign accounts, private property, ranches, and farm lands in order to pay our debt and save these United States of America. It is your patriotic duty to freely give the IRS access to your retirement accounts and to do your part for the sake of protecting this great nation from the threat we face. Thanks to the Affordable Care Act, a national database of citizens has been completed. All you will be required to do is to log on and enter your financial account numbers in the appropriate fields. Property deeds will be uploaded from your local tax offices. Farm lands will be Federalized and operated to ensure our agricultural needs are met. Because of steps we have taken in the past, all health care needs will be completely provided for through the federal system. Grocery and gas credits will be issued and deposited directly to your federal photo I.D. Fuel and groceries will, of course, be rationed until we have met the need of all. Federalized grocery hubs as well as federalized hospitals will now provide access for all. The overwhelming burden of health insurance is a thing of the past. Of course every penny will be accounted for and paid back in time. All local law enforcement will be disband, and reserves as well as active soldiers will ensure your safety during this time of transition.
Does this sound like Utopia, wealth re-distribution—or a nightmare?
This threat holds far more weight than mere conspiracy theory. According to several sources, our government is already taking steps to gain control over retirement funds. A Bloomberg article from last year reports that the Consumer Financial Protection Bureau is considering the option of “helping Americans manage…[their] retirement savings.” CFPB director Richard Cordray confirmed that claim, saying, “That’s one of the things we’ve been exploring and are interested in terms of whether and what authority we have.” But this plan would do anything but help Americans. By giving the government access to their retirement funds, citizens would be giving the government freedom to use the money in those accounts as collateral in the national debt situation.
Technically, the CFPB doesn’t have jurisdiction in the area of retirement funds, but there is also nothing to keep them from carrying out with this plan. The Dodd-Frank Act, the act from which the CFPB was born, fails to make any mention of retirement funds, thus indirectly granting this agency the power to do whatever it pleases in regards to our savings.
“That’s what’s so frightening—and unconstitutional—about the CFPB,” Phil Kerpen with Fox News explains. “It has boundless authority to interfere in nearly any consumer financial transaction and product anywhere in the economy, and to do so without any accountability to the American people.”
This isn’t unprecedented. Last September, Jerome R. Corsi of WND reported on the Polish government’s “decision to confiscate half of the nation’s pension funds in an attempt to delay an impending government debt crisis.” Argentina did the same thing in 2008 when it seized its citizens’ pension funds, and just last year, the Mediterranean Island of Cyprus did something similar in seizing a portion of Cypriots’ bank accounts.
Bottom line? Say “NO” to any “help” the government might offer in the managing of your retirement fund.
On a different note, there are, in fact, real solutions to this debt issue, and one of them lies beneath the soil of federal lands. An abundance of oil reserves have yet to be tapped into, because the U.S. government makes it incredibly difficult for companies to get permits granting them access to drill on government-owned property. According to a report by the Congressional Research Service, oil production on federal lands is considerably lower than it is on state and private lands, because of the difficult and lengthy permitting process.
Why is the U.S. government so dead set on keeping its oil reserves untouched? I have two theories. One is that the government is using the oil beneath federal lands as collateral for loans. In other words, the oil beneath our lands doesn’t actually belong to us; it belongs to whoever holds that debt. Has a foreign country purchased our oil reserves? My other theory is that our government is secretly using the oil in those reserves as backing for the trillions of dollars they have been printing.
So what does all of this have to do with gold? I believe that if a Foreign Enemy Economic Alliance forms and decides to call the U.S. debt, gold prices will skyrocket north of $12,000 per ounce. What is there to keep the government from confiscating our gold? It happened once in 1933 when President Franklin D. Roosevelt decided that a gold recall would help stabilize the economy during the Great Depression. Anyone owning monetary gold at the time was ordered to return it to the government in exchange for about $20 in paper money, the current price of gold, under the threat of heavy fines or prison time—or both.
This did two things. It made the United States the richest gold nation in the world, and it started the rare coin business overnight. All of the confiscated coins were melted down into bars and stored in the Federal Reserve, and the U.S. government began the process of moving off the gold standard. Prior to the recall, The U.S. Government would use gold to pay debt held in Europe. Consequently, millions of dollars in gold coins were sent to Europe over the years. These coins, along with a few that were hidden in old, dusty bank vaults and buried on family farms, were spared during the 1933 gold recall. These are the coins that were deemed legal again by the U.S. Congress in 1974. Consequently, the rare coin market exploded. Since that day, many prudent Americans have seen returns on their gold investments exponentially higher than in paper and electronic markets.
So what if the government decides to confiscate gold again? Is there a way to protect your gold from confiscation? Yes, there is. We recommend select solid gold U.S. Government coins struck prior to 1933.
The U.S. Gold Firm has recently acquired multiple, exclusive, complete 11 piece Pre-1933 gold coin sets in a very limited amount, that in our opinion may be the most overlooked and underpriced coins of the decade. Trends on coins are important and this particular set of coins has been undervalued for some time. We foresee tremendous growth potential in this area. As you will see in the attached coin listing these coins are down a staggering 80% lower than their highs in the late 1980’s. You will not find this set anywhere else!
Introducing the complete Classic US Mint Pre-1933 Commemorative Gold Coin Set (Exclusively from US Gold Firm). The set includes the following coins that you will see represented in the insert along with this report.
1. 1903 Louisiana Purchase Jefferson
2. 1903 Louisiana Purchase Mckinley
3. 1904 Lewis & Clark
4. 1905 Lewis & Clark
5. 1915-S Panama Pacific Gold Dollar
6. 1915-S Panama Pacific Quarter Eagle
7. 1916 McKinley
8. 1917 McKinley
9. 1922 Grant with Star
10. 1922 Grant without Star
11. 1926 Sesquicentennial Quarter Eagle
Complete sets are highly desired among gold investors and coin collectors. These coins were minted between the years of 1903 and 1926 just seven years from the recall of 1933, and though they were part of the recall itself, they are considered collectibles today. In 1933, collectible coins were exempt from confiscation, so the collectible aspect of the Pre-33 Classic Commemorative Coin set makes it less likely to be confiscated in the event of another recall.
The possibility of another gold recall should only encourage you to invest in gold.
Gold is one of the best investment decisions you could ever make—especially as we face such economic uncertainty and secrecy within our own government. As stated before, analysts believe China has more gold than she’s admitting to. If China is hoarding gold with the intention of instating the gold standard and overthrowing our American dollar as the primary international currency, we are in big trouble.
Even if you don’t believe China is trying to take over the world’s economy one gold coin at a time, there is no denying that China sees the value in investing in the precious metal. China may have it wrong in a lot of areas, but she’s got it right there. Gold is solid, intrinsically valuable money. “No asset is safe now,” PBOC’s Zhang Jianhua warns. “The only choice to hedge risks is to hold hard currency—gold.” It is no secret that our dollar is not what it used to be. Inflation and monumental amounts of debt are the symptoms of our unstable economy. As proactive Americans, we ought to be doing everything we can to turn it around and prepare for whatever the future holds.
So by all means, buy gold! But be diverse in your gold investments to reduce risk of confiscation.
Consider the upside potential of, perhaps, the most overlooked gold coin series of modern times. The Classic US Mint Pre-1933 Commemorative Gold Coin Set.
There have long been speculations about China and her plan to “take over the world.” Many have their theories about what goes on behind closed doors, but one set of theories may convince you (if you aren’t convinced already) to take the plunge into the world of precious metals investing.
Analysts believe China has accumulated a large reserve of gold with the intention of instating the gold standard and making yuan an international currency. If these speculations are correct and China succeeds in such a plan, the United States dollar could be rendered useless. According to economist Freya Beamish, “The massive flow of gold into the country does make it seem plausible that they [China’s authorities] could be moving in the direction of using gold in the effort to internationalize the currency and escape what is seen as a domineering dollar.”
According to a report by World Gold Council, China became the “world’s number one market for gold” last year. Investors purchased around 438 tons of gold bars and coins and 737 tons of gold jewelry, but those numbers don't add up to the 1,586 tons of gold analysts believe China either mined or imported in 2013. Some speculations suggest that the People’s Bank of China has been making “secret purchases,” and according to a Reuters.com article, China has now opened its capital, Beijing for gold imports. Because Beijing doesn’t disclose gold trade information, this raises suspicions that the gap in the numbers is even bigger than the difference between gold demand and the official supply number. Allegedly 500 tons of China's gold is unaccounted for. Furthermore, Gordon G. Chang for Forbes.com says, “Speculation about secret gold purchases gives credence to recent rumors, circulating in big financial houses in New York, that Beijing will soon move to full convertibility of its currency and adopt the gold standard.”
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